Can Bank Drafts be endorsed in favour of a third party?

ThehPatroniser

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Ally Dick

The double parallel lines represent a crossing, even without the wording

ThehPatroniser

Ally Dick wrote: »

The double parallel lines represent a crossing, even without the wording

But the double lines are printed on every draft to the best of my knowledge and that will effectively mean that one cannot endorse in favour of a third party in any case.

Solicitors have been endorsing Drafts for decades to avoid the delays associated with clearing the draft. We all  electronically transfer funds but that too can cause havoc when multiple sales close on the same day but there is no certainty that solicitor B has cleared funds to transmit to Solicitor C (or D). Endorsing Bank Drafts was handy because only the last Solicitor in the chain had to lodge and clear the draft. This is a case where computerisation is sending us backwards not forwards.

Bank of Ireland: Tara

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

ThehPatroniser

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Bank of Ireland: Tara

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Hi hP,

I'll need to double check this and will come back to you here on Monday with an answer.

Thanks
Tara

ThehPatroniser

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Hi hP,

I'll need to double check this and will come back to you here on Monday with an answer.

Thanks
Tara

Tara

Please take Monday off. It is a Bank Holiday. Your enthusiasm and dedication is welcome but you are entitled to a life. Tuesday will do fine.

hP

Bank of Ireland: Tara

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Hi hP,

I'll need to double check this and will come back to you here on Monday with an answer.

Thanks
Tara

Tara

Please take Monday off. It is a Bank Holiday. Your enthusiasm and dedication is welcome but you are entitled to a life. Tuesday will do fine.

hP

Don't know how I managed to forget about the Bank Holiday, I've been looking forward to it all week lol Have a great weekend hP and we'll be back to you ... Tuesday :)

Thanks again,
Tara

Bank of Ireland: Tara

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Hi hP,

I'll need to double check this and will come back to you here on Monday with an answer.

Thanks
Tara

Tara

Please take Monday off. It is a Bank Holiday. Your enthusiasm and dedication is welcome but you are entitled to a life. Tuesday will do fine.

hP

Hi hP,

Sorry for the delay in getting back to you. I promise I didn't take an extra day off! I've checked this and all BOI Euro Domestic drafts are pre-printed with Not Negotiable. 

Hope this helps,
Tara

ThehPatroniser

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

Bank of Ireland: Tara wrote: »

ThehPatroniser wrote: »

 
A client recently handed us a Bank Draft made payable to this firm. The Draft was drawn on one of the main clearing banks and was crossed but was not marked “account payee only” Neither was the draft marked “Not negotiable”.We endorsed the back of the Draft and made the draft payable to another  firm of solicitors as part of the purchase money to complete a sale. Our colleague banks with the same clearing bank as drew the Draft. That bank  refused to lodge the Draft to the other solicitor’s account on the basis that a Bank Draft may now only be lodged to the account of the payee. In other words, the Bank will not treat any Draft as being negotiable in favour of a third party.
 
I am attempting to ascertain if Bank of Ireland has a policy on this subject.

hP

Hi ThehPatroniser,

Thanks for contacting us here on Boards.

I've checked this on our branch procedures and it states the following:

Drafts are pre-printed with 'NOT NEGOTIABLE' - these drafts cannot be cashed, they must be lodged to an account in the payee's name or can be endorsed by the payee and lodged to the account of a third party.  This does not apply where the draft is made payable to a business name or limited company.  In these instances, the draft can only be accepted for lodgement to an account in the name of that business or limited company.


Hope this helps but if you do have any other questions, please let me know.

Thanks
Tara

Thank you Tara.

Can you clarify something? Are you saying that ALL Bank of Ireland Drafts are pre-printed "not negotiable", or that your information is confined to Drafts that are pre-printed "not negotiable" but there are other Drafts that do not have the pre-printed words "not negotiable"?

hP

Hi hP,

I'll need to double check this and will come back to you here on Monday with an answer.

Thanks
Tara

Tara

Please take Monday off. It is a Bank Holiday. Your enthusiasm and dedication is welcome but you are entitled to a life. Tuesday will do fine.

hP

Hi hP,

Sorry for the delay in getting back to you. I promise I didn't take an extra day off! I've checked this and all BOI Euro Domestic drafts are pre-printed with Not Negotiable. 

Hope this helps,
Tara

Tara,

Very Helpful and Many Thanks.

HP