Bills of Exchange Act 1884 (SA)

D. 1881.

No. 312.
Capacity of purtics.

Si~naturts

rssentinl to

.. ..

~ & c d or unauthorised signi~turc.

5 3.

P r o v u ~ ~ ~ t i o n

signnturcs.

51.

Perso11 signing as agent or in represent:~tivc

~ 55,

capacity.

5 (i

T l ~ c

Co,~sidr,)xfirj;l

for

n X i l f.

5 7.

S'due, and holder for value.

~~~cornuiodat ion

bill or party.

58.

47" 8; 48" VICTORIW, No. 312.
The Bills of Exchn?ye Act.-1884.

> - -.

- --P

Discharge of Bill.

77. Crossing lry dmwer or after issue.

7 8. Crossing a mntcri,~l

part of cheque.

59. Payment in due course.

60. Banker	dcnland draft	indorse-	i s. nuties of banlier as 10 t rossed ~.'hcqucs-
80. Protcvtion to banker and dniww where chc

ment is f o r d.

is CIOPAPII.

61. Acceptor the Kolder at mntwity.

81. Effect of crosbing on holder.

62. Express TV?'

c lver.

63. Cancellation.	1 82. Prote(tion to colleetiug banker.
64. Alteration of bill.

Accepfruzce and .Pa!/)nml for Koltor.

66. Acceptancc for honor s q A proteat.	PART IV.
66. Tinbility of nctbeptor for. honor.
67. Prc+mtment to accept01 for honor.

68. Payment for honor a z i p r i plotcst.

Xost h u l ~

umcntc.

69. Bolder's right to duplicate of 1o.t hill.
70. Action on lost l~ill.
bil l in a ,%l.
71. Iiules as to sets.

Co)flict

of Laws.

72. Rules where l aw conflict.

h1	1' l 'LI:MCSTlRY.

00.

i f ~ ~ o d

f i~ i t h,

D1.	Sixnature.

I'ART TII.

92. (hnptltation of time.

('1ITRlrES ON A BANKI:Il.

93. When noting quiv:il(>nt

tu protest.

54. l'1ott2.t

when notar) not :I( cmsil~lc.

73. Cheque defined.

74. l'lwentment of cheque for pc~ymant.	95. S,t\ing<.
75. Rcvot.dioll of bankcr's authority.	96. Itrpe,d.

76. General and special crossi~lg.~

d~ifhcd.

An Act to coc

lify thc L;w relating to Bills of ISschangc,

Cheques, and I'romissory Notes.

[Assc~ztcd

to, Scjtertzder loth, 188g.l

W HEREAS it is il~1sirill)l~

to codify tlic law ueluting to bills of

Ennctcd by the Govurnor of South Xnstridia, with the advice and

cxclmige,

c lm~ues,

and pronlissoq iiotes-Rrl

it thcrcfore

consent ofu

thc Lcgislativc Council ad

l o u s c of

;issemhl~ of

the

said Province, in this pwscnt I'nrliumnt asscm'ulerl, ~~11d	by the
mthority of the samc, as follows:

Short title.	1, This Act map b~ cited as thc: Rills of Eschmgc Act, 1884.
terms.

In ie r~wta t ion

2, Tn this Act unless the context otherwise reqnirc?s--

? ?

'' Acceptance

means a11 acccptanct. c*ornpleted by delivcry or

notification:

'' Action " includes co~znter-claim

and set-off:

Banker "

47"

48" VICTORIAZ, NO. 312.

-- -

The Bills of' E m h n n p Act,-l

884.

P A ~ T

L( Banker " i n r l d c s a'body of persons, whether incorporated or not,

- _--

who carry on the bu8iness of banking:
Bearer " nicans the person in possession of x bill or note which is payahlc to bearer:

LLRill

" means hill of cschange, and " note" rneans promissory

note:
Delivery " nicails transfer of possession, actual or constructive, from one person to another:
Foreign Bill " means evcry bill of cvcllange which is not all
inland bill:
Holder " mcaiis tlw payec or indorscc of a bill or note who is in possession of it, or the bearer thereof:
'' Inclorsement " nlcans an inclorscment completed by tlelivery:
;'Insolvent " means any pcrson whose estate is vested in a trustcc or assigncc undcr tllc law for thc titnc being in force rrlnting to ineolvcncy, or lly virtue of any assignment for the benefit of creditors under the Statute No. 16 of 1860, or other the law for tlio time lwillg in that behall':

a Issue " n~rtlns

tllc first c1elivel.v of a bill or note, rmmplctc? in

form to a person who takes 'it as a holder:

Pcraou " ii~cluclcs a body of persons whether incorporntetl or

not:

bTrovincc " mcaus thc Province of

South Austrah:

Value " mean5 mluable consitleration:

