Joint endorsement definition
/What is a Joint Endorsement?
A joint endorsement is a requirement that both parties to whom a check has been paid must sign the back of the check. Otherwise, it will not be accepted by the bank for processing. This requirement is intended to keep one of the payees from cashing the check without the knowledge of the other payee. This requirement is not mandated when a check is made out to a married couple, since the cash is going into their joint account, which they can both access.
However, a joint endorsement is usually required when the check was issued by the United States government. For example, a bank will generally require a tax refund check that is made out to a couple to be jointly endorsed by them, even though the check will be deposited into their joint account.
Generally, joint endorsement is required when the payee names on a check are separated by the word “and,” such as “Alice Johnson and Frank Johnson.” The enforcement of these rules varies by bank.
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Examples of Joint Endorsements
Here are several examples of joint endorsements:
Check payable to a married couple. John and Sarah receive a refund check from their mortgage lender made payable to "John Smith and Sarah Smith." Since the check is issued to both individuals with "and," both John and Sarah must endorse the back of the check before depositing it into their joint bank account.
Business partners receiving a payment. A company issues a check payable to "David Johnson and Emily Carter" as payment for consulting services provided by their partnership. Since both names are listed, both David and Emily must sign the check before it can be deposited into their business account.
Check issued to a parent and minor child. A tax refund check is issued to "Jane Doe and Michael Doe (minor)" for a child-related tax credit. Since Michael is a minor, Jane, as the parent or legal guardian, must sign for both parties or follow the bank's policy for cashing or depositing the check.
Insurance settlement check payable to two parties. An auto insurance company issues a claim payment check to "Tom Baker and ABC Auto Repair." Since both Tom (the car owner) and the repair shop are listed as payees, both must endorse the check before it can be deposited or used to pay for repairs.
Estate settlement check payable to co-executors. An estate distributes funds, issuing a check to "Linda Brown and Mark Brown, Co-Executors of the Estate of Robert Brown." Both Linda and Mark must sign the back of the check before it can be deposited into the estate’s account.