Revised CATS Procedure Dec.20161

COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) If the Cheque is issued to the order of two individuals, both
beneficiaries/payees will have to be identified and told to endorse the
cheque drawn in their favor.
g) If a Cheque is issued in the name of alternative individuals, either of the
individuals must be identified and told to endorse the Cheque.
h) Crossed Cheques are not at all paid in cash, but deposited into the accounts of
the beneficiaries/payees thereof.
9.5.2 The Use and Transferability (Negotiability) of Cheques
a) Crossed Cheques
Such Cheques bear two transverse lines across their faces. They can be paid
by crediting the amount of money on the Cheque to the account. Such
Cheques are transferable by endorsement only if they are to be credited to an
account.
b) The Restricted Negotiability of Cheques
Cheques bearing phrases such as “Payable to account,” “Account payee only,”
in addition to general crossing, can be credited to her or his account.
c) Cheques Issued in the Names of Organizations or Legal Entities
Unless they are restricted by the conditions explained under items a and b
herein above, Cheques issued in the names of organizations are transferable
to other organizations or individuals like any other Cheques, if they have
been sealed and endorsed. If the Cheque is endorsed to an individual,
however, she/he should bring a confirmation letter from the last endorsing
organization and should be credited to customer account only.
N.B. Cheque issued in the name of organization or legal entities should not be
paid in cash.
9.5.3 A Stop-Payment Order
A stop-payment order on the Cheque can be placed for various reasons as might be
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