Clause 5

A banker may present a cheque for payment to the banker on whom it is drawn by transmitting, by electronic means, an image and the electronic payment information of the cheque, instead of presenting the cheque itself.(2) Notwithstanding subsection (1), if at any time before payment is made, the banker on whom a cheque is drawn requests the banker who presented the cheque to present the cheque itself —

the presentment under subsection (1) shall be disregarded; and

section 87B shall not apply.(3) A request under subsection (2) for the presentment of a cheque shall not constitute dishonour of the cheque by non-payment.(4) Section 52(4) shall not apply —

in relation to presenting a bill for payment, to presenting a cheque for payment under subsection (1); and

in relation to a bill which is paid, to a cheque which is paid following presentment under subsection (1).(5) For the avoidance of doubt, any payment made upon presentment in accordance with this section shall not be taken to have been made outside of the ordinary course of business, in bad faith or negligently only because it is made upon transmission of an image and the electronic payment information of the cheque rather than presentment of the cheque itself.(6) Where presentment of a cheque is made under this section, the banker who presented the cheque and the banker on whom it is drawn shall be subject to the same duties in relation to the collection and payment of the cheque as if the cheque itself had been presented for payment.(7) For the purposes of this section —

the image of a cheque shall comprise the front view and the back view of the cheque; and

the electronic payment information of a cheque shall comprise such matters as may be prescribed by the Authority under section 87C.Image return document87B.—

Where a cheque presented for payment in accordance with section 87A(1) is dishonoured by non-payment, the banker to whom the cheque was first presented by the holder (referred to in this section as the presenting banker) shall, unless the presenting banker returns the cheque itself or the holder requests the return of the cheque itself, issue to the holder an image return document.(2) Subject to subsection (4), an image return document may be presented for payment to the presenting banker by the holder to whom the image return document was issued as if that document were the cheque to which it relates.(3) An image return document shall be deemed to be the cheque to which it relates for the purpose of presentment under subsection (2).(4) An image return document may be presented under subsection (2) for payment by the holder only if —

the presenting banker states in that document that it is valid for presentment; and

the presentment is made within the period for the presentment stated in that document.(5) Where an image return document has been lost before the expiry of the period for its presentment stated therein, the person who was the holder of the document may apply to the drawer of the cheque to which the document relates, and the drawer may be compelled, to give him another cheque of the same tenor, subject to him giving security to indemnify the drawer (if required) against all claims arising in case the document alleged to have been lost is found again.(6) In this section, “image return document” means a document issued by a presenting banker containing such particulars as may be prescribed by the Authority under section 87C.Regulations relating to cheque truncationRegulations87C. The Authority may, with the approval of the Minister, make such regulations as may be necessary or expedient for giving effect to the provisions of this Act in respect of any matter or thing relating to cheque truncation.”.