New Promissory note

[Keith Alan]

A receipt is evidence of Title and therefore it has value...

True, but I suppose someone could sell the non negotiable instrument.

[Michael Joseph]

I suppose you are right - but it cannot be assigned. Many times when I don't feel like visiting a bank, I just take the check made out to me and assign it to another party. An Allonge comes in handy to show chain of title.

Look it up. You will be pleased with what you find.

Shalom,
MJ

[mikecz]

I suppose you are right - but it cannot be assigned. Many times when I don't feel like visiting a bank, I just take the check made out to me and assign it to another party. An Allonge comes in handy to show chain of title.

Look it up. You will be pleased with what you find.

Shalom,
MJ

So a check is basically transferring title to money from one individual to another. When you endorse it, you are agreeing to the terms of the title transfer. Unless you cash it, really, it still is just a contract. The bank, after it is endorsed in blank, "cashes" it from the drawing bank, and now holds title to it. You loan them the check the second you give it to the teller. Really, outside special circumstances, the payee is the only one that can agree or endorse it. When it is endorsed, the "contract" is enacted, correct?

You can sign over a check to someone else by just putting "pay to the order of... "name"" then signing it below. One assignment can fit on the back of a check, other further assignments may require an allonge. The receiving party, the one you signed it over to, has to provide an endorsement in order to cash/deposit it.

I'm actually dealing with a chain of title on my property now, so it's interesting to think of checks in this context. I can't trace my property assignments yet back to the original Land patent, I'm actually working on this now. It's also interesting to think of a receipt as proof of a transfer of title. At a homestore, you may purchase a hammer. The title sits with "Lowe's", the retailer. You give them money or credit card, whatever, and they give you a receipt, or proof of title transfer. You now have the hammer, and have a receipt to prove a legal transfer of title happened.

How can one endorse a check as to accept the terms of the contract, but not sign legal title over to the bank. I think this is why the signature card makes sense. You can endorse all day, and put cash into your account, but, any "money" deposited in that account is construed to transfer title to the bank. Correct?

[Michael Joseph]

A check is NOT legal tender. It is a private issue. But it is evidence of title transfer. Therefore, you can write one check and assign it an unlimited number of times before any bank receives the deposit. An alonge is just evidence of chain of title. So then an Alonge is a Trust Indenture - passing title from a Grantor to a Grantee.

Each party will either make a demand for lawful money or not.


Demand is made for Lawful Money per 12 USC 411 by: Signature
PAY TO THE ORDER OF : Name of Business Entity or Person


Shalom,
MJ