Document ID: chunk:federal_register_of_legislation:C2004A04760:body:0:p9
Version: federal_register_of_legislation:C2004A04760
Segment Type: other
Provision Reference: 
Character Range: 20020–23046

by financial institution

"105A. A financial institution may present a payment order for payment in either of the following ways:

    (a) by making an external presentment of the payment order (see section 106);

    (b) by making an internal presentment of the payment order (see section 106A).".

External presentment by financial institution

  26. Section 106 of the Principal Act is amended:

    (a) by omitting subsections (1) and (2) and substituting the following subsection:

    "(1) A financial institution (the 'collecting financial institution') makes an external presentment of a payment order if:

        (a) the collecting financial institution, on behalf of a customer, another financial institution or otherwise, makes a demand for payment of the payment order on the drawee non-bank financial institution; and

        (b) the drawee non-bank financial institution is not the same financial institution as the collecting financial institution; and

      (c) either:

            (i) the demand is made by exhibiting the payment order to the drawee non-bank financial institution at:

              (A) the proper place in relation to the payment order; or

                (B) a place that is a designated exhibition place in relation to the payment order for the purposes of this subsection; or

            (ii) the demand is:

              (A) made otherwise than by exhibiting the payment order; and

                (B) made at a place that is a designated place in relation to the payment order for the purposes of this subsection; and

                (C) made at a time that is a designated time for the drawee non-bank financial institution at that place; and

                (D) made using a means of communication that is a designated means of communication for the drawee non-bank financial institution at that place.

    Note 1: Section 108 defines 'proper place'.
         Note 2: Section 109 defines 'designated exhibition place', 'designated place', 'designated time' and 'designated means of communication'.";

  (b) by inserting after subsection (3) the following subsection:

   "(3A) The demand must also specify, in a form that is intelligible to, or readily decipherable by, the drawee non-bank financial institution:

      (a) a place as the nominated place in relation to the payment order for the purposes of subsection (6); and

      (b) the days on which, and the hours during which, the collecting financial institution will be open for business at the place; and

      (c) the means by which communications may be made to the collecting financial institution at the place.";

(c) by inserting after subsection (4) the following subsections:

   "(4A) A time is a nominated time for the collecting financial institution at a particular place if the time is covered by the specification in the demand of the days on which, and the hours during which, the collecting financial institution will be open for business at that place.

   "(4B) A means of communication is a