INTRODUCTION AND BRIEF DESCRIPTION
This section defines cheque to include a bill of exchange drawn on institutions that regularly honor such bills.
SECTION WORDING
364(3) In this section, "cheque" includes, in addition to its ordinary meaning, a bill of exchange drawn on any institution that makes it a business practice to honour bills of exchange or any particular kind thereof drawn on it by depositors.
EXPLANATION
Section 364(3) of the Criminal Code of Canada is a provision that expands the definition of a cheque to include a bill of exchange that is drawn on any institution that makes it its business practice to honour bills of exchange or a particular kind thereof that is drawn by depositors. Essentially, this means that institutions that have a business practice of honouring bills of exchange drawn on them by depositors are required to honour them, just like a regular cheque. This provision is significant in the context of the Criminal Code of Canada because it ensures that individuals who use bills of exchange as a form of payment are protected legally. Bills of exchange are similar to cheques in that they are a written order from one party to another, instructing the recipient to pay a sum of money to a third party. Bills of exchange are often used in business transactions because they allow for payment to be deferred to a later date and can often be more secure than other forms of payment. By including bills of exchange under the definition of a cheque, this provision ensures that individuals who use them as a form of payment are protected in law. It also ensures that institutions that have a business practice of honouring bills of exchange are legally obligated to honour them in the same way they would a conventional cheque. In conclusion, Section 364(3) of the Criminal Code of Canada is an essential provision that expands the definition of a cheque to include bills of exchange drawn on institutions that have a business practice of honouring them. This provision ensures that individuals who use bills of exchange as a form of payment are protected by law and that institutions that honour these bills are legally obligated to do so.
COMMENTARY
Section 364(3) of the Criminal Code of Canada was introduced to ensure that fraudulent activities related to cheques and bills of exchange are dealt with by the law. This section expands the definition of "cheque" to include other instruments that are meant to function as a cheque, making it a criminal offense to engage in fraudulent activities related to them. Bills of exchange have long been used as a means of conducting business transactions. They are essentially a written order from one party, the drawer, to another party, the drawee (usually a bank), to pay a certain amount of money to a third party, the payee. Like cheques, bills of exchange can be transferred to other parties, who may present them for payment at a later date. This makes them a convenient means of payment for businesses that conduct frequent transactions with one another. However, bills of exchange can also be used fraudulently. For example, a dishonest party could draw a bill of exchange for an amount greater than what they are owed, hoping that the drawee will not carefully examine the document before paying. Alternatively, they may create a bill of exchange on an institution that does not exist or is unlikely to honour the bill, effectively committing fraud. In addition to these fraudulent activities related to bills of exchange, cheque fraud is also a significant problem. Cheques can be stolen, forged, or altered, with criminals hoping to deceive banks and other financial institutions into honouring the fraudulent cheques. These fraudulent activities can result in significant financial losses for those affected, making it essential for the legal system to have a way to address them. Section 364(3) of the Criminal Code of Canada recognizes these issues and expands the definition of a cheque to ensure that fraudulent activities related to bills of exchange are also covered under the law. This section makes it a criminal offense to engage in activities related to fraudulent cheques and bills of exchange, including issuing or passing fraudulent instruments, possessing or using them with fraudulent intent, and offering them as security for a debt with fraudulent intent. By including bills of exchange within the definition of a cheque, this section of the Criminal Code of Canada sends a clear message that fraudulent activities related to these instruments will not be tolerated. It provides a legal framework for prosecuting those who engage in such activities and ensures that victims have legal remedies available to them. Overall, Section 364(3) of the Criminal Code of Canada is an important tool in the fight against cheque and bill of exchange fraud. Its provisions recognize the importance of these instruments in the business world while also acknowledging the potential for abuse. By expanding the definition of a cheque, this section makes it clear that those who engage in fraudulent activities related to these instruments will face legal consequences for their actions.
STRATEGY
Section 364(3) of the Criminal Code of Canada is an important provision that criminalizes the fraudulent use of a cheque or a bill of exchange. Here, a cheque is defined inclusively, which covers different types of bills of exchange that are drawn on any institution that makes it a business practice to honour bills of exchange. This section is significant in ensuring the integrity of the financial system and protecting businesses from fraud. When dealing with this section of the Criminal Code, there are several strategic considerations that must be taken into account. Firstly, it is important to understand the elements of the offence, which include the making, drawing, uttering, or delivery of a cheque or bill of exchange with the intent to defraud or deceive another person. This means that the prosecution must prove that the accused acted with the intention to defraud or deceive, and that their actions were dishonest. Secondly, it is essential to consider the defences that might be available to an accused person. For instance, an accused person may argue that they did not have the intent to defraud or deceive, that they believed the cheque or bill of exchange would be honoured, or that they were coerced into making or delivering the instrument. These defences may require the presentation of evidence and expert testimony to support them, and must be carefully considered in light of the facts of the case. Thirdly, it is important to note that the penalties for offences under this section can be severe. If convicted, an accused person can face imprisonment for up to 10 years, fines, or both. Therefore, it is critical to have competent legal representation to assist in the preparation and presentation of the defence. In terms of strategies that could be employed, one approach is to focus on challenging the prosecution's case. This may involve arguing that the Crown has not met its burden of proof, or making arguments based on the evidence that works in favour of the defence. For example, if the defence can show that the accused believed the cheque or bill of exchange would be honoured, or that they were not aware of any defects or issues with the instrument, this could undermine the prosecution's case. Another strategy could be to negotiate a plea bargain with the Crown. This may involve admitting guilt to a lesser offence, in exchange for a lighter sentence or reduced charges. This approach can be useful in cases where the evidence against the accused is strong, and the likelihood of conviction is high. In conclusion, section 364(3) of the Criminal Code of Canada is an important provision that criminalizes the fraudulent use of cheques or bills of exchange. When dealing with this section, it is essential to consider the elements of the offence, the available defences, and the potential penalties. Employing strategic approaches such as challenging the prosecution's case or plea bargaining can be effective in reducing the charges or securing a more favourable outcome. Ultimately, competent legal representation can play a critical role in ensuring a strong defence and protecting the accused person's legal rights.