Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 79

Duties of banker as to crossed cheque

(1) Where a cheque is crossed specially to more than one banker, except when
crossed to an agent for collection being a banker, the banker on whom it is
drawn shall refuse payment thereof.

(2) Where the banker on whom a cheque is drawn which is so crossed
nevertheless pays the same, or pays a cheque crossed generally otherwise than
to a banker, or, if crossed specially, otherwise than to the banker to whom it
is crossed or his agent for collection being a banker, he is liable to the
true owner of the cheque for any loss he may sustain owing to the cheque
having been so paid: Provided that where a cheque is presented for payment
which does not, at the time of presentment, appear to be crossed, or to have
had a crossing which has been obliterated, or to have been added to or altered
otherwise than as authorized by this Ordinance, the banker paying the cheque,
in good faith and without negligence, shall not be responsible or incur any
liability, nor shall the payment be questioned by reason of the cheque having
been crossed, or of the crossing having been obliterated or having been added
to or altered otherwise than as authorized by this Ordinance, and of payment
having been made otherwise than to a banker, or to the banker to whom the
cheque is or was crossed, or to his agent for collection being a banker, as
the case may be. [cf. 1882 c. 61 s. 79 U.K.]