When may a banker refuse to honour a customer cheque :
01. When the balance to the credit of the customer is insufficient to meet the cheque.
02. When the funds are not properly applicable to the payment of a cheque.
03. After receiving the notice or information or death, the banker should stop payment of all cheques drawn against his account.
When Banks must refuse payment of cheque.
01. On customer countermanding payment
02. On receipt of a notice of customer death
03. On customer becoming insolvent
04. On receipt of a notice of the customer insanity
05. On receipt of Garnishee Order
06. On notice of Assignment
07. Trust account
08. Stolen cheques
Other reason for dishonour of cheques.
01. Post-dated
02. Short of fund in the account
03. Cheque presented after business hours
04. Joint account but cheque are not signed by joint account holders
05. The cheque is irregular and ambiguous
06. The cheque presented after 6 months from the date it bears
Apparent Tenor – 04 elements
01. Date
of cheque,
02.
Sum of cheque both word
and figure
03.
Name of payee,
04.
Drawer signatures.