| Commentary

25 Crossed cheques

| Commentary

25 Crossed cheques

A cheque may be crossed either generally or specially1. However, the most important crossing is now the ‘account payee’ crossing. Where a cheque is crossed and bears across its face the words ‘account payee’ or ‘a/c payee’, either with or without the word ‘only’, the cheque shall not be transferable, and is instead only valid as between the parties thereto2.

There is statutory protection where a banker, on whom a crossed cheque (including a cheque which is not transferable by reason of being crossed ‘account payee’ or otherwise) is drawn, in good faith and without negligence pays it,

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