Hey,
One of the most common pieces of advice given to us for writing perfect cheques is ‘to make sure there are no mistakes. A signed cheque is considered to be valid for both parties involved. I will share with you what exactly is material alteration in cheque and how it impacts us (customers).
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What is material alteration of a cheque?When any changes are made on the cheque without the knowledge of the drawer, it is a material alteration. This concept is not limited to cheques, but rather any changes made on an instrument) or the rights and obligations of the parties involved are known as material alteration.
Instances of material alteration of a cheque:
Alteration in Amount Payable
Change in cheque date
Change in Time of Payment
Alteration of Place of Payment
Tearing of the material part of the cheque
Addition of a New Party to the instrument.
It is important to know the material alteration in cheque meaning. After alteration, the cheque becomes a void enforced against any person. If you have to make any changes {payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc} in the cheque then write a new one. This helps the bank control fraudulent behaviour.
This is all from my end on material alteration in cheque.
Read more :
What is the charge for cheque bounce?
How much penalty for cheque bounce?
How to withdraw cash from bearer cheque?
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What is material alteration of cheque ?
Priya
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2 Year
2022-09-07T12:55:08+00:00 2022-09-07T12:55:09+00:00Comment
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