Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 40

             (1)  The transfer of a cheque by negotiation is the transfer of the cheque from the holder to another person in such manner as to constitute the other person the holder.

             (2)  A cheque payable to order is transferred by negotiation if:

                     (a)  it is indorsed by the holder; and

                     (b)  the cheque is delivered so as to complete the contract arising out of the indorsement.

             (3)  A cheque payable to bearer is transferred by negotiation if it is delivered by the holder to another person (whether or not the cheque is indorsed by the holder).