3Interpretation

#### 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 title to the cheque is defective. (4) Subsection (3) shall not be taken to limit by implication the circumstances in which the title of a person to a cheque is defective. (5) Where, at any time, a cheque appears on its face to have been drawn more than 15 months before that time, the cheque is, at that time, a stale cheque. (6) A reference in this Act to a signature or indorsement being written or placed on a cheque without the authority of the person whose signature or indorsement it purports to be includes a reference to the forging of the signature or indorsement. (7) A reference in this Act to a cheque, or a copy of a cheque, being exhibited to a person includes a reference to the cheque or the copy, as the case may be, being delivered to the person. (8) An alteration of a cheque is a material alteration if it alters, in any respect, a right, duty or liability of the drawer, an indorser or the drawee institution.