What are the reasons for Dishonoring a cheque?



Dishonoring a cheque. This is when a bank (drawee) refuses to pay the amount stated in the cheques. Several reasons exist for.
1. Where the drawer is dead or has become bankrupt. 
2. The drawer doesn’t have sufficient fund 
3. The drawer has instructed the drawee (bank) not to honor the cheque
4. The cheque has an error e.g. the amount in words and the amount in figures does not agree.
5. The cheque is stale; that is it has been presented six months after it was made out. 
6. The cheque is presented before the date is due on it, which is post-dated. 
7. The drawer has closed his account with the drawee's bank. 
8. The drawer does not sign the cheque or his signature differs from the specimen held. 

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