"And/Or" Endorsements

"And/Or" endorsements are tricky, but important.

Make a mistake, and you're probably going to make someone very mad with you.

Here's the scene: You owe money to a brother and a sister, April and Manny Hernandez. You've only got one paycheck, and want them both to get the money.

If you endorse your check like this, "Pay to the order of April or Manny Hernandez," either of them can cash the check and keep the money.

One of them gets very mad at you.

However, there's a way you can endorse the check so neither can cash it unless both have endorsed it.

You endorse it like this: "Pay to the order of April and Manny Hernandez."

Now both of them will have to endorse your check, for either one of them to be able to cash the check.

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So, what's the point of "And/Or" Endorsements?

Any time you have to endorse to more than one person or company, make sure you think!

Do you want either person or company to be able to cash it?

• Write "Pay to the order of April or Manny Hernandez."

Do you want the check to be cashed only by both persons or companies?

• Write "Pay to the order of April and Manny Hernandez."