ADVOKS GLOBAL · KENYA
Bills of Exchange Act
60. Banker paying demand draft whereon endorsement is forged
Edition: 2022-12-31 · In force
60. Banker paying demand draft whereon endorsement is forged
(1)When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the endorsement of the payee or any subsequent endorsement was made by or under the authority of the person whose endorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such endorsement has been forged or made without authority; and in this subsection "bill payable to order on demand" includes a prescribed instrument within the meaning of the Cheques Act (Cap. 35), which is payable to order.(2)Any draft or order (other than a bill or a cheque) drawn upon a banker for a sum of money payable to order on demand which shall, when presented for payment, purport to be endorsed by the person to whom it shall be drawn payable, shall be a sufficient authority to the banker to pay the amount of the draft or order to the bearer thereof; and it shall not be incumbent upon the banker to prove that the endorsement, or any subsequent endorsement, was made by or under the direction or authority of the person to whom the draft or order was or is made payable either by the drawer or endorser thereof.