What Is Check to Order? Definition of Check to Order, Check to Order Meaning and Concept

Definition of check to order is one that is endorsable to a third person who can cash it. For such transfer, the beneficiary must make a written statement with his signature on the back of the document.


In other words, the signature of the original recipient of a check made to order is essential, otherwise its holder cannot present it to the bank. On the contrary, if the paper were bearer, that kind of authorization would not be required.


It should be noted that a check made to order is a type of nominative check, the same one that is characterized by specifying the beneficiary and that may or may not be endorsable.


Endorsement of a check to the order


The endorsement of a check to the order means that it is transferred to another natural or legal person. Thus, the latter is awarded all power over the document.


To endorse a check, the back must include the original payee's signature and information. It can be indicated in favor of whom the transfer is made by adding a text such as the following: "I assign all collection rights to Mr. Julián Gómez", and only that individual may use it.


However, if no writing is added to the rubric, the endorsement is blank. That way, anyone to whom the paper is given will have the ability to collect it.


Check to order characteristics


Among the characteristics of the check made to order, the following stand out:

  • It bears the words "Pay to the order of" or "Pay this check to the order of," followed by the name of the original payee. The phrase "or bearer" may also be included with a strikethrough.
  • The person who comes to collect must present their official identification to the financial institution.
  • This type of check is used as a means of payment. For example, if it is at the command of Raúl Jiménez, he can endorse it to Javier Córdova, a person with whom he had an outstanding debt.
  • The committed amount can be withdrawn in cash and / or deposited into an account.
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