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Thread: What I have learned so far.

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  1. #1
    DTBA
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    Talking What I have learned so far.

    Starting with checks.

    These are "NEGOTIABLE INSTRUMENTS" per the Uniform Commercial Code. These instruments can be endorsed. From my understanding signing a check is not endorsing it as we all have been lead to believe. Signature is authorization, for something to happen or take place from that party who signs. It's permission to proceed as all terms are agreed upon. Endorsement of a check is creating a detail on how the check needs to be processed or known as a "Restrictive Endorsement". It is indeed explained in your bank agreement about restrictive endorsement or at least it is in mine. I collected the agreement from my bank and read it. In my account agreement, in order for a restrictive endorsement to be used, it must be agreed upon with the bank prior before it can be used. However, using lawful money demand is indeed in there title 12 banks and banking code that governs them. So isn't this already pre-accepted as a restrictive endorsement through there own code? Using lawful money restrictive endorsement limits there ability to use fractional banking on the instrument when deposited with the bank or cashed.

    Question: Banks are in the business of purchasing securities, is a check a security such as a promissory note? Seems to me all the features are there?

    Please inform me if any information here is incorrect so corrections can be made. There is enough misleading in the world today.
    Last edited by DTBA; 06-15-18 at 09:07 PM. Reason: Request for reformatting.

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