Question

In which of the following case banker MUST refuse to honour the cheque?

• A. When the cheque is post-dated.
• B. When the banker receives notice of customer's death.
• C. When the cheque is not duly presented.
• D. When the cheque is presented at a branch where the customer has no account.

Answer 1

The correct option is B When the banker receives notice of customer's death.

Following are the circumstances when a banker refuse payment of Cheque:

• When the customer has countermanded payment.
• When the banker has received a garnishee order.
• When the customer has died.
• When the customer has become insolvent or insane.
• Where the banker has received a notice of assignment.
• When the customer has lost the instrument
• When the banker has come to know of any defect in the title.
• Where the instrument has been materially altered.
• When the account is closed.