Where a cheque is crossed generally, the banker on whom

it is drawn, under Section 126:

A May pay it to any person presenting it Correct Answer Incorrect Answer

B Must pay it only in cash to the payee Correct Answer Incorrect Answer

C Shall refuse payment in all cases Correct Answer Incorrect Answer

D May pay it only to the drawer Correct Answer Incorrect Answer

E Shall not pay it otherwise than to a banker Correct Answer Incorrect Answer

Solution

Section 126 provides that where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker. Where it is crossed specially, the banker shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection. Crossing thus ensures payment passes through a banker, providing a safeguard against payment to a wrongful holder.

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