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    Certified Cheque and Cashier Cheque

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    S K Mahapatra
    The document defines and compares the key features of certified cheques and cashier's cheques. A certified cheque is drawn from an individual's bank account and guaranteed by their bank, while a cashier's cheque is drawn from the bank's own funds. Both certified and cashier's cheques guarantee payment by the bank, but a cashier's cheque provides additional protection since it is not tied to an individual's bank account.

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    Certified Cheque and Cashier Cheque

    Uploaded by

    S K Mahapatra
    1K views2 pages
    The document defines and compares the key features of certified cheques and cashier's cheques. A certified cheque is drawn from an individual's bank account and guaranteed by their bank, while a cashier's cheque is drawn from the bank's own funds. Both certified and cashier's cheques guarantee payment by the bank, but a cashier's cheque provides additional protection since it is not tied to an individual's bank account.

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    The document defines and compares the key features of certified cheques and cashier's cheques. A certified cheque is drawn from an individual's bank account and guaranteed by their bank, while a cashier's cheque is drawn from the bank's own funds. Both certified and cashier's cheques guarantee payment by the bank, but a cashier's cheque provides additional protection since it is not tied to an individual's bank account.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Certified Cheque and Cashier Cheque

    Uploaded by

    S K Mahapatra
    The document defines and compares the key features of certified cheques and cashier's cheques. A certified cheque is drawn from an individual's bank account and guaranteed by their bank, while a cashier's cheque is drawn from the bank's own funds. Both certified and cashier's cheques guarantee payment by the bank, but a cashier's cheque provides additional protection since it is not tied to an individual's bank account.

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    © All Rights Reserved
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    Features of Certified Cheque and

    Cashier Cheque
    Published on Friday, November 03, 2017
    By Admin

    Certified Cheque
    Definition:
    According to the Office of the Comptroller of the Currency, certified cheque is “a
    personal cheque drawn by an individual that is certified — guaranteed — to be good.
    The face of the cheque bears the word ‘certified’ or ‘accepted,’ and is signed by an
    official of the bank or thrift institution issuing the cheque.”

    Features of Certified Cheque


    o As the name itself draws a meaning certify which means a guarantee carry by the
    payer's bank.
    o A certified cheque is the written approval for a particular cheque by the bank that
    the signature of the bank customer on that cheque must be genuine and there is
    an ample amount of fund in the customer's account to clear the cheque when the
    cheque is presented for the payment.
    o A certified cheque must be signed by both the party i.e. a customer and a bank.
    The bank and a customer are liable to pay under the UCC sec. 3409(d).
    o If there is any problem regarding the certified cheque, both the bank and a client
    are responsible for giving assistance in a lawsuit to the beneficiary.
    o A bank can impose terms and conditions upon its certification like a certified
    cheque becomes void after 60 days. if the cheque has been certified by error or
    acquired by fraud, in that case, it is corrected by cancelling the certification and
    send notice to the payee if the payee has not written " in reliance" on the certified
    cheque.
    o This type of reliance would occur if the goods have been exported by relying on a
    cheque.
    o In certified cheque, there is a possibility of forgery in that case a bank is not liable
    to pay for the forgery cheque.
    o A Certified cheque is the one which has an offer of the bank, certified on the
    cheque that funds were available in the amount of the cheque at the time the
    cheque was originated and the signature on the cheque is legitimate.
    o A bank will keep aside the funds and it will be only used to pay the certified
    cheque. If a cheque is not a fake, you no need to issue depositing funds into your
    bank account.

    Cashier’s Cheque
    Definition
    o A cashier’s cheque is “a cheque drawn on the funds of the bank, not against the
    funds in a depositor’s account.”
    o Unlike a certified cheque, which is paid out of your own account, a cashier’s
    cheque is issued by a bank.
    Features Cashier’s Cheque
    o Cashier's cheque is also known as teller's cheque or an official cheque. A
    cashier's cheque which is confirmed by the bank, drawn from its own fund and
    signed by the cashier.
    o Cashier's cheque is guaranteed by the bank, unlike a usual cheque which is
    guaranteed by the purchaser.
    o Cashier's cheque is used instead of cash. Personal cheques, credit cards, money
    orders and much more.
    o A cashier's cheque is the one which is drawn by the bank on itself; a bank agrees
    to accept when properly presented for paying.
    o A cashier's cheque is not signed by the customer but it is signed by the bank.
    o A bank is responsible for the payment of cashier's cheque under section 3104(3)
    g.
    o A bank will keep aside some amount of money in advance from the customers'
    account to pay itself when a payee presents the cheque for the payment.
    o In cashiers' cheque, if there is any problem regarding the payment of the
    cashier's cheque in that case you can directly ask to the bank and demand
    remedies for it.

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