Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 73

    Subject to subsection   17(2), section   59 and subsection   60(2), an indorser of a cheque, by indorsing the cheque, undertakes:

  (a)   that, on due presentment for payment, the cheque will be paid according to its tenor as indorsed by the indorser; and

  (b)   that:

  (i)   if the cheque is dishonoured when duly presented for payment; or

  (ii)   if presentment of the cheque for payment is dispensed with by virtue of paragraph   59(a) or (aa) and the cheque is unpaid after its date has arrived;

    the indorser will compensate the holder or a subsequent indorser who is compelled to pay the cheque.