Multiple choice

For the collection of which of the following will the collecting bank get protection?

  1. If the bank collected such crossed cheque only for his customer as an agent and not as a holder for value

  2. If the crossed cheque is collected and the proceed is credited to another account

  3. Crediting the proceed of a cheque to the personal account of director, partners or any employee when it is payable to the company

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Correct Answer: All of the above Under section 131 of Negotiable Instrument Act, the collecting bank will get protection under all the given conditions.

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