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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97-98
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Cheques and
Payment Orders Amendment Bill 1998
No.
, 1998
(Treasury)
A
Bill for an Act to amend the Cheques and Payment Orders Act 1986, and for
related purposes
9805120—897/6.4.1998—(51/98) Cat.
No. 97 2930 5 ISBN 0644 519754
Contents
Part 1—Main
amendments 0644519754.html
Part 2—Consequential
amendments 0644519754.html
Part 3—Transitional
provisions 0644519754.html
Bills of Exchange Act
1909 0644519754.html
Debits Tax Administration Act 1982 0644519754.html
A
Bill for an Act to amend the Cheques and Payment
Orders Act 1986, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Cheques and Payment Orders Amendment Act
1998.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Subject to subsection (3), the items in Schedule 1, other than item 27
and items 70 to 82, and the items of Schedules 2 and 3, commence on a day
to be fixed by Proclamation.
(3) If the items to which subsection (2) applies do not commence under
that subsection within the period of 6 months beginning on the day on which this
Act receives the Royal Assent, they commence on the first day after the end of
that period.
(4) Items 27, 70 to 78, 81 and 82 of Schedule 1 commence as
follows:
(a) if item 6 of Schedule 1 to the Cheques and Payment Orders Amendment
(Turnback of Cheques) Act 1998 (in this subsection and subsection (5)
referred to as the Turnback Act) commences on or before the
commencement of the items to which subsection (2) applies—items 27,
70 to 78, 81 and 82 of Schedule 1 commence on the later of the
following times:
(i) immediately after the commencement of item 6 of Schedule 1 to the
Turnback Act;
(ii) the commencement of the items to which subsection (2)
applies;
(b) if item 5 of Schedule 1 to the Turnback Act commences on or before the
commencement of the items to which subsection (2) applies and paragraph (a) does
not apply—items 27, 70 to 78, 81 and 82 of Schedule 1
commence on the later of the following times:
(i) immediately after the commencement of item 5 of Schedule 1 to the
Turnback Act;
(ii) the commencement of the items to which subsection (2)
applies;
(c) if item 5 of Schedule 1 to the Turnback Act commences after the
commencement of the items to which subsection (2) applies and item 6 of Schedule
1 to the Turnback Act commences immediately after the commencement of item 5 of
that Schedule—items 27, 70 to 78, 81 and 82 of Schedule 1
commence immediately after the commencement of item 6 of Schedule 1 to the
Turnback Act;
(d) if item 5 of Schedule 1 to the Turnback Act commences after the
commencement of the items to which subsection (2) applies and paragraph (c) does
not apply—items 27, 70 to 78, 81 and 82 of Schedule 1
commence immediately after the commencement of item 5 of Schedule 1 to the
Turnback Act.
(5) Items 79 and 80 of Schedule 1 commence as follows:
(a) if item 6 of Schedule 1 to the Turnback Act commences:
(i) after the commencement of the items to which subsection (2) applies;
and
(ii) after, but not immediately after, the commencement of item 5 of
Schedule 1 to that Act;
items 79 and 80 of Schedule 1 commence immediately after the commencement
of item 6 of Schedule 1 to the Turnback Act;
(b) in any other case—items 79 and 80 of Schedule 1 do not
commence.
Subject to section 2, each Act that is specified in a Schedule to this
Act is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect according to
its terms.
Note 1: Most of the consequential amendments relating to
these amendments are in Part 2 of this Schedule and in Schedule 3. Transitional
provisions are in Part 3 of this Schedule.
Note 2: The other consequential amendments are made as part
of amendments in Schedule 2.
1 Section 1
Omit “and Payment Orders”.
2 Subsection 3(1) (definition of
bank)
Repeal the definition.
3 Subsection 3(1) (definition of building
society)
Repeal the definition.
4 Subsection 3(1) (definition of credit
union)
Repeal the definition.
5 Subsection 3(1) (definition of drawee
bank)
Repeal the definition.
6 Subsection 3(1)
Insert:
drawee institution, in relation to a cheque, means the
financial institution on which the cheque is drawn.
