Cheque is a money order on a banker, payable on demand. It is really a Bill of Exchange (q.v.), and is subject to the provisions of the Act of 1882, which contains special clauses relating to cheques. If it is not presented within a reasonable time, the drawer is discharged should the banker fail, but the holder can claim against the banker's estate. The banker bears the risk of the forgery of the drawer's signature, but is not responsible for a forged indorsement. A cheque is held as payment of a debt until dishonoured on presentation; it is not payable after the drawer's death or bankruptcy.
A crossed cheque is an ordinary cheque with two transverse lines drawn across it, which have the effect of making it payable only through a banker. When a particular banker's name is written between the lines, the cheque is said to be specifically crossed, and is only payable to the banker whose name it bears. Wanting a particular name, or with the words ' & Co. ' it is said to be generally crossed, and is payable through any banker. An ordinary cheque may be crossed either generally or specifically by the holder. The crossing is a material part of the cheque, and may not be obliterated or altered, except as provided by the Bills of Exchange Act, 1882.
In the United States a cheque is not a bill of exchange, though it has many of its properties. It is not a legal tender, nor is it a payment of debt till honoured at the bank. It has no days of grace, and is due only after presentation. The bank is responsible for paying a forged cheque, and is liable for wrongfully dishonouring it.