Document ID: chunk:federal_register_of_legislation:C2017C00074:section:87
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 87
Character Range: 87734–88446

87  Effect of payment by drawer or indorser
 (1) Where a cheque is paid by the drawer or an indorser (in this subsection referred to as the relevant party), the cheque is not discharged and, if the cheque is a cheque payable to order and the cheque is not indorsed to the relevant party, the relevant party acquires the right to have the person who was paid indorse the cheque to the relevant party so as to transfer the cheque by negotiation to the relevant party.
 (2) The reference in subsection (1) to the drawer of a cheque does not include a reference to a drawer of a cheque who is also the drawee institution.

Part VI—Duties and liabilities of financial institutions

Division 1—The drawee institution