Crossed Check Law and Legal Definition

A crossed check is a check for which the payment is not made over the counter at the bank. It is only credited to the bank account of the payee. A check can be made a crossed check by drawing two transverse parallel lines across the check, with or without the writing ‘Account payee’ or ‘Not Negotiable’. In a crossed check the lines are usually drawn on the left-hand top corner of the check. With respect to a crossed check the proceeds must be accredited only to the account of payee only and no other. If the collecting banker accredits the proceeds of a crossed check to any other account, s/he will be subjected to an action for wrongful conversion of funds and will be held guilty of negligence.