" 14Trittcn " includcs printed, aiid

writing " includcs print:

Australin" shdl incluilc tllc whole of tllc Australian Continent, Tasmania, New Zcaland, a r ~ d

Fiji, and all islands adjacent

thereto which arc portions of

H&- Msj cs ty7s dominions.

ram 11.
BILLS OF EXCIIANGE,

Form

a ~ l d

I12trrpetalio?~

3. (1	.) .4 hill of rwhange is an ~m(:ondilion;rl	order in ~ r i t i n ~,	sill of exchange
defined.

ac\dressed by one pcrson to mother, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or cleterininablc. futuro timtl a sum certain in money to or to the ortler of a specified person, or to bearer.

(2.)

An instr~lmcnt which d o c ~

not comply with these conditions,

or which orders any act to 1)t) cleric. ill addition to thc payinlent of

money, is not a bill of cxclmigc.

(3.) A11 order to pay out of a particular fund is not unconditional
within
The Bills of ;El,rct?aazge Act.--1884.

. P- --p--

P-

---.--p

PART

11-

within the meaning of this section; but an unqualified order to

-	- - p pay, coupled with ( c r. ) an indication of a particular fund on t of which

the drawee is to re-imburse Ilimwlf or a particular account to be debited with thc amount, or ( b. ) s statement of the transaction which gives rise to the bill,, is unconditional.
(4.) A bill is not invalid by reason-

( G. )	T h a t it is not dated:
(b.)	That, it does not specify the value given, or that any value

has been given therefor:
( c, ) That it does not spccify the place where it is dracvn
or the plscc where it is payable.

Inland and foreign

4. (1.) An inland bill is a bill which is or on the face of i t

bills.

purports to bc (a. ) both drawn and payable within Australia, or ( b. ) drawn within the province upon some person resident therein. Any other bill is a foreign bill.

(2.) Unless the contrary appear on the face of the bill the holder may treat i t as an iillaiid bill.

Effect where different

parties to hill arc the

5. (1.) A bill may be drawn payable to, or to the order of, the drawer; or it may be drawn p y d h

to, or to the orcler of, the drawee.

snrnc pcrson.

(2.) Where in a bill drawcr a i d drawee arc tlrc same persoli, or whem thr drawee is s fictitious pcrsonor a pcivson not llnving capacity to contract, the holder may treat the instrurnwt, at his option, either as a, bill of exchange or as a promissory note.

Address to dmvee.

6. (l.) The drawee must be named or otherwise indicated in a,

bill with reasonable certainty.
(2.) A bill may be addressed to two or morc drawees whether they are partners or not, but an order acldresscci to two drawees
in the altcnlative or to two or morc cirawecs in succession is not a

bill of exchange.

certainty req~lirod as	'7.	(1) Where a bill is uot payable to bearer, the pay-ec must bc
to payee.

iirtn~ed

or otherwise irdicated tllmein with reasonable certainty.

(2.) A bill may be made payable to two or more payees jointly, or it may be made pqablc in the alternative to one of two, or one or some of screral payees. A bill may also be made payable to thc holder of an office for thc time being.
(3.) Where the payee is n fictitious or non-existing person the bill may be treated as paj-able to bearer.

What bills are

8. (1.) When a bill contains words prohibiting transfer, or

negotiable.

indicating an intention that it should not be transferable, it is valid

as betwe& the partics thereto, but is not negotiable.

(2.) A negotial~le

bill may be payable eithcr to order or to bearer.

(a.) A
Thc Bills of' Exchange Act.-1884.

(3.) A bill is payable to bearer which is expressed to be so payable,

or on which the only or last indorsement is an indorsement in

blank.

PART 11.

(4.) A bill is payable to order which is expressed to be so payablc, or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.

