Anyone other than a bank, who purchases a check indorsed "for deposit," has converted it; unless the indorser received the amount paid for the check or the bank deposited the check in the indorser's account.

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This is in accordance with the Uniform Commercial Code (UCC) §3-419. If a check is indorsed "for deposit" it means that it is intended to be deposited into the indorser's account at a bank. If someone other than the bank were to purchase the check (e.g. an individual or business) and attempt to negotiate it, they would be considered to have converted the check unless the indorser received the amount paid or the bank deposited the check into the indorser's account.

Anyone Other Than a Bank, Who Purchases a Check Indorsed