Endorse and lodge a "Not Negotiable" bank draft

mag2011

Hi there,
I have received a BOI bank draft in my name but crossed "Not Negotiable". I am abroad, in a country with no banking connection to Ireland so I cannot lodge it here, and I have no Irish account at the moment. I was wondering if I can endorse the draft and pass it to a friend with a BOI account to lodge it to his account. Any other way if not?
Gratitude for any comments or suggestions.

desertcircus

I don't believe it's possible to do so - the draft is legally for the person named only and cannot be transferred. There are a few options you could make use of in terms of getting the money:

1 - if you're on good terms with the drawer of the draft, you could return it to them and ask them to get a draft done in the currency of the country you're currently in. This is usually drawn on a bank in that country (Bank of Ireland Australian dollar drafts are drawn on the Westpac Banking Corporation, for example) and consequently are effectively the same as a domestic cheque within that country. Unless you're in a really weird location, this should be possible.
2 - again, if you're on good terms with the drawer, you could ask them to cancel the draft and send a wire transfer to your account. You'd have to give certain details about your account for this, though.
3 - there's a good chance that the bank you're with, wherever you are, will be able to lodge the draft to your account; it'll just take time. Commission charges on foreign cheques can be high, though, because of the long clearing time and the potential for fraud. They should be able to send it on collection, which can take six weeks.

It depends on your situation - if you need the money fast, the wire transfer is the best option; if you want that exact amount, then the draft drawn on your current location is best; if you just want to be shot of it, take it in and ask if they can send it on collection.

amdublin

mag2011 wrote: »

Hi there,
I have received a BOI bank draft in my name but crossed "Not Negotiable". I am abroad, in a country with no banking connection to Ireland so I cannot lodge it here, and I have no Irish account at the moment. I was wondering if I can endorse the draft and pass it to a friend with a BOI account to lodge it to his account. Any other way if not?
Gratitude for any comments or suggestions.

Nope. Must be lodged to account in name of person it is made ou to.

Not necessarily to Irish ac but will take longer to clear.

who is this

As said should still work. When lodging pay cheques from France (issued by BNP Paribas, non-negotiable and in my name) I never had any issue lodging them to Bank of Ireland here.

Toots

"Not Negotiable" can be endorsed over to someone else. The only crossing that can't is "Account Payee Only".

amdublin

Toots* wrote: »

"Not Negotiable" can be endorsed over to someone else. The only crossing that can't is "Account Payee Only".

http://wiki.answers.com/Q/Why_should_cheques_be_marked_not_negotiable

Jim2007

Toots* wrote: »

"Not Negotiable" can be endorsed over to someone else. The only crossing that can't is "Account Payee Only".

Sorry, but this is not correct.

A crossing restricts another wise negotiable instrument in how it may be traded, where as marking it Not Negotiable means it can not be traded in anyway - the named person must present it for payment by the issuer.

Jim.

Jim2007

mag2011 wrote: »

Hi there,
I have received a BOI bank draft in my name but crossed "Not Negotiable". I am abroad, in a country with no banking connection to Ireland so I cannot lodge it here, and I have no Irish account at the moment. I was wondering if I can endorse the draft and pass it to a friend with a BOI account to lodge it to his account. Any other way if not?
Gratitude for any comments or suggestions.

Sorry but 'Not Negotiable' means exactly that, it must be presented for payment by the issuer. Even if your bank has no direct connection with Ireland, they should still have facilities for handling such instruments, have you asked them?

The alternative would be to ask the person that send you the draft to have it changed to be negotiable, or use an alternative form of payment.

Jim.

mag2011

amdublin wrote: »

http://wiki.answers.com/Q/Why_should_cheques_be_marked_not_negotiable

Thanks to all for the comments.
If above link is right, what is the difference between a Draft with a *crossing* written "Not Negotiable", and an "Account Payee Only" crossing? Toots* view seems more sensible, doesn't it?

Jim2007

mag2011 wrote: »

Thanks to all for the comments.
If above link is right, what is the difference between a Draft with a *crossing* written "Not Negotiable", and an "Account Payee Only" crossing? Toots* view seems more sensible, doesn't it?

Oh there is a very big difference! A cheque marked 'Account Payee Only' can be lodged into your account at any bank and the bank then has the right to 'trade' the instrument on it's own behalf to obtain the cash. So it is still negotiable, although with very restricted rights.

Jim.

Toots

I'm just going by what we're instructed to do as cashiers in a bank (BOI) there's a big chart of what can be done with different cheques with different crossings, and it very clearly states that a cheque or draft crossed 'Not Negotiable' can be endorsed over but cannot be cashed. This is BOI's cheque encashment policy, other banks may differ. I've endorsed drafts over a good few times and there's never been a problem.

unclebill98

Nope toots, same in UB.

Op, your crossing is known as a general crossing.

VB1962

Not Negotiable means that a holder cannot obtain any better title to the cheque than the previous holder - it can be endorsed over to others - this means that a stolen cheque is always a stolen cheque even if it is used for a legitimate transaction along the way.

Account Payee Only means just that and most banks will insist that it is lodged to the payee's bank account.

I think people might have the crossing 'Not Transferable' in their minds when talking about endorsing a cheque to another party.

desertcircus has made some good suggestions, Op