Section 76: Payment by bankers of unendorsed cheques and other instruments.

(1) Where a banker, in good faith and in the ordinary course of business, pays a prescribed instrument drawn on him to a banker, he does not in doing so incur any liability by reason only of the absence of, or irregularity in, endorsement of the instrument and-
(a) in the case of a cheque, he is deemed to have paid it in due course;
(b) in the case of any other prescribed instrument, the payment discharges the instrument.
(2) A prescribed instrument which is unendorsed but appears to have been paid by the banker on whom it is drawn is evidence of the receipt by the payee of the sum mentioned in the instrument.
(3) For the purposes of subsection (1) of section 60 of this Act (which provides that in certain circumstances a cheque shall be deemed to be paid in due course though its endorsements are forged or unauthorised), a document payable to order which is a prescribed instrument by virtue of paragraph (b) of subsection (1) of section 4 of this Act shall be deemed to be a bill payable to order on demand.