CTHIn ForceAct
Cheques Act 1986
40Transfer of cheque by negotiation
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#### 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).