Revised CATS Procedure Dec.20161

COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Any deletion on the Cheque s shall not be accepted and the Cheque has to
be changed.
c) There should be no discrepancy between the amount of money given in
words and that given in figures.
d) Remind the customer of the need for sticking to the calendar of the
language in which the Cheque is written.
e) A Cheque is valid for only six months beginning from the date of its
issuance.
9.5 Negotiability and Endorsement of Cheque
9.5.1 Endorsement of Cheques
A Cheque should be endorsed on the reverse side thereof. The number of
endorsements on a Cheque has no limit as per the Commercial Code of Ethiopia,
Article 844 (1).
The following are the types of endorsement that are applicable in the CBE:
a) Self: if the cheque is issued for “self,” the Maker should ascertain that the
Cheque has been endorsed by the drawer.
b) Cash or bearer: if a cheque is drawn to the bearer or cash, the Maker should
make sure that the cheque has been endorsed by the presenter.
c) Specified person: the beneficiary/payee of the cheque has to be identified
and told to endorse the cheque.
d) If the cheque is issued to the order of the specified person followed by the
word “only,” or if the word “payee only” is written on the top left corner of
the face of the Cheque, only the payee/beneficiary thus indicated is allowed
to cash the Cheque.
e) If the cheque is issued in the name of organization, corporation, a
cooperative, an association, or a government body, it will not be paid in cash,
but will be credited to the beneficiary’s/payee’s account. To be endorsed, the
Cheque s must bear a seal of the beneficiary and signature of the depositor.
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