Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 89

  (1)   Subject to subsections   ( 2) and (3), the drawee institution may refuse payment of a stale cheque.

  (2)   The drawee institution must not refuse payment of a stale cheque if:

  (a)   the drawee institution is obliged, by an agreement with the drawer, to pay the cheque notwithstanding that it is a stale cheque; or

  (b)   the drawer directs the drawee institution to pay the cheque notwithstanding that it is a stale cheque.

  (3)   The drawee institution must refuse payment of a stale cheque if:

  (a)   the drawee institution is obliged, by an agreement with the drawer, not to pay the cheque after it has become stale; or

  (b)   the drawer directs the drawee institution not to pay the cheque after it has become stale.