Section 87A
Special provisions relating to cheque truncation [S 35/2015]
(1)
A collecting bank may present a cheque for payment to the paying bank by transmitting, by electronic means, an image and the electronic payment information of the cheque, instead of presenting the cheque itself.
(2)
Notwithstanding subsection (1), if at any time before payment is made, the paying bank requests the collecting bank to present the cheque itself —
(a)
the presentment under subsection (1) shall be disregarded;
and
(b)
section 87B does not apply.
(3)
A request under subsection (2) for the presentment of a cheque does not constitute dishonour of the cheque by non-payment.
(4)
Section 52(4) does not apply —
(a)
in relation to presenting a bill for payment, to presenting a cheque for payment under subsection (1); and
(b)
in relation to a bill which is paid, to a cheque which is paid following presentment under subsection (1).
(5)
For the avoidance of doubt, any payment made on presentment in accordance with this section shall not be taken to have been made outside of the ordinary course of business, in bad faith or negligently only because it is made on transmission of an image and the electronic payment information of the cheque rather than presentment of the cheque itself.
Bills of Exchange
B.L.R.O. 3/2023 51
(6)
Where the presentment of a cheque is made under this section, the collecting bank and the paying bank 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.
(7)
For the purposes of this section —
(a)
the image of a cheque shall comprise the front view and the back view of the cheque; and
(b)
the electronic payment information of a cheque shall comprise such matters as may be prescribed by the Minister under section 87C.