7 Subsection 3(1)
Insert:
FCA institution means a body that is a registered corporation
under the Financial Corporations Act 1974 and that is:
(a) a building society or a credit union as defined in that Act;
or
(b) prescribed for the purposes of this definition.
8 Subsection 3(1)
Insert:
FIC institution means a body corporate that is, for the
purposes of any of the Financial Institutions Codes:
(a) a building society; or
(b) a credit union; or
(c) a special services provider.
9 Subsection 3(1) (definition of financial
institution)
Repeal the definition, substitute:
financial institution means:
(a) the Reserve Bank of Australia; or
(b) a bank within the meaning of the Banking Act 1959; or
(c) an FIC institution; or
(d) a person who carries on State banking within the meaning of paragraph
51(xiii) of the Constitution; or
(e) a person (other than a person referred to in paragraph (a), (b), (c)
or (d)) who carries on the business of banking outside Australia.
10 Subsection 3(1)
Insert:
Financial Institutions Codes means the following
codes:
(a) the Financial Institutions (NSW) Code of New South Wales;
(b) the Financial Institutions (Victoria) Code of Victoria;
(c) the Financial Institutions (Queensland) Code of Queensland;
(d) the Financial Institutions (Western Australia) Code of Western
Australia;
(e) the Financial Institutions (South Australia) Code of South
Australia;
(f) the Financial Institutions (Tasmania) Code of Tasmania;
(g) the Financial Institutions (ACT) Code of the Australian Capital
Territory;
(h) the Financial Institutions (NT) Code of the Northern
Territory.
11 Subsection 3(1) (definition of non-bank
financial institution)
Repeal the definition.
12 At the end of section 4
Add:
(3) The rules of the common law (including the law merchant) that apply to
cheques drawn on banks also apply (by force of this subsection) to cheques drawn
on financial institutions other than banks, as if those institutions were
banks.
13 Section 5
Repeal the section, substitute:
(1) Subject to subsection (2), a reference in this Act to a cheque
includes a reference to a cheque that a financial institution draws on
itself.
(2) Subsection (1) does not apply to a reference to a cheque in a
provision in which a contrary intention appears, or in any of the following
provisions:
(a) sections 10, 11, 12, 13, 14 and 15;
(b) subsection 17(3);
(c) subparagraph 59(b)(i);
(d) subsections 60(1), 62(12) and 62A(8);
(e) sections 88, 89, 90 and 91.
(3) Nothing in this Act (other than section 92, subsection 93(2) and
section 94) is to be taken to affect any liability that, but for this Act, a
financial institution would have in relation to a cheque drawn by it on
itself.
(4) A reference in subsection (1) or (3) to a cheque drawn by a financial
institution on itself is a reference to an instrument that would be a cheque if
the drawer and drawee were not the same person.
14 Subsection 10(1)
Repeal the subsection, substitute:
(1) A cheque is an unconditional order in writing that:
(a) is addressed by a person to another person, being a financial
institution; and
(b) is signed by the person giving it; and
(c) requires the financial institution to pay on demand a sum certain in
money.
Note: In this Act, financial institution has a
restricted meaning—see the definition in subsection 3(1).
15 Part VIII
Repeal the Part.
16 Schedule
Repeal the Schedule.
Part
2—Consequential
amendments
17 Subsection 3(8)
Omit “drawee bank”, substitute “drawee
institution”.
18 Paragraph 12(2)(a)
Omit “bank”, substitute “financial
institution”.
19 Section 13
Omit “bank” (wherever occurring), substitute “financial
institution”.
Note: The heading to section 13 is altered by omitting
“bank” and substituting “financial
institution”.
20 Subsection 17(3)
Omit “drawee bank”, substitute “the drawee
institution”.
21 Section 21
Omit “drawee bank”, substitute “drawee
institution”.
22 Paragraph 22(b)
Omit “drawee bank”, substitute “drawee
institution”.
23 Subsection 23(2)
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
24 Section 43
Omit “drawee bank”, substitute “drawee
institution”.
25 Section 54
Omit “drawee bank”, substitute “drawee
institution”.
26 Section 54
Omit “a bank”, substitute “a financial
institution”.
27 Paragraph 59(aa)
Omit “drawee bank has become a failed bank”, substitute
“drawee institution has become a failed financial
institution”.