( 5. ) Where a bill, either originally or by indorsement, is expressed

to be payable to the order of a specified person, allcl not to him or Iris order, it is nevertheless payable to him or his order at his option.

9, (1.) The sum payable by a bill is a sum certain within the Smpayable.

meaning of this Act, although it is rcquired to bc paid-

(cc.)

With interest:

( b. )

By stated instalments:

(C.)

By stated instalments, with a provision that upon default in

payment of any instalment the whole shall l~ecome

due:

(d.) According to m indicated rate of exchange or according to

s	ratc of exchange to bc ascertained as directed by the hill.

(2.) Where the sum payable is cxpressed in words and also in fignres, and thcrc is a. cliswepmcy between the two, the sum dcnotcd by thc words is thc amount payable.

(3.) Where a bill is esprcssed to be payable with interest, unless

the iiistrurnent otherwise provides, interest runs from the date of

the Sill, and if the bill is ui~dated

from the issue thereof.

10. (1.) A bill is payable on demand-	Bill payable on
demand.

(a.)

Which is expresscd to be payable on demand, or at sight, or

on presentation; or

( b. )

I n which no time for payment is expressed.

('L.) Where a bill is accepted or indorsed when it is ovcrdue, it

shall, as rewards the acceptor who so accepts, or any indorser who

so indorses it, be deemed a bill payable on demand.

11, A bill is payable at a determinable future time within the Bu payable "

future time.
meaning of this Act which is cxprcssccl to bc payablc-

(1.) At a fixed period after datc or sight:

(2.) On or at a fixed period after the occurrence of a specified

event which is certain to happen, though the time of happen-

ing may be uncertain.

An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.
12. Where a bill expressed to be payable at a fixed period after O.misaion of date in

date	bdl payable after date.

47" & 48' VICTORIA?, No: 312.
The Bills of Exchanp Art.--1884.

PART	11-	date is issued undated, or whcrc the acceptance of a bill payable at
a fixed period after sight is undated, any holder may insert therein
the true date of issue or acceptance, and the bill shall be payable -. "
accordingly:
Provided that (1) where the holder in good faith and by mistake inserts a wrong date, and (2) in every case where a wrong date is inserted, if the bill subsequently comes into the hands of a holder
in due course the bill shall not be avoided thereby, but shall operate
and be payable as if the date so inserted had been the true dxte.

Ante-dating and post-

13, (l.) Where a bill or an acceytance or any indorsement on a

dating.	bill is dated, thc date shall, unless the contrary be proved, be deemed to be the true date of the drawing, acceptance, or indorse- ment, as the case may be.
(2.) A bill is not invalid by reason only that it is antc-dated or post-dated, or th2t it bears date on a Sunday.

COmpu'ation

time

of payment.

14. Wherc a bill is not payable on demand thc day on which it

falls due is determined as follows-
(l.) Three clays, callccl days of grace, arc, in every casc where the bill itself does not othevwisc provide, nddcd to the time of payment as fixed by the bill, and the hill is due and payable on the last day of grace: Provided that mhcn the last day of grace falls on Sunday, Christmas Day, Good Friday, or a, public or bank holiday, or a (lay appointed by proclamation as a public fast or thanks@ving day, the bill is due and payable on the succeeding busmess clay:
(2.) Where a bill is payable at a fixed period after date, after sight, or after the happening of ;L specified event, the time of payment is determined by excluding the day from which the time is to begin to run md by including the day of pay- ment:

