Module: General Practice
Q79: Section 10 of the NI Act defines "Payment in Due Course." Which of the following conditions is NOT required to claim protection under this section?
✅ Correct Answer: C
"Payment in Due Course" (Section 10) is the gold standard for a paying banker to be discharged of liability.
The statutory requirements are: 1. Payment in accordance with the Apparent Tenor (what appears on the face of the cheque). 2. Payment in Good Faith and Without Negligence.
3. Payment to the person in Possession of the instrument under circumstances that do not arouse suspicion.
There is absolutely no requirement in Section 10 for "biometric verification." While banks may use biometrics for internal KYC, it is not a condition for the statutory protection of Payment in Due Course.
The statutory requirements are: 1. Payment in accordance with the Apparent Tenor (what appears on the face of the cheque). 2. Payment in Good Faith and Without Negligence.
3. Payment to the person in Possession of the instrument under circumstances that do not arouse suspicion.
There is absolutely no requirement in Section 10 for "biometric verification." While banks may use biometrics for internal KYC, it is not a condition for the statutory protection of Payment in Due Course.