BANKING AFFAIRS

Detailed explanation-1: -The negotiated document can be negotiated as many times as we want depending on the maturity duration of that said document. For example: If the maturity period of the said document is given 6 months then within the same period we can negogiate the document as many times as we want.

Detailed explanation-2: -60. A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker, drawee or accept or at or after maturity, but not after such payment or satisfaction.

Detailed explanation-3: -A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof.

Detailed explanation-4: -138 to 142 were inserted by Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988. This was done by making the drawer liable for penalties in case of bouncing of the cheque due to insufficiency of funds with adequate safeguards to prevent harassment of the honest drawer.