About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

9 U.W. Austl. L. Rev. 101 (1969-1970)
Collection and Payment of Cheques

handle is hein.journals/uwatlw9 and id is 131 raw text is: COLLECTION AND PAYMENT OF CHEQUES The Current Law and the Need for a Reform* I. INTRODUCTION Most cheques drawn in Britain, Australia and New Zealand are handled by two banks. If the cheque is not crossed, the payee or holder may, of course, present it for payment at the counter of the paying (or drawee) banker. When this is done only one banker is involved. But the general tendency among tradesmen and professional men is to forward all the cheques which they receive to their own bankers, who present each cheque for payment to the bank on which it is drawn. In this type of case the cheques are, obviously, handled by two banks. The banker who presents the cheque to the drawee banker on behalf of the payee may assume one of two roles. If he acts merely as agent of the payee, he assumes the role of a collecting banker. He becomes a discounting banker if, apart from presenting the cheque to the paying banker, he allows his customer (the payee) an overdraft against the cheque before its clearance or gives the customer some other consideration for it. In the normal course of events the collecting (or the discounting) banker as well as the paying banker render their services to the satis- faction of all concerned. But complications may arise when cheques are forged or stolen. If a cheque is collected on behalf of a rogue and honoured by the paying banker, the drawer or a subsequent holder may attempt to recover his loss from the bankers or either of them. It will be shown that in the majority of cases the defence of a paying, collecting or discounting banker depends on the provisions of the law of negotiable instruments. In England, these are codified in the Bills of Exchange Act 1882, in Australia in the Bills of Exchange Act 1909-1958 and in New Zealand in the Bills of Exchange Act 1908. The Acts of Australia and New Zealand are similar to the English one.' This article is based on a paper presented at the A.U.L.S.A. Conference in Wellington on August 18 1969. I am grateful to those who attended, and particularly to Professor K. C. T. Sutton, for their comments. 1 References are to sections of the English Act. Where sections in the Austra- lian and New Zealand Acts vary or are numbered differently, references to them are given in square brackets.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most