sec.263Financial institution must comply with direction

sec.263 Financial institution must comply with direction

After the direction is given to a financial institution, and until it is withdrawn, the financial institution must not— pay a cheque or other instrument drawn on the account stated in the direction unless the cheque or instrument is also signed by the chief executive; or give effect to another transaction on the account that is not authorised because of the direction. Maximum penalty—100 penalty units. For section 262 (2) (a) , the chief executive’s signature on the cheque or instrument is sufficient evidence of the chief executive’s approval to draw an amount from the account to honour the cheque or instrument. s 263 ins 2011 No. 26 s 78 (sec.263-ssec.1) After the direction is given to a financial institution, and until it is withdrawn, the financial institution must not— pay a cheque or other instrument drawn on the account stated in the direction unless the cheque or instrument is also signed by the chief executive; or give effect to another transaction on the account that is not authorised because of the direction. Maximum penalty—100 penalty units. (sec.263-ssec.2) For section 262 (2) (a) , the chief executive’s signature on the cheque or instrument is sufficient evidence of the chief executive’s approval to draw an amount from the account to honour the cheque or instrument.

• (a) pay a cheque or other instrument drawn on the account stated in the direction unless the cheque or instrument is also signed by the chief executive; or
• (b) give effect to another transaction on the account that is not authorised because of the direction.