Public Service Commission Act, 1997
R 385
Bills of Exchange Act, 1964 (Act No. 34 of 1964)Chapter IICheques - generally72A. Liability of drawee who has certified cheque |
| (1) | A cheque is certified if the drawee signs it and adds words to the cheque that indicate that the cheque will be paid or that funds are available for its payment. |
| (2) | When a drawee of a cheque certifies it he— |
| (a) | undertakes that he will pay the holder, or the drawer or an indorser who has been compelled to pay the cheque, the amount recoverable in terms of section 55 according to the tenor of his certification; |
| (b) | is precluded from denying to a holder in due course— |
| (i) | the existence of the drawer, the genuineness of his signature and his capacity and authority to draw the cheque; |
| (ii) | the existence of the payee and his then capacity to indorse. |
[Section 72A inserted by section 29 of Act 56 of 2000.]
