Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this Act, unless the contrary intention appears:
"action" includes a counter - claim and set - off.
"agency cheque" means a cheque to which subsection 100(2) applies.
Note: Under section 100A, subsection 100(2) may, in specified circumstances, apply to a cheque even if the customer's signature on the cheque is not authorised.
"Australia" includes the external Territories.
"bearer" means the person in possession of a cheque payable to bearer.
"delivery" , in relation to a cheque, means the transfer of possession of the cheque from one person to another.
"drawee institution" , in relation to a cheque, means the financial institution on which the cheque is drawn.
"FCA institution" means a body that is:
(a) a registered entity under the Financial Sector (Collection of Data) Act 2001 ; and
(b) prescribed for the purposes of this definition.
"financial institution" means:
(a) the Reserve Bank of Australia ; or
(b) a body corporate that is an ADI (authorised deposit - taking institution) for the purposes of the Banking Act 1959 ; or
(d) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution; or
(e) a person (other than a person referred to in paragraph ( a), (b) or (d)) who carries on the business of banking outside Australia .
"holder" means:
(a) in relation to a cheque payable to order--the payee or an indorsee who is in possession of the cheque as payee or indorsee, as the case may be; and
(b) in relation to a cheque payable to bearer--the bearer.
"issue" , in relation to a cheque, means the first delivery of the cheque to a person who takes the cheque as holder.
"possession" , in relation to a cheque, means possession (whether actual or constructive) of the cheque.
"to or to the order of" has the meaning given by subsection ( 1A).
"value" means valuable consideration as defined by section 35.
(1A) For the purposes of this Act, a cheque is payable to or to the order of a person or persons if:
(a) it is expressed to be payable:
(i) to the person or persons; or
(ii) to the order of the person or persons (or words to that effect); or
(iii) to the person or persons or to the order of the person or persons (or words to that effect); and
(b) it is not also expressed to be payable to bearer.
(2) A reference in this Act to an act or thing being done in good faith is a reference to the act or thing being done honestly, whether or not the act or thing is done negligently.
(3) Where a person obtains a cheque:
(a) by fraud, duress or other unlawful means; or
(b) for an illegal consideration;
the person's title to the cheque is defective.
(4) Subsection ( 3) shall not be taken to limit by implication the circumstances in which the title of a person to a cheque is defective.
(5) Where, at any time, a cheque appears on its face to have been drawn more than 15 months before that time, the cheque is, at that time, a stale cheque.
(6) A reference in this Act to a signature or indorsement being written or placed on a cheque without the authority of the person whose signature or indorsement it purports to be includes a reference to the forging of the signature or indorsement.
(7) A reference in this Act to a cheque, or a copy of a cheque, being exhibited to a person includes a reference to the cheque or the copy, as the case may be, being delivered to the person.
(8) An alteration of a cheque is a material alteration if it alters, in any respect, a right, duty or liability of the drawer, an indorser or the drawee institution.