Do Checks Have to Be in Cursive to Be Valid?
Explore how signature styles, including print and digital forms, impact the validity and acceptance of checks by banks.
Many people still use checks, but questions often arise about how they must be filled out, particularly the signature. A common concern is whether a check must be signed in cursive to be valid, especially as fewer individuals use cursive regularly.
Acceptable Signature Requirements
For a check to be legally valid, it must be signed by the person issuing it, known as the drawer. The primary law governing checks is Article 3 of the Uniform Commercial Code (UCC), a set of laws adopted with some variations by states nationwide. UCC Section 3-104 requires that a check, to be considered a negotiable instrument, must be signed by the maker or drawer.
The UCC defines a signature broadly. According to Section 3-401(b), a signature can be made manually or by machine, using any name (including a trade or assumed name), or even a word, mark, or symbol.1Legal Information Institute. UCC § 3-401. Signature The critical factor is not the form of the mark but the signer’s intent: the mark must be made or adopted with the present intention to authenticate the document. This legal standard emphasizes the signature’s function—to show the drawer approves the payment—over its specific appearance. Any mark made with this intent generally satisfies the requirement. This includes signatures by authorized representatives acting for the account holder, as outlined in UCC Section 3-402, which bind the account holder if the agent has authority.2Legal Information Institute. UCC § 3-402. Signature by Representative
Bank Policy Guidance
While the UCC sets the legal minimum for a valid signature, individual banks create their own policies for handling checks and verifying signatures, balancing efficiency with fraud prevention.
When an account is opened, customers provide a sample signature, historically kept on a signature card but now often stored digitally. This sample serves as a reference. However, manually comparing every check signature against the reference is impractical due to the high volume of checks. Many banks use automated systems and risk-based methods. Checks below a certain amount might be processed with little or no manual review. Technology can flag potentially suspicious signatures by analyzing characteristics like slant and size, prompting human inspection, particularly for high-value checks or those with other red flags.
Specific verification procedures vary among banks and are typically detailed in the deposit account agreement provided to customers. This agreement outlines the terms of the bank-customer relationship, including check processing. Customers seeking clarity on their bank’s signature policies should consult this agreement or contact the bank directly.
Non-Cursive Signatures
The legal framework under the UCC does not require a signature to be in cursive. As established, the law focuses on the signer’s intent to authenticate the check, not the form of the mark used.
This means various forms of signing are legally acceptable. A signature printed in block letters, an initial, a unique symbol, or even an “X” mark can fulfill the UCC requirement if the person intended it as validation. The Official Comment to UCC Section 3-401 clarifies that a signature “may be handwritten, typed, printed or made in any other manner” and can appear anywhere on the instrument. A non-cursive signature, like one printed by hand, is legally as valid as a cursive one, provided it represents the drawer’s genuine intention to authorize payment.
Digital Endorsements
The rise of digital banking has changed how checks are endorsed, particularly with mobile check deposit. Endorsement is the payee signing the back of the check to transfer rights to the funds.
The Check Clearing for the 21st Century Act (Check 21), effective in 2004, facilitated this by allowing banks to create legally equivalent digital images or paper reproductions (“substitute checks”) of original checks.3Federal Reserve Board. Frequently Asked Questions About Check 21 This enabled electronic processing, including remote deposit capture (RDC) via mobile apps.
When depositing via app, endorsement still authorizes the transfer, but banks often require specific wording to prevent duplicate deposits. Federal Reserve Regulation CC encourages “restrictive endorsements” for mobile deposits.4Federal Register. Regulation CC Amendments Regarding Mobile Deposit Endorsements (2018) Common requirements include phrases like “For Mobile Deposit Only,” often with the bank’s name, to indicate electronic processing. Banks enforce these rules through their deposit agreements, and failure to comply might lead to rejection. Some systems may generate a virtual endorsement. The broader legal context for electronic check processing is provided by UCC Article 4 (Bank Deposits and Collections) and specific agreements under UCC Section 4-110.
Handling Disputes Over Signature Validity
Disagreements over a check signature’s authenticity are addressed under the Uniform Commercial Code, primarily Article 3. Disputes usually arise when an account holder claims a check paid from their account bears an unauthorized signature—a forgery or one made without authority (defined in UCC Section 1-201).
The process involves legal presumptions outlined in UCC Section 3-308.5Legal Information Institute. UCC § 3-308. Proof of Signatures and Status as Holder in Due Course In court actions, a signature’s authenticity is typically admitted unless specifically denied. If denied, the party claiming validity (often the bank) bears the burden of proof. However, the signature is initially presumed authentic and authorized. This presumption aids efficiency but can be challenged with evidence. The presumption shifts if the purported signer is deceased or legally incompetent at trial; in such cases, the party enforcing the check must affirmatively prove the signature’s validity.
The bank-customer relationship, governed by UCC Article 4 and the deposit agreement, is crucial. Under UCC Section 4-401, a bank may only charge an account for items that are “properly payable.”6Legal Information Institute. UCC § 4-401. When Bank May Charge Customer’s Account A check with an unauthorized drawer’s signature is generally not properly payable. If a bank pays such a check, it typically bears the loss, unless the customer was negligent.
Customers must examine bank statements promptly to detect unauthorized signatures, as required by UCC Section 4-406.7Legal Information Institute. UCC § 4-406. Customer’s Duty to Discover and Report Unauthorized Signature or Alteration They must notify the bank promptly upon discovery. Failure to do so within timeframes specified in the account agreement (or generally within one year under UCC Section 4-406(f)) can prevent the customer from claiming against the bank. If the same person forges multiple checks, failing to report the first forgery within a reasonable period (often around 30 days, per account agreements or UCC Section 4-406(d)(2)) may bar recovery for subsequent forgeries paid before notification.
Upon timely notification, the bank investigates, often requiring an affidavit of forgery.8Consumer Financial Protection Bureau. What To Do If a Check Is Stolen and Cashed If the bank confirms the signature is unauthorized and the customer acted promptly and without negligence (e.g., negligence substantially contributing to the forgery under UCC Section 3-406), it should re-credit the account. If the bank denies the claim, citing customer negligence or untimeliness, the dispute may escalate, potentially leading to litigation where UCC rules on presumptions and customer duties are central.
