GUARANTEED CHECK Meaning and
Definition
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A guaranteed check refers to a negotiable instrument issued by a bank that provides an assurance of payment to the recipient. It is a form of payment where the bank promises to honor the check, regardless of the account balance or availability of funds of the check issuer. This type of check is often requested by businesses or individuals who are seeking a more secure form of payment.
The guarantee provided by the bank ensures that the recipient will receive the full amount stated on the check, even if the check writer lacks sufficient funds in their account. Upon receiving a guaranteed check, the recipient can present it to the bank for immediate payment without concerns about its legitimacy or the adequacy of funds.
To obtain a guaranteed check, the check issuer typically needs to have an account with the bank and meet certain criteria, such as maintaining a good credit history or having previous sufficient funds in their account. Some banks may charge a fee for guaranteeing a check, which acts as a safeguard for the bank against any potential risk.
Guaranteed checks provide a secure and convenient way to make large payments, as they eliminate the uncertainty associated with standard checks. However, it is important to note that a guaranteed check does not guarantee that the check writer will replenish the funds in their account to cover the check.
Common Misspellings for GUARANTEED CHECK
- fuaranteed check
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- huaranteed check
- yuaranteed check
- tuaranteed check
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- guzranteed check
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Etymology of GUARANTEED CHECK
The term "guaranteed check" is a combination of two words: "guaranteed" and "check".
The word "guaranteed" originated from the Old French word "garantir", which means "to protect" or "to warrant". "Garantir" is derived from the Frankish words "war-ian" and "wär-ian", which mean "to make secure" or "to beware". Over time, "garantir" evolved into the English word "guarantee", which refers to a promise or assurance of a particular outcome.
On the other hand, the word "check" comes from the Old French word "eschec" which is related to the Arabic word "shah" (meaning "king"). In the game of chess, the Persian word "shah" was used to denote the king.
