A bearer instrument is a financial instrument that is payable to the holder or bearer, regardless of that person's identity. As a bearer check or bill of exchange does not require endorsement, it is considered a high-risk form of transfer.
A cheque is a preprinted form on which instructions are given to an account provider such as a bank or building society to pay a stated sum to a named recipient. It's a common method for paying debts of various kinds.
A crossed cheque is a cheque that has two parallel lines drawn across its face with the purpose of instructing the bank that the cheque should only be deposited directly into a bank account and not immediately cashed by the bank over the counter.
A comprehensive overview of the accounting term 'dishonour,' referring to the failure to pay a cheque, accept or pay a bill of exchange, or honour any other financial obligation.
The drawer refers to a person or entity who issues a financial instrument such as a bill of exchange or a cheque, instructing the drawee to pay a specified sum of money either immediately or at a later date.
The term 'Not Negotiable' is used in the context of bills of exchange, indicating that the instrument is no longer a negotiable instrument. This term provides a safeguard against passing on a defective title.
To insert a date on a document that is later than the date on which it is signed, making it effective only from the later date. A post-dated (or forward-dated) cheque cannot be negotiated before the date written on it, irrespective of when it was signed.
