The illustration on page 8 shows a cheque carefully and correctly drawn. The signature should be in your usual style, familiar to the paying teller. Sign your name the same way all the time. Have a characteristic signature, as familiar to your friends as is your face.
A cheque is a draft or order upon your bank, and it need not necessarily be written in the prescribed form. Such an order written on a sheet of note-paper with a lead-pencil might be in every way a legally good cheque.
Usually cheques should be drawn "to order." The words "Pay to the order of John Brown" mean that the money is to be paid to John Brown, or to any person that he orders it paid to. If a cheque is drawn "Pay to John Brown or Bearer" or simply "Pay to Bearer," any person that is the bearer can collect it. The paying teller may ask the person presenting the cheque to write his name on the back, simply to have it for reference.
In writing and signing cheques use good black ink and let the copy dry a little before a blotter is used.
The subject of indorsements will be treated in a subsequent lesson.
IV. BANK CHEQUES (Continued)
The banks of this country make it a rule not to cash a cheque that is drawn payable to order, unless the person presenting the cheque is known at the bank, or unless he satisfies the paying teller that he is really the person to whom the money should be paid. It must be remembered however, that a cheque drawn to order and then indorsed in blank by the payee is really payable to bearer, and if the paying teller is satisfied that the payee's signature is genuine he will not likely hesitate to cash the cheque. In England all cheques apparently properly indorsed are paid without identification.
