| A | B |
|---|
| Bearer cheque | an order to the drawee institution to pay the sum ordered to be paid by the cheque to the person in possession of the cheque, title being transferred on delivery |
| Collecting financial institution | the payee's financial institution |
| Drawee | the bank upon which the cheque is drawn |
| Drawer | the person who gives the order and draws the cheque upon a bank and whose account will be charged with the value of the cheque |
| Indorsement | the act of writing on a cheque the name of the person who is the transferor, indicating their intention to transfer the right to payment |
| Payee | the person entitled to payment |
| Not negotiable | does not affect transferability but means that no one can claim to have a better title to the cheque than the previous holder |
| Stale cheque: | a cheque that has been in circulation more than 15 months from the date on the cheque. |
