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Certified Cheque as supplied by EagleTraders.com (498 words) |
 | When a check is presented at the window for certification, the drawers account in the ledger is first inspected to see that sufficient funds are on deposit to cover the amount which is immediately deducted from the drawers deposit balance before the check is certified. |
| Since a certified check becomes an obligation of the bank, when a check is certified, the drawers account is reduced (charged) and the certified checks account in the general ledger is increased (credited). |
| Certified checks are also extensively used in those types of businesses where it is important to receive the equivalent of cash, without at the same time using cash, such as in brokerage and security transactions, payments of loans, and real estate transfers. |
| certified check legal definition of certified check. certified check synonyms by the Free Online Law Dictionary. (145 words) |
| a check issued by a bank which certifies that the maker of the check has enough money in his/her account to cover the amount to be paid. |
| The bank sets aside the funds so that the check will remain good even if other checks are written on the particular account. |
| Like a cashier's check, a certified check guarantees that it is immediately good since it is guaranteed by the bank and the recipient does not have to wait until it "clears." (See: cashier's check) |
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