In order to complete a check transaction, the receiver of a check has to endorse the check itself. Check endorsement is actually very easy. It involves filling up the check receiver’s details on the back of a check where it says “ENDORSE CHECK HERE.” Where indicated, the receiver of the check must add his/her signature.
How can you make a blank endorsement for an issued check in UAE?
To use a blank endorsement, follow the following steps:
Step 1: provide confirmation that the details on the check are accurate
Before you make an endorsement for a check, you need to make sure that the check is one that your bank is able to accept. You also need to ensure that all information that are added on the front portion of the check are accurate. If the individual that issued the check made a mistake e.g. spelled your name incorrectly, then you should give the check back to the person issuing the check and get another check with the correct details.
While there are banks that will accept checks that have been changed just as long as issuer of the check adds his or her initials on top of the change, there are still financial institutions in the country that won’t accept such. This is why it is better if you have another check written with the correct information. A valid check comes with a line found at the bottom that has the account number and routing number. If that line is not present, your banking institution won’t process the check. For more detail visit website.
Step 2: determine the person that needs to do a check endorsement
If only the name of the check receiver is on the check’s payee line, then your signature will suffice in depositing or cashing out the check. In the event that the name of another person is also listed, then the check must also be signed by that specific person. Take note that the “&” symbol or “and” word has to be added in between the two names or signatures.
Step 3: look for the gray lines which are found at the back of a check
Flip over the check that you are to endorse. There is most likely three to five gray lines in it. You will also see solid lines with instructions for not to write anywhere below the line. This is where the bank will have to endorse the check when processing it. You need to make sure that your signature does not extend on the solid line as there is a possibility for a bank to refuse a check if there are writings where there shouldn’t be any.
Step 4: add your signature on the gray lines
In order to endorse the check that you have received, you’ll have to sign using a pen with black or blue ink. If there are differences to your name written on the check and your name on a photo ID issued by the government or on your personal bank account, you’ll have to print the accurate spelling for your name underneath your signature.
If you are signing a check for a business, then you need to include the name of the business on the line that is above your name. You’d also want to include the job title of the person presenting the check to the bank to show that a person authorized has deposited or cashed out a check-in behalf of the business.
Step 5: deposit or cash out the check immediately
As soon as you have signed a check, it’ll become a bearer instrument. This means anyone that finds the check is able to cash it. In the event that you’d still have to travel to the bank, you need to make sure that you don’t sign the check until you’ve reached the bank’s premises.
If you visit the bank in order to cash out a check and you’re not an account holder in that particular bank, you’ll be required in presenting a photo ID that’s been issued by the government. You should also provide your thumbprint for identification purposes.
Can I add restrictions to a check endorsement?
You can add the words, “for deposit only.” When you add on top of the endorsement line, this is now referred to as a restrictive endorsement. This will ensure that the funds of the check will be deposited onto your bank account that’s in your name or the name of the receiver of the check. If someone else finds the check, then they will not be able to get anything out of the check.
A restrictive endorsement is effective when you are mailing a check onto your bank for deposit. This can also be beneficial if you are giving someone else the task of depositing the check on your behalf.
Can I endorse a stale-dated check-in UAE?
Checks are considered as stale-dated six months after their issuance unless they are certified checks. Stale-dated checks mean the items are old, but not necessarily considered as invalid. A financial institution in UAE can still honor the items; however, there’s no obligation in doing so.
Post-dated checks, often confused with stale-dated ones, should not be deposited prior the due date. According to UAE Federal Law (no 9) of 1993 Article 617, beneficiaries of checks are allowed to present the executive documents to the bank only on or following date written on checks and not before. Because of automated processing and large numbers of checks being processed, there are items that may slip through. When a check beneficiary deposits a check that has been written early on, the bank has to be contacted. A financial institution can give the check-up to the due date or a day prior to the due date. In such a case, you will have to make a different arrangement for payment because returned checks can’t be deposited.
Are there penalties for bounced checks in UAE?
Bounced checks are no longer considered criminal offenses in UAE; however, there are acts that constitute criminal liability. This includes check falsification, forgery, withdrawal of account balance prior to the date of the check being encashed, and all other fraudulent uses of a check.