Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection ( 2), the holder of a cheque shall, unless the contrary is proved, be presumed to be a holder in due course.
(2) Where, in an action or proceeding on a cheque, it is admitted or proved that the drawing or issue, or a transfer by negotiation, of the cheque is affected by fraud, duress or illegality, the holder shall not be presumed, by virtue of subsection ( 1), to be a holder in due course unless and until the holder proves that, after the alleged fraud, duress or illegality, value was, in good faith, given for the cheque.