How to cash a 3rd party check? Can't believe I don't know this...

[Anonymous]

Person A writes a check to person B. Person B wants to just hand it over to person C instead of cashing/depositing it, and writing person C a separate check. Can person B just sign the back of the check and be done with it? Does the respective banks of the parties involved have anything to do with this (must be the same, etc.)?

[Anonymous]

Option 1: Person B just signs the back of the check--this makes it a bearer check and whoever has it can then sign it and cash it. Better option is...

Option 2: Person B signs the back of the check then endorses it over to Person C by writing the following after he signs his name: Pay to the order of Person C

Then Person C can endorse the check and either cash it or deposit it.

HTH!