Certified Check

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Certified Check

A written order made by a depositor to a bank to pay a certain sum to the person designated—the payee—which is marked by the bank as "accepted" or "certified," thereby unconditionally promising that the bank will pay the order upon its presentation by the payee.

A certified check is considered the equivalent of cash since the bank, by its certification, guarantees it to be cashable. No bank is under a duty to its depositors or anyone else to certify checks since it involves the assumption of a new obligation for which it is primarily responsible. It is a commonplace practice, however, and there is usually a small fee for this service. A certified check is often required by a payee who does not want to rely only upon the credit of the drawer, the person who wrote the check.

A payee who requires a drawer's check to be certified ensures his or her right to payment. Not only can the payee seek payment from the certified bank, but if for some reason the bank refuses to pay, the payee retains the right to enforce payment from the drawer. In this situation the bank is primarily liable while the drawer is secondarily liable.

Occasionally the payee or subsequent holder of the check—a person who has been legally given possession and the right to payment—will present the check to the drawer's bank for certification. Although the bank is obligated to cash the check, it need not certify the check because only it, not the drawer or any subsequent endorsers, would be liable for its payment. Some banks will certify a check in such instances only with the approval of the drawer.

If a bank refuses to pay a check that it has certified, its drawer or holder may sue the bank for its wrongful conduct, called dishonor. A certified check, a type of Commercial Paper or negotiable instrument, is governed by Article 3 of the Uniform Commercial Code.

certified check

n. a check issued by a bank which certifies that the maker of the check has enough money in his/her account to cover the amount to be paid. The bank sets aside the funds so that the check will remain good even if other checks are written on the particular account. Like a cashier's check, a certified check guarantees that it is immediately good since it is guaranteed by the bank and the recipient does not have to wait until it "clears." (See: cashier's check)

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Confusing wording does say she is a winner, and it does say there is a prize of pounds 8,700 payable by certified cheque.
To keep development under control, the town insisted prospective owners put down a certified cheque to be eligible for a draw on the one-acre lots.
Email Money Transfers are the electronic equivalent of a certified cheque - the funds are guaranteed and recipients have immediate access to them," says Bob Grant, Senior Vice-President, Electronic Banking, Scotiabank.
The warrant certificate must be submitted together with (i) a duly completed and executed subscription, in the form attached to the warrant certificate or in the form that was mailed to registered warrantholders with the Notice of Special Meeting of Warrantholders and Management Information Circular, each dated June 28, 2005, specifying the number of warrants that the holder intends to exercise; and (ii) a certified cheque, bank draft or money order in Canadian dollars, payable to or to the order of the Company in an amount equal to the Cdn$1.
Value of the tender document shall be paid upon certified cheque to the name of Saudi Arabian Monetary
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Value of the tender document shall be paid under a certified cheque to the name of Operation & Maintenance
at its principal office in Montreal, the warrant certificates together with a duly completed and executed subscription form, in the form set forth on the reverse of the warrant certificate with cash, a certified cheque, a bank draft or a money order in an amount equal to the total subscription price.

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