- 5 Marks
BL – Nov 2020 – L1 – SB – Q5d – Negotiable Instruments
Explain different cheque crossing types and define negotiable instruments.
Question
Crossing of cheques has legal implications in banking transactions, and a cheque is a type of negotiable instrument.
Required:
i. A cheque instruction to “pay Ronke the sum of N50,000.00” without crossing the face of the cheque with two parallel lines.
ii. “Pay Andrew N100,000” with two parallel lines traversing the face of the cheque.
iii. “Pay Mary N150,000” with two parallel lines with Congo Bank written in between the two parallel lines on the face of the cheque.
iv. “Pay Ngozi N200,000” and by cheque with two parallel lines and the words “account payee only” written in between the two parallel lines.
v. Define negotiable instruments.
Find Related Questions by Tags, levels, etc.
- Tags: Banking Transactions, Cheques, Crossing, Negotiable Instruments, Payment Instructions
- Level: Level 1
- Topic: Negotiable Instruments
- Series: NOV 2020
