Which of the following is required for an existing customer to cash an on-us check?

Which of the following is required for an existing customer to cash an on-us check?

• A. Endorsers' signatures only
• B. Maker's signature only
• C. Maker's signature and endorsers' signatures
• D. T-bar or KC must be written on the check

Answer: (C)

The important idea is how checks are negotiated when the bank paying is the same one that issued the check (an on-us item). For an existing customer to cash an on-us check, the bank needs to verify both who created the check and who is presenting it. The maker’s signature on the front shows the authority to transfer funds, while the endorsers’ signatures on the back prove the current holder has the right to negotiate the check onward and receive payment. Together, these signatures establish a valid chain of title and give the teller assurance that the item is properly authorized and negotiable. The requirement about special markings (like a T-bar or KC) isn’t what determines eligibility here.

The important idea is how checks are negotiated when the bank paying is the same one that issued the check (an on-us item). For an existing customer to cash an on-us check, the bank needs to verify both who created the check and who is presenting it. The maker’s signature on the front shows the authority to transfer funds, while the endorsers’ signatures on the back prove the current holder has the right to negotiate the check onward and receive payment. Together, these signatures establish a valid chain of title and give the teller assurance that the item is properly authorized and negotiable. The requirement about special markings (like a T-bar or KC) isn’t what determines eligibility here.