Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 45

    Where an indorsement of a cheque purports to be conditional:

  (a)   the indorsement is effective as an indorsement of the cheque, whether or not the condition is fulfilled;

  (b)   a person paying the cheque may disregard the condition and may pay the cheque to the indorsee or a subsequent holder, whether or not the condition is fulfilled; and

  (c)   the fact that the indorsement purports to be conditional shall be disregarded for the purpose of determining whether the holder is a holder in due course.