BILLS OF EXCHANGE ACT 1909 - SECT 86 Protection to banker and drawer where cheque is crossed

BILLS OF EXCHANGE ACT 1909 - SECT 86

    Where the banker, on whom a crossed cheque is drawn, in good faith and without negligence:

  (a)   if it is crossed generally, pays it to a banker; and

  (b)   if it is crossed specially, pays it to the banker to whom it is crossed, or his or her agent for collection, being a banker;

the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.