(3.) Where a bill is payable at a fixed period after sight, the time begins to run from thc datc of the acceptance if the bill be accepted, and from the date of noting or protcst if the bill

bc: noted or prntcsted for non-ncccptancc, or for non-delivery:
(4.) The term a month" in a bill means calendar month.

Case of need.

15, The drawer of a, bill and any indorscr may insert therein the name of a persm to qhom the holder may resort in case of need, that is to say, in case the bill is dishonored by non-acceptance or non-payment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as hc may think fit.

(1.) Negativing or limiting his own liability to the holder:
(2. ) Waiving
47" Pr 48" VICTOKIE, No. 312.
The Bills qf Exchattge Act.--1884.

(2. j

Waiving as regards himself some or all of the holder's duties.

PART 11.

17. (l.)

'the accept;mcc of a Fill is the signification by the Definition and rewi-

sites of tlcceptance,

drawee of his assent to the order of the drawer.

(2.)	An acceptance is invalid unlcss i t complies with the following

conclitions, namely-

(a.)

I t must be written c11 the bill a d be signed by the drawee.

The mere signature of the drnmcc without additional -cvords is

sufficicn t

( b. ) I t must not express that the drawee will perform his promise by any other means than tllc paymcnt of moncp.

18. A bill may be accepted-	Ti~no	for acceptance.
(1.) Beforc it has been signed by thc drawer, or while otherwise

irlcomplctc:
(2.) Whcn it is overdue, or after it has been dishonorcd by rt
pi.evions refusal to accept, or by non-papmcnt:
(3). When a bill payable after sight is dishonorcd by non- acceptance, and the drawcc subsequmtly accepts it, the holder, in tht? absence of any different agreement, is entitled to have thc bill accepted as of the date of &first presentment to the drawee for acceptance.

19.

(1.) A11 acceptance is either (a. ) general or ( b. ) qualified.

General and qualified

acceptances.

(2.) A general acceptance assents withoi~t qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.
In particular an acceptance is qualified which is-
{a.) Colzclitional, that is to say, which makes payment by

the acceptor dependent on the fulfilment of a condition

therein stated:
( b. ) Partial, that is to say, an acceptance to pay part only
of the arrmmt for which the bill is drawn:

(C.)	I,o(:al, that is to say, ttri acceptance to pay only at a

particular specified place.:
An acceptance to pay at a particular place is a general accept-

ance, uillcss it expresdy statcs that the bill is to be paid there

only and not elsewhere:

(d. j Qualified as to time:
(e.) The acceptance of some one or more of the drawees,
but not of all.

20, (l.) When a bill

is wanting in any material

particular, the

person
8 47" & 48" VICTORIA, No. 312.

The Bills of' 2?xchange Act.-1984.

PAW 11-

person in possession of

i t has n p i m d ,fncie authority to fill up thc

omission in any way hc thinks fit.

(2.) I n order that any 511~11

instrnmmt when completed may bc

enforceable again~t

any person \vho becainc tl party t l i~wto

prior

to its completion, it must be filled up witllin a l~~asonnhle

time, and

strictly in accordancc with t l ~ c ?

authority given. Reasonable time

for this purpose is a question of fact:
Provided that if any such iiistrument after completion is nego- tiated to a holdcr in cluc coursr: it shdl be valid and efiectual for all purposes in his hands, and hc may eizforce it as if it 1 d been filled up within tt rcasonablc time and strictly in accordance with the authority given.

Delive y.	21. (1.) Evcry contract on a hill, whether it be the drawer's, the acceptor's, or an indorser's, is incomplctc and rc~rocable, until deiivery of the instrument in ordcr to give effect thereto:
