Out of Town Check

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Out of Town Check

A check written in a municipality different than that of the bank on which the check is drawn. For example, if Bob holds an account in a different state and pays his landlord with a check from that account, Bob has written an out of town check. These checks may not be accepted, especially in small towns.

References in periodicals archive ?

There goes the float, particularly for out-of-town checks that used to have a minimum two- to three-day float, not counting time spent in the mail.

Farewell to the float

To avoid such exchange charges, out-of-town checks were usually collected through the correspondent system.

This method for collecting out-of-town checks involved a lot of paperwork.

Commentary

The five-day rule on out-of-town checks doesn't seem to be a problem.

FIGHT BACK : FED'S REQUEST FOR MORE TIME MAY BE TOUGH SELL

The New York plan attempted to eliminate altogether the use of out-of-town checks for settlement of payments in New York City.

Banks in some cities attempted to cooperate in coping with the challenge of collecting out-of-town checks.

Their objective was to eliminate the use of out-of-town checks for payments in New York City.

The cost of collecting checks, including the cost (borne primarily by correspondent banks) of routing out-of-town checks to paying banks.