TYPES OF CHECKS

What is a Check?
A Check is a bill of exchange drawn on a bank payable on demand. It is a substitute for money
but has no legal tender power.
Types of Check:
Memorandum Check- a check on which is written the word memo signifying the intention to
pay check upon presentment.
Cashiers Check- drawn by the cashier of a bank in the name of the bank against itself payable
to a third person
Managers Check- the same as the cashiers check, drawn by the manager of the bank in the
name of the bank against itself payable to third person.
Certified Check- a check whereby the word certified is written on its face whereby the
drawee bank agrees to pay upon presentment for payment.
Stale Check- a check not presented within a reasonable period of time after issue. None
presentment renders it worthless and valueless.
Check deposited six (6) months after issue is consider stable.
Treasury warrant is considered stale after one (1) year of issue.
Cross Check- a check, which bears across its face two (2) parallel lines drawn diagonally on the
upper left side. The diagonal lines serve as a warning to the teller that the check is for deposit
only and not for encashment.
Travelers Check- a check denominated in foreign currency used as a convenient method of
supplying the traveler with sufficient fund instead of carrying cash. This check is to be signed
by the buyer at the time it is issued and countersigned before it is disposed. The purpose is to
prevent fraud.