Thailand Law Library

by Thailand Lawyer

A check is a written instrument by which a person, called the drawer, orders a banker to pay on demand a sum of money to, or to the order of, a person, called the payee.

A Check must contain the following particulars:

1. The designation of it as a Check.
2. An unconditional order to pay a sum certain in money.
3. The name or trade name and address of the banker.
4. The name or trade name of the payee or a mention that it is payable to bearer.
5. The place of payment.
6. The date and place where the Check is issued.
7. The signature of the drawer.

The following provisions of Chapter II relating to Bills of Exchange apply to Checks in so far as they are not inconsistent with the nature of this instrument, namely, sections 910, 914 to 923, 925, 926, 938 to 940, 945, 946, 959, 967, 971.

In case of foreign Checks the following provisions shall also apply, namely, Sections 924, 960 to 964, 973 to 977, 980.

The holder of a check must present it for payment to the banker within one month after the date of issue if it is payable in the same town where it is issued, or within three months if it is payable elsewhere; otherwise he loses his right of recourse against the indorsers; he also loses his right against the drawer to the extent of any injury caused to the drawer by failure of such presentment.

The holder of such Check as to which such drawer is discharged shall be subrogated to the rights of such drawer against the banker.

A banker is bound to pay a check drawn on him by his customer unless:

1. There is not enough money to the credit of the account of the customer to meet the check, or
2. The check is presented for payment later than six months after the date of drawing, or
3. Notice is given that the check has been lost or stolen.

The duty and authority of a banker to pay a check drawn on him come to an end on:

1. Countermand of payment
2. Knowledge of the drawer’s death
3. Knowledge or publication of an interim receiving order or bankruptcy order against the drawer

If the banker signs on the check a statement such as “good” or good for payment,” or works to the same effect, he becomes bound, as principal debtor, to pay the check to the holder.

If the holder of a check procures it to be so certified, the drawer and endorsers are discharged from liability thereon.

If it is so certified at the drawer’s request, the drawer and endorsers are not discharged.

If a check bears across its face two parallel transverse lines either with or without the words “and company” or any abbreviation thereof between such lines, it is said to be crossed generally and payment of it can only be made to a banker.

If between such lines a names or any particular banker is inserted, such check is said to be crossed specially and payment of it can only be made to that banker.

1. An uncrossed check may be crossed generally or specifically by the drawer or any holder.
2. Where a check is crossed generally, the holder may cross it specially
3. Where a check is crossed generally or specially, the holder may add the words “not negotiable.”
4. Where a check is crossed specially, the banker to whom it is crossed may again cross it specifically to another banker for collection.
5. Where an uncrossed check or a check crossed generally is sent to a banker for collection, he may cross it specialty to himself.

Section 996. Cannot Obliterate Crossed Check

A crossing authorized in the forgoing section is a material part of the check. It shall not be lawful for any person to obliterate it.

Section 997. Crossed to Specially more than one Banker

Where a check is crossed specially to more than one banker except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall ref use payment thereof.

Where a banker on whom a check is drawn which is so crossed nevertheless pays the same, or pays a check crossed generally otherwise than through a banker, or if crossed specially otherwise than to the banker to whom it is crossed or his agent for collection being a banker, he is liable to the true owner of the check for any loss he may sustain owing to the check having been so paid.

Provided that where a check is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorized by law, the banker paying the Check in good faith and without negligence shall not be responsible or incur any liability.

Section 998. Paying a Check in Good Faith

Where the banker, on whom a crossed check is drawn, in good faith and without negligence pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the check, and, if the check has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the check had been made to the true owner thereof.

Section 999. Acceptance of a Non-Negotiable Check

Where a person takes a crossed check which bears on it the words "not negotiable", he shall not have and shall not be capable of giving a better title to the Check than that which the person from whom he took it had.

Section 1000. Liability for Wrongful Payment

Where a banker in good faith and without negligence receives payment for a customer of a check crossed generally or specially to himself, and the customer has no title or a defective title thereto, the banker shall not incur any liability to the true owner of the check by reason only of having received such payment.