27 September 2010
Account Payee: In this type of crossing the collecting banker is supposed to credit the amount of the cheque to the account of the payee only. The cheque remains transferable but the liability of the collecting banker is enhanced in case he credits the proceeds of the cheque so crossed to any person other than the payee and the indorsement in favour of the last payee is proved forged.The collecting banker must act like a blood hound and make proper enquiries as to the title of the last indorsee from the original payee named in the cheque before collecting an 'Account Payee' cheque in his account.
Not Negotiable Crossing: The words 'Not Negotiable' can be added to General as well as Special crossing and a crossing with these words is known as Not Negotiable crossing.The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument i.e the transferee of such a crossed cheque cannot get a better title than that of the transferor ( cannot become a holder in due course ) and cannot covey a better title to his own transferee, though the instrument remains transferable.
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