Provided that whcrc an acceptance is \vritten on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that hc has acccpted it, the acceptance then becomes complcte and in-evocable.
(2.) As between immediate parties, and as regards a remote party other than a holder in due course, the deli~ery-

(a.)	In order to be effectual must be made either by or under the
authority of the party drawing, accepting, or indorsing, as
the case may be:

( b. ) May be shown to have bccn conditional or for ;L special purpose only, and not for the plwpose of transferring the property in the bill.
But if the bill be in the hands of n holdcr in duc course a valid delivery of the bill by all parties prior to him so as to mnkc them

liable to him is conclusively pl.esumed.

(3.) Where a bill is no longer in the possession of a party who

has signed i t as a drawer, acccptor, or indorser, a valid and ~ulconcli-

tional dclivery by him is presumed until the contrarv is yrovcd.

Capxi9 and Autho~ity

of Parties.

Capacity of parties.	22, (1.) Capacity to incur liability as n party to a bill. is co- exterisive with capacity to contract:
Provided that nothing in this section shall enable ,z corporation to make itself liable as drawer, acceptor, or irdorser of a bill unless it is competent to i t so to do under the law for the time being in force relating to corporations.
(2.) Whcrc a bill is drawn or indorsed by an infmt, minor, or corporation having no capacity or power to incur liability on a bill,
the drawing or indorsement cntitlcs thc holder to receive paymelit
of thc bill, and to enforce it against m y other party thereto.

23. s o

23. No pcrson is liable as drawer, indorser, or acceptor of :L bill

PAET 11.

who has not signcd it as wch:	I'rovided that-	liability.
signature esscntid to

(1.) Where n peram siws ;L hill in ;I, tradc or assu~ncd name, lie

is liable thereon as ~f he had sig~ied

it in his own n:~me:

(2.) The signature of the nsmc of a firm is equivaleilt to the
signat&e by the pcrson so signing of thc liaincs of all persons
liable as partners in that firm.

24.

Suhject to the provisions of this Act, wlicre a signnttwc 011 n J%+lorlm-

nutlioriseil signature.

bill is forged or placed therron without the authority of the person &osc signature it purports to bc, tllc forgcd or nnantllorised signature is wholly inoperative, and no right to rctaiii tla- bill or to give n dischnrgc therefor 6r to enforcc payment thcrcof against anv pi~rtr tl-ioreto can be acquired through or under that signature, unless the party nyinst whom it is sought to ret,ain m mforrc p a p e n t of the bill 1s precluded from setting up the forgery or want

of authority:

Provicicd that nothing in this section sliall :iffkc:t t11e rutific:;~tioii

of an nnautl~orised

signature not amounting to a forgery.

25.

A signnturc by proc~umtion operates as noticc that the agent t urcu.

q i ~ n z ~ -

has but a limited autllurity to sign, u d the @xil)al is only bound by such sicmature if the agent in PO signiug W ~ S acting within the

actual linlits of his authority.

26. (1

.) Whew a person signs n bill as drawer, indorser, or l'crson signing as

agcnt or 111 I. o ~ I. ( * ~ o I ~ -

acceptor, and adds words to his sigimturc, ii~clici~tirig

that he signs tJtivc cal,a(>ity.

for or on behalf of a principal, or in n representative chztracter, hc is not personally linblc tl~wcoii; but the mere atldition to his sign;~ture of words describing him as an awnt, or as filling a. reprc-

scntative charnctcr, does not eseinpt hiin from personal liability.

( 2. ) In determining whether a signature on n bill is !hat

of the

principal or tlmt of thc agent by whosc hallcl it is written, the constrnction most favorable to the validity of the instrument slmll be adopted.

The Consiilernfio7z .for a Ril7.

27. (l.) Valuable consiclcration for n bill may be constitntctl T;al l lcandl l~l( lc~for

