Multiple choice

Where a bank is wound up, the holder of a cheque (issued by a customer of bank having sufficient funds), becomes

  1. trustee

  2. beneficiary

  3. debtor

  4. creditor

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The bank is not liable to any endorsee or holder of a cheque, except when the bank is wound up, the holder of a cheque (issued by a customer of bank having sufficient funds), becomes creditor who is entitled to make a claim.