Yes, we believe that the rule regarding multiple payees on a check applies to government-issued checks in the same way it applies to non-government checks.

The Illinois Uniform Commercial Code (UCC) states that “if an instrument payable to 2 or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.” Consequently, we believe a check made out to multiple payees that is ambiguous as to whether it is payable to the payees alternatively or jointly (i.e., the payees are listed without “and” or an ampersand appearing between their names) is payable to the payees alternatively, even if the check is government-issued.

For resources related to our guidance, please see:

• Illinois UCC, 810 ILCS 5/3-110(d) (“If an instrument is payable to 2 or more persons alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to 2 or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to 2 or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.”)

• UCC Official Comments, Section 3-110, Comment 4 (“The third sentence of subsection (d) is directed to cases in which it is not clear whether an instrument is payable to multiple payees alternatively. In the case of ambiguity persons dealing with the instrument should be able to rely on the indorsement of a single payee. For example, an instrument payable to X and/or Y is treated like an instrument payable to X or Y.”)