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Get A Cheque Drawn In Favour Of X Is Crossed Not Negotiable

MULTIPLE CHOICE QUESTIONS ON BANKING FOR PROMOTIONAL EXAMS 1 2 3 4 5 6 7 8 9 10 11 12 A cheque drawn in favour of x is crossed not negotiable . X endorses the cheque in favour of Y for valuable consideration.

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Cheque bearing “not negotiable” 130. A person taking a cheque crossed generally or specially, bearing in either case the words “not negotiable,” shall not have, and shall not be capable of giving, a better title to the cheque than that which the person from whom he took it had.

—Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker. Payment of cheque crossed specially. —Where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection.

Generally-crossed cheques can only be paid into a bank account, so that the beneficiary can be traced. Crossing alone does not affect the negotiability of the instrument.

This means they cannot take cash, transfer money, or deposit it into an account. In simple terms, a non-negotiable check is like cash. Once issued, the original payee is the only person who can use it. A non-negotiable check cannot be transferred to another party or endorsed in any way.

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.

A cheque crossed "not negotiable", may be transferred, but the transfer is not attended by the same important consequences as in the negotiation of a negotiable Instrument. If the transferor had a good title, the transferee is entitled to receive payment.

This kind of cheque has to comprise the words account payee or account payee only. The cheque needs to be crossed either generally or specially. The importance of this type of crossing highlights that the cheque is not negotiable anymore.

Not Negotiable Cheque Crossing As per section 130 of the Negotiable Instruments Act, 1881 a person taking a cheque bearing a general or special crossing with the words 'not negotiable' will not have and is neither capable of giving a better title than that which the person from whom he took it had.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232