Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsections ( 2) and (3), where a cheque is discharged under subsection 78(1) or (2), all rights on the cheque are extinguished.
(a) a cheque is discharged by virtue of paragraph 78(1)(b) by the renunciation of the holder's rights against the drawer or all persons liable on the cheque;
(b) a person takes the cheque without notice of the renunciation; and
(c) the person would, but for the discharge of the cheque, be a holder in due course of the cheque;
the person may enforce payment of the cheque as if the cheque had not been discharged.
(3) Where a cheque is discharged under subsection 78(2) by an alteration of the cheque, then:
(a) a person who, but for the discharge of the cheque, would be the holder may enforce payment of the cheque, according to the tenor of the cheque as altered, against:
(i) the person who made the alteration;
(ii) a person who authorized or agreed to the alteration; or
(iii) a person who indorsed the cheque after the alteration was made;
as if the cheque had not been discharged; and
(b) in a case where the alteration is not apparent--a person who, but for the discharge of the cheque, would be a holder in due course may enforce payment of the cheque, according to the original tenor of the cheque, against any other person as if the cheque had not been discharged.
(4) Subsection ( 1) shall not be taken to limit by
implication the effects of the discharge of a cheque.