Skip to main
Australian Government
Federal Register of Legislation
Site navigation
Help and resources
Register
for My Account
Sign in
to My Account
Search
Home
Constitution
Acts
Legislative instruments
Notifiable instruments
Gazettes
Administrative Arrangements
Prerogative instruments
Norfolk Island
Home
Acts
In force
Text
Details
Authorises
Downloads
All versions
Interactions
Cheques Act 1986
No. 145, 1986
Citation change
In force
Administered by
Department of the Treasury
Superseded version
View latest version
View as made version
Order print copy
Save this title to My Account
Set up an alert
C2004C02678
01 July 1999
-
14 July 2001
Legislation text
View document
Select value
Act
Filter active
Table of contents
Enter text to search the table of contents
Collapse
Part I—Preliminary
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Interpretation
4 Application of rules in bankruptcy, laws of States and Territories and rules of the common law
5 Cheques a financial institution draws on itself
6 Certain rights, duties and liabilities under Act may be altered by agreement
7 Application of Act
8 Extension of Act to external Territories
9 Act to bind Crown
Collapse
Part II—Cheques
Collapse
Division 1—Form
10 Cheque defined
11 Order to pay
12 Unconditional order to pay
13 Order addressed to a financial institution
14 Order to pay on demand
15 Order to pay a sum certain
16 Date of cheque etc.
17 Optional stipulations
18 Inchoate instruments
Collapse
Division 2—Order and bearer cheques
19 Meaning of specification of person in cheque as payee or indorsee
20 Cheques either payable to order or to bearer
21 Cheques payable to order
22 Cheques payable to bearer
23 Conversion of cheque payable to bearer into cheque payable to order
24 Cheques payable to order of specified person
Collapse
Division 3—Delivery
25 Delivery essential for drawing or indorsement
26 Requisites for effective delivery
27 Drawing or indorsement may be shown to be ineffective
28 Presumption of effective delivery
29 Delivery of cheque payable to bearer
Collapse
Division 4—Capacity
30 Capacity to incur liability on cheque
Collapse
Division 5—Signature
31 Signature essential to liability on cheque
32 Unauthorised signature
33 Person signing as agent or in representative capacity
34 Procuration signature
Collapse
Division 6—Consideration
35 Valuable consideration defined
36 Presumption of value
37 Holder taking cheque for which value has been given
38 Holder having lien
Collapse
Part III—Negotiability of cheques
Collapse
Division 1—Transfer by negotiation
39 Every cheque transferable by negotiation
40 Transfer of cheque by negotiation
41 Requisites for indorsement
42 Transfer of order cheque without indorsement
43 Indorsement of order cheque payable jointly to 2 or more persons
44 Indorsement where payee or indorsee misdescribed
45 Conditional indorsement
46 Transfer of stale or dishonoured cheque by negotiation
47 Transfer by negotiation back to drawer or indorser
48 Order of indorsements
49 Rights acquired by transfer by negotiation
Collapse
Division 2—Holder in due course
50 Holder in due course defined
51 Presumption that holder is holder in due course
52 Holder deriving title through holder in due course
Collapse
Division 3—Crossings
53 Crossing and crossed cheque defined
54 Effect of crossing on payment of cheque
55 Effect of taking cheque crossed not negotiable
56 Persons who may add crossing to cheque
57 Multiple crossings
Collapse
Part IV—Presentment and dishonour
Collapse
Division 1—Presentment
58 Drawer and indorsers of cheque not liable unless cheque presented
59 When presentment dispensed with
60 Effect of failure to present within reasonable time
61 Due presentment defined
61A Presentment by financial institution
62 External presentment by financial institution
62A Internal presentment by drawee institution
63 Presentment by person other than financial institution
64 Proper place
65 External presentment of cheques by financial institutions—designated places and designated exhibition places
65A Internal presentment of cheques by financial institutions—notified places
66 Deposit institution to present cheques promptly
67 Drawee institution to pay or dishonour promptly
68 How paid cheque to be dealt with
Collapse
Division 2—Dishonour
69 Dishonour defined
70 Drawer and indorsers of cheque liable whether or not given notice of dishonour
Collapse
Division 3—Turnback of cheques drawn on failed financial institutions
70A Certain cheques taken to be dishonoured
70B Consequences of cheque being taken to be dishonoured
Collapse
Part V—Liabilities on cheques
Collapse
Division 1—Liabilities of parties
71 Liability of drawer
72 Estoppel against drawer
73 Liability of indorser
74 Estoppels against indorser
75 Stranger signing cheque liable as indorser
76 Measure of damages on dishonour
77 Transferor by delivery
Collapse
Division 2—Discharge of liabilities of parties
78 When cheque discharged
79 Payment in due course
80 Renunciation of rights against drawer or all persons liable on cheque
81 Cancellation of cheque or drawer’s signature
82 Effect of discharge of cheque
83 When indorser discharged
84 Renunciation of rights against indorser
85 Cancellation of indorser’s signature
86 Effect of discharge of indorser
87 Effect of payment by drawer or indorser
Collapse
Part VI—Duties and liabilities of financial institutions
Collapse
Division 1—The drawee institution
88 Cheque not assignment of funds
89 Stale cheque
90 Countermand of payment and notice of death or mental incapacity
91 Protection of drawee institution paying improperly raised cheque
92 Protection of drawee institution paying crossed cheque in accordance with crossing
93 Payment of crossed cheque otherwise than in accordance with crossing
94 Protection of drawee institution paying cheque lacking indorsement or with irregular or unauthorised indorsement
Collapse
Division 2—The collecting institution
95 Protection of institution collecting cheque for customer or another institution
96 Rights of institution collecting order cheque not indorsed by payee
Collapse
Part VII—Special provisions relating to FCA institutions and agency cheques
Collapse
Division 1—Presentment and collection of cheques by FCA institutions
97 FCA institution to ensure cheques presented promptly
98 Protection of FCA financial institution collecting cheque for customer
99 Rights of FCA financial institution collecting order cheque not indorsed by payee
Collapse
Division 2—Agency cheques
100 Agency cheques
100A Unauthorised signature
Collapse
Part IX—Miscellaneous
113 Payment of unindorsed order cheque as evidence of receipt by payee
114 Signature
115 Replacement of lost or destroyed cheque
116 Action on lost or destroyed cheque
117 Conflict of laws
118 Dividend warrants
Collapse
119 Regulations
Notes to the STYLEREF ShortT \* MERGEFORMAT Cheques Act 1986
