... Cheques

Accepting a cheque

This cheque is similar but says 'payable to Robert Nissan or order'. This means that if the cheque is paid to anybody other than Robert Nissan, it must be endorsed by him. The second image shows the reverse side of the cheque. It has been endorsed.

It is not illegal for Robert to authorise a friend to deposit his cheque into their account. This is called depositing a third party cheque. However, a bank has no protection for these under the Cheques Act. So, if a third party cheque is marked Not Negotiable it is risky for a bank to accept it. Therefore, tellers have no authority to accept such cheques. If presented with one, they must ask a supervisor, who can sometimes approve it in special circumstances.