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Sunday, June 17, 2007



Your bank will decline to pay a cheque issued by you due to the following reasons:

- Insuffi cient funds in your account to clear the cheque
- Missing signature(s)
- Signature(s) differ from specimen signature(s) in the bank’s record
- Post-dated
- Stale cheque (cheque which is dated more than 6 months ago)
- Amount in words and fi gures differ
- Alteration on the cheque (Note: Any alteration is not permitted)
- Stop payment instruction has been issued
- Account closed or "legally blocked" account

Cheques which have been dishonoured will be returned to the accountholder. The issuer of the cheque will be charged a fee by his bank to recover part of the administrative cost incurred.


f your cheque has gone astray, it is possible to prevent payment of the cheque by giving a stop payment instruction to your bank.

You may give the instruction by phone, but your bank would require you to confi rm your stop payment instruction in writing.

In addition, you will be charged a fee for this service. However, if you issue a stop payment instruction due to insuffi cient funds in your account, you can be charged a penalty.

If you repeatedly issue stop payment instructions when you have insuffi cient funds, your account may be closed by your bank. Such action is taken to ensure that cheques are accepted as a reliable mode of payment.

KEEPING OF RECORDS Your bank will give you a statement of account which will allow you to check transactions that have taken place but the statement does not provide the most current balance. The statement will normally be for an earlier period and will not include any transaction that has taken place after the period referred to in the statement. You should therefore keep records of all deposits and withdrawals to calculate the current balance.

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