28 Sub-subparagraph
59(b)(i)(A)
Omit “drawee bank”, substitute “drawee
institution”.
29 Paragraphs 60(1)(b), (c) and
(d)
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
30 Paragraph 60(3)(b)
Repeal the paragraph, substitute:
(b) usage in relation to the presentment of cheques, including usage of
trade and of financial institutions; and
31 Subsection 61(1)
Omit “drawee bank”, substitute “drawee
institution”.
32 Section 61A
Omit “bank”, substitute “financial
institution”.
Note: The heading to section 61A is altered by omitting
“bank” and substituting “financial
institution”.
33 Section 62
Omit “drawee bank” (wherever occurring, other than in
subsection (1) and paragraph (9)(b)), substitute “drawee
institution”.
34 Section 62
Omit “collecting bank” (wherever occurring, other than in
subsection (1)), substitute “collecting institution”.
35 Section 62A
Omit “drawee bank” (wherever occurring, other than in
subsection (2)), substitute “drawee institution”.
Note: The heading to section 62A is altered by omitting
“bank” and substituting “drawee
institution”.
36 Section 63
Omit “a bank”, substitute “a financial
institution”.
Note: The heading to section 63 is altered by omitting
“bank” and substituting “financial
institution”.
37 Section 63
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
38 Section 64
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
39 Subsection 65(1A)
Omit “banks”, substitute “financial
institutions”.
Note: The heading to section 65 is altered by omitting
“banks” and substituting “financial
institutions”.
40 Subsections 65(1) and
(2)
Omit “bank” (wherever occurring), substitute “financial
institution”.
41 Paragraphs 65(2A)(b) and
(2B)(b)
Omit “bank”, substitute “financial
institution”.
42 Subsections 65(2C) and
(2D)
Omit “bank” (wherever occurring), substitute “financial
institution”.
43 Subsection 65A(1)
Omit “banks”, substitute “financial
institutions”.
Note: The heading to section 65A is altered by omitting
“banks” and substituting “financial
institutions”.
44 Subsection 65A(2)
Omit “bank”, substitute “financial
institution”.
45 Paragraph 65A(3)(b)
Omit “bank”, substitute “financial
institution”.
46 Subsection 66(1)
Omit “a bank (in this section referred to as the deposit
bank)”, substitute “a financial institution (the
deposit institution)”.
Note: The heading to section 66 is altered by omitting
“bank” and substituting
“institution”.
47 Section 66
Omit “deposit bank” (wherever occurring, other than the
occurrence omitted by item 46), substitute “deposit
institution”.
48 Subsection 66(2)
Omit “drawee bank”, substitute “drawee
institution”.
49 Paragraph 66(3)(d)
Omit “banks”, substitute “financial
institutions”.
50 Subparagraph
66(3)(e)(iii)
Omit “another bank”, substitute “another financial
institution”.
51 Subparagraph
66(3)(e)(iv)
Omit “bank” (wherever occurring), substitute “financial
institution”.
52 Subparagraph
66(3)(e)(ix)
Omit “banks”, substitute “financial
institutions”.
53 Subsections 67(1) and
(2)
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
Note: The heading to section 67 is altered by omitting
“Drawee bank” and substituting “Drawee
institution”.
54 Paragraph 67(2)(e)
Omit “banks”, substitute “financial
institutions”.
55 Subparagraph 67(2)(f)(x)
Omit “banks”, substitute “financial
institutions”.
56 Subsections 68(1) and
(2)
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
57 Paragraph 68(2)(a)
Omit “a bank (in this subsection referred to as the collecting
bank)”, substitute “a financial institution (the
collecting institution)”.
58 Subsection 68(2)
Omit “collecting bank” (wherever occurring, other than the
occurrence omitted by item 57), substitute “collecting
institution”.
59 Subsection 68(2)
After “financial institution”, insert “or FCA
institution”.
60 Paragraph 68(3)(a)
Omit “a bank (in this subsection and subsection (4) referred to as
the collecting bank)”, substitute “a financial
institution (the collecting institution)”.
