222
No. 3 of 1885.
BILLS OF EXCHANGE.
Protection to banker and
obliterated or having been added to or altered otherwise than as authorized by this Ordinance, and of payment having been made otherwise than to a banker, or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be.
80. Where the banker on whom a crossed cheque is drawn, drawer where in good faith and without negligence, pays it, if crossed cheque is generally, to a banker, and, if crossed specially, to the banker crossed to whom it is crossed or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, 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.
Effect of crossing on holder.
Protection to collecting banker.
Account may be credited, before payment of cheque.
6 Edw. 7, c. 17, s. 1.
Drafts on bankers payable to order on demand sufficient
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.
82. (1) Where a banker, in good faith and without negligence, receives 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 notwithstanding that he credits his customer's account with the amount of the cheque before receiving payment.
82A. Any draft or order drawn upon a banker for a sum of money payable to order on demand which shall, when presented for payment, purport to be indorsed by the person to whom the same shall be drawn payable, shall be a sufficient authority for such banker to pay the amount of such draft or order to the bearer thereof and it shall not be incumbent on such banker to prove that such indorsement or any subsequent indorsement 16 & 17 Vict. was made by or under the direction or authority of the person to whom the said draft or order was or is made payable either by the drawer or any indorser thereof.
without proof of indorsement.
c. 59, s. 19.