IMPORTANT BANKING BILL.

Globe, Volume XXIII, Issue 2265, 6 July 1881, Page 3

IMPORTANT BANKING BILL.

£Br Tbleseaph.J [feoii the own coeeespondknt of the “PEEBB,”J WELLINGTON, July 5. An important Bill affecting (.ho mercantile community has been introduced in the Legislative Council by the Attorney-General to amend in several material points the Banks and Bankers Act drafted by the Consolidation Commission and passed by Parliament last session. The Bill is called tho Banks and Bankers Act Amendment Bill, and its chief provisions are as follows : —First, in regard to crossed cheques—Where a cheque bears across its face the addition of tho words “ and company,” or its abbreviation between two parallel transverse lines, and simply either with or without the words “not negotiable,” that addition shall bo deemed crossing, and the cheque shall be deemed crossed ger.eially. Where a cheque bears across its face the addition of tho name of a Bank, cither vrith or without the words “not negotiable,” that addition shall be deemed crossing, and the cheque shall be deemed crossed and crossed to that banker. Whore a cheque is uncrossed the lawful holder may cross it generally or specially; where a cheque is crossed generally the lawful holder may cress it specially; where a cheque is crossed generally or specially the lawful holder may add the words “not negotiable;” where n cheque is crossed specially tho banker ■shorn it is crossed may again c'oes it specially to --nether banker, his agent, for collection. A crossing authorised by this Act shall be deemed a material part of a cheque, and it Khali not bo lawful for any person to obliterate, or, except as authorised by the Act, to add to or alter the crossing. Where a cheque : s crossed generally the banker on whom it 53 drawn shall not pay it otherwise than to a banker ; where a cheque is crossed specially tho banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crcescd, 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 purnose of collection, the banker on whom it is drawn shall refuse payment thereof. Whoa a 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 a b .nkor by whom it is crossed to his agent for ce'.leclion, being a banker, the banker paying tho cheque, end in case such cheque has come to tee hands of

' j the payee, the drawer thereof shall respectively j be entitled to the same rights and bo placed in the same pcciticn in all respects as if the amount of the cheque had been paid to the receiver by the true owner. Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially, otherwise than to a banker to whom the same shall be crossed or his agent, for } collection, being a banker, shall be liable to the true on ner of the cheque for any loss ho 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 bo crossed, or to have had a crossing which has been obliterated, or to have been added to nr altered otherwise than as authorised by the Act, the banker paying the cheque in good faith and without negligence obal! not bo responsible or incur any liability, nor shall payment be questioned. A person taking a cheque creased generally or specially, bearing in either case the words “ not negotiable," shall not have or be capable of giving a better title to the cheque than the person from whom ho took it, but a banker who has in good faith, and without negligence, received payment for a customer of a cheque crossed generally or specially to himslf, shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only c£ having received such payment. Section 21 of the Banks ar-d Bankers Bill, 1880, is repealed. Secondly, as to cheque* payable to order, it is provided that any cheqao drawn upon °a banker for a sum of money payable to order on demand, which shall, when presented for payment, purport to ba endorsed by the person to whom the game shall bo drawn payable, shall be enffioiea authority to each banker to pay the amount of the cheque to bearer, and it shall not be incumbent on the banker to prove the en-

dorsement made by or under the direction or authority of the person to whom the said cheque was or is made payable either by thedrawer or any endorser. Thirdly, a* to defacing Bank notes, it is enacted that if, after the first issue of any Bank note, any person who is the holder thereof writes, prints, or marks thereon, or causes or permits to bo written, printed, stamped, or marked thereon his name or names, or any number, device in printing or writing of any kind relating to such person or his trade, busines* or affairs he shall bo liable to a penalty of not less chan five nor more than ten pounds. The person whose name, number, device, printing, or writing shall be so written, etc., shall prima. facie bo deemed guilty of an offence against this section, and proof that he has not committed any such offence shall lie on the person oh r edprovided that it shall not bedeemed en offence within the meaning of this provision where any person is required by the manager or other officer in charge of any Bank to endorse his name upon any Bank note for purposes of identification or any other lawful purpose. If any person shall wilfully or maliciously write, print, stamp or mark upon a Bank note any such name, number, device, printing or writing as hereinbefore mentioned, or shall cause or procure the same to be so written, etc., without the authority or consent of the person whose name or to whom the number, device, or writing shall purport to relate, such first mentioned person shall be guilty of a misdemeanor. Ho prosecution or proceedings shall be taken or commenced against any parson for breach of the preceding sections except upon the written authority of the managing director or other chief officer in the colony of the Bank which issued the note in respect of which any suck breach has been committed. Fourthly, as to special Bank holidays, it is provided that the chief officer in the colony of any Bank may appoint any day as a special Bank holiday at the Bank under his control, and such holiday may bo made to apply to the whole colony or only to one or more provincial districts; the day so appointed shall be notified by public advertisement not less than three times within ten days immediately preceding such day in some newspaper circulating in every provincial district in which the holiday is to be observed. Every such advertisement shall be signed by the officer in charge of the Bank at the chief town of such provincial district, and a copy of the notice shall be kept affixed in a conspicuous place outside of the Bank premises for the last three days before such day. Such day shall be a special Bank holiday only at the particular Bank or Banks specified in the notice. Every special Bank holiday shall he deemed to be a Bank holiday within the meaning of the Banka and Bankers Act, 1880. The twenty-seventh section of the Banks and Bankers Act, 1880, is repealed.