Document ID: chunk:federal_register_of_legislation:C2017C00074:section:46
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 46
Character Range: 36555–37533

46  Transfer of stale or dishonoured cheque by negotiation
 (1) Where a stale cheque is transferred by negotiation to a person, the person:
 (a) takes the cheque subject to any defect of title affecting the cheque at the time when the cheque became a stale cheque; and
 (b) does not receive, and is not capable of giving, a better title to the cheque than the title that the person from whom the first‑mentioned person took the cheque had.
 (2) Where:
 (a) a cheque that has been dishonoured is transferred by negotiation to a person who takes the cheque with notice of the dishonour; and
 (b) the cheque is not a stale cheque at the time of the transfer;
the person takes the cheque subject to any defect of title affecting the cheque at the time when the cheque was dishonoured.
 (3) Where a cheque is a stale cheque, every transfer of the cheque by negotiation shall, unless the contrary is proved, be presumed to have been effected before the cheque became a stale cheque.