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cheque, qv, answer, banker and drawer

ANSWERS. When a bill or cheque, for any reason, is returned unpaid, the answer given by the drawee banker, as the reason of its return, must not be at variance with the actual fact. The answer is usually written upon the bill or cheque. A banker might be held liable in damages if he returned a cheque marked " Refer to drawer " when the correct answer should have been " Postdated," or " Figures and words differ." or some similar answer.

It should be noted that a careless use of an abbreviated answer may render a banker liable. In an action on a returned bill which had been marked " N.A.," it was suggested that those letters meant " No assets " or " account," as well as " No advice," which was the answer the banker intended to give.

In dishonouring a cheque presented across the counter, the reason for dishonouring it is not always written upon the cheque ; a verbal answer is usually sufficient.

A banker is sometimes able to get a tech nical mistake in a cheque corrected by the drawer, and where this can be conveniently done it is much better than returning the cheque.

Where there are not sufficient funds to meet a cheque, and there is also a technical irregularity in it, when returning the cheque, the answer given often refers only to the irregularity and not to the want of funds, particularly if it is expected that by the time the irregularity has been put right the banker will be in a position to pay it.

The words " Will pay on banker's con firmation " are occasionally added to an answer, when the sole reason for the return of the cheque is a technical one, such as " Indorsement irregular." If the drawer dies before the cheque arrives back, or the account changes so as not to admit of the cheque being debited, the banker is not liable, by reason of the words used, to pay the cheque. The words have reference only

to the technical irregularity and not to the payment of the amount.

The following are some of the " answers " which are given on cheques and bills (the answer being generally written in ink on the left-hand top corner) : " Acceptor bankrupt." " Acceptor dead." (See DEATH OF Ac CEPTOR.) " Account closed " (more often " No account ").

" Amounts differ " (q.v.).

" Crossed to two bankers " (q.v.).

" Date incomplete." " Drawer bankrupt." " Drawer dead." (See DEATH OF D RAWER.) " Effects not cleared " (q.v.).

" Incompletely signed " (or " Further signature required ").

" Indorsement irregular." " Indorsement required." " Indorsement requires confirmation." " Insufficient funds." " Insufficiently stamped." " Mutilated cheque " (q.v.).

" No account " (q.v.).

" No advice " (q.v.).

" No assets." " No effects." " No orders " (q.v.).

" Not provided for," " n.p.f." (q.v.).

" Not sufficient," " N.S." (q.v.) (also written " Not sufficient funds ").

" Out of date." (See STALE CHEQUE.) " Payment stopped " (q.v.).

" Postdated " (q.v.).

" Present again " (q.v.).

" Refer to acceptor." " R/A." " Refer to drawer," " R /D." (q.v.). " Re-present." " Requires banker's crossing " (q.v.).

" Requires stamp of banker to whom crossed." " Signature differs " (i.e., differs from the customer's usual hand or method of signing). " Stale." (See STALE CHEQUE.) " Words and figures differ." (See "AMOUNTS DIFFER.")