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Simple English definitions for legal terms
traveler's check
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A quick definition of traveler's check:
A traveler's check is a special type of check that you can use when you go on a trip. You buy it from a bank or finance company and it's like a piece of paper that you can use to pay for things. But, you have to sign it when you buy it and then sign it again when you use it. This is to make sure that nobody else can use it if it gets lost or stolen. It's a safe way to carry money when you travel!
A more thorough explanation:
Definition: A type of check that must be signed by the purchaser at the time of purchase and countersigned when cashed. It is payable on demand, drawn on or payable at a bank, and requires a countersignature by a person whose signature appears on the instrument. Traveler's checks are typically purchased from a bank or financing company and are available in various denominations.
Example: John is going on a trip to Europe and wants to make sure he has a safe way to carry money. He goes to his bank and purchases $500 worth of traveler's checks. When he needs to make a purchase, he can cash the traveler's check and get the local currency. He must sign the check when he purchases it and then countersign it when he cashes it.
This example illustrates how traveler's checks work. They are a safe way to carry money while traveling because they require a countersignature, which helps prevent fraud. They are also easy to cash at banks or exchange offices.