how long is a cheque good for ?, page-13

CHEQUES ACT 1986 - SECT 89
Stale cheque
(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.

"drawee institution" , in relation to a cheque, means the financial institution on which the cheque is drawn.

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CHEQUES ACT 1986 - SECT 60
Effect of failure to present within reasonable time
(1) Where:

(a) a cheque is not duly presented for payment within a reasonable time after its issue;


(2) Due presentment of a cheque for payment is not effective to render an indorser liable on the cheque unless the presentment is effected within a reasonable time after its indorsement by the indorser.

(3) In determining what is a reasonable time for the purposes of subsection (1) or (2), regard shall be had to:

(a) the fact that the instrument is a cheque and that it is reasonable to expect a cheque to be presented for payment promptly;

b) usage in relation to the presentment of cheques, including usage of trade and of financial institutions; and

(c) the facts of the particular case, including:

(i) the nature of the cheque and, in particular, but without limiting the generality of the foregoing, the date of the cheque (if any) and the sum ordered to be paid by the cheque; and

(ii) whether any delay in presenting the cheque for payment was:

(A) caused by circumstances beyond the control of the holder; and

(B) not imputable to default, misconduct or negligence on the part of the holder.