Cheques (Jersey) Law 1957

Jersey Law 2/1958 CHEQUES (JERSEY) LAW, 1957. ____________ A LAW to amend the Law relating to cheques and certain other instruments, sanctioned by Order of Her Majesty in Council of the 20th day of DECEMBER, 1957. ____________ (Registered on the 18th day of January, 1958). ____________ STATES OF JERSEY. ____________ The 14th day of October, 1957. ____________ T HE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law: - ARTICLE 1 PROTECTION OF BANKERS PAYING UNINDORSED OR IRREGULARLY INDORSED CHEQUES, ETC (1) Where a banker in good faith and in the ordinary course of business pays a cheque drawn on him which is not indorsed or is irregularly indorsed, he does not, in doing so, incur any liability by reason only of the absence of, or irregularity in, indorsement , and he is deemed to have paid it in due course. (2) Where a banker in good faith and in the ordinary course of business pays any such instrument as the following, namely, – (a) a document issued by a customer of his which, though not a bill of exchange, is intended to enable a person to obtain payment from him of the sum mentioned in the document; (b) a draft payable on demand drawn by him upon himself, whether payable at the head office or some other office of his bank; he does not, in doing so, incur any liability by reason only of the absence of, or irregularity in, indorsement , and the payment discharges the instrument. ARTICLE 2 RIGHTS OF BANKERS COLLECTING CHEQUES NOT INDORSED BY HOLDERS A banker who gives value for, or has a lien on, a cheque payable to order which the holder delivers to him for collection without indorsing it, has such (if any) rights as he would have had if, upon delivery, the holder had indorsed it in blank. ARTICLE 3 UNINDORSED CHEQUES AS EVIDENCE OF PAYMENT An unindorsed cheque which appears to have been paid by the banker on whom it is drawn is evidence of the receipt by the payee of the sum payable by the cheque . ARTICLE 4 PROTECTION OF BANKERS COLLECTING PAYMENT OF CHEQUES, &C (1) Where a banker, in good faith and without negligence, – (a) receives payment for a customer of an instrument to which this Article applies; or (b) having credited a customer’s account with the amount of such an instrument, receives payment thereof for himself; and the customer has no title, or a defective title, to the instrument, the banker does not incur any liability to the true owner of the instrument by reason only of having received payment thereof. (2) This Article applies to the following instruments, namely, – (a) cheques ; (b) any document issued by a customer of a banker which though not a bill of exchange, is intended to enable a person to obtain payment from that banker of the sum mentioned in the document; (c) any document issued by a public officer which is intended to enable a person to obtain payment from the Paymaster General or the Queen’s and Lord Treasurer’s Remembrancer of the sum mentioned in the document but is not a bill of exchange; (d) any draft payable on demand drawn by a banker upon himself, whether payable at the head office or some other office of his bank. (3) A banker is not to be treated for the purposes of this Article as having been negligent by reason only of his failure to concern himself with absence of, or irregularity in, indorsement of an instrument. ARTICLE 5 INTERPRETATION Expressions used in this Law to which a meaning is assigned by the Bills of Exchange Act, 1882 (45 and 46 Vict ., c. 61) have the same meanings in this Law as they have in that Act. ARTICLE 6 SHORT TITLE AND COMMENCEMENT (1) This Law may be cited as the Cheques (Jersey) Law, 1957. (2) This Law shall be deemed to have had effect as from the seventeenth day of October, 1957. To be printed, published and posted. F. DE L. BOIS, Greffier of the States.