a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain Memorandum check historic definition... Memorandum check -- When a bank sends through the clearing house a check payable by another bank and it is rejected by that bank because there are no funds on deposit with which to meet it or for some other reason the second bank returns it by messenger to the first bank. The first bank having been credited with it and the second bank having been debited with it at the clearing house the first bank must pay the amount of it to the second bank. It accordingly delivers the amount of it in money to the second bank's messenger if the check is small ; if the amount is large it issues to the second bank a memorandum check which the second bank sends through the clearing house the next day for collection. 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 © 2007 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.