I was issued a check in the amount of $5000. I went to the bank to cash the check. The bank paid me $4996.00 I asked the bank why when it is written on the check pay to the order of me on demand. Well thats our policy. I said i would like to see the policy. The teller searched fpr a while and couldn't comeup with one then directed me to the Manager who assured me this was policy, but could not come up with evidence to the fact. I asked them to mail it to me or email it to me when they found it. I as of yet have received any information from Wachovia, and or B.O.A. Or any other bank that I have asked over the past few years. I am now fed up and am going to do as my Grandfather would have who insidently was a Senator in Michigan. I will file and or collect signatures to submit to our state and file against this practice. I have only done a little research as of yet but these are my findings, but with promising results. Heres the information I have found so far...
Negotiable Instrument Defined This would include any check, or money order that is in bearer form, in other words payable to the bearer on demand without any further conditions to be met or if the instrument is already endorsed without restriction (not endorsed and made payable to a specific entity), made out to a fictitious payee, or structured so that the title of the instrument passes solely with possession of the instrument such as a bearer bond. This would also include an instrument such as a check, money order, promissory note signed but with the payee name left in blank.
Transferable document (e.G., a bank note, check, or draft) containing an unconditional promise or order to pay a specified amount to its holder upon demand or at a specified time.in the U.S., the Uniform Commercial Code governs negotiable instruments.
Written order to pay, such as an acceptance, check, bill of exchange, or promissory note, transferable from one person to another, provided certain conditions are met. When a person cashes a check, he negotiates the check by signing his name on the back and presenting it to a bank, thereby becoming the legal owner of funds represented by the writing on the face of the check. He may take the funds as cash or deposit the money into an account. Checks are negotiable by Endorsement and delivery (also called Presentment) to the paying bank, which is then obligated to pay the check. If an instrument is payable to the bearer, for example, a bearer stock or bearer bond, negotiation is done by simply presenting the instrument.
Under Article 3 of the Uniform Commercial Code, an instrument is negotiable if it is: (1) a written instrument signed by the endorser or maker; (2) an unconditional promise to pay a certain amount of money, either on demand or at a future date; and (3) payable to the holder or bearer. A person who becomes a Holder in Due Course of a negotiable instrument by delivery, or by delivery and endorsement, has an unrestricted claim to the instrument, and can sue other people in his or her own name. Comments and suggestions welcome. Thanks
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