Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 90

  (1)   Subject to subsection   ( 2), the duty and authority of the drawee institution to pay a cheque are terminated by:

  (a)   countermand of payment;

  (b)   notice of the drawer's mental incapacity to incur liability on a cheque; or

  (c)   notice of the drawer's death.

  (2)   Paragraph   ( 1)(c) does not apply in relation to a cheque if:

  (a)   not more than 10 days have elapsed since the day on which the drawee institution received notice of the customer's death; and

  (b)   it has not received a countermand of payment from a person who claims that the person is, or will be:

  (i)   entitled to administer the drawer's estate; or

  (ii)   a beneficiary of the drawer's estate.