Policies & Procedures


Section 1

Business and Financial Affairs

Financial Services

Sec. 704-13: Check Endorsement Procedures

Responsible Office: Accounting & Fiscal Services
Revised: July 2005 (reviewed July 2012)

References / Resources

Contact: Cashier's Office at (949) 824-6916

A. Check Endorsement Policy

The Expedited Funds Availability Act, Regulation CC, Check Endorsement Standards was enacted to improve funds availability and expedite the return of checks. This banking law became effective September 1, 1988, and the Federal Reserve Board began implementation on that date. Specific implementing guidelines define criteria for the placement, content, and ink color of endorsement areas on the back of checks for the depository bank (bank of first deposit), subsequent endorsers (paying banks), and corporate or payee endorsers (campus departments, payee signatures). All campus departments/offices/units which receive or handle checks must comply with these check endorsement standards and are required to use endorsement stamps which meet the specified criteria outlined in the Expedited Funds Availability Act, Regulation CC.

B. Ordering Check Endorsement Stamps

Order endorsement stamps from the Central Cashier at (949) 824-6916. If ordering for the first time, a three-digit number will be assigned by the Central Cashier that identifies the department depositing the check. Otherwise, if re-ordering, the same three digit number already assigned will be used. Please indicate this when placing the order. The Central Cashier will notify the department when the stamp is ready for pick-up.

C. Endorsing Checks

Checks must be properly endorsed. The University is subject to liability associated with the improper endorsement of checks. Departments are held responsible for compliance with endorsement standards. Place endorsements within the allowable area. Campus endorsements must be placed within the 1 ½ inch area on the "trailing edge" of the check. This area is shown as "PAYEE SIGNATURE" on the Diagram of Endorsement Standard. Do not write on, stamp on, or obscure any portion of the check outside the indicated 1 ½ inch endorsement area. Information, other than the endorsement, should be noted on the face of the check, not on the back of the check.