90Countermand of payment and notice of death or mental incapacity

90 Countermand of payment and notice of death or mental incapacity

(1) Subject to subsection (2), the duty and authority of the drawee institution to pay a cheque are terminated by: (a) countermand of payment; (b) notice of the drawer’s mental incapacity to incur liability on a cheque; or (c) notice of the drawer’s death. (2) Paragraph (1)(c) does not apply in relation to a cheque if: (a) not more than 10 days have elapsed since the day on which the drawee institution received notice of the customer’s death; and (b) it has not received a countermand of payment from a person who claims that the person is, or will be: (i) entitled to administer the drawer’s estate; or (ii) a beneficiary of the drawer’s estate.