Marginal note:Definition of “bank”

164. In this Part, “bank” includes every member of the Canadian Payments Association established under the Canadian Payments Act and every local cooperative credit society, as defined in that Act, that is a member of a central, as defined in that Act, that is a member of the Canadian Payments Association.

Marginal note:Cheque

• 165. (1) A cheque is a bill drawn on a bank, payable on demand.

• Marginal note:Provisions as to bills apply

  (2) Except as otherwise provided in this Part, the provisions of this Act applicable to a bill payable on demand apply to a cheque.

• Marginal note:Cheque for deposit to account

  (3) Where a cheque is delivered to a bank for deposit to the credit of a person and the bank credits him with the amount of the cheque, the bank acquires all the rights and powers of a holder in due course of the cheque.

Marginal note:Presentment for payment

• 166. (1) Subject to this Act,

  • (a) where a cheque is not presented for payment within a reasonable time of its issue and the drawer or the person on whose account it is drawn had the right at the time of presentment, as between him and the bank, to have the cheque paid, and suffers actual damage through the delay, he is discharged to the extent of the damage, that is to say, to the extent to which the drawer or person is a creditor of the bank to a larger amount than he would have been had the cheque been paid; and

  • (b) the holder of the cheque, with respect to which the drawer or person is discharged, shall be a creditor, in lieu of the drawer or person, of the bank to the extent of the discharge, and entitled to recover the amount from it.

• Marginal note:Reasonable time

  (2) In determining what is a reasonable time, within this section, regard shall be had to the nature of the instrument, the usage of trade and of banks and the facts of the particular case.

Marginal note:Authority to pay

167. The duty and authority of a bank to pay a cheque drawn on it by its customer are determined by

• (a) countermand of payment; or

• (b) notice of the customer’s death.

Marginal note:Crossed generally

• 168. (1) Where a cheque bears across its face an addition of

  • (a) the word “bank” between two parallel transverse lines, either with or without the words “not negotiable”, or

  • (b) two parallel transverse lines simply, either with or without the words “not negotiable”,

  that addition constitutes a crossing, and the cheque is crossed generally.

• Marginal note:Crossed specially

  (2) Where a cheque bears across its face an addition of the name of a bank, either with or without the words “not negotiable”, that addition constitutes a crossing, and the cheque is crossed specially and to that bank.