| Difference between Company Cheque & Bank Cheque [message #383453] |
Mi, 26 April 2006 14:09 |
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Hi,
can someone please explain to me in simple terms the difference between
a company cheque and a bank cheque?
Thanks!
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| Re: Difference between Company Cheque & Bank Cheque [message #383459 ] |
Mi, 26 April 2006 14:46 |
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In message <21537$444f62fe$54710882$22602 [at] news.chello.at>, Scott Steiner
<steiner.scott [at] hotmail.com> writes
>Hi,
>
>can someone please explain to me in simple terms the difference between
>a company cheque
Thats a cheque written out by staff at the company on their own company
cheque book.
> and a bank cheque?
Thats a "cheque" written out by bank staff on the bank's account.
A Bank cheque drawn upon itself, (i.e. The drawer and drawee are the
same) technically isnt a cheque but a 'Bank Draft'. None the less the
Cheques Act specifically includes Bankers Drafts with regard to the
collection and payment of such instruments. This inclusion does not,
however, mean a Bank Draft is a cheque.
Similarly, even though the bank may use what appears to be a normal
pre-printed 'cheque form' when issuing a draft, this doesnt mean it is a
cheque.
--
John Boyle
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| Re: Difference between Company Cheque & Bank Cheque [message #383466 ] |
Mi, 26 April 2006 15:23 |
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john boyle wrote:
> A Bank cheque drawn upon itself, (i.e. The drawer and drawee are the
> same) technically isnt a cheque but a 'Bank Draft'. None the less the
> Cheques Act specifically includes Bankers Drafts with regard to the
> collection and payment of such instruments. This inclusion does not,
> however, mean a Bank Draft is a cheque.
>
> Similarly, even though the bank may use what appears to be a normal
> pre-printed 'cheque form' when issuing a draft, this doesnt mean it is a
> cheque.
But given what you say about the Cheques Act, does it not mean,
notwithstanding that a bank draft is not a cheque, that it is
nevertheless indistinguishable from one, as far as everyone
other than the bank itself is concerned?
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| Re: Difference between Company Cheque & Bank Cheque [message #383493 ] |
Mi, 26 April 2006 20:02 |
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In message <EvK3g.59910$wl.47518 [at] text.news.blueyonder.co.uk>, Ronald
Raygun <no.spam [at] localhost.localdomain> writes
>john boyle wrote:
>
>> A Bank cheque drawn upon itself, (i.e. The drawer and drawee are the
>> same) technically isnt a cheque but a 'Bank Draft'. None the less the
>> Cheques Act specifically includes Bankers Drafts with regard to the
>> collection and payment of such instruments. This inclusion does not,
>> however, mean a Bank Draft is a cheque.
>>
>> Similarly, even though the bank may use what appears to be a normal
>> pre-printed 'cheque form' when issuing a draft, this doesnt mean it is a
>> cheque.
>
>But given what you say about the Cheques Act, does it not mean,
>notwithstanding that a bank draft is not a cheque, that it is
>nevertheless indistinguishable from one, as far as everyone
>other than the bank itself is concerned?
If it is if it is issued by one of the banks that issue them on a cheque
form and the account upon which it is drawn is described as 'Bloggs Bank
Draft Account' in the bottom right hand corner.
For the others there is clever way of spotting the difference and this
is because they generally have the word 'DRAFT' written on them
sometimes preceded by the words 'HEAD OFFICE' !
--
John Boyle
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| Re: Difference between Company Cheque & Bank Cheque [message #383525 ] |
Do, 27 April 2006 00:37 |
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john boyle wrote:
> In message <EvK3g.59910$wl.47518 [at] text.news.blueyonder.co.uk>, Ronald
> Raygun <no.spam [at] localhost.localdomain> writes
>>john boyle wrote:
>>
>>> A Bank cheque drawn upon itself, (i.e. The drawer and drawee are the
>>> same) technically isnt a cheque but a 'Bank Draft'. None the less the
>>> Cheques Act specifically includes Bankers Drafts with regard to the
>>> collection and payment of such instruments. This inclusion does not,
>>> however, mean a Bank Draft is a cheque.
>>>
>>> Similarly, even though the bank may use what appears to be a normal
>>> pre-printed 'cheque form' when issuing a draft, this doesnt mean it is a
>>> cheque.
>>
>>But given what you say about the Cheques Act, does it not mean,
>>notwithstanding that a bank draft is not a cheque, that it is
>>nevertheless indistinguishable from one, as far as everyone
>>other than the bank itself is concerned?
>
> If it is if it is issued by one of the banks that issue them on a cheque
> form and the account upon which it is drawn is described as 'Bloggs Bank
> Draft Account' in the bottom right hand corner.
>
> For the others there is clever way of spotting the difference and this
> is because they generally have the word 'DRAFT' written on them
> sometimes preceded by the words 'HEAD OFFICE' !
It doesn't matter how (or whether) it is p ossible to spot the difference
if the difference is immaterial. What I meant to ask you to confirm is
that the difference *is* immaterial.
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| Re: Difference between Company Cheque & Bank Cheque [message #383543 ] |
Do, 27 April 2006 02:00 |
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In message <jCS3g.60217$wl.11011 [at] text.news.blueyonder.co.uk>, Ronald
Raygun <no.spam [at] localhost.localdomain> writes
>It doesn't matter how (or whether) it is p ossible to spot the difference
>if the difference is immaterial. What I meant to ask you to confirm is
>that the difference *is* immaterial.
You said 'indistinguishable' which implies a purely visual
differentiation.
Yes, the difference IS immaterial just so long as the issuer is a 'bank'
(i.e. not a b/soc') and the status of that bank is such that it can be a
true 'drawee', i.e. cheques can be drawn on it (as opposed to it being
drawn on that bank's clearing bankers). There are many institutions that
have banking licences that are not able to be drawees in their own right
in so far as they have to 'piggy back' on other banks that are able to
provide that status.
There is one specific case in which I was personally involved and I
cant go into more detail except to say that it issued cheques that
looked as though they were issued by the 'bank' but in fact they were
drawn on that banks account at a major clearing bank. The clue was in
the sorting code number.
--
John Boyle
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| Re: Difference between Company Cheque & Bank Cheque [message #383545 ] |
Do, 27 April 2006 02:18 |
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In message <jCS3g.60217$wl.11011 [at] text.news.blueyonder.co.uk>, Ronald
Raygun <no.spam [at] localhost.localdomain> writes
>It doesn't matter how (or whether) it is p ossible to spot the difference
>if the difference is immaterial. What I meant to ask you to confirm is
>that the difference *is* immaterial.
>
OOOPS! Pressed 'post' before I had inserted the main information....
A "Bank Draft" will not be stopped by the drawer or drawee and is
regarded (or should be regarded) as being cleared and paid when
presented for collection at a branch of the drawee and as paid but
uncleared when presented at any other clearing bank.
--
John Boyle
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