Commonwealth Consolidated Acts

BILLS OF EXCHANGE ACT 1909 - SECT 59

                   The acceptor of a bill, by accepting it:

                     (a)  engages that he or she will pay it according to the tenor of his or her acceptance; and

                     (b)  is precluded from denying to a holder in due course:

                              (i)  the existence of the drawer, the genuineness of his or her signature, and his or her capacity and authority to draw the bill; and

                             (ii)  in the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuineness or validity of his or her indorsement; and

                            (iii)  in the case of a bill payable to the order of a third person, the existence of the payee and his or her then capacity to indorse, but not the genuineness or validity of his or her indorsement.