These cheques may either be a bearer cheque or an on order cheque. What are the various types of indorsement of a negotiable instrument? vi. The paying banker must be very careful in ascertaining the validity or genuineness of the drawer’s signature opening the crossing. Meaning of Cheque – Different Types of Cheque : Cheque is a negotiable instrument used to make payment in day to day business transaction minimizing the risk and possibility of loss. iv. “The endorsement may, by express words, restrict of exclude the right to negotiable or pay constitutes the endorsee an agent to endorse the instrument or to receive its contents for the endorser or for some other specified person.” A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.The person writing the cheque, known as the drawer, has a transaction banking account (often called a current, cheque, chequing or checking account) where their money is held. The crossing is constituted by drawing two transverse parallel lines on the face of the cheque. iii.The collecting banker is duly bound to collect the proceeds of the cheque in the account of the Payee only. INTRODUCTION : Endorsement and delivery is a mode of negotiating a negotiable instruments like cheque. Endorsement of cheque means giving signature for transferring. A blank endorsement is made when the back of a check is signed without any added restrictions. When the payee or endorser specifies the person to whom or to whose order the instrument is to be paid, the endorsement is called special endorsement or endorsement in full. Order Cheque. An endorsement which purports to transfer to the endorsee only a part of the amount payable, or which purports to transfer the instrument to two or more endorsees severally, is not valid. How Does the 25th Amendment Work — and When Should It Be Enacted? Who may endorse The payee of an instrument is the rightful person to make the first endorsement. Bearer Cheque; The first among the types of cheques is the bearer cheque. If the check is made out to “John and Jane Smith,” then John and Jane must both endorse the check. There are several common types of endorsement, each of which has a different effect on the instrument. It is always drawn on a particular Bank. Restrictive Endorsement. There are various types of cheque, but before moving towards the types of cheque, let’s talk about the essentials of the cheque.. This … Two transverse parallel lines with the word “And Company”. If the person’s name is misspelled on the face of the check, the person endorses exactly as the name is misspelled and then signs again with the correct spelling. Primarily, it ensures that the funds must be transferred to the bank account only and not to encash it right away upon the receipt of the cheque. Blank endorsements are the most common type of check endorsement. Different Types of Cheques in India : A cheque is a document issued by a bank and is used to pay a specific amount of money from the account of one person to another person in whose name the specific cheque has been issued. to the person who presents the cheque to the bank for encashment, is called bearer cheque. Two parallel transverse lines are not at all essential for a crossing. His initials are not sufficient for this purpose. ): When an endorser transfers only a … 3. Inclusion of the name of a banker is essential. vii. The Two parallel transverse lines and the words “Not negotiable” may be added to a special crossing. Partial Endorsement (Section 56 of NI Act. An endorsement may be made after a specific direction ("pay to Dolly Madison" or "for deposit only"), called a qualified endorsement, or with no qualifying language, thereby making it payable to the holder, called a blank endorsement. 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