5. When a well established customer attaches such condition the banker should see to the fulfillment of the condition before making payment just to satisfy the customer. b) A specimen of General Crossing: Endorsement in full or special endorsement. Endorsement is a support, authorization, approval of something, while writing a letter of endorsement you have to show advocating to a person, an idea, a movement, or an organization. What You'll See . A conditional endorsement, unlike the restrictive endorsement, does not affect the negotiability of the instrument. His initials are not sufficient for this purpose. To use that method, known as a blank endorsement, sign your name in the endorsement area. In case of General Crossing the words “And Company” or “& Company” or “Not Negotiable” between the transverse lines to highlight the crossing does not carry special significance. Drawing of two parallel transverse lines is a must. A blank endorsement is made when the back of a check is signed without any added restrictions. This … (adsbygoogle = window.adsbygoogle || []).push({}); Agent Banking in South-east Asia (Bangladesh), Cheque Types-Crossing of cheque and Endorsement, Cheque Types-Crossing of cheque and Endorsement-www.bankingallinfo.com, Difference between General and Special Crossing, Section 123 to 131 of Negotiable Instrument Act, Special Features of Not Negotiable Crossing, « Clearing House -Function, Procedure & Accounting, Integration of Human Resource in Strategic Decision », Banking News Headlines all over the globe. Restrictive endorsement. Endorsement in blank – signature of the payee or holder If he makes the payment to C on C’s own account, he will still be liable to B, the endorser; Hence C cannot endorse the bill further in his own name. 6) Endorsement on Bearer Cheque: - The endorsement on bearer cheque is meaning less as the cheque once bearer is always bear. 5. For example, if B endorses an instrument payable to barer as follows, the right of C to further negotiate is excluded. Partial Endorsement (Section 56 of NI Act. The recipient of the cheque is known as Payee (Frequently Asked in Exam) Cheque types: Order Cheque: A cheque which is payable to a particular person or his order is called an order cheque. What Are the Three Types of Check Endorsements. Types of Endorsement. If the check is made out to “John and Jane Smith,” then John and Jane must both endorse the check. Complementary or Courtesy Title: An endorsement need not contain the complementary prefixes or suffixes and other courtesy title or professional designation. Crossing:-General Crossing (Sec.123): Two parallel transverse lines on the face of instruments with or without word ‘Not negotiable’. This type of endorsement is only to be deposited to the payee's account at his financial institution. 2. a) Meaning: Section 123 A(i) When a cheque crossed generally bears across its face an addition of words ‘Account Payee” between the two parallel transverse lines constituting the general crossing, the cheque besides being crossed generally is said to be crossed account payee. It is an unconditional order. It is also sometimes called a qualified endorsement. Checks are common forms of negotiable instruments but the most common types of bank endorsements are a banker's acceptance, also known as a time draft, and a letter of credit. Thus not only cheques but bank draft BEARER CHEQUE - When a cheque is payable to a person whose name appears on the cheque or to the bearer i.e. Some other types of Crossing: Such cheque runs great risk in the course of circulation because once a wrong person takes away the payment of an open cheque it is difficult to trace him What are the various types of indorsement of a negotiable instrument? The most secure way to endorse a check is to: Write: “For Deposit Only to Account Number XXXXXXXXXX” Sign your name below that, but still within the endorsement … General Crossing can be converted into a Special Crossing. 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