61 Subsection 68(3)
Omit “collecting bank” (wherever occurring, other than the
occurrence omitted by item 60), substitute “collecting
institution”.
62 Subsection 68(3)
Omit “drawee bank” (wherever occurring, other than last
occurring), substitute “drawee institution”.
63 Paragraph 68(3)(d)
After “financial institution”, insert “or an FCA
institution”.
64 Subsection 68(3)
Omit “or other financial institution”, substitute “, or
the other financial institution or the FCA institution”.
65 Subsection 68(3B)
Omit “a bank”, substitute “a financial
institution”.
66 Subsection 68(3B)
Omit “the bank, the bank”, substitute “it,
it”.
67 Subsections 68(5) and
(6)
Omit “drawee bank”, substitute “drawee
institution”.
68 Subsection 68(7)
After “financial institution”, insert “or an FCA
institution”.
69 Section 69
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
70 Division 3 of Part IV
(heading)
Repeal the heading, substitute:
71 Subsection 70A(1)
Omit “drawee bank” (wherever occurring, including in note 1),
substitute “drawee institution”.
72 Subsection 70A(1)
Omit “failed bank” (wherever occurring, including in note 1),
substitute “failed financial institution”.
73 Subsection 70A(2)
Omit “drawee bank”, substitute “drawee
institution”.
74 Subsection 70A(2)
Omit “failed bank” (first occurring), substitute “failed
financial institution”.
75 Paragraphs 70A(2)(a) and
(b)
Omit “bank” (wherever occurring), substitute
“institution”.
76 Paragraph 70A(2)(b)
Omit “bank’s” (wherever occurring), substitute
“institution’s”.
77 Subparagraph
70A(2)(c)(i)
Omit “bank” (wherever occurring), substitute
“institution”.
78 Subparagraph
70A(2)(c)(ii)
Omit “the bank is to be treated as a failed bank”, substitute
“the institution is to be treated as a failed financial
institution”.
79 Subparagraph
70A(2)(c)(i)
Omit “bank” (wherever occurring), substitute
“institution”.
80 Subparagraph
70A(2)(c)(ii)
Omit “the bank is to be treated as a failed bank”, substitute
“the institution is to be treated as a failed financial
institution”.
81 Paragraph 70A(3)(b)
Omit “bank’s”, substitute
“institution’s”.
82 Paragraph 70B(d)
Omit “drawee bank”, substitute “drawee
institution”.
83 Paragraph 78(1)(a)
Omit “drawee bank”, substitute “drawee
institution”.
84 Subsection 87(2)
Omit “drawee bank”, substitute “drawee
institution”.
85 Part VI (heading)
Repeal the heading, substitute:
86 Division 1 of Part VI
(heading)
Repeal the heading, substitute:
87 Section 88
Omit “drawee bank”, substitute “drawee
institution”.
88 Subsection 89(2)
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
89 Subsection 90(1)
Omit “a bank to pay a cheque drawn upon it”, substitute
“the drawee institution to pay a cheque”.
90 Paragraph 90(2)(a)
Omit “drawee bank”, substitute “drawee
institution”.
91 Section 91
Omit “drawee bank” (wherever occurring), substitute
“drawee institution”.
Note: The heading to section 91 is altered by omitting
“bank” and substituting “drawee
institution”.
92 Section 92
Repeal the section substitute:
Subject to subsection 32(1), where the drawee institution, in good faith
and without negligence, pays a crossed cheque to a financial institution, the
drawee institution is taken to have paid the cheque in due course.
93 Subsection 93(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2), where the drawee institution pays a crossed
cheque otherwise than to a financial institution, the drawee institution is
liable to the true owner of the cheque for any loss the true owner suffers as a
result of the cheque having been paid otherwise than to a financial
institution.
94 Paragraph 93(2)(a)
Omit “drawee bank”, substitute “drawee
institution”.
95 Subsection 93(2)
Omit “the bank” (wherever occurring), substitute “the
drawee institution”.
96 Subsection 93(2)
Omit “a bank” (wherever occurring), substitute “a
financial institution”.
