Cheque To Bearer Drawn On An Outside Point - Bank's Right To Refuse Negotiation Without The Customer's Endorsement
This section is from the book "Canadian Banking Practice", by John T. P. Knight.
This section is from the "" book, by .
Cheque To Bearer Drawn On An Outside Point - Bank's Right To Refuse Negotiation Without The Customer's Endorsement
Question 849. - May a bank refuse to negotiate a cheque drawn on some other point and payable to bearer, unless endorsed by the customer?
Answer. - A bank may refuse to cash a cheque under any conditions whatever.
If, however, the question intended is whether a bank acts reasonably in refusing to cash such a cheque for a customer without his endorsement, we should say that such a refusal is most reasonable.
The only cheques about the payment of which the bank is under any obligation are those drawn on itself. If a cheque on itself payable to bearer is presented, it cannot call on the bearer to endorse it as a condition of payment.
c.b.p. - 13
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