DEFNITON OF A FEATURES OF A

CHEQUE CHEQUE
PARTIES TO A CHEQUE
A Printed form (printed by TYPES OF CHEQUES
a bank and sent to  Drawer: The
customers in a cheque person who draws Open Cheque: Otherwise
book). The person writing the cheque, i.e. called as uncrossed cheque, it
to make a payment (the signs and orders the is one on which cash is
drawer) fills out the cheque bank to pay the payable at the counter of the
to instruct their bank to pay sum. bank, or it is transferred to
a set sum to a specific the bank account of the
 Drawee: The bank person whose name is written
payee/person/business.
on which the cheque on the cheque. It is
is drawn or who is negotiable, i.e. it is
Features of directed to pay the transferable in nature.
Cheque specified sum Bearer Cheque: Bearer
 It is an unconditional written on the
order cheque refers to the cheque
cheque. which can be encashed by the
 It is always drawn on a
particular bank  Payee: The person whose name is written
 A signature on the beneficiary, i.e. to on the cheque or anyone who
exchequer is a mandate presents the cheque before
and should be only done whom the amount is
the bank for payment. It is
by the maker to be paid.
negotiable in nature, which
 The amount is always a
certain sum of money in
can be transferred by simply
one’s account delivering it and so
 It is always payable on endorsement is not needed.
demand No identification of the
 Its payment is always in presenter or holder is
cash or account transfer required in case of a bearer
 The cash amount is cheque.
to be paid to the
person mentioned
therein, or order, or
the bearer
 CHEQUES
Five Reasons why a Cheque may be
Dishonored.

Insufficient funds. ** The most common reason

Post-dated Cheque: It has a later
for a cheque to be dishonored is that there are
date of being encashed and can be insufficient funds in the account to cover the
used to meet a future financial A manager's cheque: is a secure cheque. This can happen if the person writes a
obligation. Even if these are payment order issued by the bank cheque for more money than they have in their
presented to the bank by the bearer account, or if there are pending deposits or
immediately, the payment is itself. It is also called a treasury withdrawals that have not yet been processed.
processed by the bank only on the cheque or cashier’s cheque. The
* **Stop payment. ** A stop payment is a
date mentioned on the cheque. funds for the cheque are withdrawn request that the bank not honor a cheque. This
These cheques are valid for up to 3 from the account of the person can be done by the person who wrote the cheque,
months from the date of issuance. or by someone else who has a legal interest in
requesting the cheque, and the bank the cheque. Stop payments are usually made
guarantees the payment to the when the person who wrote the cheque realizes
that they made a mistake, or when they are
recipient. Manager's cheques are trying to avoid paying a debt.
Stale Cheque: A cheque is seen as useful in real estate transactions,
stale when it is presented to the bank * **Stale cheque. ** A stale cheque is a cheque
after its expiration date for payment.
where they can be issued in the that is more than six months old. Banks are not
The cheque is valid for six months name of the developer or state required to honor stale cheques, and they may
refuse to do so if they believe that the cheque is
after the date of issuance. A cheque registrar. no longer valid.
becomes stale when its time of
validity expires. * **Altered cheque. ** A cheque that has been
altered in any way is considered to be invalid.
This includes changes to the amount of the
cheque, the payee's name, or the date. Banks are Name: Jamie Thomas
not required to honor altered cheques, and they
may refuse to do so if they believe that the Subject POB
A Dishonor Cheque: A dishonor cheque is fraudulent. Topic: CHEQUES
is a Cheque that is not honored by
Room: 4-1
the bank on which it is drawn. This * **Forged signature. ** A cheque that is signed
can happen for a number of by someone other than the person who is
reasons, such as insufficient funds authorized to sign it is considered to be forged.
in the account, a stop payment Banks are not required to honor forged
cheques, and they may refuse to do so if
order, or a closed account.
 A Printed form (printed by  Drawer: The person
a bank and sent to who draws the
customers in a cheque cheque, i.e. signs
book). The person writing and orders the bank
to make a payment (the to pay the sum.
drawer) fills out the cheque
to instruct their bank to pay  Drawee: The bank
a set sum to a specific on which the cheque
payee/person/business. is drawn or who is
directed to pay the
Features of Cheque specified sum
 It is an unconditional written on the
order cheque.
 It is always drawn on a
particular bank
 A signature on the
 Payee: The
exchequer is a mandate beneficiary, i.e. to
and should be only done whom the amount is
by the maker to be paid.
 The amount is always a
certain sum of money in
one’s account
Name: Jamie Thomas  It is always payable on
demand
Subject POB  Its payment is always in
Topic: CHEQUES cash or account transfer
Room: 4-1  The cash amount is
to be paid to the
person mentioned
FEATURES OF A therein, or order, or
DEFNITON OF A CHEQUE the bearer
CHEQUE PARTIES TO A CHEQUE
PARTIES TO A CHEQUE
  Drawer: The person A Printed form (printed by
who draws the a bank and sent to
cheque, i.e. signs customers in a cheque
and orders the bank book). The person writing
to pay the sum. to make a payment (the
drawer) fills out the cheque
 Drawee: The bank to instruct their bank to pay
on which the cheque a set sum to a specific Name: Jamie Thomas
is drawn or who is payee/person/business. Subject POB
directed to pay the Topic: CHEQUES
specified sum Features of Cheque Room: 4-1
written on the  It is an unconditional
order
cheque.  It is always drawn on a * **Stale cheque. ** A stale cheque is a cheque that
particular bank is more than six months old. Banks are not required
 Payee: The  A signature on the to honor stale cheque, and they may refuse to do so
beneficiary, i.e. to exchequer is a mandate if they believe that the cheque is no longer valid.
whom the amount is and should be only done
by the maker * **Altered cheque. ** A cheque that has been
to be paid.
 The amount is always a altered in any way is considered to be invalid. This
certain sum of money in includes changes to the amount of the cheque, the
one’s account payee's name, or the date. Banks are not required to
 It is always payable on honor altered cheques, and they may refuse to do so
demand if they believe that the cheque is fraudulent.
 Its payment is always in
cash or account transfer * **Forged signature. ** A cheque that is
 The cash amount is signed by someone other than the person who
to be paid to the is authorized to sign it is considered to be
person mentioned forged. Banks are not required to honor forged
therein, or order, or cheques, and they may refuse to do so if

