1. 4.02 C Check Writing & Endorsements
Students will understand and apply steps in writing checks & appropriately endorsing checks.

2. Parts & Parties to a Check/Share Draft
Number
Drawer’s Name & Address
Joint Account
ABA #
3. Payee
2. Check
Date
Melanie Paige
Charles Paige
619 Main Street
Raleigh, NC /1034
July 16, 2010
Pay To the Order of _____Donnie Tatum______________________$100.50
_One hundred and 50/ DOLLARS
State Credit Union
For _______________ Charles Paige
2131/1034:
4- numeric amount
5- amount in words
7. Drawer’s Signature -
Last item completed on check!
Bank Name - Drawee
6. Memo
MICR Banking #s

3. Parties to a Check/Share Draft*
Checking accounts are a legal contract between drawer and drawee.
Drawer demands action from the drawee.
Examples of demands:
Process check from account
Accept deposits into account
Drawer
owner of the account who signs the check
Drawee
bank or other financial institution that pays a check presented for payment
Payee
person to whom the check is written
*Share Drafts are issued by credit unions, but process like a check.

4. Check Writing Procedures
Write information in the check register first, (ensure checks are written in numerical order)
Write the date the check is written.
Write the payee’s name.
Write in the numerical amount of the check.
Write in the amount of the check in words.
*Numeric and amount in words should match
Write in the purpose of the check in memo section
Sign the check using authorized signature.

5. Keep Accurate Records! Check Register Balance
To keep a continuous or running balance:
Start with beginning balance , then record
+ deposits
- checks written
- debit card transactions
- ATM transactions
- service fees charged
= Ending Balance

6. How Do I Know the Amount in my Checking Account?
Check Register/stub is YOUR documentation of how much money is in your account?
What if mistakes are made?
You will make corrections when you reconcile (balance) bank statement
Keep a Check Register or Check Stub* Continuous Balance
Subtract checks written (or debit card transactions) from balance
Add deposits to balance
Keep a running balance after writing checks or making deposits
*Check stub is part of check that stays in check book. Check details and a continuous “running” balance is maintained.

7. Check Endorsements
Definition: Signature of the payee on the back of a check, may include additional instructions
allows the payee to cash the check, deposit the check or transfer payment of the check to someone else.
Different types of endorsements:
What type of endorsement should I use ?
1. Blank – to cash check
2. Restrictive – to deposit check into account, or
3. Full/special – to transfer payment of the check to someone else
* Endorsement provides legal proof that the payee received the funds

8. Endorsements How should a check be endorsed?
Endorser (payee who is signing)
should sign the check the way it is on the front of the check and
if the name is misspelled, correct the signature directly up under the first endorsement

9. DO NOT WRITE BELOW THIS LINE
Blank Endorsements
Should match payee’s name
Signed with endorser’s name only (endorser is payee from front of check)
Can be cashed by anyone who holds the check with a blank endorsement!
Don’t use blank endorsement before you are ready to cash or deposit!
X Jane Doe
DO NOT WRITE BELOW THIS LINE

10. Special/Full Endorsement
Transfers payment of a check to someone else.
Payee signs check , then writes “pay over to” another person
Can be used to make payment on a debt
Juan is payee on check
Juan owes Maria money
Juan transfers payment to Maria.
Debt = money owed
Might also endorse:
Juan Delgado
pay over to
Maria Fernandez

11. Full/Special Endorsement Example
Transfers payment to someone else
Payee signs the check over to another person to receive payment
Who was payee on check? John
Who was the check transferred to? Jane
X Pay to the order of
Jane Doe
John Doe
DO NOT WRITE BELOW THIS LINE

12. Restrictive Endorsement
Limits use of the check so it can be deposited only to endorser’s account.
Safest type of endorsement
Cannot be cashed by a thief or someone who finds the check
Best to use when mailing a check for deposit or when using the ATM for deposit.
Stamp often used by businesses
for speed and convenience