BANKING AFFAIRS

Detailed explanation-1: –In determining what is a reasonable time for presentment for acceptance or payment, for giving notice of dishonour and for noting, regard shall be had to the nature of the instrument and the usual course of dealing with respect to similar instruments; and, in calculating such time, public holidays shall be excluded.

Detailed explanation-2: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.

Detailed explanation-3: -Negotiation by delivery.-Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof. (a) A, the holder of a negotiable instrument payable to bearer, delivers it to B’s agent to keep for B. The instrument has been negotiated.

Detailed explanation-4: –In a promissory note or bill of exchange the expressions “at sight” and “on presentment” means on demand. The expression “after sight” means, in a promissory note, after presentment for sight, and, in a bill of exchange after acceptance, or noting for non-acceptance, or protest for non-acceptance.

Detailed explanation-5: -Time of transfer: Unless the contrary is proved, it shall be presumed that every transfer of a negotiable instrument was made before its maturity. But it is also seen that there is no presumption as to the exact date of negotiation.