The Deregulation (Bills of Exchange) Order 1996

Presentment of cheque for payment: alternative means of presentment by banker

4.—(1) After section 74A of the 1882 Act (as inserted by Article 3 of this Order) there shall be inserted the following sections—

“Presentment of cheque for payment: alternative means of presentment by banker

74B.— (1) A banker may present a cheque for payment to the banker on whom it is drawn by notifying him of its essential features by electronic means or otherwise, instead of by presenting the cheque itself.

(2) If a cheque is presented for payment under this section, presentment need not be made at the proper place or at a reasonable hour on a business day.

(3) If, before the close of business on the next business day following presentment of a cheque under this section, the banker on whom the cheque is drawn requests the banker by whom the cheque was presented to present the cheque itself—

(a) the presentment under this section shall be disregarded, and

(b) this section shall not apply in relation to the subsequent presentment of the cheque.

(4) A request under subsection (3) above for the presentment of a cheque shall not constitute dishonour of the cheque by non-payment.

(5) Where presentment of a cheque is made under this section, the banker who presented the cheque and the banker on whom it is drawn shall be subject to the same duties in relation to the collection and payment of the cheque as if the cheque itself had been presented for payment.

(6) For the purposes of this section, the essential features of a cheque are—

(a) the serial number of the cheque,

(b) the code which identifies the banker on whom the cheque is drawn,

(c) the account number of the drawer of the cheque, and

(d) the amount of the cheque is entered by the drawer of the cheque.

Cheques presented for payment under section 74B: disapplication of section 52(4).

74C.   Section 52(4) above—

(a) so far as relating to presenting a bill for payment, shall not apply to presenting a cheque for payment under section 74B above, and

(b) so far as relating to a bill which is paid, shall not apply to a cheque which is paid following presentment under that section.”

(2) This Article has effect in relation to cheques drawn on or after the day on which this Order comes into force.