Cheques Act 1992 (c. 32)

After section 81 of the M1 Bills of Exchange Act 1882 there shall be inserted the following section— (1) Where a cheque is crossed and bears across its face the words “account payee” or “a/c payee”, either with or without the word “only”, the cheque shall not be transferable, but shall only be valid as between the parties thereto. (2) A banker is not to be treated for the purposes of section 80 above as having been negligent by reason only of his failure to concern himself with any purported indorsement of a cheque which under subsection (1) above or otherwise is not transferable. ” . Marginal Citations M1 1882 c. 61 .

In section 80 of the Bills of Exchange Act 1882 (protection to banker and drawer where cheque is crossed) after “crossed cheque” there shall be inserted “ (including a cheque which under section 81A below or otherwise is not transferable) ” .