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Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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I tried to deposit a cheque which was crossed "not negotiable"

Customer Question

I tried to deposit a cheque which was crossed "not negotiable" but had been signed on the back by the payee which I thought had the effect of opening the cheque. The bank refused to accept the cheque. I thought that legislation provided for the payee to use the cheque in negotiations by signing it.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Morning, My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.No it is not an open cheque only if it is drawn for cash and you go to the branch of the cheque owner can you draw the funds immediately.No that is not the case. It takes 3 days for the cheque to clear. If you want the money immediately you can go to the branch of the owner of the cheque and have them cash it for you as it is his branch and they can clear the cheque immediately as though it was a cash withdrawal.If you have a third party cheque drawn to another person and you try to deposit it in your account the bank will refuse it. It is illegal to draw deposit third party cheques into your account. The banks will not accept them. I hope this makes sense?
Customer: replied 1 year ago.
No it doesn't make sense. The cheques act says that even not negotiable cheques are negotiable if endorsed. I don't think you understood my question at all.
Expert:  Patrick H. replied 1 year ago.
Did the bank indicate why they had a problem with the indorsement signature?Did you try to cash the cheque or merely deposit it into your own account?