Under section 126 of the Negotiable Instruments Act, 1881, to whom may the bank on which a generally…
For general crossing, section 126 limits payment to a banker. Its separate special-crossing rule identifies the named banker or that banker's collection agent.
Choose your answer
Under section 126 of the Negotiable Instruments Act, 1881, to whom may the bank on which a generally crossed cheque is drawn make payment?
Answer and explanation
Correct answer A
For general crossing, section 126 limits payment to a banker. Its separate special-crossing rule identifies the named banker or that banker's collection agent.
Option feedback
Option A
The general-crossing rule requires payment to a banker.
Option B
A named banker is a feature of special crossing.
Option C
General crossing does not authorize payment to a non-banker collection agent.
Option D
The cheque cannot be paid directly to the drawer merely because that person issued it.
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