What is the term not negotiable in the cheque?
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Usually a check or cheque is a negotiable (monetary) instrument. It is an order issued by a drawer (A/c holder) after signing it. The cheque is a document of the Bank or financial institution.
The drawee of the cheque is the bank itself. The bank is the agent who does the payment of money. The payee is the name of the person who gets the money finally.
A cheque becomes non-negotiable, when it is crossed on its left top by two parallel lines. Sometimes drawer writes "& co" or "non-negotiable" or "A/C payee " in between the lines.
Then the cheque becomes non-negotiable. The amount can only be transferred into a bank account of the payee. The non negotiable cheque cannot be issued in cash. Neither the amount can be transferred to another person by use of legal documents. (A negotiable financial instrument can be transferred to another person with appropriate legal documents.)
The drawee of the cheque is the bank itself. The bank is the agent who does the payment of money. The payee is the name of the person who gets the money finally.
A cheque becomes non-negotiable, when it is crossed on its left top by two parallel lines. Sometimes drawer writes "& co" or "non-negotiable" or "A/C payee " in between the lines.
Then the cheque becomes non-negotiable. The amount can only be transferred into a bank account of the payee. The non negotiable cheque cannot be issued in cash. Neither the amount can be transferred to another person by use of legal documents. (A negotiable financial instrument can be transferred to another person with appropriate legal documents.)
kvnmurty:
:-)
Answered by
10
Write the words 'not negotiable' between the two parallel lines on your cheque .
This means that if the cheque is transferred to another person , the person who obtains the cheque has no greater rights to it than the person who gave it .
Hope it helps ✌
Shreya ❤
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