Section 77: Protection of collecting bankers.

(1) A banker who gives value for, or has a lien on, a cheque payable to order which the payee delivers to him for collection either without endorsing it or without endorsing it regularly has such rights, if any, as he would have had if upon delivery the payee had endorsed it regularly in blank.
(2) Where a banker, in good faith and without negligence-
(a) receives payment for a customer of a prescribed instrument to which the customer has no title or a defective title; or
(b) having credited the customer's account with the amount of such a prescribed instrument, receives payment of the instrument for himself,
the banker does not incur any liability to the true owner of the instrument by reason only of his having received payment of it; and a banker is not to be treated for the purpose of this subsection as having been negligent by reason only of his failure to concern himself with the absence of, or irregularity in, endorsement of a prescribed instrument of which the customer in question appears to be the payee.
(3) In this section and section 76 of this Act, references to a payee do not include references to an endorsee under a special endorsement.
(4) Nothing in this section and section 76 of this Act shall make negotiable an instrument which apart from these sections is not negotiable.