Bills of Exchange Act, 1964 (Act No. 34 of 1964)Chapter IICrossed cheques78. Duties of banks as to crossed cheques |
| (1) | If a cheque is crossed generally, the bank on which it is drawn shall not pay it to any person other than a bank. |
| (2) | If a cheque is crossed specially, the bank on which it is drawn shall not pay it to any person other than the bank to which it is crossed, or the latter's agent for collection, if it is a bank. |
| (3) | If a cheque is crossed specially to more than one bank, except when crossed to two banks of which the one is an agent for collection of the other, the bank on which it is drawn shall refuse payment thereof. |
| (4) | If the bank on which a cheque is drawn— |
| (a) | pays such cheque if it is crossed as is contemplated in subsection (3); |
| (b) | pays such cheque to any person other than a bank if it is crossed generally; or |
| (c) | pays such cheque, if it is crossed specially, to any person other than the bank to which it is crossed or the latter's agent for collection, if it is a bank, |
it is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid: Provided that if a cheque is presented for payment and it does not, at the time of presentment, appear to be crossed or to have had a crossing which has been obliterated, or to have a crossing which has been added to or altered, otherwise than as authorized by this Act, the bank 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 authorized by this Act, and of payment having been made to a person other than a bank or the bank to which the cheque is or was crossed, or the latter's agent for collection which is a bank, as the case may be.
[Section 78 substituted by section 36 of Act 56 of 2000.]