790

 

Protection
to banker
and drawer
where
cheque is
etossed,

Protection

tu collecting

banker,

Effect of
words ** not

negotiable.’

Ch. 31. No. 5.] Bills of Exchange.

liable to the true owner of the cheque for any loss he may
sustain owing to the cheque having been so paid:

Provided that where a cheque is presented for payment
which does not at the time of presentment appear to be
crossed, or to have had a crossing which has been obliterated,
or to have been added to or altered otherwise than as
authorised by this Ordinance, the banker paying the cheque
in good faith and without ne eligenc ¢ shall not be responsible
or incur any liability, nor shall the payment be questioned
by reason of the cheque having been crossed, or of the
crossing having been obliterated or having been added to or
altered otherwise than as authorised by this Ordinance,
and of payment having been made otherwise than to
banker or to the banker to whom the cheque is or was
crossed, or to his agent for collection being a banker, as the

may be.

(3) Where the banker, on whom a crossed cheque is
drawn, in good faith and without negligence pays it, if
crossed generally, to a banker and if crossed specially, to the
banker to whom it is crossed, or his agent for collection being
a banker, the banker paving the ¢ heque, and, if the cheque
has come into the hands of the paye>, the drawer, shall
respectively be entitled to the same rights and be placed
in the same position as if payment of the cheque had been
made to the true owner thereof,

80. (1) Where a banker in good faith and without
negligence receive. payment for a customer of a cheque:
crossed generally or specially to himself, and the customer
has no title or a defective title thereto, the banker shall not
incur any liability to the true owner of the cheque by reason
only of having received such payment.

(2) A banker receives payment of a crossed cheque
for a customer within the meaning of this section, not-
withstanding that he credits his customer’s account with
the amount of the cheque before receiving payment thereof.

81. Where a person takes a crossed cheque which bears on
it the words “‘ not negotiable,’ he 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.