100Agency cheques

#### 100 Agency cheques (1) Where: (a) the drawer of a cheque (the issuing institution) is a financial institution or an FCA institution; and (b) the cheque was, at a time when it was wanting in a material particular necessary for it to be, on its face, a complete cheque, delivered by the issuing institution to a customer pursuant to an agreement under which the customer was authorised to fill up the cheque; then, unless the cheque is signed by the customer: (c) the customer is not liable on the cheque; and (d) the customer’s account with the issuing institution may not be debited with the sum ordered to be paid by the cheque. (2) If the cheque is signed by the customer, then: (a) as regards the holder or an indorser, the following provisions apply, namely: (i) the issuing institution shall be taken: (A) not to have drawn the cheque; and (B) not to have signed the cheque; (ii) the customer shall be taken: (A) to have drawn the cheque; and (B) to have signed the cheque as drawer; and (b) as regards the customer, the issuing institution shall be taken to have the same duties and liabilities, and the same rights, in relation to the cheque as it would have had if: (i) the customer had drawn the cheque; and (ii) the cheque were addressed by the customer to the issuing institution; and (iii) the cheque were drawn against the customer’s account with the issuing institution; and (iv) if the issuing institution is an FCA institution—the issuing institution were a financial institution; and (v) in a case where the drawee institution pays the cheque to a person—the issuing institution had paid the cheque to the person; and (vi) in a case where the drawee institution dishonours the cheque—the issuing institution had dishonoured the cheque.