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Cheques Act 1986
No. 145, 1986
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Department of the Treasury
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C2017C00074 C13
01 March 2017
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Part I—Preliminary
1 Short title
2 Commencement
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 binds the Crown
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Part II—Cheques
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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
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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
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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
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Division 4—Capacity
30 Capacity to incur liability on cheque
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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
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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
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Part III—Negotiability of cheques
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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
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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
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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
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Part IV—Presentment and dishonour
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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
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Division 2—Dishonour
69 Dishonour defined
70 Drawer and indorsers of cheque liable whether or not given notice of dishonour
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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
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Part V—Liabilities on cheques
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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
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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
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Part VI—Duties and liabilities of financial institutions
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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
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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
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Part VII—Special provisions relating to FCA institutions and agency cheques
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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
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Division 2—Agency cheques
100 Agency cheques
100A Unauthorised signature
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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
119 Regulations
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
