60Effect of failure to present within reasonable time

#### 60 Effect of failure to present within reasonable time (1) Where: (a) a cheque is not duly presented for payment within a reasonable time after its issue; (b) the drawee institution becomes insolvent after the issue of the cheque; (c) the drawer is, by reason of the insolvency of the drawee institution, unable to obtain payment from the drawee institution of the whole or a part of funds maintained with the drawee institution to meet the cheque; and (d) the drawer assigns to the holder the drawer’s rights against the drawee institution in respect of those funds or that part of those funds, as the case may be; the drawer is not liable on the cheque to the extent of those funds or that part of those funds, as the case may be. (2) Due presentment of a cheque for payment is not effective to render an indorser liable on the cheque unless the presentment is effected within a reasonable time after its indorsement by the indorser. (3) In determining what is a reasonable time for the purposes of subsection (1) or (2), regard shall be had to: (a) the fact that the instrument is a cheque and that it is reasonable to expect a cheque to be presented for payment promptly; (b) usage in relation to the presentment of cheques, including usage of trade and of financial institutions; and (c) the facts of the particular case, including: (i) the nature of the cheque and, in particular, but without limiting the generality of the foregoing, the date of the cheque (if any) and the sum ordered to be paid by the cheque; and (ii) whether any delay in presenting the cheque for payment was: (A) caused by circumstances beyond the control of the holder; and (B) not imputable to default, misconduct or negligence on the part of the holder.