Treasurer's Check

Treasurer's check

A check issued by a bank to make a payment. Treasurer's checks outstanding are counted as part of a bank's reservable deposits and as part of the money supply.

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Treasurer's Check

A check whose payment is guaranteed by a bank. In exchange for a fee, a bank issues a Treasurer's check to a person, who is very often both the payer and the payee. That is, a person gives the bank the amount for which the registered check is written, either in cash or by deducting the appropriate amount from the payer's account; the bank then makes the check payable to that person. The person may cash the check at any bank, or deposit it at a different bank without being subject to a check hold. A Treasurer's check is also known as a certified check or banker's draft. See also: Traveler's cheque, Commercial draft.