[Boatanchors] Fw: intrested in buying the radio- OT, Last Time

[Gary Maples]

Warning:  This thread is now OT.  If you have any other questions 
about checks, money orders, wires or bank operations, please 
email me direct. I have 28 years experience as a banker and I 
will be more than happy to share what I have learned just as I 
have been able to share in the electronic expertise on this list. 
  This does relate to boat anchors in the sense that many of you 
buy and sell them and the desire to get paid is always important! 
   However, I do believe we are crossing over the line.

Greetings:  A short primer on check cashing:
1. Definition of cashing a check:  Converting a paper instrument 
(a check) into cash in one transaction typically at a teller counter.
2. Banks are not required to cash checks even for customers (they 
can if they feel the check presented is good, but they are not 
obligated). The slightest doubt can trigger a refusal to cash. 
They can refuse cashiers checks from other banks, or even state 
or government checks.  Non customers seldom get checks cashed 
they bring into a bank.
3. The chance of a customer getting an out of state cashiers 
check cashed is related to the average balance the customer keeps 
with the bank, i.e., you have $10K on deposit with the bank and 
you want to cash a $300 cashiers check from an out of state bank. 
  It will probably be done.  Why?  'Cause if the cashiers check 
is bogus the bank will charge it back against the customers 
account. But, don't try to cash a $10k cashiers check if you have 
an average $300 balance!
4. Banks are required to accept deposits from their customers. 
However, they can put a hold on those funds ("hold" means the 
amount  will be in your account but you will not be able to draw 
it out). Holds can be up to 14 days.  Why so long?  Time enough 
for the cashiers check to travel to the out of state bank and be 
rejected if it is counterfeit.  If it doesn't come back in that 
time period, it is considered good and the hold is taken off the 
funds in the depositors account.
5. Can the bank tell if an out of state  cashiers check is good 
at the time it is handed to the teller?  In general, no. The most 
common way of finding out is to put it into the Federal Reserve 
check collection system and see if it comes back.  Could your 
bank call the out of state bank and see if the cashiers check is 
good?  Yes they can, but it is still not proof positive as 
scammers have a way around that (which will not be detailed here).
6. Customer or non customer, if I can convince the teller to cash 
an out of state cashiers check, and I've got the money and the 
bank has the check and the check turns out to be bogus, do I have 
any liability to the bank for the bad cashiers check?   Yes! By 
endorsing the back of the check with your signature you are 
guaranteeing to the bank that you will make good the check if it 
turns out to be bad.  This is known as the holder in due course 
concept.  The bank gave you money but in return you give a 
promise to give it back if the bank can't collect the check. 
Now, you can see why we don't cash checks for non customers. 
Even if they have promised to give the money back via their 
endorsement, how do we find them?  Obviously, on the other hand, 
we might cash an out of state cashiers check for customer, 
because we know where to find them if the check is bad!

Note:  The above information is general in nature, there are 
always exceptions and differences in policies and community practice.

73, Gary W9OAK

P.S.:   Its common practice in the banking industry to spell 
"cashiers" with out the apostrophe.



W4AWM at aol.com wrote:

> In a message dated 6/5/2004 7:16:09 AM Eastern Standard Time, WA1KBQ at aol.com 
> writes:
> 
> 
>>Couldn't you just take the check to your bank and present it to a teller 
>>for 
>>cash? It would bounce right then wouldn't it?
> 
> 
> Not really, unles there is something suspicious about the check.  When you 
> make a deposit, most banks hold your account liable until the money is cleared 
> and deposited to the bank's account by the federel reserve. Until then, the 
> bank can remove the amount from your account if the check bounces anywhere along 
> the line.
> 
> 73,
> 
> John,  W4AWM
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