Which of the following is correct and is a part of Negotiable Instrument, that a cheque may be marked…
A cheque may be marked good for payment by the drawee bank at the request of the drawer, the holder or the collecting banker. The paying banker is the drawee performing the…
Choose your answer
Which of the following is correct and is a part of Negotiable Instrument, that a cheque may be marked as good by the drawee banker at the instance of :
a. The drawer
b. The Holder
c. The Paying Banker
d. The Collecting Banker
Answer and explanation
Correct answer D
A cheque may be marked good for payment by the drawee bank at the request of the drawer, the holder or the collecting banker. The paying banker is the drawee performing the marking, so it is not a separate requesting party in this classification. Marking is a customary assurance about payment when duly presented, rather than the formal acceptance required for certain bills of exchange.
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