Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection ( 2), where an indorser is discharged under subsection 83(1) or (2), all rights on the cheque against the indorser are extinguished.
(a) an indorser is discharged:
(i) by virtue of paragraph 83(1)(a) by the renunciation of the holder's rights against the indorser; or
(ii) under subsection 83(2) by the renunciation of the holder's rights against an indorser against whom the first - mentioned indorser would have had a right of recourse; and
(b) a person takes the cheque without notice of the renunciation;
the person may enforce payment of the cheque as if the first - mentioned
indorser had not been discharged.