Commonwealth Numbered Regulations - Explanatory Statements

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CHEQUES AND PAYMENT ORDERS REGULATIONS (AMENDMENT) 1997 NO. 276

Statutory Rules 1997 No. 276

Issued by the Authority of the Treasurer

Cheques and Payment Orders Act 1986

Cheques and Payment Orders Regulations (Amendment)

Section 119 of the Cheques and Payment Orders Act 1986 (the Act) provides that the Governor-General may make regulations prescribing matters which are required or permitted by the Act to be prescribed.

The definition of a 'non-bank financial institution' in subsection 3(1) of the Act provides for the prescription of a registered corporation within the meaning of the Financial Corporations Act 1974 as a 'non-bank financial institution' for the purposes of that definition.

Section 100 of the Act regulates the use of certain 'agency' cheques issued by non-bank financial institutions and governs the rights and liabilities of non-bank financial institutions and their customers in relation to such cheques. In addition, section 98 of the Act allows nonbank financial institutions to take advantage of certain protections when collecting cheques for customers and section 97 imposes obligations on non-bank financial institutions to ensure that cheques lodged with them are presented promptly.

To date, four corporations, Westfarmers Limited, Elders Rural Finance Limited, Westralian Farmers Co-operative Limited and Dalgety Farmers Limited, have been prescribed as nonbank financial institutions under the Act.

A further corporation, Primac Elders Limited, has applied to be prescribed as a non-bank financial institution under the Act. Primac Elders Limited is a registered corporation within the meaning of Financial Corporations Act 1974.

The purpose of the proposed regulations is to prescribe Primac Elders Limited as a non-bank financial institution for the purposes of paragraph (b) of the definition of 'non-bank financial institution' in subsection 3(1) of the Act.

The proposed regulations also substitute the reference to Dalgety Farmers Limited in the Cheques and Payment Orders Regulations with a reference to Wesfarmers Dalgety Limited to reflect a name change.

Details of the proposed Regulations are set out in the Attachment.

The regulations commence on the date of gazettal.

ATTACHMENT

Regulation 1

Amendment

Regulation 1 provides that the regulations amend the Cheques and Payment Orders Regulations.

Regulation 2

Regulation 2 (Non-bank financial institution)

Regulation 2 omits existing regulation 2A and substitutes proposed new regulation 2A.

Under existing regulation 2A, which commenced on 19 April 1994 (Statutory Rules 1994 No 100), Westralian Farmers Co-operative Limited and Dalgety Farmers Limited were, each prescribed as a 'non-bank financial institution' for the purposes of the Act.

Under new regulation 2A, Primac Elders Limited will be listed in alphabetical order together with the four corporations, Elders Rural Finance Limited, Wesfarmers Limited, Westralian Farmers Co-operative Limited and Dalgety Farmers Limited, prescribed under existing regulation 2A.

New regulation 2A also amends the Cheques and Payment Orders Regulations by substituting the reference to Dalgety Farmers Limited with a reference to Wesfarmers Dalgety Limited to reflect a name change.

Each corporation will be prescribed by new regulation 2A as a 'non-bank financial institution' for the purposes of paragraph (b) of that definition in subsection 3(1) of the Act.