Big checks

Factual Questions
21

I knew a guy that owned a bar. His son tended bar on Friday nights and a lot of people would come in to cash their payroll checks. This might sound odd to some people, but back in the 60’s the bars in my hometown would gladly cash your payroll check to get your business.

Anyway, the bartender was real busy, not paying close attention, and not being the brightest bulb in the box, he cashed one guy’s check STUB. Yep, the guy gave the bartender his check STUB (same size as a payroll check), and the bartender cashed it like a payroll check.

So, the bar should be able to deposit the STUB like it was a check? I don’t think so.

22

I believe that most big photo-op checks are non-negotiable, and the winner (or recipient of the donation, or whatever) is given a normal-size check. I do have some personal experience with this – a relative was given a novelty check as a prize in a slot tournament, and was given a normal-sized check as well.

23

In fact, I have a gigantic novelty check sitting right here in my room with me, given to me by my employer a couple of years ago. The check looks real (and is signed by the CEO), but all of the routing numbers, etc are totally fake. They direct-deposited the actual money.

Fat Bald Guy, I suspect that most oversized publicity checks work the same way – that they’re followed up by an actual, cashable normal-sized check.

24

Almost entirely off-topic, but not quite. I once held in my sweaty little hands a check for $600,000 – a friend of mine worked for a record producer, and a record label sent him the (famous, wealthy) band’s royalty check instead of his own. My friend made sure I stopped by the office to observe this remarkable artifact before sending it back. (After surmising that it would be difficult to legally change one’s name to this band’s name and cash the check himself.)

Sadly, the check was normal in dimensions and not carved into a tortoise’s shell or anything like that.

Considering the state of my bank account, I may start writing nanochecks, which can only be seen under a scanning electron microscope. It might cause payments to clear a few days later than usual…

25

You can certainly write a cheque on blank paper if you like. I owe my dad a bit - perhaps he’ll let me confirm that for you. :wink:

OTOH, in the situations AskNott don’t (IMHO) fall under the category of “debt”. If Safeway doesn’t want to trade a jug of milk for my sock full of pennies, that’s their prerogative, and since no debt has been incurred, they have no obligation to accept it.

If they were to charge me 2.50 after I knock said jug on the floor, then that would be a debt and the “legal tender” argument may be more effective.

26

Damn you. I wanted to go home, but I guess that’s me.

27

It’s only happened a few times in my life, but I’ve paid using modified pre-printed deposit slips when I’ve run out of checks. You write in Pay to the Order of: and their name, fill in the amounts as if it were a check, and sign the bottom. It was probably done at grocery stores in Ohio - the first time the checker talked me through the process.

That was a quarter of a century ago, though, and before ATMs. Things may have changed.

I remember a TV show when I was really young. It might have been Art Linkletter’s People are Funny. Or maybe not. They made a billboard with a signed check on it and gave it to a deserving young couple. The couple could have the money if they could get a bank to cash it. They had to work hard removing the thing in pieces and then re-assembled it in the bank’s lobby.

It wasn’t pre-arranged, but I’m sure the bank was aware of the cameras. The decision go kicked up to the head of the branch. It wasn’t just accepted by the tellers.

28

Per UCC (1990) 3-104(d):
“A promise or order other than a check is not an instrument if, at the time the promise or order is issued or first comes into possession of a holder, the promise or order contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.” (emphasis added)

Per Brady, Par. 2.17:

“Whether the use of such language [‘non-negotiable, non-assignable or non-tranferable’] in a check would be effective is doubtful under the 1990 UCC.”

29

Oh, I forgot. The is general information and not legal advice to be relied upon in real life. I’m not your lawyer, and you aren’t my client. I’m probably not even licensed in your state. If you want to try this at home, see a lawyer licensed in your state for meaningful advice.

Now can I go home?

30

Oh, and for the more general question, here’s 3-104 (Alaska version) in it’s entirety. I’m ignoring the possibility that this may be varied by agreement in an account agreement. That wouldn’t normally affect the liability between the drawer and payee of a non-standard (giant novelty or whatever) check, though.

3-104:

a) Except as provided in © - (d) of this section, “negotiable instrument” means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if the unconditional promise or order
(1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
(2) is payable on demand or at a definite time; and
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do an act in addition to the payment of money, but the promise or order may contain an undertaking or power to give, maintain, or protect collateral to secure payment, an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or a waiver of the benefit of a law intended for the advantage or protection of an obligor.
(b) “Instrument” means a negotiable instrument.
© An order that meets all of the requirements of (a)(2) - (3) of this section, and otherwise falls within the definition of “check” in (f) of this section, is a negotiable instrument and a check.
(d) A promise or order other than a check is not an instrument if, at the time the promise or order is issued or first comes into possession of a holder, the promise or order contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this chapter.
(e) An instrument is a “note” if the instrument is a promise and a “draft” if the instrument is an order. If an instrument falls within the definition of both “note” and “draft,” a person entitled to enforce the instrument may treat the instrument as either.
(f) “Check” means a draft, other than a documentary draft, payable on demand and drawn on a bank, or a cashier’s check or teller’s check. An instrument may be a check even though the instrument is described on its face by another term, such as “money order.”
(g) “Cashier’s check” means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(h) “Teller’s check” means a draft drawn by a bank
(1) on another bank; or
(2) payable at or through a bank.
(i) “Traveler’s check” means an instrument that
(1) is payable on demand;
(2) is drawn on or payable at or through a bank;
(3) is designated by the term “traveler’s check” or by a substantially similar term; and
(4) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(j) “Certificate of deposit” means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.