Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 46

  (1)   Where a stale cheque is transferred by negotiation to a person, the person:

  (a)   takes the cheque subject to any defect of title affecting the cheque at the time when the cheque became a stale cheque; and

  (b)   does not receive, and is not capable of giving, a better title to the cheque than the title that the person from whom the first - mentioned person took the cheque had.

  (2)   Where:

  (a)   a cheque that has been dishonoured is transferred by negotiation to a person who takes the cheque with notice of the dishonour; and

  (b)   the cheque is not a stale cheque at the time of the transfer;

the person takes the cheque subject to any defect of title affecting the cheque at the time when the cheque was dishonoured.

  (3)   Where a cheque is a stale cheque, every transfer of the cheque by negotiation shall, unless the contrary is proved, be presumed to have been effected before the cheque became a stale cheque.