The authority of a banker to pay a cheque drawn on him by a customer is determined in the
following ways:
(i) Countermand of payment: where a customer gives instruction to the banker not to
honour a cheque.
(ii) Notice of customers death.
(iii) Notice of bankruptcy petition against the customer.
(iv) Notice of drawer's insanity.
(v) A garnishee order.
(vi) Insufficient funds.
(vii) Holder's defective title: The holder has obtained a cheque through fraud or theft.
(viii) Closure of account.
(ix) If the cheque is irregular.
maurice.mutuku answered the question on May 2, 2018 at 13:02
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