Crossing of Checks Law and Legal Definition

Crossing of checks is a method by which a check is made payable to the holder only through a collecting banker and not directly at the counter of the bank. Crossing of checks ensures security to the holder of the check, because only the collecting banker credits the proceeds to the account of the payee of the check. A check is crossed by drawing two parallel transverse lines, with or without any words on the left hand top corner of the check. Generally, a crossed check does not create any impact on the negotiability of the instrument. There are different types of crossing of checks. They are general crossing, special crossing, account payee or restrictive crossing, and not negotiable crossing. A check is crossed generally when check bears across its face an addition of the words “and company” or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words “not negotiable.” A check is crossed specially, when a check bears across its face an addition of the name of a banker, either with or without the words “not negotiable.” A Check is crossed restrictively when the check bears either general or special crossing along with the words “Account Payee.” Finally, when the words 'Not Negotiable' are added to General or Special crossing it is called a not negotiable crossing.