4. cheques

This is an old version of the Code of Banking Practice. View the current Code

4.1 Cheques
4.2 Bank Cheques

 4.1 Cheques

1. We will inform you of the need to keep your chequebook safe at all times and that you should never sign cheques in advance, or leave any details blank after a cheque has been signed. The loss of your chequebook, any cheques or any unauthorised withdrawals from your account should be reported to us immediately. The police may also need to be notified.
2. We may ask you for identification when you cash a cheque and we will explain our reasons for doing so on request.
3. On request, information will also be available to you on:
   1. how long it is likely to take to clear a cheque (cheques drawn on an overseas bank will take longer to clear);
   2. what happens if one of your cheques is dishonoured and what happens if a cheque you pay into your account is dishonoured;
   3. the various ways cheques may be Crossed to help protect against theft or fraud;
   4. what happens when a cheque is altered;
   5. how you can obtain a Special Answer for early clearance of a cheque; and
   6. any fees and charges for cheque processing, honours and dishonours.
4. On request, we will inform you how to stop a cheque and of any fees or charges that may apply. We will make reasonable efforts to stop a cheque when you request us to do so and we will also advise you of the circumstances when we may not be able to comply with your request to stop a cheque (for example, if the cheque has already been cashed or presented by way of Special Answer). At the time you request a stop, we may not be able to establish whether or not the cheque can be stopped.
5. If a cheque is misplaced in processing, all banks involved will do their best to help you obtain a replacement.
6. If a cheque is not presented to us for payment within a certain period of time (usually six months from the date written on the cheque) we may:
   1. pay the cheque;
   2. decline to pay the cheque; or
   3. make any further enquiry we consider necessary before deciding whether to pay or not to pay the cheque.
7. The act of issuing post dated cheques is discouraged. However, if you do write a cheque with a future date (post dated) and it is presented to us before that date we may:
   1. decline to pay the cheque; or
   2. make any further enquiry we consider necessary before deciding whether or not the cheque can be paid.

 4.2 Bank Cheques

1. Like any other cheque, Bank Cheques need to clear and the funds may not be available to you until this process is complete.
2. On request, we will inform you of the terms and conditions relating to Bank Cheques and of the fees for this service.
3. There are some limited circumstances in which we may refuse payment on Bank Cheques that have been issued to Customers. In general, this would only be when:
   1. the cheque is fraudulent, forged or counterfeit, or has been altered since it was issued;
   2. the cheque has been reported lost or stolen;
   3. a court has issued an order restraining payment;
   4. there has not been proper payment by the Customer for the cheque and that Customer presents the cheque for payment; or
   5. there has not been proper payment for the cheque and any other person presents the cheque for payment and that person has obtained the cheque by fraud, or knows that a previous owner obtained the cheque by fraud, or knows that it was originally obtained from the bank without proper payment.
4. We are not obliged to stop a Bank Cheque issued to you upon your request. However, we may do so if the cheque has been lost, stolen or returned to us by you. Bank Cheques cannot be stopped for example, because you have changed your mind about a transaction after handing the cheque over to another person or a transaction between the parties has broken down through the supply of faulty goods and services.