93Payment of crossed cheque otherwise than in accordance with crossing

93 Payment of crossed cheque otherwise than in accordance with crossing

(1) Subject to subsection (2), where the drawee institution pays a crossed cheque otherwise than to a financial institution, the drawee institution is liable to the true owner of the cheque for any loss the true owner suffers as a result of the cheque having been paid otherwise than to a financial institution. (2) Subject to subsection 32(1), where: (a) a crossed cheque is presented for payment to the drawee institution; (b) the cheque, at the time of presentment, does not appear, on its face, to be, or at any time to have been, a crossed cheque; and (c) the drawee institution, in good faith and without negligence, pays the cheque otherwise than to a financial institution; the drawee institution: (d) does not, in paying the cheque, incur any liability by reason only of its failure to pay the cheque to a financial institution; and (e) shall be deemed to have paid the cheque in due course.