Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection 32(1), where:
(a) the drawee institution, in good faith and without negligence, pays a cheque, whether or not to a financial institution; and
(b) an indorsement has been written or placed on the cheque without the authority of the person whose indorsement it purports to be;
the drawee institution:
(c) does not, in paying the cheque, incur any liability by reason only of:
(i) the indorsement having been written or placed on the cheque without the authority of the person whose indorsement it purports to be; or
(ii) its failure to concern itself with the genuineness of, or the existence of authority for, the indorsement; and
(d) shall be deemed to have paid the cheque in due course.
(2) Subject to subsection 32(1), where:
(a) the drawee institution, in good faith and without negligence, pays a cheque to a financial institution; and
(b) the cheque is not indorsed or is irregularly indorsed;
the drawee institution:
(c) does not, in paying the cheque, incur any liability by reason only of the absence of, or the irregularity in, the indorsement; and
(d) shall be deemed to have paid the cheque in due course.