Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An indorsement of a cheque is not effective to transfer the cheque by negotiation unless:
(a) the indorsement is written or placed on the cheque and signed by the indorser; and
(b) the indorsement is an indorsement of the entire cheque.
(2) An indorsement written or placed on an allonge to a cheque shall be taken to be written or placed, as the case may be, on the cheque.
(3) A mere signature on a cheque is, in point of form, sufficient for an indorsement of the cheque.
(4) Without limiting the generality of paragraph ( 1)(b), an indorsement of a cheque that purports to transfer a part only of the sum ordered to be paid by the cheque is not effective to transfer the cheque by negotiation.