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I need to forestall the payee from assigning or endorsing — are these the correct legal terms? — my cheque to someone else. For example, I shall forfend my real estate agent or car salesman from assigning my cheque to someone else. Why? I have read so many lawsuits and cases where shifty agents or salesmen abuse and defraud cheques!

Should I write "Not Negotiable"? "No transfer allowed"?

"For Deposit Only" is wrong and doesn't answer my question — because this means that "the check must be deposited into the bearer's account, i.e., it can't be cashed; it doesn't mean the bearer must be the same person it's made out to".

I already know — and am NOT asking — about writing NOT NEGOTIABLE between two lines on the front. Your answer must describe what to write above Endorsement line! Even if meaningless, I must write something above Endorsement line, to forestall sly agents or salesmen from fraudulently writing something there!

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    This depends on jurisdiction, regulations vary. In the US, for example, you cannot prevent the bearer from reassigning the check (it says "pay to the order of", not "pay to" on the standard check).
    – littleadv
    Commented Mar 11, 2022 at 5:05
  • @littleadv I just tagged this UK.
    – user116038
    Commented Mar 11, 2022 at 6:10
  • "Cross" like in the image of the HSBC check is the standard method across Europe AFAIK.
    – littleadv
    Commented Mar 11, 2022 at 8:02
  • Would you mind shedding some light on what exactly you're trying to achieve by doing this? Even if you manage to make such a non-transferable cheque, there's nothing stopping the payee from just cashing it and passing the money on,or from depositing it and writing a new cheque.
    – TooTea
    Commented Mar 11, 2022 at 19:24
  • @TooTea there are many good reasons when one would want to limit the check transferability, the fact that it's not an easy thing to do in the US has always bothered me. Consider paying a provider that then doesn't perform. If the check is transferable and was transferred to a third party - you have no recourse. You can't stop payment to a third party because the original provider didn't perform.
    – littleadv
    Commented Mar 11, 2022 at 20:39

2 Answers 2

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In the UK, per the Cheques Act 1992

Where a cheque is crossed and bears across its face the words “account payee” or “a/c payee”, either with or without the word “only”, the cheque shall not be transferable, but shall only be valid as between the parties thereto.

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  • This is a better reference IMHO: legislation.gov.uk/ukpga/Vict/45-46/61/part/III/crossheading/…
    – littleadv
    Commented Mar 12, 2022 at 0:03
  • You do not appear to answer my question? You do not appear to write out what to write above the Endorsement line.
    – user116038
    Commented Mar 12, 2022 at 2:22
  • @RobertLongson Thanks for clarifying. But I still want to write something above the Endorsement line. What can I write? I don't want sly agents or salesmen to write something instead!
    – user116038
    Commented Mar 12, 2022 at 2:29
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    @VitaliToi your question is basically how do I eat soup with a fork and my answer is you don't you eat soup with a spoon because you really can't eat soup with a fork.
    – Robert Longson
    Commented Mar 12, 2022 at 2:31
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You cannot achieve what you want. A cheque that is crossed to make it non-transferable cannot be cashed, only paid into an account in the name of the payee. (Cheque cashing places get round this by setting up accounts that the cheques are paid into, and then letting their customers withdraw cash from those accounts immediately.)

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  • Seems like that's exactly what the OP wants though, no? In your counter example the check cashing place is acting as a bank and takes the risk by advancing the money to the bearer. The check is not an obligation to the check cashing place, it's still an obligation to the original bearer, the check cashing place has no standing if the check is reversed and will have to sue the bearer to get their money back, not the check issuer.
    – littleadv
    Commented Mar 11, 2022 at 20:40
  • @littleadv The OP explicitly says that he wants the payee to be able to cash the cheque instead of paying it into an account, which isn’t possible. Paying it into an account and then withdrawing cash isn’t cashing it, whatever the cheque cashing places may call it.
    – Mike Scott
    Commented Mar 11, 2022 at 21:06
  • The OP says: "I need to forestall the payee from assigning or endorsing". Cross does exactly that. Cross alone doesn't preclude the check from being cashed (see the quote in Robert's answer). However, banks may refuse to cash a crossed check precisely because of the risk I described (AFAIK only the issuing bank, in the branch that manages the issuer's account, must allow cashing the crossed check, but that may depend on the local regulations).
    – littleadv
    Commented Mar 11, 2022 at 21:08
  • You do not appear to answer my question? You do not appear to write out what to write above the Endorsement line.
    – user116038
    Commented Mar 12, 2022 at 2:22

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