Document ID: chunk:federal_register_of_legislation:C2017C00074:section:40
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 40
Character Range: 32946–33519

40  Transfer of cheque by negotiation
 (1) The transfer of a cheque by negotiation is the transfer of the cheque from the holder to another person in such manner as to constitute the other person the holder.
 (2) A cheque payable to order is transferred by negotiation if:
 (a) it is indorsed by the holder; and
 (b) the cheque is delivered so as to complete the contract arising out of the indorsement.
 (3) A cheque payable to bearer is transferred by negotiation if it is delivered by the holder to another person (whether or not the cheque is indorsed by the holder).