Knowledge Base Issues

If a cheque is made payable to a company, e.g., ABC Sdn. Bhd or 'bearer', can the 'bearer' of the cheque encash it over the counter?
No. Generally banks will require you to deposit it into the account of ABC Sdn. Bhd. to reduce the incidence of fraud.
Can a cheque be made payable to two parties i.e. A or B?
Yes. A cheque can be made payable to either A or B.
Why do banks charge customers for encashing account payee cheques?
To minimise the risk of loss from open cheques due to robbery, theft and fraud, banks have issued pre-printed account payee cheques. Notwithstanding this, some banks may allow the accountholder...
What is a fictitious payee? What is a non-existing payee? What is the difference between a fictitious payee and a non-existing payee?
A cheque may be drawn payable to a named payee whom does not in fact exist. Section 7(3) Bills of Exchange states that: where the payee is a fictitious or non-existing person the bill may be...
Are "account payee only" cheques transferable?
No. When a cheque is crossed not negotiable or account payee only, the cheque must be deposited into the account of the payee.

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