IX. Pair Work. Incorrectly Made-out Cheques

If a bank finds a mistake in a cheque it will return the cheque to the drawer. So banks normally examine all cheques to make sure they have been correctly made out. Here is a list of the ways in which a cheque can be incorrectly made out.

1. Post-dated to a future date.

2. Amount in words is not the same as the amount in figures.

3. Currency in which cheque is made out is not available.

4. Signature is not the usual signature of the account holder.

5. Cheque is signed by someone else other than the account holder.

6. Cheque is unsigned.

7. Correction in cheque is not initialled by the drawer.

8. Amount in words is not written.

9. Amount in figures is not written.

10. Part of the cheque is illegible (= unreadable).

11. Not enough money in the account or not enough credit.

12. Cheque is damaged.

13. The cheque becomes illegal if the drawer dies, goes mad or becomes bankrupt.

Most of the above mistakes can be identified by the payee's bank who can return the cheque to the payee. But some of the mistakes can only be identified by the drawer's bank. Which faults in the above list can be identified only by the drawer's bank?

X. Writing Practice. Make a short summary about clearing system. Use information from the text "The Cheque Clearing System" and the opening phrases from Appendix 1.