Community Bankers' Advisor

August-2005  

Page 1


Welcome to the on-line
August-2005 issue of the
Community Bankers' Advisor
. . . . . . . . . . .

The Advisor is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to:

Community Bankers' Advisor
c/o Olson & Burns P.C.
PO Box 1180
Minot, ND 58702-1180

olsonpc@minotlaw.com

Also, visit our web site at:
www.minotlaw.com

The attorneys at Olson & Burns represent a wide range of clients in the financial and commercial areas. Our attorneys represent more than 30 banks throughout North Dakota.

Independent Community Banks of North Dakota

July/August, 2005

You Are Asking . . .

Q: A customer told us that her ex-husband threatened that if he was ordered to pay her for something, he would write the check on his shirt -- apparently she’s “taking the shirt off of his back.” Is this a legal check? How must a check be written? Does it need to be on check-sized paper or have his bank’s name on it?

A: It is a “legal” check -- it is negotiable. A check does not have to be on check-sized paper to be a legal check. Under the Uniform Commercial Code, it only has to be an unconditional order to pay a sum certain in money on demand and identify the bank and account on which it is drawn. N.D.C.C. § 41-03-04(6). However, in order to be processed through the clearing system, there



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