What is a restrictive endorsement?
A restrictive endorsement limits how a check can be deposited or used, something like “For deposit only to HOA account” written directly on the check. It’s a simple safeguard ensuring funds land in the correct account rather than getting diverted elsewhere.
Why does a restrictive endorsement matter?
This small habit closes a surprisingly real gap in financial controls, especially in volunteer-run associations where multiple people might handle checks before they ever reach the bank.
When You’ll Run Into This
This is worth building into standard practice for anyone handling HOA checks, not just introduced after a problem has already occurred.
