1960-HKRS28-8-27_Part05 — Page 32

Rights of tankers collecting cbeques not endorsed by holderp

Woendorsed cheques as evidence of payment.

Protection of bankers collecting paymeal of cheques, etc.

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(2) Where a banker in good faith and in the ordinary course of business pays any such instrument as the follow- ing, namely

(a) a document issued by a customer of his which, though not a bill of exchange. is intended to enable a person to obtain payment from him of the sum mentioned in the document;

(b) a draft payable on demand drawn by him upon himself, whether payable at the bead office or some other office of his bank,

he does not, in doing so. incur any liability by reason only of the absence of, or irregularity in, endorsement, and the payment discharges the instrument.

848. A banker who gives value for, or has a lien on a cheque payable to order which the holder delivers to him for collection without endorsing it, has such (if any) rights. as he would have had it, upon delivery, the holder had. endorsed it in blank.

$4C. An unendorsed cheque which appears to have been paid by the banker on whom it is drawn is evidence of the receipt by the payee of the sum payable by the cheque. :

84D. (1) Where a banker, in good faith and without negligence-

(a) receives payment for a customer of an instrument,

to which this section applies; or

(b) having credited a customer's account with the

amount of such an instrument, receives payment - thereof for himself.

and the customer has no title, or a defective title, to the instrument, the banker does not incur any liability to the ' true owner of the instrument by reason only of having received payment thereof.

(2) This section applies to the following instruments, namely-

(a) cheques;

(b) any document issued by a customer of a banker which, though not a bill of exchange, is intended to enable a person to obtain payment from that banker of the sum mentioned in the document: (c) any document issued by a public officer which is intended to enable a person to obtain payment from the Accountant General of the sum mention. ed in the document but is not a bill of exchange:

Application.

of provisionSI

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(d) any draft payable on demand drawn by a banker upon himself, whether payable at the bead office

or some other office of his bank.

(3) A banker is not to be treated for the purposes of this section as having been ccgligent by reason only of bis failure to concern himself with absence of, or irregularity in. endorsement of an instrument.

84E. The provisions of this part of this Ordinance of this part relating to crossed cheques shall, so far as applicable, have effect in relation to instruments (other than cheques) to which section 84D applies as they have effect in relation to of exchange, cheques.

I

(o inatra- medis dot

being bills

SEVĪDE.

84F. The provisions of this part of this Ordinance do not make negotiable any instrument which, apart from such provisions, is not negotiable.”.

Passed the Legislative Council of Hong Kong, this 7th day of December, 1960.

(Secretariat GR3/3281/58)

барша

Deputy Clerk of Councils.