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LSDefine
Simple English definitions for legal terms
pay any bank
Read a random definition: National Environmental Policy Act
A quick definition of pay any bank:
Term: PAY ANY BANK
Definition: Pay any bank is a special type of endorsement on a check that allows only banks to receive the payment until the check is returned to the person who wrote it or endorsed by a bank to someone who is not a bank. This endorsement is governed by the Uniform Commercial Code (UCC) and is used to ensure that the check is processed efficiently and securely.
A more thorough explanation:
Definition: Pay any bank is a type of draft endorsement that allows only banks to acquire the rights of a holder until the draft is either returned to the customer who initiated the collection or specially endorsed by a bank to a non-bank person. This is governed by the Uniform Commercial Code (UCC) § 4-201(b).
Example: Let's say you have a check for $500 that you want to deposit into your bank account. You endorse the check with "Pay Any Bank" and deposit it into your account. The bank can then process the check and credit the funds to your account. However, if the check is returned for any reason, only a bank can acquire the rights to the check until it is returned to you or specially endorsed to a non-bank person.
Explanation: The example illustrates how a "Pay Any Bank" endorsement works in practice. By endorsing the check with "Pay Any Bank," the customer is allowing any bank to process the check and credit the funds to their account. However, if the check is returned for any reason, only a bank can acquire the rights to the check until it is returned to the customer or specially endorsed to a non-bank person. This ensures that the check is handled securely and only by authorized parties.