Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 71

    Subject to subsection   17(1), section   59 and subsection   60(1), the drawer of a cheque, by drawing the cheque, undertakes:

  (a)   that, on due presentment for payment, the cheque will be paid according to its tenor as drawn; and

  (b)   that:

  (i)   if the cheque is dishonoured when duly presented for payment; or

  (ii)   if presentment of the cheque for payment is dispensed with by virtue of paragraph   59(a) or (aa) and the cheque is unpaid after its date has arrived;

    the drawer will compensate the holder or an indorser who is compelled to pay the cheque.