📝 One-liners · 66 cards
A RESPONSIBILITY OF PAYING BANK
What is the primary responsibility of a paying bank when a cheque is presented for payment?
The paying bank must verify the genuineness of the cheque, ensure the drawer's signature matches, and confirm sufficient funds exist before making payment.
What is the effect of a court order of injunction on the paying bank's authority to pay a cheque?
Bank must stop payment immediately upon receiving injunction order.
Under which section of the Negotiable Instruments Act is a paying bank protected when it pays a crossed cheque in due course?
Section 128 of the Negotiable Instruments Act, 1881 protects the paying bank when it pays a crossed cheque in good faith and without negligence.
What is the paying bank's duty when a cheque is presented with two different crossing instructions?
Bank must follow the more restrictive crossing and pay accordingly.
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