The Geneva Uniform Law on Negotiable Instruments of Invoices and the negotiable instruments laws of most countries provide that crossed cheques are divided into generally crossed cheques and specially crossed cheques.
(1) Generally crossed cheque. A generally crossed cheque ((generally crossed check)) refers to a cheque on which the drawer, endorser or holder draws two parallel lines on the front of the cheque, and no text is recorded between the two parallel lines. For such crossed cheques, any bank can entrust the bank to collect the payment on its behalf. If the holder is not a financial institution, he should entrust a bank to collect the payment on his behalf; if the holder has an account with the entrusting bank, the payment will be credited to his account.
(2) Specially crossed cheque. A specially crossed cheque ((specially crossed check)) A crossed check is a check in which the drawer, endorser or holder draws two parallel lines on the front of the check and writes the name of the bank or other content entrusted to withdraw the money within the two parallel lines. This kind of crossed check can only be entrusted to the bank indicated on the face of the check for collection, and cannot be entrusted to other banks for collection, and the amount of the check must be deposited into the account of the entrusted bank. If the payee violates the provisions of payment for crossed checks and pays, 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. If the payee violates the above provisions, but has indeed paid the real right holder, his payment is still valid.
The Geneva Uniform Bills of Exchange Law and the bills of exchange laws of most countries stipulate that the drawer, endorser or holder can record parallel lines on the check, and their effects are the same. Parallel lines must be recorded on the front of the check. If recorded on the back of the check, it will be invalid. In practice, two parallel lines are usually recorded in the upper left corner of the front of the check. The Geneva Uniform Bills of Exchange Law and the bills of exchange laws of most countries stipulate that if there are multiple parallel lines on a check, If there is a special crossing, the payee shall not pay. However, if there are only two special crossings, and one of them is for collection through a bill exchange, this restriction does not apply. Therefore, except for the reason of entrusting the withdrawal, a check shall not have more than one special crossing, but the validity of an ordinary crossing shall not be affected even if there are several crossings.
Anyone who has the right to record crossings can record ordinary crossings or special crossings on an uncrossed check. For checks that already have ordinary crossings, special crossings can also be recorded, but special crossings cannot be changed into ordinary crossings. If the bank receiving the special crossings are cancelled, it shall be deemed not to be cancelled, including the two parallel lines. If the upper left corner of the check is torn, making it impossible to determine whether the check is a crossed check, the payee should generally first inquire with the drawer. If there are parallel lines, it should be handled in accordance with the drawer’s opinion. If it cannot be inquired, it shall be handled as a check with parallel lines. The only purpose of crossing a check is to prevent fraudulent claiming of the check when it is lost, so as to ensure transaction security.