If a check is made payable to two payees with 'and' between their names, who must endorse the check?

If a check is made payable to two payees with 'and' between their names, who must endorse the check?

• A. The bank must endorse
• B. Both named payees must endorse and include both T-bars or account numbers
• C. Endorser must be a manager
• D. Only one of the two needs to endorse

Answer: (B)

When a check is payable to two people with “and” between their names, it is a two-party instrument. To negotiate it, both payees must endorse the check—each signs the back. In addition, they typically should include both T-bars (the two vertical lines that separate endorsements) or their account numbers so the bank can clearly identify and credit the funds to the correct accounts. A single endorsement by just one payee isn’t sufficient for this kind of instrument, so the necessary action is that both named payees endorse and include their identifying marks or numbers.

When a check is payable to two people with “and” between their names, it is a two-party instrument. To negotiate it, both payees must endorse the check—each signs the back. In addition, they typically should include both T-bars (the two vertical lines that separate endorsements) or their account numbers so the bank can clearly identify and credit the funds to the correct accounts. A single endorsement by just one payee isn’t sufficient for this kind of instrument, so the necessary action is that both named payees endorse and include their identifying marks or numbers.