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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A cashier's or certified check in the amount of $13,000.
Bidder shall submit with the bid a certified check, cashiers check or bid bond in the amount of ten percent (10%) of the total price bid, but not in excess of $20,000, payable unconditionally to Franklin Township, along with a Certificate (Consent of Surety) with Power of Attorney for full amount of bid price from a Surety Company authorized to do business in the State of New Jersey and that said Surety will furnish a Performance and Payment Bond in amounts of 100% of successful bidders contract.
A cashier's or certified check for $125,000 is required to bid on the property.
Each bid must be accompanied by a certified check, cashier%s check or draft in the amount of five percent (5%) of the total bid, and drawn on a solvent State or National Bank, or a ten percent (10%) Bid Bond issued by a surety authorized to do business in the State of South Dakota and payable to the City of Brookings, South Dakota.
The balance of the purchase price was to be paid at closing in the form of cash, certified check or bank check.
A bid security in the form of a Bid Bond, cashier%s check, or certified check made payable to the Purchaser in the amount of ten percent (10%) of the total bid shall be required.
Buchman was unprepared to make a bid, he asked the referee for time to go to his bank to secure a certified check for the downpayment deposit.
Each bid must be accompanied by a bid deposit of 5% of the total base bid price in the form of a cashier%s check, certified check, or bid bond.
Each bid shall be accompanied by a "Bid Security" in the form of a certified check made payable to the MAC in the amount of not less than five percent (5%) of the total bid, or a surety bond in the same amount, running to the MAC, with the surety company thereon duly authorized to do business in the State of Minnesota.
The bid Guarantee can be in the form of a certified check or cashier%s check made payable to the PHA; a U.S.
A certified check will be required in order to bid at the auction.
A bank cashier%s check, bank draft, or certified check equal to the amount specified is acceptable in lieu of a bid bond.

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