jrc@ritcv.UUCP (James R Carbin) (10/25/83)
> I notice the phrase "PAY ANY BANK P.E.G." stamped on cancelled checks. > What does the P.E.G. mean? Unless things have changed since I once worked in that kind of environment, it means, "PRIOR ENDORSEMENT(S) GUARANTEED." Without this, a bank might be reluctant to accept a check for payment. Note that it does not remove the possibility of the ultimate payor bank to deny payment upon receipt of the check at the home bank. Then the check will work it way backwards along the chain of "guaranteed" bank endoresements until one of the banks is found to have honored the check inappropriately (usually, but not always the first bank.) This could happen becuase of fraudulent I.D. presented, etc. as ever, j.r.