Document ID: chunk:federal_register_of_legislation:C2017C00074:section:49
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 49
Character Range: 38575–39258

49  Rights acquired by transfer by negotiation
 (1) The holder of a cheque may sue on the cheque in the holder's own name.
 (2) A holder of a cheque who is a holder in due course:
 (a) holds the cheque free from any defect in the title of prior parties as well as from mere personal defences available to prior parties against one another; and
 (b) may enforce payment of the cheque against any person liable on the cheque.
 (3) Where:
 (a) the title of the holder of a cheque is defective; and
 (b) the holder transfers the cheque by negotiation to a holder in due course;
the holder in due course receives a good and complete title to the cheque.

Division 2—Holder in due course