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Check to Order

Check to order is one that's endorsable to a third person who can cash it. For such transfer, the beneficiary must make a written statement with his signature on the back of the document.

In other words, the original recipient's rubric of an order check is indispensable, but the holder can't present it to the bank. On the contrary, if the paper were to the bearer, that kind of authorization would not be required.

It should be noted that a check to order is a type of nominative check, the same that's characterized by specifying the beneficiary and that may or may not be endorsable.

Endorsement of a check to order

The endorsement of a check to order means that it's transferred to another natural or legal person. Thus, the latter is awarded all power over the document.

To endorse a check, the signature and details of the original beneficiary must appear on the back. It can be indicated in favor of whom the transfer is made by adding a text such as the following: "I assign all collection rights to Mr. Julian Gomez", and only that individual may use it.

However, if no writing is added to the rubric, the endorsement is blank. That way, any person to whom the paper is delivered will have the ability to collect it.

Check characteristics to order

Among the characteristics of the check to order are:

- It has the expression "Pay to the order of" or "pay this check to the order of", followed by the name of the original beneficiary. You can also include the phrase "or bearer" with a strikethrough.
- The person who comes to collect must present their official identification to the financial institution.
- This type of check is used as a means of payment. For example, if Raul Jimenez is at your service, he can endorse Javier Cordova, a person with whom he had a pending debt.
- The amount committed can be withdrawn in cash and / or deposited in an account.

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