97 Paragraph 94(1)(a)
Repeal the paragraph, substitute:
(a) the drawee institution, in good faith and without negligence, pays a
cheque, whether or not to a financial institution; and
Note: The heading to section 94 is altered by omitting
“bank” and substituting “drawee
institution”.
98 Subsection 94(1)
Omit “the bank”, substitute “the drawee
institution”.
99 Paragraph 94(2)(a)
Repeal the paragraph, substitute:
(a) the drawee institution, in good faith and without negligence, pays a
cheque to a financial institution; and
100 Subsection 94(2)
Omit “the bank”, substitute “the drawee
institution”.
101 Division 2 of Part VI
(heading)
Repeal the heading, substitute:
102 Paragraph 95(1)(a)
Omit “a bank”, substitute “a financial institution (the
collecting institution)”.
Note: The heading to section 95 is altered by omitting
“bank” (wherever occurring) and substituting
“institution”.
103 Subsection 95(1)
Omit “the bank”, substitute “the collecting
institution”.
104 Paragraph 95(2)(a)
Omit “a bank”, substitute “a financial institution (the
collecting institution)”.
105 Subsection 95(2)
Omit “the bank” (wherever occurring), substitute “the
collecting institution”.
106 Paragraph 96(a)
Omit “a bank”, substitute “a financial institution (the
collecting institution)”.
Note: The heading to section 96 is altered by omitting
“bank” and substituting
“institution”.
107 Section 96
Omit “the bank” (wherever occurring), substitute “the
collecting institution”.
108 Part VII (heading)
Repeal the heading, substitute:
109 Division 1 of Part VII
(heading)
Repeal the heading, substitute:
110 Subsection 97(1)
Omit “a non-bank financial institution”, substitute “an
FCA institution”.
Note: The heading to section 97 is altered by omitting
“Non-bank financial institution” and substituting
“FCA institution”.
111 Subsection 97(1)
Omit “the non-bank financial institution” (wherever occurring),
substitute “the FCA institution”.
112 Subsection 97(2)
Omit “drawee bank”, substitute “drawee
institution”.
113 Subsection 97(3)
Omit “the non-bank financial institution” (wherever occurring),
substitute “the FCA institution”.
114 Paragraph 97(3)(d)
After “financial institutions”, insert “and FCA
institutions”.
115 Subparagraph
97(3)(e)(iii)
Omit “bank”, substitute “financial
institution”.
116 Subparagraph
97(3)(e)(viii)
After “financial institutions”, insert “and FCA
institutions”.
117 Paragraph 98(1)(a)
Omit “a non-bank financial institution”, substitute “an
FCA institution”.
Note: The heading to section 98 is altered by omitting
“non-bank” and substituting
“FCA”.
118 Subsection 98(1)
Omit “the non-bank financial institution”, substitute
“the FCA institution”.
119 Paragraph 98(2)(a)
Omit “a non-bank financial institution”, substitute “an
FCA institution”.
120 Subsection 98(2)
Omit “the non-bank financial institution” (wherever occurring),
substitute “the FCA institution”.
121 Paragraph 99(a)
Omit “a non-bank financial institution”, substitute “an
FCA institution”.
Note: The heading to section 99 is altered by omitting
“non-bank” and substituting
“FCA”.
122 Section 99
Omit “the non-bank financial institution” (wherever occurring),
substitute “the FCA institution”.
123 Paragraph 100(1)(a)
Repeal the paragraph, substitute:
(a) the drawer of a cheque (the issuing institution) is an
FIC institution or an FCA institution; and
124 Subsection 100(1)
Omit “non-bank financial” (wherever occurring, other than in
paragraph (a)), substitute “issuing”.
125 Subsection 100(2)
Omit “non-bank financial” (wherever occurring, other than in
subparagraph (b)(iv)), substitute “issuing”.
126 At the end of subparagraphs 100(2)(b)(i),
(ii) and (iii)
Add “and”.
127 Subparagraph
100(2)(b)(iv)
Repeal the subparagraph, substitute:
(iv) if the issuing institution is an FCA institution—the issuing
institution were a financial institution; and
128 Subparagraphs 100(2)(b)(v) and
(vi)
Omit “drawee bank”, substitute “drawee
institution”.
129 Paragraph 113(b)
Omit “drawee bank”, substitute “drawee
institution”.
