The financial encyclopedia uses cookies to improve your user experience. Find out more here!




Banker's revocation of authority to pay cheques


A banker may refuse to pay a cheque when: (1) payment is countermanded by the customer (2) he receives notice that the customer is drawing cheques unlawfully or for unlawful purposes (e.g. in breach of trust); (3) he receives notice that the customer is is dead, insane or an undischarged bankrupt; (4) he receives a garnishee order attaching to the customer's balance; or (5) he receives an instruction or court order restraining him from making any payment.


Reference: Oxford Press Dictonary of Economics, 3rd edt.