Skip to main content

What type of account, and where, I need to open in order to deposit checks written to other people's or other business's names?

Portland, OR |

I am a funds locater . I am branching into an area where the government agencies will issue the checks only on the beneficiaries names or both my name and the beneficiaries names . My bank indicated they will not accept checks issued in other names , even if I will have a Power of Attorney specifically allowing me to deposit these checks for my customers and then disburse their share of funds . I know attorneys use IOTA ? type accounts . I am not one . Not being able to deposit and disburse these checks will greatly diminish my ability to do business . The bank's explanation , which makes sense , was that anyone can steal or find a check on someone's name and negotiate it . My business is legit and my criminal record is spotless . What type of account i . e . trust , escrow , etc . can I ask for ?

+ Read More

Attorney answers 1


You may find a bank that will agree to this, but , as your recognize, it does pose a substantial risk and you may have a very tough time find a bank willing to honor multiple powers of attorney. Perhaps you can find a bank or financial institution willing to allow such deposits if you provide a bond or substantial compensating balance.

When attorneys deposit checks in their trust account, they usually are dealing with checks payable to the attorney, or with checks actually endorsed by the payee to the order of the attorney.

This comment is general in nature and is not intended as legal advice. It does not create an attorney client relationship and obviously is not confidential. You should contact an attorney in your area who can review with you all of the relevant facts and give you specific legal advice.