Law of Banking and Payment in South Africa

Which act regulates negotiable instruments?

• Bills of Exchange Act (BEA)

• Companies Act

• Banks Act

• National Payment Systems Act

Are cheques a form of legal tender?

• Yes

• No

Who are the parties involved in a cheque?

• The drawer, the drawee banker and the payee

• The drawer and the payee

• The drawee banker and the payee

• The drawer and the drawee banker

What is the purpose of a bank cheque?

• To facilitate small transactions

• To provide a safe method of payment for large sums

• To avoid the use of cash

• To serve as a legal tender

What is the meaning of a certified cheque?

• A cheque that is guaranteed by the bank

• A cheque that is signed by the drawer

• A cheque that is not transferable

• A cheque that is issued by the government

What are the different types of crossings?

• General & Special crossings

• Open & Closed crossings

• Public & Private crossings

• None of the above

What is the effect of s 75A(1) of the BEA?

• The cheque shall not be transferable

• The cheque shall be transferable

• The cheque shall be valid only between the parties

• Both a and c

What is the effect on payment when the creditor accepts payment by cheque?

• The creditor loses all rights

• The creditor's rights are suspended until the cheque is dishonoured

• The creditor must return the cheque

• The creditor can enforce the underlying obligation immediately

What is the moment of payment?

• When the cheque is written

• When the cheque is handed over to the holder

• When the cheque is deposited

• When the cheque is cashed

What are the duties of the drawee bank as provided for in the bank-customer contract?

• To pay cheques drawn on it

• To provide loans

• To manage customer accounts

• To offer investment advice