Document ID: chunk:federal_register_of_legislation:C2017C00074:section:68:p1
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 68 (pt 1/3)
Character Range: 67799–70644

68  How paid cheque to be dealt with
 (1) Where:
 (a) a cheque, other than an agency cheque, is duly presented for payment by exhibiting the cheque to the drawee institution; and
 (b) the drawee institution pays the cheque;
the drawee institution has, as against the person who presented the cheque, the right to possession of the cheque.
 (2) Where:
 (a) a cheque, other than an agency cheque, is duly presented for payment by a financial institution (the collecting institution) otherwise than by exhibiting the cheque to the drawee institution;
 (b) the cheque is exhibited to the drawee institution pursuant to a request under subsection 62(5); and
 (c) the drawee institution pays the cheque;
the drawee institution has, as against the collecting institution and any financial institution or FCA institution on whose behalf the collecting institution duly presented the cheque, the right to possession of the cheque.
 (2A) If:
 (a) an agency cheque is duly presented for payment by a financial institution (the collecting institution); and
 (b) the drawee institution pays the cheque;
the financial institution or FCA institution that is the drawer of the cheque (disregarding the effect of subsection 100(2)) has, as against the drawee institution, the collecting institution and any institution on whose behalf the collecting institution duly presented the cheque, the right to possession of the cheque.
 (3) Where:
 (a) a relevant cheque is duly presented for payment by a financial institution (the collecting institution) otherwise than by exhibiting the cheque to the drawee institution;
 (b) the cheque is not exhibited to the drawee institution pursuant to a request under subsection 62(5);
 (c) the drawee institution pays the cheque; and
 (d) the cheque is in the actual possession of the collecting institution or another financial institution or an FCA institution on whose behalf the collecting institution duly presented the cheque;
the collecting institution, or the other financial institution or the FCA institution, as the case requires (in subsections (4) and (5) referred to as the relevant financial institution), shall, subject to subsection (4), retain the cheque, or a copy of the cheque, on behalf of the entitled institution, for the period ending 7 years after the date of the cheque.
For this purpose, the entitled institution is the drawee institution, unless the cheque is an agency cheque. If the cheque is an agency cheque, the entitled institution is the financial institution or FCA institution that is the drawer of the cheque (disregarding the effect of subsection 100(2)).
 (3A) If:
 (a) the drawee institution obtains possession of a relevant cheque; and
 (b) the drawee institution pays or has paid the cheque; and
 (c) the cheque is not an agency cheque;
the drawee institution must retain the cheque