Bank Practice

• Banks can establish a policy that forbids acceptance of a double-endorsed check. Even if the check is drawn on a government account, such as a Treasury check, if the cashier or bank management cannot verify the identity of the two persons who endorsed the check, they can refuse to do so. After the terrorist attacks of September 11, 2001, some banks changed their policies regarding double-endorsed and third-party checks, so policies can differ from bank to bank.
  
  

Uniform Commercial Code Policy

• Under the Uniform Commercial Code, a check can be transferred between holders indefinitely. This situation does not come up very often, which makes a bank look carefully at the check and the person presenting the check. If you have been given a check written out to a friend and this person has both endorsed the check and written the words "pay to the order of ___," you have the same legal rights as the first person who received the check. You are able to present the check at the bank by endorsing it with your own signature.
  
  

Other Options

• Your bank's policy on double-endorsed checks may have gotten tighter, but they may still allow you to exercise one of several options. First, you can deposit the check and allow the bank to place a temporary hold on the funds to verify they are available. Alternatively, go to the bank the check was written on, and have your photo identification ready so you can sign the check and prove who you are. This may be an easier process than the first option because the bank can pull that account up and verify the availability of funds.
  
  If possible, ask your friend to cash the check he gave you, then write a check from his account and give it to you or simply give you the cash. If this option is not possible and banks refuse to cash the double-endorsed check, your last option might be a check-cashing business, but be ready to pay a small fee for cashing the check.
  
  

Law Enforcement Cautions

• Some law enforcement organizations discourage banks from accepting double-endorsed checks, which may make cashing one in your area more difficult. For example, the City of San Diego Police Department provides tips to financial institutions and retailers regarding bad checks, third-party checks and double-endorsed checks. Cashiers learn several precautions to take as they try to prevent theft and check fraud. The SDPD urges cashiers never to accept double-endorsed or third-party checks as payment for merchandise.