Commonwealth Consolidated Acts

CHEQUES ACT 1986

TABLE OF PROVISIONS

           Long Title

   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  

   PART II--CHEQUES

           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  

           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  

           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  

           Division 4--Capacity

   30.     Capacity to incur liability on cheque  

           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  

           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  

   PART III--NEGOTIABILITY--OF CHEQUES

           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  

           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  

           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  

   PART IV--PRESENTMENT--AND DISHONOUR

           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  

           Division 2--Dishonour

   69.     Dishonour defined  
   70.     Drawer and indorsers of cheque liable whether or not given notice of dishonour  

           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  

   PART V--LIABILITIES--ON CHEQUES

           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  

           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  

   PART VI--DUTIES--AND LIABILITIES OF FINANCIAL INSTITUTIONS

           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  

           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  

   PART VII--SPECIAL--PROVISIONS RELATING TO FCA INSTITUTIONS AND AGENCY CHEQUES

           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  

           Division 2--Agency cheques

   100.    Agency cheques  
   100A.   Unauthorised signature  

   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