The term 'bank cheque' describes a cheque that is issued by a bank. Bank cheques are generally treated by the law in the same manner as ordinary cheques. Although some people regard bank cheques as equivalent to cash, there are certain circumstances where a bank cheque may not be paid.
To clarify the position, NAB, as a member of the Australian Bankers' Association, adopts the following policy in relation to NAB bank cheques.
Forged or unauthorised
If the signature of an officer of NAB is forged or placed on a bank cheque without NAB's authority, NAB is not legally liable for the cheque concerned.
NAB will dishonour a bank cheque that has been fraudulently and materially altered. NAB will co-operate with any holder of a cheque, or person who is about to receive it, who may want to verify that the cheque is a valid cheque.
Reported stolen or lost
If NAB is told that a bank cheque is stolen or lost and is satisfied that this is the case, NAB will not pay the cheque if it is presented for payment by a person who has no right to it. NAB may provide a replacement cheque for a fee.
Court order restraining payment
NAB must observe an order of a court restraining NAB from paying a bank cheque which is presented for payment while the order is in force.
Failure of consideration for the issue of a bank cheque
Where NAB has not received payment for issuing a bank cheque to a customer (e.g. your cheque to NAB in payment for the bank cheque is dishonoured), NAB may refuse to pay the bank cheque only if the person presenting the bank cheque for payment: has not given value for it (e.g. the bank cheque is stolen); or has given value for it but at the time of doing so he or she knew NAB had not been paid for the cheque (e.g. that the cheque in favour of NAB had been dishonoured).
The fees involved with the issue and replacement of a bank cheque are outlined in NAB's Guide to fees and charges.