The difference between ordinary crossed checks and special crossed checks and their legal provisions

According to the Geneva Uniform Instrument Law and the instrument laws of most countries, crossed checks are usually divided into ordinary crossed checks and special crossed checks, which are different in legal effect and function.

Ordinary crossed check

A generally crossed check means that the drawer, endorser or holder draws two parallel lines on the front of the check, and no words are recorded on the two parallel lines. This type of check allows any bank to collect payment on its behalf. For non-financial holders, the check must be collected through a bank. At the same time, if the bearer has an account with the entrusting bank, the check payment will be directly credited to his account.

Special crossed checks

Different from ordinary crossed checks, specially crossed checks also have two parallel lines drawn on the front of the check, but a specific bank name or other related content is recorded within these two parallel lines. This kind of check can only be entrusted to the bank specified on the note for collection, and cannot be entrusted to other banks. At the same time, the check must be deposited into the account of the entrusting bank. If the payer violates this provision and causes losses to the drawer or the real right holder, he shall be liable for compensation, and the amount of compensation shall be limited to the amount of the check. Even if the payer violates the regulations, if the payment has been made to the real right holder, the payment will still be valid.

Legal effectiveness and underlining rules

According to the Geneva Uniform Law on Instruments, the drawer, endorser and holder all have the right to record parallel lines on the check, and their effect is the same in law. Crossing must be done on the front of the check, if written on the back it will be invalid. In practice, usually two parallel lines are located in the upper left corner of the check. In addition, for checks with special crossings recorded, the payee cannot pay if there are multiple special crossings. However, if there are only two special crossings, one of which is collected by the clearing house, this restriction is not applicable.

Any person with authority may record an ordinary crossing or a special crossing on an uncrossed check, and a special crossing may also be further recorded on a check that has been marked with an ordinary crossing, but a special crossing Once the line is set, it cannot be changed to a normal line. If the name of the beneficiary bank within the special crossed line is obliterated, it is deemed to have not been obliterated, and two parallel lines cannot be obliterated. If the upper left corner of the check is torn and it is impossible to confirm whether it is a crossed check, the payer generally needs to confirm the drawer’s opinion first. If it cannot be checked, it will be treated as a crossed check.

The original design of a crossed check is to prevent it from being taken by others if it is lost, thereby ensuring the security of the transaction.