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.
business or personal check stamped with the paying bank's certification that: (1) the maker's signature is genuine; and (2) there are sufficient funds in the account to cover the check. Once certified, a check becomes an obligation of a bank, and is paid out of bank funds. Banks charge a fee for certifying customer checks. Contrast with cashier's check.
check containing a certification that the drawer of the check has sufficient funds in the bank to cover payment. Although considered absolutely safe by many, there is the possibility of forgery.
check for which a bank guarantees payment. It legally becomes an obligation of the bank, and the funds to cover it are immediately withdrawn from the depositor's account.
