depositor's check that a bank guarantees to pay. The funds are precommitted. When preparing a bank reconciliation, a certified check is not considered outstanding since both parties, the company and the bank, know about it.

transaction account combining features of the Negotiable Order Of Withdrawal (NOW) Account and the Money Market Deposit Account (MMDA). Authorized for depository institutions in January 1983, Super NOWs have no interest rate ceilings, but a seven-day withdrawal notice may apply. In addition, they have unlimited deposit and withdrawal capability, but are available only to depositors eligible for NOW accounts, excluding for-profit businesses.

interest-bearing transaction account that combines the payable on demand feature of checks and investment feature of savings accounts. A NOW account is functionally an interest paying checking account. The NOW account began in Massachusetts in 1974 when mutual savings banks offered interest bearing transaction accounts (NOW accounts) to compete with commercial banks. These accounts, which paid a rate of interest equivalent to that of passbook accounts (5l/2%), were authorized nationwide for all depository institutions by the 1980 Monetary Control Act.

1. order directing transfer of funds to a designated account or beneficiary. Payment orders may be sent by mail (or private courier), telex message, or through the a communication network widely used in international banking.
2. check-like instrument directing payment of a specified amount to a third party. Drafts written against a Negotiable Order Of Withdrawal (NOW) Account account are a common type of payment order.

instrument normally used in international commerce to effect payment; also calledbill of exchange. It is simply an order written by an exporter (seller) requesting an importer (buyer) or its agent to pay a specified amount of money at a specified time. The person or business initiating the draft is known as themaker, drawer, ororiginator, The party to whom the draft is addressed is thedrawee

1. check or draft payable to someone other than the check writer (the maker of the instrument) or the person who initially negotiates the check by endorsing the back of the instrument.
2. check transferred by endorsement exchanging it for cash at a bank teller. The Uniform Commercial Code allows transfer of a check to a new owner any number of times. In practice, however, multiple endorsed checks are uncommon, and banks may be reluctant to accept them without verifying signatures of endorsers.
3. payable through draft. Credit Union share draft account often are paid by a commercial bank, which then debits the credit union's account after paying drafts presented for payment, as are drafts that are written against a money market mutual fund.

check drawn by a bank on its own funds and signed by its cashier. It is thus a direct obligation of the bank. A cashier's check is distinguished from a money order, which is an order for the payment of money, as one issued by one bank or post office and payable at another.

depositor's check that a bank guarantees to pay. The funds are precommitted. When preparing a bank reconciliation, a certified check is not considered outstanding since both parties, the company and the bank, know about it.

check drawn by a bank on its own funds and signed by its cashier. It is thus a direct obligation of the bank. A cashier's check is distinguished from a money order, which is an order for the payment of money, as one issued by one bank or post office and payable at another.