Certified Check; When a check is certified, it means that the bank has confirmed that the person who writes it is a depositor of that bank and that the money has been set aside by the bank for payment of that particular check. The bank is now responsible and liable for payment. The depositor has no further access to that money. Payment cannot be stopped on a certified check. Certified checks will not be dishonored unless the bank fails and is uninsured.
To have a check certified, you present it to the bank on which it is drawn. An officer stamps the certification across the face of the check and adds his or her signature. A check is normally presented for certification by the person who writes it, but it can also be done by the person who receives it, as in the case of a check which will not be cashed until some future time when the service for which it is presented has been performed.
What Characteristics You Must Have In Certified Check
- The account holder is the only one who can request certification.
- Must be nominative, ie be in the name of a person or a specific company.
- It is not negotiable, so you can not assign your rights through endorsements and can only be exchanged for the beneficiary, who must collect it or deposit it in your account.
- Together with the legend indicating that the check is certified, it must contain two signatures of officials authorized by the bank.
The certified check is very important.You can make the collection or transaction of money, also allows you to be sure of the amount of money that you are going to deposit or withdraw.It is more than anything an easier and safer way to carry out the protection of money against any type of fraud. Besides that it is regulated by law, which allows you to have security in transactions with checks.
When depositing a certified check , it passes through the clearing house, which is the means by which the banking institutions make cash the collection of checks from other banking institutions, which have been deposited by their customers.
The certified Check Has Expiration
How long can a cashed check be cashed? This is one of the most asked questions by people who charge through this type of checks. Although many think they can go and collect it when they want, we should know that this is not the case. The certified checks or formed has a validity period defined as the place in which it was issued:
- If the check has been issued;it must be cashed within 15 days
- In the event that it has been carried out abroad but within Europe, it must be charged within 20 days.
- Checks made outside of Europe must be submitted for collection within 60 days.