NEGOTIABLE INSTRUMENTS EXAMINATION

NAME: _________________________________________________

SCORE:

__________

UNIT/DEPT: ____________________________________________

DATE:

__________

True or False, answer according to Malayan Bank policies in relation to

applicable laws and regulations.
1. _______ The branches need to exercise only ordinary diligence in its business
dealings.
2. _______ A check payable to Hayden/Katrina only needs the endorsement of either
Hayden or Katrina.
3. _______ In case of conflict between words and numbers, the amount stated in
numbers will prevail.
4. _______ A check payable to bearer, is NOT honored by the branch.
5. _______ In case of a check encashment with forged drawers signature, the drawee
bank is generally liable for such forgery.
6. _______ In case of a forged endorsement, the presenting bank is generally liable for
such forgery.
7. _______ A check payable to Arnel and Katrina may be deposited in Arnels account
provided it is first endorsed by Katrina.
8. _______ In case of wrongful encashment, a depositor can be held liable for
contributory negligence if he regularly fails to monitor the balance of his account.
9. _______ The branch is allowed to accept second endorsed checks as long as the
party depositing the check is a long time client of the bank.
10.
_______ A client may use several different signatures in issuing checks,
depending on his mood.
11.

_______ Posting-dating or ante-dating checks is NOT illegal per se.

12.

_______ A negotiable instrument is a convenient substitute for money.

Ms. Ave,

For #4, the answer: No a check payable to order of cash is a bearer instrument, and
it continues to be honored.
Additionally, may I request that an evaluation sheet, maybe sheet be distributed to
the participants?
-the primary goal is to rework/revise the lecture to be more tailored for branch banking
Unless this is the last lecture of course :D
Kind regards,
Leo