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CHAPTER 81.

An Act for amending the Law relating to Crossed Cheques. [15th August, 1876.]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

1. This Act may be cited as The Crossed Cheques Act, 1876. Short title. 2. The Acts described in the schedule to this Act are Repeal of Acts in hereby repealed, but this repeal shall not affect any right, schedule. interest, or liability acquired or accrued before the passing of this Act.

3. In this Act

66

Cheque" means a draft or order on a banker payable to tion.
bearer, or to order on demand, and includes a warrant
for payment of dividend on stock sent by post by the
Governor and Company of the Bank of England or of
Ireland, under the authority of any Act of Parliament
for the time being in force:

"Banker" includes persons or a corporation or company

acting as bankers,

A.D 1876.

Interpreta

crossings.

4. Where a cheque bears across its face an addition of the General and words "and company," or any abbreviation thereof, between special two parallel transverse lines, or of two parallel transverse lines simply, and either with or without the words " not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally.

Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially, and to be crossed to that banker.

5. Where a cheque is uncrossed, a lawful holder may cross Crossing after issue. it generally or specially.

Where a cheque is crossed generally, a lawful holder may cross it specially.

Where a cheque is crossed generally or specially, a lawful holder may add the words "not negotiable."

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 to his agent for collection.

Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker, his agent for collection.

6. A crossing authorised by this Act shall be deemed a Crossing material part of the cheque, and it shall not be lawful for material any person to obliterate or, except as authorised by this Act, cheque. to add to or alter the crossing.

part of

7. Where a cheque is crossed generally, the banker on Payment to whom it is drawn shall not pay it otherwise than to a banker.

banker

only.

Cheque

8. Where a cheque is crossed specially to more than one crossed spe- banker, except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.

cially more than once

not to be paid. Protection of banker

and drawer

where

cheque crossed specially.

Banker pay.

ing cheque

contrary to provisions of Act to be

liable to lawful

18

9. Where the banker on whom a crossed cheque is drawi has in good faith and without negligence paid such cheque, 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 paying the cheque and (in case such cheque has come to the hands of the payee) the drawer thereof shall respectively be entitled to the same rights, and be placed in the same position, in all respects, as they would respectively have been entitled to and have been placed in if the amount of the cheque had been paid to and received by the true owner thereof.

owner.

Relief of

11. Where a cheque is presented for payment, which does banker from not at the time of presentation appear to be crossed, or to responsibility in have had a crossing which has been obliterated, or to have some cases. been added to or altered otherwise than as authorised by this Act, a banker paying the cheque, in good faith and without negligence, 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 Act, and of payment being made otherwise than to a banker or the banker to whom the cheque is or was crossed, or to his agent for collection being a banker (as the case may be).

12. 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.

Title of holder of

cheque crossed specially.

10. Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same shall be crossed, or his agent for collection being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.

But a banker who has in good faith and without negligence received payment for a customer of a cheque crossed gene-rally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such pay

ment.

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Acceptance, see "Forgery."

Accounts, number of, in which funded national debt is

INDEX.

divided

Acts of Parliament relating to Bank of England
Agency of Bank of England

Bank

of issue, may reissue notes under £100

of issue, loses privilege by increasing partners

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its advantages in collection of public revenue

fund into bank and issue departments

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PAGE

11

15

14

52

51

ib.

52

ib.
55-60

8, 14

6, 8

ib.

ib.

12

ib.

18

Bank (of England)—continued

its circulation of notes

bound to buy all standard gold offered

its rules as to deposits, loans, and discounts

its London agency business
notes, see "Notes."

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nature of his business

how far bound to obey customer's order

duty as to money deposited for specific purpose
misapplication of securities by:
legal relation of, to customer
bound to know customer's handwriting
receiving money for unlawful purposes
borrowing by hanker on deposit receipt
lending by banker of money "at call "
on deposit of bills
his rights and duties as to "short bills"
his general lien on securities in his hands.
his lien on specific deposits
guarantees to, or for a banker
books kept by

bound by credit given in pass-book
returning customer's cheques

liability of, for dishonouring cheque
must not pay cheque after drawer's death.

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or bankruptcy must make annual returns of name, residence, &c.

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. 21, 28

. 22, 23

23

24

24, 25

25

26

27

ib.

ib.

28, 29 . 29, 30

31

31, 32, 33

33

34

ib.

38, 39

40

26

53

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PAGE

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13, 14

ib.

14

ib

15

ib

15

16

ib.

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penny stamp on

invalid after drawer's death

crossing of
dishonour of

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cancelling of

custom of marking

Ci ulation see "Notes."

Clearing-house

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Cheque (if payable to order, must be endorsed by the person

to whom it is payable.) legal nature of

how its business is done

economy effected by .

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bankruptcy

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PAGE

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48

49

26

36

37

ib.

38

ib.

39

40

26

40

41

ib.

42

42, 43

44

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