Points to note by an astute and diligent Teller before paying a cheque across the counter

1. Date on the cheque – it should not be stale

2. The presenter of the cheque, the payee [the cheque ] is not endorsed for another person

3. Amount in figures and words must agree

4. The cheque bears the signature authorized in the customer’s mandate

5. The cheque is not mutilated

6. The signature must be regular

7. There is sufficiency of fund to meet the payment

8. There is no stop notice/ countermand of order

9. There is no government order on the account

10. There is no bankruptcy notice on the customer

11. Any alterations on the cheque is duly signed by the authorized signatory

12. There is no court order freezing the account

13. No garnishee order on the account is received

Instances which might make a collecting banker to be liable for negligence

Failure to obtain a reference when a new account is opened – Ladbroke V Todd [1914];

Failure to follow up references, especially where the referees are unknown or doubted;

Failure to obtain employee’s reference from employer when a worker open personal account;

Failure to obtain and sight the original copy of a Certificate of Registration where an account is opened for a corporate customer;

Collecting for a company employee a cheque payable to the employer – A.L. Underwood V Bank of Liverpool [1924];

Collecting for the private account of an employee’s spouse/relatives a cheque payable to his employer;

Collecting for the private account of an agent a cheque drawn by him on his principal’s account- Morison V London County and Westminister Bank Ltd [1924];

Collecting cheques for amounts which are inconstitent with the customer’s station/situation in life or business;

Collecting cheques crossed “Account Payee Only” for an account other that of the payee;

Collecting cheques for the account which had unsatisfactory operations – Motor Traders Guarantee V Midland Bank.