Is the not transferable marking the only way to ensure that my cheque is not transferable? Because of recent changes to the law I must use the not transferable marking. In future, if I make the cheque out to "J P Smith only" the cheque may still be signed over to someone else. A crossed cheque may not be paid across the counter - the money must be paid into a bank account. This helps to prevent fraud, since it is usually possible to trace the person to whom the cheque has been paid.
In addition, if a crossed cheque has come into the hands of the payee, but is then lost or paid out to the wrong person, my debt against the payee has been discharged. Suggestion : Always cross your cheques unless the person you are paying asks for a "cash" cheque, or if the person does not have a bank account. However, if the cheque gets stolen, the thief - or anyone taking the cheque from the thief — has no claim against me. This means I can stop the cheque and nobody can successfully sue me for payment if the cheque has been transferred through an illegitimate transaction.
Always name the payee correctly which includes in the case of a company the addition of " Pty Ltd" or "Ltd" and, in the case of close corporations, the designation "CC". Never send a cheque by mail unless the payee has authorised payment by cheque through the post. If the payee has not done so, you will be responsible for any loss or theft of the cheque. Cheques that are not crossed still exist but they are no longer commonplace because of their lack of security.
A cheque which has no crossing at all is called an open cheque. Customers who specifically request a chequebook with open cheques may have their own good reasons for doing so, but their bank will explain the possible risks. It cannot be cashed over the counter by the payee; it must be paid into an account in the same name as that appearing in the payee line of the cheque. Not where the cheque is crossed. Any alteration or attempt at alteration of the crossing would be treated with caution by a bank as it could be a fraudulent.
Section 77 2 of the Bills of Exchange Act specifically allows both the receiver i. It may be possible for a customer to cash one of their own crossed cheques over a bank counter if they go into their own bank as the bank will be able to identify them as one of their own customers but this service is not always offered. Negotiable Instrument Act, Section A covers the crossed cheques and its payment. Section defines it as a crossed cheque with two parallel transverse lines at its top left-hand corner.
Therefore, money can encash by a particular bank. It is highly secured. A cheque with two special crossings is Double Crossing. Further, if the banker in whose favour the cheque is made does not have a branch where the cheque is.
The second bank serves as an agent of the first collecting banker. Cross the cheque appropriately. Before drafting a cheque, make sure you have sufficient balance in your account. If your cheque is dishonoured, legal action can be taken against you.
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