Multiple choice

Which of the following is not a feature of a not-negotiable crossed cheque?

  1. It is defined as per Section 130 of NI Act.

  2. Its payee is holder only.

  3. It can be endorsed in favour of other persons, getting equal rights.

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

"Not-negotiable" means that you cannot endorse a cheque in favour of someone else. This is not correct, however, as the cheque can be endorsed to someone else but all subsequent parties accepting the cheque cannot get better rights than the person that they received it from.

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