In many transactions, involving the transfer of a large amount of valuable property for cash, an ordinary check is not satisfactory to the person who is parting with his property, for he is not sure that his check will be honored when presented, however good the standing of the drawer may be. Therefore the check may be presented to the paying teller or cashier of the bank on which the check has been drawn, who, after finding that the amount is still to drawer's credit, writes or stamps across its face the words, "Good when properly indorsed," or "certified," and signs his name. The amount of the check is at once charged to drawer's account, and is the same as cash withdrawn. The certification of checks is largely practiced in large business centres, as in Wall Street, New York, where the daily sales of stocks and bonds run up into the millions, and failures caused by fluctuation in prices often come with startling rapidity. A check which may be good to-day, to-morrow may be worthless.
CERTIFICATE OF DEPOSIT
When a check has been lost, in the mails or otherwise, stolen, or given in mistake, the payment of the same may be stopped by the drawer at any time before it is presented at bank. Parties holding such a check honestly, and for value given, may have recourse to law for collection of same.