Examine the circumstances in which a banker has no authority to honor a cheque drawn on him

(a) The authority of a banker to pay a cheque drawn on him by a customer is determined in the following ways:
• Countermand of payment: where a customer gives instruction to the banker not to honour a cheque.
• Notice of customers death
• Notice of bankruptcy petition against the customer
• Notice of drawers‟ insanity
• A garnishee order:
• Insufficient funds.
• Holders‟ defective title: the holder has obtained a cheque through fraud or theft.
• Closure of account
• If the cheque is irregular.

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