In finance, countermand is usually used in the context of stopping a payment. In the case of check payments, a customer can countermand the payment at any time before the check is presented, through a stop-payment order.

Who can issue countermanding order?

Countermand order means a cancellation or revocation of a previous instruction. This is used to qualify a counter order given by a customer to his bank instructing it not to honour a cheque which he has previously issued to a particular person.

When can a bank refuse payment of a cheque?

A banker must also refuse payment of cheques when its customer has been adjudged insolvent or has become insane since in such cases its original authority to pay on behalf of the customer ceases to exist. A fresh authority is required on those accounts.

How do you use countermand in a sentence?

1. Since the bank robbers have hostages, the police chief decided to countermand the order to storm the building.
2. Jane hoped her father would countermand her curfew and allow her to stay out past midnight for the homecoming dance.

What does payment countermanded by order of drawer mean?

When a drawer countermands a cheque it usually means that he has asked the bank not to make payment. ... If the bank pays after the cheque has been countermanded, the customer's account cannot be debited with the amount.

Banking and Bank Transactions Bank Draft When can a Bank refuse payment of cheque?

Who is primarily liable on a cheque?

As a cheque is a bill of exchange, drawn on a specified banker by the drawer, the banker is bound to pay the cheque of the drawer, i.e., the customer. For the following conditions are need to be satisfied: (i) Sufficient amount of funds to the credit of customer's account should be there with the banker.

What is meant by countermanded?

1 : to revoke (a command) by a contrary order. 2 : to recall or order back by a superseding contrary order countermand reinforcements. countermand.

How do you use remand in a sentence?

She was remanded in custody after being refused bail. He was remanded in custody until his sentencing. He was remanded in custody for sentencing at crown court. He was remanded in custody and will appear in crown court tomorrow.

How do you use recant in a sentence?

1. Attempts were made by the officials to induce him to recant, but without effect.
2. He was compelled to recant, under strong pressure from Pope Innocent III.
3. Barnes was forced to apologize and recant; and Gardiner delivered a series of sermons at St Paul's Cross to counteract Barnes' invective.

How do you use exacerbate in a sentence?

1. He wanted desperately to put his arms around her but knew he'd just exacerbate the situation. ...
2. Excessive or hard exercise can exacerbate it. ...
3. He was largely responsible for the Scandinavian Seven Years' War (1562-70), which did so much to exacerbate the relations between Denmark and Sweden.

Can I refuse payment by cheque?

Cheques are not legal tender and never have been. Even today, if you owe someone money they are not obliged to accept a cheque. Instead, a creditor is entitled to be paid in legal tender and can refuse payment in any other form. Most cheques are crossed 'A/C Payee'.

What are the circumstances under which the payment of Cheques can be refused?

It is in the following cases that a banker must refuse to honour his customer's cheques: When the customer himself has issued instruction to the banker form stopping the payment of the cheque. When the banker receives notice of the customer's death. When the customer has become insolvent.

What makes a cheque invalid?

The cheque that you've paid in has been written incorrectly as the amount written in words and figures do not match. ... The cheque that has been paid in appears to have been altered and therefore cannot be paid as the cheque should have been countersigned by the issuer.

What is it called when a bank returns a cheque unpaid?

A. payment of the cheque.

Can a crossed cheque be Cancelled?

As the name suggests, a canceled cheque is one that is crossed and the term "Cancelled" is written on it. Except this, nothing else needs to be written on the cheque. By manually crossing the cheque and writing canceled on it, the cheque can never be misused.

What type of noun is banker?

One who conducts the business of banking; one who, individually, or as a member of a company, keeps an establishment for the deposit or loan of money, or for traffic in money, bills of exchange, etc.

Does recant withdraw mean?

transitive verb. 1 : to withdraw or repudiate (a statement or belief) formally and publicly : renounce. 2 : revoke.

What is difference between renounce and recant?

To recant something is to announce in public that your past beliefs or statements were wrong and that you no longer agree with them. To renounce something is to say formally or publicly that you no longer own, support, believe in or have a connection with something.

Why does recant mean?

to withdraw or disavow (a statement, opinion, etc.), especially formally; retract. to withdraw or disavow a statement, opinion, etc., especially formally.

What is a remand in law?

To remand something is to send it back. Remand implies a return. ... When an appellate court reverses the decision of a lower court, the written decision often contains an instruction to remand the case to the lower court to be reconsidered in light of the appellate court's ruling.

What is an example of a remand?

An example of a remand is the act of sending a court case back to a lower court for further action. Remand is defined as to send back. An example of to remand is to send a prisoner back to jail. To send back; order to go back.

What happens when on remand?

When a person is remanded in custody it means that they will be detained in a prison until a later date when a trial or sentencing hearing will take place. ... They should also have further rights in prison, such as being able to wear their own clothes and having more visits.

Who is primary liable on a promissory note?

In a Bill of exchange, it is an unconditional order to make the payment. 3. Nature of liability The maker of the promissory note has primary liability. If the payee demands the maker has to pay directly to him.

Who can file a criminal case against the drawer of a dishonored cheque *?

If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate's court within a month of the expiry of the notice period.

How many times a cheque can be endorsed?

Answer: The simple answer to your question is “yes”. You can present the cheque more than once in the bank during its validity period. It can be done twice or multiple number of times, provided the cheque is presented during its validity period.