Commonwealth Numbered Acts

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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 870

Withdrawal against uncleared cheque

(1) This section applies where the holder of a licence withdraws from a trust account of the holder some or all of the amount of a cheque:

that has been paid into the account; and

that has not been paid, and payment of which has not been refused, by the banker on which it is drawn.

(2) The holder does not, merely because of the withdrawal, contravene section 869. (3) If the banker later refuses payment of the cheque, the holder must, within one business day after being notified of the refusal, pay into the trust account by cash, or by cheque that a bank or other institution draws on itself, an amount equal to the amount of the withdrawal.

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