By the Act 39 & 40 Vict. c. 81 it is enacted - "Cheque" means a draft or order on a banker payable to bearer or to order on demand, and includes a warrant for payment of dividend on stock sent by post by the Governor and Company of the Bank of England or of Ireland, under the authority of any Act of Parliament for the time being in force: "Banker" includes persons or a corporation or company acting as bankers.

Where a cheque bears across its face an addition of the words "and company," or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, and either with or without the words "not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally.

Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially, and to be crossed to that banker.

Where a cheque is uncrossed, a lawful holder may cross it generally or specially.

Where a cheque is crossed generally, a lawful holder may cross it specially.

Where a cheque is crossed generally or specially, a lawful holder may add the words "not negotiable."

Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker, his agent for collection.

A crossing authorised by this Act shall be deemed a material part of the cheque, and it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.

Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.

Where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or to his agent for collection.

Where a cheque is crossed specially to more than one banker, except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.

Where the banker on whom a crossed cheque is drawn has in good faith and without negligence paid such cheque, if crossed generally to a banker, and if crossed specially to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the cheque and (in case such cheque has come to the hands of the payee) the drawer thereof shall respectively be entitled to the same rights, and be placed in the same position in all respects, as they would respectively have been entitled to and have been placed in if the amount of the cheque had been paid to and received by the true owner thereof.

Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same shall be crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.

Where a cheque is presented for payment, which does not at the time of presentation appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorised by this Act, a banker paying the cheque, in good faith and without negligence, shall not be responsible or incur any liability, nor shall the payment be questioned, by reason of the cheque having been crossed, or of the crossing having been obliterated, or having been added to or altered otherwise than as authorised by this Act, and of payment being made otherwise than to a banker or the banker to whom the cheque is or was crossed, or to his agent for collection being a banker (as the case may be).

A person taking a cheque crossed generally or specially, bearing in either case the words "not negotiable," shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.

But a banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

If a banker supplies his customers with cheques with a crossing in blank printed on them, the customer before he issues the cheque, may write the words "pay cash" on it. This being done before the cheque is issued, nullifies the crossing, and the banker may pay cash across the counter.

If a banker either at the request of a customer, or when a cheque is presented by the holder or his agent, place a "mark" upon it, as by his initials, signifying that the cheque is good, and will be paid, such "mark" is a legal acceptance of the cheque by the banker.

If a banking company has several branches, each with its own customers and accounts, each branch is considered an independent bank for the purpose of receiving and transmitting notice.

Each branch must collect its own cheques and bills, and time will not be enlarged so as to permit it to collect them through its head office.

If a person change a cheque as a favour for another; and if the cheque be duly presented and dishonoured, he may give notice of dishonour and recover the money.

A Letter of Credit is a written request addressed by one person to another requesting the latter to give credit to a person named in it.

If the request be unconditional it is termed an Open Credit.

If the request be on the condition that bills of lading be deposited as collateral security it is termed a Document Credit.

A Marginal letter of credit is one by which a person named in the margin guarantees to another person that he shall receive credit from or have his bills accepted by a third person.

The holder of a banker's circular letters may demand payment of them from himself, as well as from his correspondents abroad.

But he is not bound to cash them unless they are returned to him. or he receives an indemnity.