A pay order is an order by the issuing office of a bank upon itself to make payment of the amount mentioned therein to the named payee or according to his order. Thus, it is different from the Bank Draft which is drawn by one branch of the bank on another. Pay Orders are issued only for local payments.
A Pay Order is not a negotiable instruments and therefore, its holder cannot acquire a better title than what the transferor had. Its payments also cannot be easily stopped or countermanded.
No comments:
Post a Comment