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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Each Proposal submission must be accompanied by a Bid Deposit in the form of a certified cheque, bank draft, money order or irrevocable letter of credit in the amount(s) not less than Five Thousand Dollars ($5,000.00).
A certified cheque of 10 per cent of the submitted tender, the county's previous policy, would have likely exceeded the financial capability of many local general contractors.
Bidders need to get approval from the central bank and also need to deposit a certified cheque for 10 percent of the value of their bid.
Before that could kick in, he scrapped together the money and personally returned the full amount in a certified cheque to stunned NODC executives in Queen's Park.
A:A certified cheque is one that should never bounce, because the bank has confirmed that cash in the issuer's account will meet it.
TR, Doha Answer: "Mudeer cheque" is nothing but "certified cheque" or manager's cheque or banker's cheque.
Bid Deposit Each Proponent shall submit with their Proposal a Bid Deposit in the form of a bank draft, certified cheque, irrevocable letter of credit or money order in the amount of $500.00 for each arena bid which will serve as a Bid Deposit.
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.
If the successful bidder has submitted a certified cheque, bank draft or letter of credit in lieu of bonding, the bidders certified cheque, bank draft or letter of credit will be retained for the duration of the project as both bid and performance security.
Or a - Certified cheque in an amount not less than 10% of the Total Tender Price.
Tenders must be accompanied by a bid security in the form of a Bid Bond or certified cheque in the amount of 10% of the tendered price, payable to the City of Regina and a Consent of Surety to furnish a Performance Bond in the amount of 25% of the tendered price.

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