CERTIFY CHECK Meaning and
Definition
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A certified check is a type of guaranteed payment instrument often issued by a bank, where the bank confirms that the funds necessary to cover the check have been set aside or are available in the payer's account. The check is typically marked with the word "certified" or an equivalent stamp, indicating the endorsement and verification by the bank.
To certify a check, the payer typically presents the check to their bank and requests the certification. Upon certification, the bank immediately freezes or sets aside the funds specified in the check from the payer's account, ensuring they are held to cover the check when it is presented for payment.
Certified checks are commonly used for transactions where the payee requires assurance that the funds are guaranteed. This may include large purchases, real estate transactions, or other high-value transactions where a personal check might not be considered secure enough. By certifying the check, the bank assumes the responsibility of making payment, as it has already verified the availability of funds.
Once a certified check is issued, it acts as a secure payment method since the bank has put its stamp of approval on it. It signifies that the bank has verified the payer's account balance and has committed to honoring the check when presented for payment. Therefore, the recipient of a certified check can be confident that the funds are available and can proceed with the transaction without concern of the check being returned due to insufficient funds.
Etymology of CERTIFY CHECK
The term "certify check" is a combination of two separate words: "certify" and "check". The word "certify" originates from the Latin word "certificare", which is a combination of "certus" (meaning "certain" or "sure") and "facere" (meaning "to make" or "to do"). It entered the English language in the 14th century and originally meant to confirm or attest to the truth or authenticity of something.The word "check" has a more complex etymology. It comes from the Old French word "eschequier", which refers to the chessboard. This term was derived from the Arabic word "shah" (meaning "king") as chess was introduced to Europe through the Muslim world. Over time, "eschequier" evolved into "check" and started being used to refer to various forms of verification, control, or examination.
