Checks with two signature lines?

[mommytotwo]

We are trying to open up a checking account for a club, and we will have two names on the checks so that two of our officers are to sign the checks.


Does anyone know.....

Are there checks that has two lines for signatures, or just one?

 

[marmalade]

Your bank should be able to order you some business checks with 2 signature lines.

 

[mamacatnv]

Warning.
I am the treasurer of an investment club and we did order 2 line checks however the bank made it very clear to us that they would not monitor whether or not the check actually had 2 signatures.

 

[mommytotwo]

Thank you for the information.

 

[Cheshire Figment]

I would change the rules and not worry about it.

For quite a few years I was an Internal Auditor for the National Headquarters of a very large non-profit organization. Many of our smaller chapters had a two-signature requirement for their checks. Often when I was doing a surprise audit I would find some blank checks with one of the signatures already affixed. Once I went into a chapter and the paid employee was not allowed to sign checks but about nine blank checks in the checkbook already had two signatures.

Also, under current Federal Regulations, your bank does not receive the physical checks from other banks, only an electronic notice. The only time anyone examines a check is if the account holder questions a transaction, and they will then go to the first bank in the system to get a copy of the check. So as long as there is some sort of signature on a check it will be accepted.

The only time when someone might notice a problem is if there is a printed notice in the signature area that states "TWO SIGNATURES REQUIRED" and then it would only be noticed if the check were being cashed and not deposited.

Mike (CPA Retired)

 

[lovetoscrap]

All the organizations that I have been on that required 2 signatures just had one line checks. There is enough room for the 2nd person to sign above, below, or next to the 1st one. And the 2 signatures really didn't have much to do with the bank, it was more just a safety measure for the organization and for audit purposes.

 

[Northstar]

All the organizations that I have been on that required 2 signatures just had one line checks. There is enough room for the 2nd person to sign above, below, or next to the 1st one. And the 2 signatures really didn't have much to do with the bank, it was more just a safety measure for the organization and for audit purposes.

But, but, but... if the bank doesn't bother monitoring the 2 signatures, how is it a safety measure? Wouldn't it be easier just to require two signatures on your own internal paperwork?

This has caused so many headaches for the organization where I'm assistant treasurer. I sometimes end up scrambling around trying to get a 2nd signature when a cheque has to be issued as fast as possible, driving a stupid piece of paper around town to get someone to sign it. And all the time I'm thinking, "The bank doesn't care! Why can't I just get a faxed signature for our paperwork, and issue the darned cheque on my own!"

Double signature bank accounts, bah. No safety, maximal inconvenience.

 

[tvguy]

Warning.
I am the treasurer of an investment club and we did order 2 line checks however the bank made it very clear to us that they would not monitor whether or not the check actually had 2 signatures.

Interesting. I served on a Little League Board, our checks required two signatures, and once in a while a check would accidentially go through with just one signature, and everytime the bank caught it and kicked it back. But that may be because ours was a special non-profit account, not a personal or business account.

 

[golfgal]

But, but, but... if the bank doesn't bother monitoring the 2 signatures, how is it a safety measure? Wouldn't it be easier just to require two signatures on your own internal paperwork?

This has caused so many headaches for the organization where I'm assistant treasurer. I sometimes end up scrambling around trying to get a 2nd signature when a cheque has to be issued as fast as possible, driving a stupid piece of paper around town to get someone to sign it. And all the time I'm thinking, "The bank doesn't care! Why can't I just get a faxed signature for our paperwork, and issue the darned cheque on my own!"

Double signature bank accounts, bah. No safety, maximal inconvenience.

Safety as in someone stealing the money from that organization-say the treasurer writing checks for personal things out of the organization account.

 

[Northstar]

Safety as in someone stealing the money from that organization-say the treasurer writing checks for personal things out of the organization account.

But that's just it! A dishonest treasurer could write the cheques for anything he/she pleased, not bothering to get a second signature (or signing Mickey Mouse on the 2nd signature line), and the bank would pay them.

The only protection your organization has is to have more than one person reviewing the month's cheques, and the bank account statements. That's where you need 2 people's signatures... on your internal monthly bookkeeping.

And that way, I don't need to drive around town with a cheque like I'm chasing WDW characters for autographs!

 

[golfgal]

But that's just it! A dishonest treasurer could write the cheques for anything he/she pleased, not bothering to get a second signature (or signing Mickey Mouse on the 2nd signature line), and the bank would pay them.

The only protection your organization has is to have more than one person reviewing the month's cheques, and the bank account statements. That's where you need 2 people's signatures... on your internal monthly bookkeeping.

And that way, I don't need to drive around town with a cheque like I'm chasing WDW characters for autographs!

I am the treasurer for our golf booster club. I make a note of every little thing I write checks for/deposits made, where they came from etc because I want a record of what went out and why. I don't want to try to remember 2 years ago what a check for $25.34 was for to protect ME We don't require two signatures on checks and I am glad because I don't want to have to chase someone down.

Not sure if you have to in Canada but here you are supposed to have your books audited by an outside source every so often, annually I think.