EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 37
ISSUED BY AUTHORITY OF THE ATTORNEY-GENERAL
CHEQUES AND PAYMENT ORDERS ACT 1986
CHEQUES AND PAYMENT ORDERS REGULATIONS (AMENDMENT)
Section 119 of the Cheques and Payment Orders Act 1986 (‘the Act’) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed. The definition of ‘non-bank financial institution’ (NBFI) in subsection 3(1) of the Act provides for the prescription of a registered corporation within the meaning of the Financial Corporations Act 1974, as an NBFI for the purposes of that definition.
Section 101 of the Act enables NBFIs, as defined in sub section 3(1), to issue payment orders for use by their customers in the same way that banks issue cheques, whilst section 100 regulates the use of certain agency cheques issued by NBFIs. In addition, the Act allows NBFIs to take advantage of certain protections when collecting cheques for customers and section 97 imposes obligations on NBFIs to ensure that cheques lodged with them for collection are presented promptly.
Since the Act came into operation on 1 July 1987, there have been applications for prescription from Wesfarmers Limited, and from Elders Rural Finance Limited. Both are registered corporations within the meaning of the Financial Corporations Act 1974.
Regulations have accordingly been made prescribing:
Wesfarmers Limited, and
Elders Rural Finance Limited
as NBFIs for the purposes of the definition in subsection 3(1) of the Act.