Definition of Certified check:
Check guaranteed by its issuing bank that (1) it carries genuine signature, and (2) it will be paid when presented for payment. The issuing bank takes out the checks amount from the check writers (drawers) account and holds it in reserve to ensure the checks payment. A certified check is a cash equivalent, and normally its payment cannot be prevented by a stop payment order. See also cashiers check.
A certified check is a type of check for which the issuing bank guarantees that there will be enough cash available in the holder's account when the recipient decides to use the check. A certified check also verifies that the account holder's signature on the check is genuine.
Situations that require certified checks often include those in which a recipient is unsure about the creditworthiness of the account holder and/or does not want the check to bounce.
A check that is guaranteed by a bank.
How to use Certified check in a sentence?
- A certified check is a check for which the issuing bank guarantees availability of cash in the holder's account.
- She accepts ‘no personal checks, no cashiers checks - only certified checks, only bank checks, always paid before the last performance.’.
- Banks typically set aside the amount of money listed on the certified check aside in the holder's account.
- The downsides of using a certified check is that depositors cannot place a stop payment order on a certified check.
Meaning of Certified check & Certified check Definition