•
LAW OF FINANCIAL INSTITUTIONS AND SECURITIES
BLO3405
• Cheques
• Introduction
• Electronic and card access method have largely replaced the cheque as the way to access
bank accounts
• Although there has been a decline in use there are still about 500,000 cheques written per
day and they give rise to a number of legal issues
• cheques
• cheques
• The law in relation to use of cheques is governed by the Cheques Act 1986 (Cth) although
the cheques sections of the Bills of Exchange Act 1909 still apply
• S10 of the Cheques Act 1986 defines a cheque as an unconditional order in writing that is
addressed by a person to another person, being a financial institution; and is signed by the
person giving it; and requires it to pay on demand a certain sum of money
• Cheques
• Note: the drawee institution (bank) is not liable on the cheque. That is, the drawee
institution will be liable to the drawer in contract to pay the cheque but it has no legal
obligation to the holder of the cheque as would be the case with bills of exchange
• cheques
• cheques
• cheques
• cheques
• cheques
• cheques
• cheques
• Post dated cheques
• Although post dated cheques are ‘cheques’ for the purposes of the Act, an attempt to obtain
payment prior to that date is not a ‘presentment’ for the purposes of the Act so that the
drawer and others will not be liable for the amount of the cheque
• cheques
• Types of cheques
• Customer – is entitled to access account by properly drawing a cheque
LAW OF FINANCIAL INSTITUTIONS AND SECURITIES
BLO3405
• Cheques
• Introduction
• Electronic and card access method have largely replaced the cheque as the way to access
bank accounts
• Although there has been a decline in use there are still about 500,000 cheques written per
day and they give rise to a number of legal issues
• cheques
• cheques
• The law in relation to use of cheques is governed by the Cheques Act 1986 (Cth) although
the cheques sections of the Bills of Exchange Act 1909 still apply
• S10 of the Cheques Act 1986 defines a cheque as an unconditional order in writing that is
addressed by a person to another person, being a financial institution; and is signed by the
person giving it; and requires it to pay on demand a certain sum of money
• Cheques
• Note: the drawee institution (bank) is not liable on the cheque. That is, the drawee
institution will be liable to the drawer in contract to pay the cheque but it has no legal
obligation to the holder of the cheque as would be the case with bills of exchange
• cheques
• cheques
• cheques
• cheques
• cheques
• cheques
• cheques
• Post dated cheques
• Although post dated cheques are ‘cheques’ for the purposes of the Act, an attempt to obtain
payment prior to that date is not a ‘presentment’ for the purposes of the Act so that the
drawer and others will not be liable for the amount of the cheque
• cheques
• Types of cheques
• Customer – is entitled to access account by properly drawing a cheque
