Document ID: chunk:federal_register_of_legislation:C2017C00074:section:3:p1
Version: federal_register_of_legislation:C2017C00074
Segment Type: section
Provision Reference: s 3 (pt 1/2)
Character Range: 8173–10750

3  Interpretation
 (1) In this Act, unless the contrary intention appears:
action includes a counter‑claim and set‑off.
agency cheque means a cheque to which subsection 100(2) applies.
Note: Under section 100A, subsection 100(2) may, in specified circumstances, apply to a cheque even if the customer's signature on the cheque is not authorised.
Australia includes the external Territories.
bearer means the person in possession of a cheque payable to bearer.
delivery, in relation to a cheque, means the transfer of possession of the cheque from one person to another.
drawee institution, in relation to a cheque, means the financial institution on which the cheque is drawn.
FCA institution means a body that is:
 (a) a registered entity under the Financial Sector (Collection of Data) Act 2001; and
 (b) prescribed for the purposes of this definition.
financial institution means:
 (a) the Reserve Bank of Australia; or
 (b) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959; or
 (d) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution; or
 (e) a person (other than a person referred to in paragraph (a), (b) or (d)) who carries on the business of banking outside Australia.
holder means:
 (a) in relation to a cheque payable to order—the payee or an indorsee who is in possession of the cheque as payee or indorsee, as the case may be; and
 (b) in relation to a cheque payable to bearer—the bearer.
issue, in relation to a cheque, means the first delivery of the cheque to a person who takes the cheque as holder.
possession, in relation to a cheque, means possession (whether actual or constructive) of the cheque.
to or to the order of has the meaning given by subsection (1A).
value means valuable consideration as defined by section 35.
 (1A) For the purposes of this Act, a cheque is payable to or to the order of a person or persons if:
 (a) it is expressed to be payable:
 (i) to the person or persons; or
 (ii) to the order of the person or persons (or words to that effect); or
 (iii) to the person or persons or to the order of the person or persons (or words to that effect); and
 (b) it is not also expressed to be payable to bearer.
 (2) A reference in this Act to an act or thing being done in good faith is a reference to the act or thing being done honestly, whether or not the act or thing is done negligently.
 (3) Where a person obtains a cheque:
 (a) by fraud, duress or other unlawful means; or
 (b) for an illegal consideration;
the person's