value.

by-

(a.) Any consideration sufficient to supl)ort a, siniplc contract:
(6.) An antecedent debt or liability. Such n clcbt or liability

is dccrncd valuable consideration wlietlier the bill is pyablk

on demand or at a future time.

(2.) Where value has at any time been given for a bill the holt'Lcr is deemed to be a holder for ralnc as regards the acccptor and all partics to the hill who became parties prior to snch time.

(3.) UTherr

the holder of a bill has ;I lien on it, arising either from

contract

47" Sr 48" VJCTORIA3, No. 312.

~ p ~ ~ ~ p ~ L

The Bills of Exchasye Act.-1884,
p*m I*.

---	contract or by implication of law, he is deemed to be a holder for

value to thc extent of thc sum for which he has a lien.

AccOmmOdationbill	28. (1.) An ac~ommoda~tioil	party to ;L bill is a person ~vho	has
or party.

signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purposc of lending his nmie to some
other person.
(2.) An accommodation party is liable on thc bill to a holder for
value; a i d i t is immaterial whether, when such llolder took the bill, he knew such party to be a11 accommodation party or not.
Holder in

due course.

29. (1.) A holder in due course is n holder who has taken a bill,

complete a,nd wgnlar on thc f :%cc of it, untl(jr the l'ollowing

coadi tions,

namely-

(a. ) That he became the holder of

without nuticc that it liad been prcviuusly dishonurcci, if such

was the fact:

it before it was o~~erclue,

ancl

( h. )

That he took the bill in good fkith and for vnhc, ant1 that at the time the bill was negotiated to him hc had no notice of any defect in the title of the person who negotiated it.

(2.j In particular the title of a persou w410 ncgotiatcs ;L bill is dcf'ectirc within the mcaniny of this Act when llc obtained the bill, or thc acceptance thered, by Iraud, durcss, or forcc and f'car, or other unlawful means, or for an illegal consideration, or when
hc ncgotiatcs it in breach of faith, or undw such circumstances
as amount to a fkaud,
(3.) A holder (whether for vnlnc: or not), nho derives his title to s bill through n, llolclcr in due course, ancl who is not himself a, party to any iraud or illegality aifccting it, has a11 the rights of that holder in t l l~x l: cmme as regards the acccptol. anr'l all prt ies to

thc bill prior to that holclcr.

l 'resllm~timof w ~ l e

and good faith.

(1.) Every party whosc signature appc;l.rs on a bill is p i m d

f k i e cleeined to have becomc a party tlicrcto for value.
proved that the acccptnucc, ibsue. or snbscquent negotiation of the bill is ;~ffc.ctctl rvitll li-cautl, duress, or force ancl fcxr, or illcgality, the burclcn of' ])roof is shiftcd, rullcss and until thc holder proves that, snbscqucnt to thc allcgccl fraud or illegality, valuc has in good faith been given Por the bill.

R'egotintion of bill.

31. (l.) 11 bill is i~c$otktcd whcil it is tranhferrcd from o i ~

person to another in sltcli a mannrxr a s to c:onslitntc? tlir trnnsferec

the l~olclcr

of the bill.

(2.) A bill payable to bearer is negotiated by delirerj-.
(3.) A
47' C% 48' VICTOIZIE, No. 312.

___-.----

- -- - - -. -V---

---U-

S---

2'ht:

Gills o j . .Emhn?~ge Act.--1881.

--

(3.) A bill payab1~

to order is negotiiltcd by the i~rrlorscmclrt

Ire

- - -

tile holcler completed by delivery,
(4.) Wlrere thc holdrr of n bill pixyablole t,o his order transfrrs i t

for value without indorsing it, the t rans f~r gives thc tmnsfc~ee

such titlc as the trilnsfcror hacl in the bill. a i d the tralisferee

in addition n.cquircs the right to have the indorseincnt of the
transferor.
( 5, ) Where any person is luldcr oblig~tiiltion to intlorsc a bill in a
rcpcsentatire capncity. he may indorse the hill in such terms a s to
ncgatis-e pcrsonal liability.

