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TeachMeFinance.com - explain certified check certified check -- a check drawn on funds in a depositor's account that have been set aside to pay the check on demand. The face of the check bears the words "certified," or "accepted," and is signed by an official of the bank or thrift institution issuing the check to signify that (1) the signature of the drawer is genuine and that (2) sufficient funds are on deposit and earmarked for payment of the check. historic definition... Certified check -- A check having written across its face the signature of (usually) the cashier or paying teller of the bank on which it is drawn certifying to the signature of the drawer and to the fact that the latter has sufficient funds on deposit with which to pay it. Funds are held in reserve from the drawer's account by the bank to meet the check. When the holder of a check takes it to the bank upon which it is drawn and has it certified the drawer of the check and the indorsers, if there are any, are released and thereafter the holder must look to the bank alone. The bank is absolutely liable upon the check unless it was "raised" either before or after certification. The bank by certifying the check guarantees the genuineness of the signature of the drawer and certifies that it has in its possession funds belonging to the drawer sufficient to meet the check and it thereby engages that those funds shall not be withdrawn by the maker of the check to the prejudice or loss of any bona fide holder of the check. But the certification of the check does not imply any further or greater responsibility or imply that the body of the check is genuine. When, therefore, a check is raised before certification the certifying bank cannot be called upon to pay the amount of the raised check ; or if a bank certifies a raised check by mistake and pays the same without culpable negligence it can recover the amount as money paid by mistake and the same rule applies if the check is raised after certification. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.