account payee only

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Words printed between two vertical lines in the centre of a UK cheque that, in accordance with the Cheque Act 1992, make the cheque non-transferable. This is to avoid cheques being endorsed and paid into an account other than that of the payee, although it should be noted that banks may argue in some circumstances that they acted in good faith and without negligence if an endorsed cheque is honoured by the bank. In spite of this most cheques are now overprinted ‘account payee only’ or ‘A/C payee’ and the words ‘not negotiable’ are sometimes added.

Subjects: Financial Institutions and Services — Accounting.

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