Cheques Act 1986

This compilation includes the Cheques Act 1986 that outlines the text of the law as amended and in force on March 1, 2017. The notes at the end of this compilation include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments have no effect on the text of the compiled law. Any uncommenced amendments affecting the law can be found on the Legislation Register (www.legislation.gov.au).

Application, saving, and transitional provisions for provisions and amendments are included in the endnotes.

Editorial changes made in this compilation can be found in the endnotes.

Modifications to the compiled law by another law do not affect the text of the law.

Self-repealing provisions have been repealed according to a provision of the law.

This compilation is an authorized version registered on March 7, 2017.

It includes amendments up to Act No. 61, 2016.

The contents of this compilation are:

Part I—Preliminary

• Section 1: Short title
• Section 2: Commencement
• Section 3: Interpretation

Part II—Cheques

• Division 1—Form
  • Section 10: Cheque defined
  • Section 11: Order to pay
  • Section 12: Unconditional order to pay
  • Section 13: Order addressed to a financial institution
  • Section 14: Order to pay on demand
• Division 2—Order and bearer cheques
  • Section 19: Meaning of specification of person in cheque as payee or indorsee
  • Section 20: Cheques either payable to order or to bearer
  • Section 21: Cheques payable to order
  • Section 22: Cheques payable to bearer
  • Section 23: Conversion of cheque payable to bearer into cheque payable to order
  • Section 24: Cheques payable to order of specified person

Division 3—Delivery * Section 25: Delivery essential for drawing or indorsement * Section 26: Requisites for effective delivery * Section 27: Drawing or indorsement may be shown to be ineffective * Section 28: Presumption of effective delivery * Section 29: Delivery of cheque payable to bearer

Division 4—Capacity * Section 30: Capacity to incur liability on cheque

Division 5—Signature * Section 31: Signature essential to liability on cheque * Section 32: Unauthorised signature * Section 33: Person signing as agent or in representative capacity * Section 34: Procuration signature

Division 6—Consideration * Section 35: Valuable consideration defined * Section 36: Presumption of value * Section 37: Holder taking cheque for which value has been given * Section 38: Holder having lien

Part III—Negotiability of cheques

• Division 1—Transfer by negotiation
  • Section 39: Every cheque transferable by negotiation
  • Section 40: Transfer of cheque by negotiation
  • Section 41: Requisites for indorsement
  • Section 42: Transfer of order cheque without indorsement
  • Section 43: Indorsement of order cheque payable jointly to 2 or more persons
  • Section 44: Indorsement where payee or indorsee misdescribed
  • Section 45: Conditional indorsement
  • Section 46: Transfer of stale or dishonoured cheque by negotiation
  • Section 47: Transfer by negotiation back to drawer or indorser
  • Section 48: Order of indorsements
  • Section 49: Rights acquired by transfer by negotiation
• Division 2—Holder in due course
  • Section 50: Holder in due course defined
  • Section 51: Presumption that holder is holder in due course
  • Section 52: Holder deriving title through holder in due course

Division 3—Crossings * Section 53: Crossing and crossed cheque defined * Section 54: Effect of crossing on payment of cheque * Section 55: Effect of taking cheque crossed not negotiable * Section 56: Persons who may add crossing to cheque

Part IV—Presentment and dishonour

• Division 1—Presentment
  • Section 58: Drawer and indorsers of cheque not liable unless cheque presented
  • Section 59: When presentment dispensed with
  • Section 60: Effect of failure to prese nt within reasonable time
  • Section 61: Due presentment defined
  • Section 61A: Presentment by financial institution
  • Section 62: External presentment by financial institution
  • Section 62A: Internal presentment by drawee institution
  • Section 63: Presentment by p erson other than financial institution
  • Section 64: Proper place
  • Section 65: External presentment of cheques by financial institutions —designated places and designated exhibition places
  • Section 65A: Internal presentment of cheques by financial in stitutions —notified places

Division 2—Dishonour * Section 69: Dishonour defined * Section 70: Drawer and indorsers of cheque liable whether or not given notice of d ishonour * Section 70A: Cheque that appears on its face to be stale

Part V—Miscellaneous