Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An indorser of a cheque is discharged if:
(a) subject to section 84, the holder, at any time, absolutely and unconditionally renounces the holder's rights against the indorser; or
(b) subject to subsection 85(1), the holder intentionally cancels the indorser's signature and the cancellation is apparent from the cheque.
(2) Where an indorser is discharged by virtue of paragraph ( 1)(a) or (b), any indorser who would have had a right of recourse against the first - mentioned indorser is also discharged.
(3) Nothing in this section affects the discharge of an indorser otherwise than in accordance with this section.