(1) A cheque is certified when the cheque is endorsed by a drawee bank with the words “certified”, “accepted”, or words of similar effect and issued by the drawee bank to the payor.
(2) Upon certification of a cheque, the drawee bank shall immediately and irrevocably segregate the amount indicated on the cheque exclusively for the purpose of the proper payment of the cheque in due course to the payee or endorsee of the payee.
(3) A certified cheque is subject to counter and by the payor if—
(a) the payor has lawful possession; or
(b) there has been fraud or other like impropriety and the cheque has not been delivered to a bona fide holder for value without notice.
(4) An unpaid certified cheque must be a charge on the assets of a bankrupt or otherwise insolvent drawee bank and paid out of the segregated account to which the certified cheque was placed or was deemed to have been placed.
(Inserted by Act 14 of 2010)