130 Subsection 117(14)
Omit “drawee bank”, substitute “drawee
institution”.
Part
3—Transitional
provisions
131 Definitions
In this Part:
amended Act means the Cheques Act 1986 as in force
after the commencement of this Part.
non-bank financial institution has the same meaning as in the
old Act.
old Act means the Cheques and Payment Orders Act 1986
as in force immediately before the commencement of this Part.
132 Old Act continues to apply to certain
payment orders
The old Act, as modified by the Schedule to that Act, continues to apply
to:
(a) payment orders completed before the commencement of this Part;
and
(b) payment orders completed partly before and partly after the
commencement of this Part; and
(c) payment orders completed after the commencement of this Part using
forms issued to customers of non-bank financial institutions before that
commencement.
133 Preservation of regulations prescribing
institutions
Regulations in force immediately before the commencement of this Part for
the purposes of paragraph (b) of the definition of non-bank financial
institution in subsection 3(1) of the old Act have effect, after that
commencement, as if they were regulations for the purposes of paragraph (b) of
the definition of FCA institution in subsection 3(1) of the
amended Act.
1 Subsection 3(1)
Insert:
agency cheque means a cheque to which subsection 100(2)
applies.
Note: Under section 100A, subsection 100(2) may, in
specified circumstances, apply to a cheque even if the customer’s
signature on the cheque is not authorised.
2 Subsection 3(1)
Insert:
to or to the order of has the meaning given by subsection
(1A).
3 After subsection 3(1)
Insert:
(1A) For the purposes of this Act, a cheque is payable to or to the
order of a person or persons if:
(a) it is expressed to be payable:
(i) to the person or persons; or
(ii) to the order of the person or persons (or words to that effect);
or
(iii) to the person or persons or to the order of the person or persons
(or words to that effect); and
(b) it is not also expressed to be payable to bearer.
4 Section 21
Omit “, and only to or to the order of”.
5 Subsection 23(1)
Repeal the subsection.
6 Cheques already converted under subsection
23(1) continue to be cheques payable to order
A cheque that, on the commencement of item 5, was a cheque payable to order
as a result of a conversion under the subsection repealed by that item continues
to be a cheque payable to order after that commencement despite the repeal of
that subsection.
7 Subsection 23(2)
Omit “, and only to or to the order of”.
8 Section 44
Omit all the words after “indorse the cheque”, substitute
“in accordance with section 41, but using the designation or spelling in
the cheque. The relevant person may also add his or her proper signature, but
this is not necessary for the indorsement to be effective.”.
9 Paragraph 49(2)(a)
Omit “indorsers” (first occurring), substitute
“parties”.
10 Paragraph 49(2)(a)
Omit “the drawer and prior indorsers”, substitute “prior
parties”.
11 Application of amendment made by item
10
The amendment made by item 10 applies to cheques that are issued after the
commencement of that item.
12 Subsection 62(1)
Repeal the subsection (including the notes), substitute:
(1) A financial institution (the collecting institution)
makes an external presentment of a cheque if the collecting institution makes a
demand for payment of the cheque on the drawee institution (which is not the
same institution as the collecting institution) on behalf of a customer, another
financial institution or otherwise and the demand:
(a) is made:
(i) by exhibiting the cheque to the drawee institution at the proper place
in relation to the cheque; and
(ii) at a reasonable hour on a day on which the drawee institution is open
for business at that place; or
(b) is made:
(i) by exhibiting the cheque to the drawee institution at a place that is
a designated exhibition place in relation to the cheque for the purposes of this
subsection; and
(ii) at a time that is a designated time for the drawee institution at
that place; or
(c) is made:
(i) otherwise than by exhibiting the cheque; and
(ii) at a place that is a designated place in relation to the cheque for
the purposes of this subsection; and
(iii) at a time that is a designated time for the drawee institution at
that place; and
(iv) using a means of communication that is a designated means of
communication for the drawee institution at that place.
Note 1: Section 64 defines proper
place.
Note 2: Section 65 defines designated exhibition
place, designated time and designated means of
communication.
Note: The heading to section 62 is altered by omitting
“bank” and substituting “financial
institution”.
