What is cheques act

The Bills of Exchange Act is amended by substituting for sections 82 and 83 thereof a new section as follows — Provisions as to crossed cheques to apply to certain other instruments The foregoing provisions of this Part relating to the crossing of cheques and crossed cheques shall apply in relation to a prescribed instrument within the meaning of the Cheques Act, No.

Follow us:. About Us. Judicial Profiles. Product Catalogue. Contact Us. Point in Time. Arrangement of Sections. Short title and commencement This Act may be cited as the Cheques Act , and shall come into operation at the end of one month from the date of its publication in the Gazette. Interpretation 1. In this Act — "payee" does not include an endorsee under a special endorsement; "prescribed instrument" means — a. Protection of collecting banker 1.

Where a banker, in good faith and without negligence and in the ordinary course of business — a. At common law the bank bears the responsibility for a forged cheque, unless the account holder has been careless or has failed to advise the bank as soon as becoming aware of the forgery.

Bank cheques are cheques drawn on a bank by itself. It is very unusual for a bank to dishonour its own cheque, but there may be reasons such as forgery or it has been reported as lost or stolen. A person can ask for a bank cheque to be stopped as long as it has not been presented for payment. Toggle navigation. Legal Help for all South Australians. Refine results. This means that the bank will only honour the cheque if the account holder has sufficient funds to meet it or it can be covered by an agreed overdraft or other line of credit.

Cheques are not legal tender and never have been. Even today, if you owe someone money they are not obliged to accept a cheque. A creditor is entitled to be paid in legal tender and can refuse payment in any other form. The most recent amendment to the Bills of Exchange Act occurred via the Small Business, Enterprise and Employment Act section 13 , which gained Royal Assent in and became law in July , eliminating the need for cheques to be physically transported around the country.