73Liability of indorser

73 Liability of indorser

Subject to subsection 17(2), section 59 and subsection 60(2), an indorser of a cheque, by indorsing the cheque, undertakes: (a) that, on due presentment for payment, the cheque will be paid according to its tenor as indorsed by the indorser; and (b) that: (i) if the cheque is dishonoured when duly presented for payment; or (ii) if presentment of the cheque for payment is dispensed with by virtue of paragraph 59(a) or (aa) and the cheque is unpaid after its date has arrived; the indorser will compensate the holder or a subsequent indorser who is compelled to pay the cheque.