Commonwealth Numbered Acts

LAW AND JUSTICE LEGISLATION AMENDMENT ACT 1994 No. 84 of 1994 - SECT 26

26. Section 106 of the Principal Act is amended:

   (a)  by omitting subsections (1) and (2) and substituting the following
        subsection:



"(1) A financial institution (the 'collecting financial institution') makes an
external presentment of a payment order if:

   (a)  the collecting financial institution, on behalf of a customer, another
        financial institution or otherwise, makes a demand for payment of the
        payment order on the drawee non-bank financial institution; and

   (b)  the drawee non-bank financial institution is not the same financial
        institution as the collecting financial institution; and

   (c)  either:

        (i)    the demand is made by exhibiting the payment order to the
               drawee non-bank financial institution at:

                (A)  the proper place in relation to the payment order; or

                (B)  a place that is a designated exhibition place in relation
                     to the payment order for the purposes of this subsection;
                     or

        (ii)   the demand is:

                (A)  made otherwise than by exhibiting the payment order; and

                (B)  made at a place that is a designated place in relation to
                     the payment order for the purposes of this subsection;
                     and

                (C)  made at a time that is a designated time for the drawee
                     non-bank financial institution at that place; and

                (D)  made using a means of communication that is a designated
                     means of communication for the drawee non-bank financial
                     institution at that place. Note 1: Section 108 defines
                     'proper place'. Note 2: Section 109 defines 'designated
                     exhibition place', 'designated place', 'designated time'
                     and 'designated means of communication'.";

   (b)  by inserting after subsection (3) the following subsection:



"(3A) The demand must also specify, in a form that is intelligible to, or
readily decipherable by, the drawee non-bank financial institution:

   (a)  a place as the nominated place in relation to the payment order for
        the purposes of subsection (6); and

   (b)  the days on which, and the hours during which, the collecting
        financial institution will be open for business at the place; and

   (c)  the means by which communications may be made to the collecting
        financial institution at the place.";

   (c)  by inserting after subsection (4) the following subsections:



"(4A) A time is a nominated time for the collecting financial institution at a
particular place if the time is covered by the specification in the demand of
the days on which, and the hours during which, the collecting financial
institution will be open for business at that place.



"(4B) A means of communication is a nominated means of communication for the
collecting financial institution at a particular place if the demand specifies
the means as a means by which communications may be made to the collecting
financial institution at that place.";

   (d)  by omitting subsection (6) and substituting the following subsection:



"(6) The request must be made:

   (a)  to the collecting financial institution at a place that is a nominated
        place in relation to the payment order for the purposes of this
        subsection; and

   (b)  at a time that is a nominated time for the collecting financial
        institution at that place; and

   (c)  using a means of communication that is a nominated means of
        communication for the collecting financial institution at that place.
        Note 1: Subsection (3A) defines 'nominated place'. Note 2: Subsection
        (4A) defines 'nominated time'. Note 3: Subsection (4B) defines
        'nominated means of communication'.";

   (e)  by omitting subsections (9) and (10) and substituting the following
        subsection:



"(9) If the drawee non-bank financial institution makes a request in relation
to the payment order, the collecting financial institution must:

   (a)  in the case of a request for further particulars-give the drawee
        non-bank financial institution those further particulars:

        (i)    at a place that is a designated place in relation to the
               payment order for the purposes of this subsection; and

        (ii)   at a time that is a designated time for the drawee non-bank
               financial institution at that place; and

        (iii)  using a means of communication that is a designated means of
               communication for the drawee non-bank financial institution at
               that place; or

   (b)  in the case of a request to exhibit the payment order or a copy of the
        payment order of a specified kind-exhibit the payment order or the
        copy to the drawee non-bank financial institution at:

        (i)    the proper place in relation to the payment order; or

        (ii)   a place that is a designated exhibition place in relation to
               the payment order for the purposes of this subsection. Note 1:
               Section 108 defines 'proper place'. Note 2: Section 109 defines
               'designated exhibition place', 'designated place', 'designated
               time' and 'designated means of communication'.".