13 Paragraph 62(9)(b)
Repeal the paragraph, substitute:
(b) in the case of a request to exhibit the cheque or a copy of the cheque
of a specified kind—exhibit the cheque or the copy to the drawee
institution:
(i) at the proper place in relation to the cheque, at a reasonable hour on
a day on which the drawee institution is open for business at that place;
or
(ii) at a place that is a designated exhibition place in relation to the
cheque for the purposes of this subsection, at a time that is a designated time
for the drawee institution at that place.
14 Subsection 62A(2)
Repeal the subsection, substitute:
(2) If the demand is made:
(a) otherwise than by exhibiting the cheque; and
(b) at the proper place in relation to the cheque, or at a place that is a
notified place for the purposes of subsection (1);
the drawee institution may:
(c) request itself to exhibit the cheque, or a copy of the cheque of a
specified kind, to itself at a specified place; or
(d) request itself to provide specified further particulars in relation to
the cheque to itself at a specified place.
Note 1: Section 64 defines proper
place.
Note 2: Section 65A defines notified
place.
15 Subsection 62A(4)
After “made”, insert “at the proper place in relation to
the cheque, or”.
16 Subsection 62A(4) (note)
Repeal the note, substitute:
Note 1: Section 64 defines proper
place.
Note 2: Section 65A defines notified
place.
17 After subsection 65A(3)
Insert:
(3A) The place is a notified place in relation to particular
cheques for the purposes of subsection 62A(1), (3) or (4) if the notice
specifies that the place is a notified place in relation to the cheques for the
purposes of that subsection.
18 Section 67
Add at the end:
(3) Subsection (1) does not prejudice any rights that the drawee
institution may have to debit the drawer’s account with the amount of the
cheque.
19 Paragraph 68(1)(a)
After “a cheque”, insert “, other than an agency
cheque,”.
20 Paragraph 68(2)(a)
After “a cheque”, insert “, other than an agency
cheque,”.
21 After subsection 68(2)
Insert:
(2A) If:
(a) an agency cheque is duly presented for payment by a financial
institution (the collecting institution); and
(b) the drawee institution pays the cheque;
the FIC institution or FCA institution that is the drawer of the cheque
(disregarding the effect of subsection 100(2)) has, as against the drawee
institution, the collecting institution and any institution on whose behalf the
collecting institution duly presented the cheque, the right to possession of the
cheque.
22 Subsection 68(3)
Omit “drawee bank” (last occurring), substitute “entitled
institution”.
23 At the end of subsection
68(3)
Add:
For this purpose, the entitled institution is the drawee
institution, unless the cheque is an agency cheque. If the cheque is an agency
cheque, the entitled institution is the FIC institution or FCA
institution that is the drawer of the cheque (disregarding the effect of
subsection 100(2)).
24 Subsection 68(3A)
Repeal the subsection, substitute:
(3A) If:
(a) the drawee institution obtains possession of a relevant cheque;
and
(b) the drawee institution pays or has paid the cheque; and
(c) the cheque is not an agency cheque;
the drawee institution must retain the cheque (subject to subsection (5)),
or a copy of the cheque, for the period ending 7 years after the date of the
cheque.
(3AA) If:
(a) an FIC institution or an FCA institution obtains possession of a
relevant cheque, being an agency cheque; and
(b) the institution is the drawer of the cheque (disregarding the effect
of subsection 100(2)); and
(c) the drawee institution has paid the cheque;
the institution must retain the cheque (subject to subsection (5)), or a
copy of the cheque, for the period ending 7 years after the date of the
cheque.
25 Subsection 68(4)
Omit “drawee bank” (first occurring), substitute
“entitled institution referred to in subsection (3)”.
26 Subsection 68(4)
Omit “drawee bank” (last occurring), substitute “entitled
institution”.
27 Subsection 68(7)
After “(3A)”, insert “, (3AA)”.
28 Subsection 89(1)
Repeal the subsection, substitute:
(1) Subject to subsections (2) and (3), the drawee institution may refuse
payment of a stale cheque.
29 Subsection 89(2)
Omit “Subsection (1) does not apply in relation to a cheque
if:”, substitute “The drawee institution must not refuse payment of
a stale cheque if:”.
