94Protection of drawee institution paying cheque lacking indorsement or with irregular or unauthorised indorsement

#### 94 Protection of drawee institution paying cheque lacking indorsement or with irregular or unauthorised indorsement (1) Subject to subsection 32(1), where: (a) the drawee institution, in good faith and without negligence, pays a cheque, whether or not to a financial institution; and (b) an indorsement has been written or placed on the cheque without the authority of the person whose indorsement it purports to be; the drawee institution: (c) does not, in paying the cheque, incur any liability by reason only of: (i) the indorsement having been written or placed on the cheque without the authority of the person whose indorsement it purports to be; or (ii) its failure to concern itself with the genuineness of, or the existence of authority for, the indorsement; and (d) shall be deemed to have paid the cheque in due course. (2) Subject to subsection 32(1), where: (a) the drawee institution, in good faith and without negligence, pays a cheque to a financial institution; and (b) the cheque is not indorsed or is irregularly indorsed; the drawee institution: (c) does not, in paying the cheque, incur any liability by reason only of the absence of, or the irregularity in, the indorsement; and (d) shall be deemed to have paid the cheque in due course.