(1) Where a cheque bears across its face an addition of—
(a) The words “and company” or any abbreviation thereof between two parallel transverse lines, either with or without the words “not negotiable”; or
(b) Two parallel transverse lines simply, either with or without the words “not negotiable”;
that addition constitutes a crossing, and the cheque is crossed generally.
(2) Where a cheque bears across its face an addition of the name of a banker, either with or without the words “not negotiable,” that addition constitutes a crossing, and the cheque is crossed specially and to that banker.
(1) A cheque may be crossed generally or specially by the drawer.
(2) Where a cheque is uncrossed, the holder may cross it generally or specially.
(3) Where a cheque is crossed generally the holder may cross it specially.
(4) Where a cheque is crossed generally or specially, the holder may add the words “not negotiable.”
(5) Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker for collection.
(6) Where an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection, he may cross it specially to himself.
A crossing authorised by this Act is a material part of the cheque; it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.
(1) Where a cheque is crossed specially to more than one banker except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall refuse payment thereof.
(2) Where the banker on whom a cheque is drawn which is so crossed nevertheless pays the same, or pays a cheque crossed generally otherwise than to a banker, or if crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection being a banker, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.
Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be.
80 Protection to banker and drawer where cheque is crossed.
Where the banker, on whom a crossed cheque (including a cheque which under section 81A below or otherwise is not transferable) is drawn, in good faith and without negligence pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.
Where a person takes a crossed cheque which bears on it the words “not negotiable,” he shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.
(1) Where a cheque is crossed and bears across its face the words “account payee” or “a/c payee”, either with or without the word “only”, the cheque shall not be transferable, but shall only be valid as between the parties thereto.
(2) A banker is not to be treated for the purposes of section 80 above as having been negligent by reason only of his failure to concern himself with any purported indorsement of a cheque which under subsection (1) above or otherwise is not transferable.
(1) A promissory note is an unconditional promise in writing made by one person to another signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer.
(2) An instrument in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is indorsed by the maker.
(3) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.
(4) A note which is, or on the face of it purports to be, both made and payable within the British Islands is an inland note. Any other note is a foreign note.
(1) A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally according to its tenour.
(2) Where a note runs “I promise to pay” and is signed by two or more persons it is deemed to be their joint and several note.
(1) Where a note payable on demand has been indorsed, it must be presented for payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged.
(2) In determining what is reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case.
(3) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.
(1) Where a promissory note is in the body of it made payable at a particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable.
(2) Presentment for payment is necessary in order to render the indorser of a note liable.
(3) Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an indorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the indorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.
(4) This section is subject to Part 4A (presentment by electronic means).
The maker of a promissory note by making it—
(1) Engages that he will pay it according to its tenor;
(2) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.
(1) Subject to the provisions in this part, and except as by this section provided, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes.
(2) In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order.
(3) The following provisions as to bills do not apply to notes; namely, provisions relating to—
(a) Presentment for acceptance;
(b) Acceptance;
(c) Acceptance supra protest;
(d) Bills in a set.
(4) Where a foreign note is dishonoured, protest thereof is unnecessary.
89A Presentment of instruments by electronic means
(1) Presentment for payment of an instrument to which this section applies may be effected by provision of an electronic image of both faces of the instrument, instead of by presenting the physical instrument, if the person to whom presentment is made accepts the presentment as effective.
This is subject to regulations under subsection (2) and to section 89C.
(2) The Treasury may by regulations prescribe circumstances in which subsection (1) does not apply.
(3) Regulations under subsection (2) may in particular prescribe circumstances by reference to—
(a) descriptions of instrument;
(b) arrangements under which presentment is made;
(c) descriptions of persons by or to whom presentment is made;
(d) descriptions of persons receiving payment or on whose behalf payment is received.
(4) Where presentment for payment is made under subsection (1)—
(a) any requirement—
(i) that the physical instrument must be exhibited, presented or delivered on or in connection with presentment or payment (including after presentment or payment or in connection with dishonour for non-payment), or
(ii) as to the day, time or place on or at which presentment of the physical instrument may be or is to be made, and
(b) any other requirement which is inconsistent with subsection (1),
does not apply.
(5) Subsection (4) does not affect any requirement as to the latest time for presentment.
(6) References in subsections (4) and (5) to a requirement are to a requirement or prohibition, whether imposed by or under any enactment, by a rule of law or by the instrument in question.
