Question
Highlight four reasons why a cheque may be dishonored.
Answer
- Signature of the account holder differs with the specimen signature
- If the cheque is stale
- If the cheque is postdated
- If the drawer has closed the account with the bank
- When a cheque is altered and not countersigned
- A bank learns about the death, insanity or bankruptcy of the account holder
- If the cheque is defaced
- If the amount in figures differs with the amount in figures.
- If the cheque is stale
- If the cheque is postdated
- If the drawer has closed the account with the bank
- When a cheque is altered and not countersigned
- A bank learns about the death, insanity or bankruptcy of the account holder
- If the cheque is defaced
- If the amount in figures differs with the amount in figures.
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