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A dishonoured cheque (also spelled check) is a cheque that the bank on which it is drawn declines to pay (“honour”). There are a number of reasons why a bank might refuse to honour a cheque, with non-sufficient funds ( NSF ) being the most common, indicating that there are insufficient cleared funds in the account on which the cheque was drawn.
(1) Where a cheque, or any indorsement of a cheque, is dated, the date shall, unless the contrary is proved, be presumed to be the day on which the cheque was drawn or the indorsement made, as the case may be. (2) A cheque is not invalid by reason only that- (a) it is not dated; (b) it is antedated or post-dated; or (c) the date it bears is a ...
If a cheque is refused at the drawee bank (or the drawee bank returns the cheque to the bank that it was deposited at) because there are insufficient funds for the cheque to clear, it is said that the cheque has been dishonoured. Once a cheque is approved and all appropriate accounts involved have been credited, the cheque is stamped with some ...
Cheque clearing (or check clearing in American English) or bank clearance is the process of moving cash (or its equivalent) from the bank on which a cheque is drawn to the bank in which it was deposited, usually accompanied by the movement of the cheque to the paying bank, either in the traditional physical paper form or digitally under a cheque truncation system.
Cheques are usually handled by banks as a cash item, on the assumption that the payor bank will honor the check. [3] Cheques create float (cash in the payor's account which the payor still has access to while the transition has yet to be finalized). Other types of collection items include: Dishonoured cheques or "bad cheques" [4] Bank drafts [2]
In most jurisdictions, passing a cheque for an amount of money the writer knows is not in the account at the time of negotiation (or available for overdraft protection) is usually considered a violation of criminal law. However, the general practice followed by banks has been to refrain from prosecuting cheque writers if the cheque reaches the ...
A banker's draft (also called a bank cheque, bank draft in Canada or, in the US, a teller's check) is a cheque (or check) provided to a customer of a bank or acquired from a bank for remittance purposes, that is drawn by the bank, and drawn on another bank or payable through or at a bank. [1]
A certified check (or certified cheque) is a form of check for which the bank verifies that sufficient funds exist in the payer's account to cover the check, and so certifies, at the time it is written. Those funds are then set aside in the bank's internal account until the check is cashed or returned by the payee.