(7) Where an instrument is presented for payment under this section—
(a) any banker providing the electronic image,
(b) any banker to whom it is provided, and
(c) any banker making payment of the instrument as a result of provision of the electronic image,
are subject to the same duties in relation to collection and payment of the instrument as if the physical instrument had been presented.
This is subject to any provision made by or under this Part.
(1) Subject to subsection (2), section 89A applies to—
(a) a cheque, or
(b) any other bill of exchange or any promissory note or other instrument—
(i) which appears to be intended by the person creating it to enable a person to obtain payment from a banker indicated in it of the sum so mentioned,
(ii) payment of which requires the instrument to be presented, and
(iii) which, but for section 89A, could not be presented otherwise than by presenting the physical instrument.
(2) Section 89A does not apply to any banknote (within the meaning given in section 208 of the Banking Act 2009) or to anything that is an electronic trade document for the purposes of the Electronic Trade Documents Act 2023 (see section 2 of that Act).
(3) The reference in subsection (1) to the person creating an instrument is—
(a) in the case of a bill of exchange, a reference to the drawer;
(b) in the case of a promissory note, a reference to the maker.
(4) For the purposes of subsection (1)(b)(i) an indication may be by code or number and need not indicate that payment is intended to be obtained from the banker.
89C Banker's obligation in relation to accepting physical instrument for presentment
Provision of an electronic image of an instrument does not constitute presentment of the instrument under section 89A if the arrangements between—
(a) the banker authorised to collect payment of the instrument on behalf of a customer, and
(b) that customer,
do not permit the customer to pay in the physical instrument but instead require an electronic image to be provided (whether to that banker or to any other person).
(1) The Treasury may by regulations make provision for—
(a) requiring a copy of an instrument paid as a result of presentment under section 89A to be provided, on request, to the creator of the instrument by the banker who paid the instrument;
(b) a copy of an instrument provided in accordance with the regulations to be evidence of receipt by a person identified in accordance with the regulations of the sum payable by the instrument.
(2) Regulations under subsection (1)(a) may in particular—
(a) prescribe the manner and form in which a copy is to be provided;
(b) require the copy to be certified to be a true copy of the electronic image provided to the banker making the payment on presentment under section 89A;
(c) provide for the copy to be accompanied by prescribed information;
(d) require any copy to be provided free of charge or permit charges to be made for the provision of copies in prescribed circumstances.
(3) The reference in subsection (1)(a) to the creator of the instrument is—
(a) in the case of a bill of exchange, a reference to the drawer;
(b) in the case of a promissory note, a reference to the maker.
89E Compensation in cases of presentment by electronic means
(1) The Treasury may by regulations make provision for the responsible banker to compensate any person for any loss of a kind specified by the regulations which that person incurs in connection with electronic presentment or purported electronic presentment of an instrument.
(2) In this section “electronic presentment or purported electronic presentment of an instrument” includes—
(a) presentment of an instrument to which section 89A applies under that section;
(b) presentment of any other instrument by any means involving provision of an electronic image by which it may be presented for payment;
(c) purported presentment for payment by any means involving provision of an electronic image of an instrument that may not be presented for payment in that way;
(d) provision, in purported presentment for payment, of—
(i) an electronic image that purports to be, but is not, an image of a physical instrument (including an image that has been altered electronically), or
(ii) an electronic image of an instrument which has no legal effect; or
(e) provision, in presentment or purported presentment for payment, of an electronic image which has been stolen.
(3) In this section, the “responsible banker”, in relation to electronic presentment or purported electronic presentment of an instrument, means—
(a) the banker who is authorised to collect payment of the instrument on a customer's behalf, or
(b) if the holder of the instrument is a banker, that banker.
(4) In this section—
(a) references to an instrument include references to an instrument which has no legal effect (whether because it has been fraudulently altered or created, or because it has been discharged, or otherwise);
(b) in relation to an electronic image which is not an image of a physical instrument, references to the instrument are to a purported instrument (of which it purports to be an image); and
(c) in relation to an instrument which is not a bill of exchange or promissory note, references to the holder are to the payee or indorsee of the instrument who is in possession of it or, if it is payable to bearer, the person in possession of it.
(5) Regulations under this section may in particular make provision for—
(a) the responsible banker to be required to pay compensation irrespective of fault;
(b) the amount of compensation to be reduced by virtue of anything done, or any failure to act, by the person to whom compensation is payable.
(6) Nothing in this section or regulations under it is to be taken to—
(a) prevent the responsible banker claiming a contribution from any other person, or
(b) affect any remedy available to the responsible banker in contract or otherwise.