FEATURES OF A
the bearer
DEFNITON OF A CHEQUES
CHEQUE
CHEQUE GLOSS
CHEQUE-
to customer
make a pay
instruct thei
payee/perso
 on the cheque or anyone who
Five Reasons why a Cheque may be presents the cheque before
Dishonored. the bank for payment. It is
negotiable in nature, which
Insufficient funds. ** The most common reason can be transferred by simply
for a cheque to be dishonored is that there are delivering it and so
insufficient funds in the account to cover the endorsement is not needed.
cheque. This can happen if the person writes a A Dishonor Cheque: A dishonor
cheque for more money than they have in their No identification of the
account, or if there are pending deposits or
is a Cheque that is not honored by presenter or holder is
withdrawals that have not yet been processed. the bank on which it is drawn. This required in case of a bearer
can happen for a number of cheque.
* **Stop payment. ** A stop payment is a reasons, such as insufficient funds
request that the bank not honor a cheque. This
in the account, a stop payment
can be done by the person who wrote the
cheque, or by someone else who has a legal order, or a closed account.
interest in the cheque. Stop payments are usually
made when the person who wrote the cheque
realizes that they made a mistake, or when they
A manager's cheque: is a secure are tryingPost-dated Cheque:
to avoid paying a debt. It has a later
payment order issued by the bank date of being encashed and can be
TYPES OF CHEQUES
used to meet a future financial
itself. It is also called a treasury obligation. Even if these are
cheque or cashier’s cheque. The Open Cheque: Otherwise
presented to the bank by the bearer
called as uncrossed cheque, it
funds for the cheque are withdrawn immediately, the payment is
is one on which cash is
from the account of the person processed by the bank only on the
payable at the counter of the
date mentioned on the cheque. bank, or it is transferred to
requesting the cheque, and the bank These cheques are valid for up to 3 the bank account of the
guarantees the payment to the months from the date of issuance. person whose name is written
recipient. Manager's cheques are on the cheque. It is
useful in real estate transactions, negotiable, i.e. it is
where they can be issued in the transferable in nature.
Stale Cheque: A cheque is seen as Bearer Cheque: Bearer
name of the developer or state stale when it is presented to the bank cheque refers to the cheque
registrar. after its expiration date for payment. which can be encashed by the
The cheque is valid for six months person whose name is written
after the date of issuance. A cheque
becomes stale when its time of
validity expires.
 is one on which cash is on the cheque. It is
payable at the counter of the negotiable, i.e. it is
bank, or it is transferred to transferable in nature.
the bank account of the 8
person whose name is written Bearer Cheque: Bearer
on the cheque. It is cheque refers to the cheque
negotiable, i.e. it is which can be encashed by the
transferable in nature. person whose name is written
Bearer Cheque: Bearer on the cheque or anyone who
cheque refers to the cheque presents the cheque before
which can be encashed by the the bank for payment. It is
person whose name is written negotiable in nature, which
on the cheque or anyone who can be transferred by simply
presents the cheque before delivering it and so g is not
the bank for payment. It is needed. No identification of
negotiable in nature, which the
can be transferred by simply
delivering it and so A manager's cheque: is
endorsement is not needed.
A Dishonor Cheque: A dishonor
a secure payment order issued
No identification of the by the bank itself. It is also
is a Cheque that is not honored by
presenter or holder is
required in case of a bearer the bank on which it is drawn. This called a treasury cheque or
cheque. can happen for a number of cashier’s cheque. The funds for
reasons, such as insufficient funds the cheque are withdrawn from
in the account, a stop payment the account of the person
order, or a closed account.
requesting the cheque, and the
Five Reasons why a Cheque may be Dishonored.
Open Cheque: Otherwise bank guarantees the payment to
called as uncrossed cheque, it the recipient.
Insufficient funds. - Manager's
The most commoncheques
reason for a
TYPES OF CHEQUES Post-dated Cheque: It has a later
is one on which cash is cheque to be dishonored is that there are insufficient
date of being encashed and can be
payable at the counter of the
are useful
funds in real
in the account estate
to cover the cheque. This can
used to meet a future financial happen if the person writes a cheque for more money
bank, or it is transferred to
Open Cheque: Otherwise obligation. Even if these are than they have in their account, or if there are pending
the bank account of the
presented to the bank by the bearer deposits or withdrawals that have not yet been
called as uncrossed cheque, it person whose name is written
immediately, the payment is processed.
processed by the bank only on the
Stop payment. - A stop payment is a request that the
date mentioned on the cheque. These bank not honor a cheque. This can be done by the
cheques are valid for up to 3 months person who wrote the cheque, or by someone else
from the date of issuance. who has a legal interest in the cheque. Stop payments
are usually made when the person who wrote the