32. An irdorsen~ent in ortier to opemtc as n negotiation lnust !hllig'tcs of a valid

mdorsement.

comply with the follo\ving conditions, mncly---
(1.) It mnst be wwitten on thc bill itself and bc signnl by thc

indorser. The simplc sign;~tore

of the indorscr on the bill,

without w,tIditionnl words, 1s sufficient.

An indorsement written on ,211 allonge, or on a ' * (:opy " of a bill issued or ncgotiutctl in a country where

copies" :W(:

recognised, is ilccrnccl to bc wuittciz on thc bill itself.

(2.) It must bc ail indorsemmt of the entire bill.

-4 partial

indorsement, thn t is to say, an indorscmcnt which piupol-ts to trmsfkr to the i n d o ~ ~ s ~ r :I lmt only of thc mount payable, or

which purports to trnnsfii~~

the. I d 1 to two 01. I I ~ T

indorsces

sweri~lly,

docn not opvratc as n negoti:ction of the bill.

(3.) Whcrc a hill is p: ~ p b l e

to thc ordw of two or morc pnyccs

in r lo ra~s

w11o arr not 11;lrtncrs a11 must i~~dorsc,

unlcss tht:

one indorsing has authority to in(lorsc for t l ~ o

others.

(4.) Where, in n bill l~ayablc to order, thc a

or indorscc is

~v\.mn(~ly a. . dcsignatcd, or his n:mw is mis-spclt, 11c may in(lorsc the brll :IS tlicrciii described, tdcling, if he think fit, his

proper signature.

(6.) An indorsement may bc made in bliinlc or spccial.

It may

also contain tcrins making it rcstrictivc.
33. TVlierc a bill pur1)orts to b(b indorscd conditiona,lly the indorsement.
condition may be disrcgnrded by tllr pnycr, and pilyment to the

indorscc is valid whctl~cr

the condiiioa has hecn fillfillcc1 or n u t.

(2.) X special iitdosbcnlcnt specifics 1

pcrson to m

or to

whose order, the bill is to be payable,
(3.) The

47' & 48' VICTORIX, No. 312.

-- -" p

- - - W

- -

- - -

- -

The Bills

q~' Excha~zgc Act,--1884.

PART	11.	(3.) The provisions of this Act relating to a paycc apply with the necessary modifications to an indorsee under a special iindorscment.
(4.) When a bill has hren indorscd in blank, any holder may convert the 1)lmk indo~semcut into a special indorsement bp writing above the inclorscr's signature s diuxtion to pay the bill to or to the orcler of hirrlsrlf or some othcr person.

ftestrictivo

35.

(1.) A11 indorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mcrc authority to deal >+it11 the bill as thereby directed and not a transfer of the ownership thewof. as, for exanlpl"e, if a bill he indorsed '* Pay D. only," or '' Pay D. for the account of X.," or " Pay L). or order
indorsement.
for collcctiol~."
(2.) A restrictive indorscmcnt gives thc indorsec thc right to rccelvc? payment of thc hill and to sne any party thereto that his indorser conld have succl, but gives him no power to t ransf~r his rights as indorsec unless it csprcssly autborisc him to c10 so.

(3.) Where a rcstrictive iildorsemeut autho~ises

further transfer,

all subsequent indorsecs tnkc thc bill with the same rights and subject to the same liabilities as thc first illclorsec under the rcstric- tive indorsement.

Negotiation of o v e ~

36. (1

.) Where a bill is negotiable in its origin it con tinucs to bc (2.) Where an overdue bill is negotiated, it c m only bc negotiatcd subject to ally c k f t x t of titlc afkcting it at its maturity, and thcl~ceforward no person who takes i t c m acquire or givc a better titlc than that which the pcrsoil from whom hc took it 1i:tcl.
due or dishonered

bill.

negotiable until it has been (a. ) rcstrictivcly indorsed or ( b. ) clis-

charged by paymcilt or otherwise.

(3.) A bill payable on denland is deemed to be overdoe within the meaning and for the purposes of this scclion, wlwn it appears

length of time. What is nil unrcasonablc length of timr for this

on the face of i t to h a w been in circulation for an uiirexsonable

purpose is n question of fact.

