CHEQUES AND PAYMENT ORDERS REGULATIONS (AMENDMENT) 1994 NO. 100

CHEQUES AND PAYMENT ORDERS REGULATIONS (AMENDMENT) 1994 NO. 100

STATUTORY RULES 1994 No. 100

Issued by the authority of the Attorney-General

Cheques and Payment Orders Act 1986

Cheques and Payment Orders Regulations (Amendment)

Section 119 of Cheques and Payment Orders Act 1986 (the Act) provides that the GovernorGeneral may make regulations prescribing matters which are required or permitted by the Act to be prescribed.

The definition of a 'non-bank financial institution' in subsection 3(1) of the Act provides for the prescription of a registered corporation within the meaning of the Financial Corporations Act 1974 as a 'non-bank financial institution' for the purposes of that definition.

Section 101 of the Act enables non-bank financial institutions to issue payment orders for use by their customers in the same way that banks issue cheques. Section 100 regulates the use of certain 'agency' cheques issued by non-bank financial institutions and governs the rights and liabilities of non-bank financial institutions and their customers in relation to such cheques. In addition, section 98 of the Act allows non-bank financial institutions to take advantage of certain protections when collecting cheques for customers and section 97 imposes obligations on nonbank financial institutions to ensure that cheques lodged with them are presented promptly.

To date, two other corporations, Wesfarmers Limited and Elders Rural Finance Limited, have been prescribed as non-bank financial institutions under the Act.

A further two corporations, Westralian Farmers Co-operative Limited and Dalgety Farmers Limited, have each applied to be prescribed as a non-bank financial institution under the Act. Both corporations are registered corporations within the meaning of the Financial Corporations Act 1974.

The purpose of the Regulations is to prescribe each of:

Westralian Farmers Co-operative Limited

Dalgety Farmers Limited

as a non-bank financial institution for the purposes of paragraph (b) of the definition of 'nonbank financial institution' in subsection 3(1) of the Act.

Details of the Regulations are contained in the Attachment.

The Regulations commenced on the date of gazettal.

ATTACHMENT

Regulation 1

Amendment

Regulation 1 provides that the regulations amend the Cheques and Payment Orders Regulations.

Regulation 2

Regulation 2A (Non-bank financial institutions)

Regulation 2 omits existing regulation 2A and substitutes new regulation 2A.

Under existing regulation 2A, which commenced on 24 March 1988 (Statutory Rules 1988 No 37), Elders Rural Finance Limited and Wesfarmers Limited were each prescribed as a 'non-bank financial institution' for the purposes of the Act.

Under new regulation 2A, Westralian Farmers Co-operative Limited and Dalgety Fanners Limited are listed in alphabetical order together with the two corporations, Elders Rural Finance Limited and Wesfarmers Limited, prescribed under existing regulation 2A. Each corporation is prescribed by new regulation 2A as a 'non-bank financial institution' for the purposes of paragraph (b) of that definition in subsection 3(1) of the Act.