A manager's check is a check that a bank issues on its own behalf. It's also known as a cashier's check or treasury check.
How it works
The bank issues the check by debiting funds from the depositor's account
The bank guarantees the check
The check is accepted in advance by the bank
The check is the bank's written promise to pay the holder on demand
Why it's used
It's a safe and convenient way to pay large amounts of money
It's preferable to paying with large sums of cash
The recipient knows the check is good for the amount written
When it can be returned
A drawee can only return a manager's check if it is forged, contains missing information, or has been altered
Other terms
A manager's check is a primary obligation of the issuing bank
It's considered to be as good as the money it represents
It's subject to clearing
Source: AI Overview
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