BANKING AFFAIRS

Detailed explanation-1: -Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or endorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, endorse and negotiate the same.

Detailed explanation-2: -A promissory note, bill of exchange or cheque payable to bearer is negotiable by the delivery thereof.

Detailed explanation-3: -The maker or drawer cannot endorse or negotiate an instrument unless he is in lawful possession of instrument or is the holder there of. A payee or indorsee cannot endorse or negotiate unless he is the holder there of. An endorsement may be: (1) Blank or general.

Detailed explanation-4: -Blank Endorsement – Where the endorser signs his name only, and it becomes payable to bearer. Special Endorsement – Where the endorser puts his sign and writes the name of the person who will receive the payment. Restrictive Endorsement – Which restricts further negotiation.