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Ireland

Cheques Act, 1959

What is this act about?

This law, the Cheques Act, 1959, amends the existing law concerning cheques and certain other financial instruments. It primarily focuses on clarifying the liabilities and rights of bankers when dealing with cheques, especially regarding endorsements.

Who it applies to: Bankers; Customers of bankers who issue or receive cheques and similar financial instruments.

At a glance

Country
Ireland
Area of law
Banking, insurance and financial markets
Articles
7
Source
irishstatutebook.ie
Text retrieved
Explanation updated

What does this act regulate?

  • The protection of bankers when paying cheques that are not endorsed or are irregularly endorsed.
  • The rights of bankers who collect cheques that have not been endorsed by the holder.
  • The use of unendorsed cheques as proof of payment.
  • The protection of bankers when collecting payment for cheques and similar instruments.

Who does this act apply to?

  • Bankers.
  • Customers of bankers who issue or receive cheques and similar financial instruments.

What are the key points?

  • A banker is protected from liability if they pay a cheque in good faith and in the ordinary course of business, even if it lacks an endorsement or has an irregular endorsement.
  • An unendorsed cheque that has been paid by the bank is considered evidence that the payee received the money.
  • Bankers are protected from liability to the true owner of an instrument if they collect payment for a customer in good faith and without negligence, even if the customer has no or a defective title to the instrument.
  • Failure to concern oneself with the absence or irregularity of an endorsement does not automatically mean a banker was negligent for the purpose of this protection.

Banking, insurance and financial markets

8
Oireachtas (Allowances To Members) and Ministerial, Parliamentary, Judicial and Court Offices (Amendment) Act, 1998
Health Insurance (Amendment) Act 2016
Social Welfare (Covid-19) (Amendment) Act 2020
Health Insurance (Amendment) Act 2017
Health Insurance (Amendment) Act 2019
National Health Insurance Act, 1947
Central Bank Act, 1989
Social Welfare Act, 1982

Banking, insurance and financial markets

Legal text

Legal text
Contents (7)
  1. Section 1
  2. Section 2
  3. Section 3
  4. Section 4
  5. Section 5
  6. Section 6
  7. Section 7

Cheques Act, 1959 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1959 Cheques Act, 1959 Cheques Act, 1959 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 19 of 1959.

CHEQUES ACT, 1959.

ARRANGEMENT OF SECTIONS Section

Section 1

Protection of bankers paying unindorsed or irregular indorsed cheques, etc.

Section 2

Rights of bankers collecting cheques not indorsed by holders.

Section 3

Unindorsed cheques as evidence of payment.

Section 4

Protection of bankers collecting payment of cheques, etc.

Section 5

Application of certain provisions of Bills of Exchange Act, 1882, to instruments not being bills of exchange.

Section 6

Construction, saving and repeal.

Section 7

Short title and commencement.

SCHEDULE Number 19 of 1959.

CHEQUES ACT, 1959.

AN ACT TO AMEND THE LAW RELATING TO CHEQUES AND CERTAIN OTHER INSTRUMENTS. [28th July, 1959.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:— Protection of bankers paying unindorsed or irregularly indorsed cheques, etc.

1.—(1) Where a banker in good faith and in the ordinary course of business pays a cheque drawn on him which is not indorsed or is irregularly indorsed, he does not, in doing so, incur any liability by reason only of the absence of, or irregularity in, indorsement, and he is deemed to have paid it in due course.

(2)Where a banker in good faith and in the ordinary course of business pays any such instrument as the following, namely,— (a) a document issued by a customer of his which, though not a bill of exchange, is intended to enable a person to obtain payment from him of the sum mentioned in the document; (b) a draft payable on demand drawn by him upon himself, whether payable at the head office or some other office of his bank; he does not, in doing so, incur any liability by reason only of the absence of, or irregularity in, indorsement, and the payment discharges the instrument.

Rights of bankers collecting cheques not indorsed by holders.

2.— A banker who gives value for, or has a lien on, a cheque payable to order which the holder delivers to him for collection without indorsing it has such (if any) rights as he would have had if, upon delivery, the holder had indorsed it in blank.

Unindorsed cheques as evidence of payment.

3.—An unindorsed cheque which appears to have been paid by the banker on whom it is drawn is evidence of the receipt by the payee of the sum payable by the cheque.

Protection of bankers collecting payment of cheques, etc.

4.— (1) Where a banker, in good faith and without negligence,— (a) receives payment for a customer of an instrument to which this section applies; or (b) having credited a customer's account with the amount of such an instrument, receives payment thereof for himself; and the customer has no title, or a defective title, to the instrument, the banker does not incur any liability to the true owner of the instrument by reason only of having received payment thereof.

(2)This section applies to the following instruments, namely,— (a) cheques; (b) any document issued by a customer of a banker which, though not a bill of exchange, is intended to enable a person to obtain payment from that banker of the sum mentioned in the document; (c) any document issued by a public officer which is intended to enable a person to obtain payment from the Paymaster General of the sum mentioned in the document but is not a bill of exchange; (d) any draft payable on demand drawn by a banker upon himself, whether payable at the head office or some other office of his bank.
(3)A banker is not to be treated for the purposes of this section as having been negligent by reason only of his failure to concern himself with absence of, or irregularity in, indorsement of an instrument.

Application of certain provision of Bills of Exchange Act, 1882, to instruments not being bills of exchange.

5.—The provisions of the Bills of Exchange Act, 1882 , relating to crossed cheques shall, so far as applicable, have effect in relation to instruments (other than cheques) to which the last foregoing section applies as they have effect in relation to cheques.

Construction, saving and repeal.

6.—(1) This Act shall be construed as one with the Bills of Exchange Act, 1882 .

(2)The foregoing provisions of this Act do not make negotiable any instrument which, apart from them, is not negotiable.
(3)The enactments mentioned in the first and second columns of the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.

Short title and commencement.

7.—(1) This Act may be cited as the Cheques Act, 1959.

(2)This Act shall come into operation at the expiration of a period of three months beginning with the day on which it is passed.

SCHEDULE.

Enactments Repealed.

Section 6.

Session and Chapter or Number and Year Short Title Extent of Repeal 45 & 46 Vic., c.61.

Bills of Exchange Act, 1882 .

Section 82.

46 & 47 Vic., c.55.

Revenue Act, 1883 .

Section 17.

6 Edw. 7, c.17.

Bills of Exchange (Crossed Cheques) Act, 1906.

The whole Act.

No. 22 of 1942.

Central Bank Act, 1942 .

Section 66

.

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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.