Bearer cheque legal definition of Bearer cheque
cheque (redirected from Bearer cheque)
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cheque a BILL OF EXCHANGE drawn on a banker, payable on demand. A cheque operates as a mandate or authority to the drawee's bank to pay the party named as drawer and debit the account of its customer, the drawer. Cheques are essentially negotiable instruments and may be negotiated by indorsement. The Bills of Exchange Act 1882, however, provides that a cheque may be crossed. In this case the cheque should be presented for payment by a bank (rather than the person named as drawee). If accompanied by the words ‘not negotiable’, this has the effect that the cheque cannot be negotiated, and the words ‘account payee’ or ‘account payee only’ mean that the cheque cannot be passed on to another.
References in periodicals archive
It is not the first and last time to see us introducing bearer cheques
and we will not hesitate to introduce higher denominations," he says.
The cheque is made to someone else's name but, being a bearer cheque
, it reached me.
goes missing Q: While shifting my residence recently, I have lost a bearer cheque
which I have been holding for few months.