depository fund transfer check


A check made by a bank in favor of its client company. The bank collects payments from the company's customers and accumulates them in a particular fund. The bank then issues a depository transfer check to the company enabling the company to reduce its cash float. A depository fund transfer check is similar to a personal check except that instead of a signature, "Depositary Transfer Check" is written on its face.
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depository Depository Institutions Act of 1982