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Drafting checks - Legal?



Checklist to use CHAX®:

-Windows PC
-Laser or Ink Jet Printer
-CHAX® compatible checks
-MICR Toner for Laser Printers*

*check with your bank if they require ABA (American Bankers Association) standards to be used for check deposits.

 

Are drafting checks legal?

The answer is yes. The pre-authorized or "Draft Checks" are legal under the Uniform Commercial Code.

Uniform Commercial Code

Title 1:
Section 1-201 (39) Signed includes any symbol executed or adopted by a party with present intention to authenticate a writing...

Title 3 - Commercial Paper:
Section 3-401 (1) Any writing to be a negotiable instrument within this title must (a) be signed by the maker or drawer; ...

Section 3-401 (2) A signature is made by the use of any name, including any trade or assumed name, upon an instrument, or by word or mark used in lieu of a written signature.

Section 3-403 (1) A signature may be made by an authorized agent or other representative... No particular form of appointment is necessary to establish such authority...