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Which bank will cash a check written on a napkin?

Discuss topics relating to commerce, economics, finance, as well as UCC topics such as negotiable instrument, collection, etc.

Which bank will cash a check written on a napkin?

Postby grndslm » Fri Mar 10, 2017 5:51 pm

Someone owed (and technically still owes) me a large sum of money. His bank has a few methods for transfer, all of which are limited to $1500 or less. An external ACH transfer would have taken days just to verify the receiving account.

Anyway, the issue is that I needed the money today... and the payer works during business hours, not to mention his work is an hour away from his bank's closest branch.

The only real solution is a check, but the payer had no checks... until we printed one out, which was created by http://printcheckonline.com

The only difference between this check and a "valid" check is that this one didn't have magnetic ink. I made a fuss and asked for them to contact their corporate attorney. They kept going up and up the chain until someone finally just said, call the payer and see if he actually wrote it. They get in contact with payer, and payer is fully aware of the check and verify's his information so that they are content. The only issue is... CAN THEY ACCEPT A CHECK WITHOUT MAGNETIC INK?

Even tho I was technically trying to deposit the check from payer's bank into an account at the same bank, also their customer.... they refused to deposit the check. Even the president of the company came down to tell me that they couldn't do anything about it. The teller who introduced me to the president says, "The issue is...." and I finished, "... that Thomas Jefferson wrote checks without magnetic ink, and his bank would cash his payee's checks without a problem." They even said, "it makes sense".... "we have heard that a check can be written on a napkin", etc..... however, they still refused to deposit the check. Still asking to speak with an attorney, or someone else who actually studied the UCC section on negotiable instruments.... alas, the president said there was nothing they could do.

At this point, I'm really fucking pissed at this bank. I would really love any tips akin to twisting a knife in the belly of the beast. Anyone??

:awesome: Also... I could use some remedy in regards to the payer's bank refusing to cash this check.
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Re: Which bank will cash a check written on a napkin?

Postby grndslm » Fri Mar 10, 2017 6:16 pm

Come to think of it...

The manager kept saying it needed to be processed thru the FED... that there was a FED tracking system or something.

That makes it seem more like every banking transaction is a log in the FED's books... as opposed to a service provided to its customers.
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Re: Which bank will cash a check written on a napkin?

Postby Shoonra » Sat Mar 11, 2017 12:56 am

If the check is authentic it can be processed, even without magnetic ink. Used to be, when I was a little boy, you could get blank checks in a stationery store - you had to fill in everything including the bank's name and everyone else's names.

Handling a check without magnetic ink is a bit cumbersome but there are methods for it.

An alternative, since the payer is honest about signing this, is going back to him and having him write out a check on a proper check form and getting the napkin back in exchange.
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Re: Which bank will cash a check written on a napkin?

Postby grndslm » Sat Mar 11, 2017 2:02 am

Shoonra wrote:If the check is authentic it can be processed, even without magnetic ink. Used to be, when I was a little boy, you could get blank checks in a stationery store - you had to fill in everything including the bank's name and everyone else's names.

The bank manager first said that they couldn't process the check because their bank's name wasn't on it. I told them that I obviously didn't need to buy their own checks and could buy them from any of the thousands of check printing places, or even print my own from Quicken like many businesses do. Do they really need to see their own name at the top of the check, when the routing number is at the bottom (in this instance with the proper symbols surrounding the routing number, which was also in the proper font... unlike an actual napkin written on with pen or pencil). If it's a requirement that a bank's name must be on the check, then we can just do this again on Monday. :twisted:

Shoonra wrote:Handling a check without magnetic ink is a bit cumbersome but there are methods for it.

And those methods are.... not in the UCC. Where are they then? So now that I've researched the UCC a bit more, it appears that it's quite clear... it's an internal transfer from bank's customer to another. The issue about the FED requirements or whatnot is only regards to drawing upon a bank that is not the payer's bank -- in that situation, they would be liable, and that's why they don't "cash" checks for that very reason. But when two customers have the same bank, and they dishonor the proper negotiable instrument.... it appears the bank *is* liable for actual damages....

https://www.law.cornell.edu/ucc/4/4-402

MARYOTT v. FIRST NATIONAL BANK OF EDEN

I wonder if a jury would accept my case that I am from the future and I knew I was going to double down 4x in a row on blackjack at a certain time over the weekend.... but this bank foiled my plan for no legitimate reason, other than they're fucking retarded.... therefore, they owe me at least 8x the amount of the check. In addition, they have caused me undue emotional stress because I cannot purchase the necessary plutonium for my hyper-contacting time infusion bottle... so now I am stuck in the past. :?

Shoonra wrote:An alternative, since the payer is honest about signing this, is going back to him and having him write out a check on a proper check form and getting the napkin back in exchange.

The problem is that I *am* using a proper check. You can go to that same website and use the demo login to print one out yourself. Does it look proper to you? Magnetic ink is not a requirement of the banking industry, because my credit union accepts images of checks and they never even seen the original check with magnetic ink.

After closing my account and the teller handed me my money.... the president, manager, and head teller were all in the office thinking long and hard about what I had said. I really think they were pondering to themselves, "How did Thomas Jefferson cash checks before there was magnetic ink?"
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Re: Which bank will cash a check written on a napkin?

Postby grndslm » Sat Mar 11, 2017 2:04 am

Here's a great crash course of the UCC...

Direct Link: http://law.wustl.edu/SBA/upperlevel/Com ... g1-F03.pdf

As well as uploaded here for safekeeping...
Attachments
Commercial-Keating1-F03.pdf
(396.4 KiB) Downloaded 5 times
A lawyer cannot claim that you have rights. -- U.S. v. Johnson, 76 F. Supp. 538

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Re: Which bank will cash a check written on a napkin?

Postby grndslm » Sat Mar 11, 2017 4:41 am

This looks like some good reading. Will definitely be the first document I read on the can at work tomorrow. :D

http://lawdigitalcommons.bc.edu/cgi/vie ... ntext=bclr

Also uploaded for safekeeping...
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Wrongful Dishonor of a Check- Payor Banks Liability Under Sectio.pdf
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A lawyer cannot claim that you have rights. -- U.S. v. Johnson, 76 F. Supp. 538

"When Tyranny becomes Law, Rebellion becomes Duty." -- Someone from the Confederacy, circa 1860
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Re: Which bank will cash a check written on a napkin?

Postby Jethro! » Sat Mar 11, 2017 11:35 am

Some banks are a lot more Nazi about check cashing than others, even different branches of the same bank may have radically different "policies" (in practice) from one to the other. I believe it's more about the people and the personalities running the branch than the paper policy. For example, sometimes a bank won't even ask for ID when cashing a check, then the next time they'll ask for ID (and accept it), but the next time not accept it, and then the next time call the writer of the check to "verify" that he wrote it. Same thing for "check cashing fees" -- a bank says it's "mandatory" (hint: it's not), but after a call from the check writer telling them to knock it off, they "waive" it and never bring it up again. There's little rhyme or reason to it, except the personalities of the people involved (hint: women are the worst as far as being "rule sticklers", though flirting with them often breaks that barrier :)

So for cashing a check written on a napkin, yes, they should do it, assuming it's authentic. A check is just an instruction from an account holder to his bank to pay someone a certain amount. They should cash it. If they don't, usually a threat from the check writer to close the account adjusts their attitude very quickly.
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