30 At the end of section 89
Add:
(3) The drawee institution must refuse payment of a stale cheque
if:
(a) the drawee institution is obliged, by an agreement with the drawer,
not to pay the cheque after it has become stale; or
(b) the drawer directs the drawee institution not to pay the cheque after
it has become stale.
31 Amendments of section 89 apply to cheques
that become stale after amendments commence
The amendments made by items 28, 29 and 30 apply to cheques that become
stale after the commencement of those items.
32 Subsection 95(2)
Omit “by the customer”.
33 Subsection 95(3)
Repeal the subsection, substitute:
(3) Where a financial institution (the collecting agent),
in good faith and without negligence:
(a) receives payment of a cheque for another financial institution or for
an FCA institution; or
(b) receives payment of a cheque and, before or after receiving payment,
pays another financial institution or an FCA institution the sum ordered to be
paid by the cheque;
the collecting agent does not incur any liability to the true owner by
reason only of having received payment of the cheque.
34 Paragraph 95(4)(a)
Repeal the paragraph, substitute:
(a) a financial institution (the collecting
agent):
(i) receives payment of a cheque for another financial institution or for
an FCA institution; or
(ii) receives payment of a cheque and, before or after receiving payment,
pays another financial institution or an FCA institution the sum ordered to be
paid by the cheque; and
35 Subsection 95(4)
Omit “the bank”, substitute “the collecting
agent”.
36 Subsection 98(2)
Omit “by the customer”.
37 Subparagraph
100(2)(b)(vi)
Omit “check”, substitute “cheque”.
38 After section 100
Insert in Division 2 of Part VII:
(1) A signature that is written or placed on a cheque as that of a
customer of an FIC institution or an FCA institution without the authority of
the customer whose signature it purports to be, only operates as the
customer’s signature for the purposes of section 100 if:
(a) the person against whom it is sought to assert a right on the cheque
is estopped from denying the genuineness of the signature or the existence of
authority for the signature; or
(b) the signature is ratified or adopted by the customer.
(2) Subsection 32(1) does not apply to the signature.
39 Section 114
Repeal the section, substitute:
(1) A person is taken to sign a cheque or other instrument if:
(a) the person’s signature is written on the cheque or instrument by
the person or by another person acting under the first person’s authority;
or
(b) the person’s signature is placed on the cheque or instrument, as
provided in subsection (2), by the person or by another person acting under the
first person’s authority.
(2) A financial institution, or an FCA institution, and a customer of the
institution, may agree that the customer’s signature may be placed on a
cheque or other instrument drawn on the institution by a stamp or other
mechanical means as provided for in the agreement.
40 Paragraph 117(5)(a)
After “it”, insert “is”.
1 Subsection 6(2)
Omit “and Payment Orders”.
Debits
Tax Administration Act 1982
2 Subsection 3(1) (definition of
account)
Repeal the definition, substitute:
account means an account kept with a financial institution,
being an account to which payments by the institution in respect of cheques
drawn on the institution by the account holder, or by one or more of the account
holders, may be debited.
3 Subsection 3(1) (paragraph (a) of the
definition of account transaction)
Add at the end “or”.
4 Subsection 3(1) (paragraph (b) of the
definition of account transaction)
Repeal the paragraph.
5 Subsection 3(1) (definition of
cheque)
Omit “bank” (wherever occurring), substitute “financial
institution”.
6 Subsection 3(1) (subparagraph (b)(ii) of the
definition of excluded debit)
Omit “or payment order” (wherever occurring).
7 Subsection 3(1) (definition of
incomplete)
Omit “or payment order” (wherever occurring).
8 Subsection 3(1) (definition of non-bank
financial institution)
Repeal the definition, substitute:
non-bank financial institution means an
institution:
(a) that is an FIC institution as defined in subsection 3(1) of the
Cheques Act 1986; and
(b) that carries on a business that includes the keeping of accounts that
may be drawn on by cheque.
9 Subsection 3(1) (definition of payment
order)
Repeal the definition.
10 Subsection 57(1A)
Omit “payment order”, substitute
“cheque”.