Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 74

  (1)   An indorser of a cheque, by indorsing the cheque, is estopped:

  (a)   from denying to a holder in due course the genuineness and regularity, in all respects, of the drawer's signature and all previous indorsements; and

  (b)   from denying to the indorsee to whom the indorser indorsed the cheque or a subsequent indorsee or to a holder who is not an indorsee:

  (i)   that the cheque was, at the time when the indorser indorsed it, a valid and undischarged cheque; and

  (ii)   that the indorser had, at that time, a good title to the cheque.

  (2)   The reference in paragraph   ( 1)(a) to a holder in due course includes a reference to a person who, but for a signature being written or placed on the cheque without the authority of the person whose signature it purports to be, would be a holder in due course.