If a check is made payable to two people using 'or' or a slash between the names, who may endorse?

• A. Both must endorse
• B. The maker must endorse
• C. Either payee may endorse, and must include T-bar or account number
• D. Neither can endorse

Answer: (C)

When a check is payable to two people in an “or” form (or a slash between the names), the instrument is arranged to be negotiable by either payee. That means either payee may present and endorse the check for payment, not both. To help the bank post the funds correctly, the endorsing payee should include their T-bar or account number on the endorsement. The T-bar (or account number) links the endorsement to the right account, aiding accurate posting and record-keeping. If no endorsement were made, or if it lacked the identifying number, processing could be delayed or rejected. So the correct approach is that either payee may endorse, and must include T-bar or account number.