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Negotiable Instruments Terminology


  • Accommodation Bill- Bill of exchange (Hundi) which is issued without consideration is an accommodation bill and such hundies are not acceptable by banks for discount purpose.
  •  Account Payee- This is a type of crossing, restricting the payment of a cheques or a demand draft to payee through a bank account only.
  • Alongee- This is a white piece of paper attached to a cheque at the lower end of its backside, for the use of further endorsements.
  • Ante Dated Cheque- The instrument bearing a date prior to the date of presentation, are ante dated cheques.
  • Collecting Banker- A banker who collects the cheques and drafts from other banks on behalf of their customers, is a collecting banker.
  • Crossed Cheques- The cheques bearing the two transverse parallel lines across the face of it, with or without words are crossed cheques.
  • Forged Cheques- A cheque which does not bear the genuine signature of account holder or contains unauthenticated misleading alterations in the cheques.
  • Order Cheque- A cheque  which is payable to the other person on the instance of the payee, is an order cheque.

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