Thanks to all for educating some of us uninitiated in these matters. I am intending to open a new modified-agreement bank account within the next 2 weeks (or credit union) and will attempt to get my checks as 'Pay To' instead of the typical 'Pay To the Order of'. Questions I have regarding a lawful money transaction via checks payable to merchants:

If my account is a modified-agreement (R4LM novation on the signature card): Is my debt obligation satisfied at the time of the check transfer (payment from my bank to payee) if the check reads 'Pay To the Order Of'? I'm thinking just always issue 'Pay To' to avoid any doubt.

If my account is NOT a modified-agreement but all my deposits into that account are with lawful money, must one issue a 'Pay To' check to satisfy ones debt obligation where the payment is not further extended/loaned as a result?

I guess the bottom line here is, when is issuing a check 'safe' where the debt is not further extended as credit beyond that transaction where the payer would otherwise in effect be loaning the money to the payee (and his bank) instead of just 'buying goods and services'?