(7) Except so far as regulations under this section provide expressly, nothing in this section or regulations under it is to be taken to affect any liability of the responsible banker which exists apart from this section or any such regulations.
(1) Regulations under this Part may—
(a) include incidental, supplementary and consequential provision;
(b) make transitory or transitional provision or savings;
(c) make different provision for different cases or circumstances or for different purposes;
(d) make provision subject to exceptions.
(2) The power to make regulations under this Part is exercisable by statutory instrument.
(3) An instrument containing—
(a) regulations under section 89A or 89D, or
(b) the first regulations to be made under section 89E,
may not be made unless a draft of the instrument has been laid before, and approved by resolution of, each House of Parliament.
(4) An instrument containing any other regulations under section 89E is subject to annulment in pursuance of a resolution of either House of Parliament.
(5) For the purposes of this Part, a banker collects payment of an instrument on behalf of a customer by—
(a) receiving payment of the instrument for the customer, or
(b) receiving payment of the instrument for the banker (but not as holder), having—
(i) credited the customer's account with the amount of the instrument, or
(ii) otherwise given value to the customer in respect of the instrument.
(6) Section 89E(4) applies for the purposes of subsection (5) in its application to section 89E.
(1) Where, by this Act, any instrument or writing is required to be signed by any person it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority.
(2) In the case of a corporation, where, by this Act, any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal.
But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.
Where, by this Act, the time limited for doing any act or thing is less than three days, in reckoning time, non-business days are excluded.
“Non-business days” for the purposes of this Act mean—
(a) Saturday Sunday, Good Friday, Christmas Day:
(b) A bank holiday under the Banking and Financial Dealings Act 1971:
(c) A day appointed by Royal proclamation as a public fast or thanksgiving day.
(d) A day declared by an order under section 2 of the Banking and Financial Dealings Act 1971 to be a non-business day.
Any other day is a business day.
For the purposes of this Act, where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting.
(1) Where a dishonoured bill or note is authorised or required to be protested, and the services of a notary cannot be obtained at the place where the bill is dishonoured, any householder or substantial resident of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the dishonour of the bill, and the certificate shall in all respects operate as if it were a formal protest of the bill. The form given in Schedule 1 to this Act may be used with necessary modifications, and if used shall be sufficient.
(2) In subsection (1), “ notary ” includes a person who, for the purposes of the Legal Services Act 2007, is an authorised person in relation to any activity which constitutes a notarial activity (within the meaning of that Act).
(1) The rules in bankruptcy relating to bills of exchange, promissory notes, and cheques, shall continue to apply thereto notwithstanding anything in this Act contained.
(2) The rules of common law including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques.
(3) Nothing in this Act or in any repeal effected thereby shall affect—
(a) . . . any law or enactment for the time being in force relating to the revenue:
(b) The provisions of the Companies Act 1862, or Acts amending it, or any Act relating to joint stock banks or companies:
(c) The provisions of any Act relating to or confirming the privileges of the Bank of England or the Bank of Ireland respectively:
(d) The validity of any usage relating to dividend warrants, or the indorsements thereof.
Nothing in this Act or in any repeal effected thereby shall extend or restrict, or in any way alter or affect the law and practice in Scotland in regard to summary diligence.
Where any Act or document refers to any enactment repealed by this Act, the Act or document shall be construed, and shall operate, as if it referred to the corresponding provisions of this Act.
100 Parole evidence allowed in certain judicial proceedings in Scotland.
In any judicial proceeding in Scotland, any fact relating to a bill of exchange, bank cheque, or promissory note, which is relevant to any question of liability thereon, may be proved by parole evidence: Provided that this enactment shall not in any way affect the existing law and practice whereby the party who is, according to the tenour of any bill of exchange, bank cheque, or promissory note, debtor to the holder in the amount thereof, may be required, as a condition of obtaining a sist of diligence, or suspension of a charge, or threatened charge, to make such consignation, or to find such caution as the court or judge before whom the cause is depending may require.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form of protest which may be used when the services of a notary cannot be obtained.
Know all men that I, A.B. [householder], of in the county of in the United Kingdom, at the request of C.D., there being no notary public available, did on the day of 188 at demand payment [or acceptance] of the bill of exchange hereunder written, from E.F., to which demand he made answer [state answer, if any] wherefore I now, in the presence of G.H. and J.K. do protest the said bill of exchange.
(Signed) A.B.
G.H. Witnesses.
J.K.
N.B.—The bill itself should be annexed, or a copy of the bill and all that is written thereon should be underwritten.