(4.) Except where air indorsement bears dntc after thc maturity of the bill, every negotiation is prinzd ,fn& deemed to have been effcctcd before the bill was oveldne.

(5.) Where n bill which is not overduc has been dishonorcd any person who talics it with noticr of the dishonor talics it subject to m y clefcct of title attaching thereto at the tiinc of dishonor, but nothing in this sub-section shall affect thc rights of n holder in due course.

Negotiation of bill to

party already liable

37, Where s bill is negotiated bnck to the drawer, or to a prior

thereor..

indorser or to the acceptor, such party may, subject to the provi- sisions of this Act, rc-issuc aud further ncgotiutc thc bill, but he is nut cntitkd to cnforcc p a ~ m n l t of' the bill ;rgainrt any intervening

pwty to wllom lie was l ~ r ~ v i o u d y

linblc.

38, The

47' R- 48" VICTORIW, No. 312.	13
. -p--- -

Th Bills of' Exchanye Act.--1884.

38.

The rights a i d powers of the holdcr of a bill arc as follows :-

PART

11.

(l.) H c may sue on the bill in his own nnmc:	Eights of the holder.
( 2. ) Where he is rl. holder in due coursc, hc holds thc bill frcc from aaj- defect of title of prior parties, as well as from mere pcisonal dcfenccs avnilablc to prior partics among themselves, and map enforce payment against all partics liable on the bill:
(3.) Where his titlc is defcctivc (a) if he negotiates thc bill to a holder i11 due course, that holdcr obt~ins a good anci complete tittle to the bill, ancl ( h ) if he obtains payment of the Id1 thc person who pays liirn in due course gets a valid discharge for thc bill.

General Duties 01' the Holder.

(2.) Where a bill cspressly stipulates illat it shall bc prcsentcci

for acceptance, or wllcrc. a bill is clrurvu pnynble elsewhere than

at the or place of busii1ess of the. drawee it inust be

1)rcscntted for acccptancc bcforc it can bc prcscntcd for paymciit.

(S.) In no otlicr case is prcscntincnt for acccptancc ncccssary in ordcr to 1-cncler liable any party to the hill.

(4.) Whcrc thc holder of a bill, drawn payablc elsewl~we

than at

the pl;tce of "business or rexiclellcc of thc drawee, has not time, with the cwmGe of reasonalde diligence, to present the bill for acceptance hefort. 1)resenting it for payment on the day that it fills due, t.hc

delay caused by prcscnting the bill for acceptance before prcscnting

it for payment is excused, anti does not d i s c h g e the drawer and

indorsers.

40. (1.) Sul)jwt to the provisions of this Act, .ivhen a bill ~

for presenting

payable after sight is negotiated, thc holder must either present it bill payable after	sight.
for acceptance or negotiate it within a rcasoi1ablc time.

(2.) l£

hc clo not do so, thc clrawer and all indorscrs prior to that

holder are discharged.

(3.) In determining what is a reasonable time within the meaning

of this section, regard shall he had to the nature of the bill, the

usage of trade with respect to similar bills, and thc facts of the

par tlcular

case.

41. (1). A bill is duly presented for acceptance which is Rules as to presmt-

ment for acceptance,

presented in accordance with the following rulrs--

and excuses fox

non-presentment.

(n. ) The piaentxllmt must be made by or an behalf of tht: holder to the drawee or to some pcrson antlioriscd to accept or rcfiise ;~ccrpt;nce on his bchitlf at ;I. reasonable hour on a business day and before the bill is overdue: (b..) Where

47" & 48" VICTOKIE, No. 312.

-W-

----

The Bills of E,xchnnge Act.-1884.

PART

11.

( h, ) VCThere a bill is adclresscci to t x o or more clrawces, who are B

not partners, prcsentment must bt. made to them all, unless i 1

one has authority to accept for all, then prescntmmt may be i made to him only: i

(C.)

Where thc drawee is &.ad, presentment may be made to his

personal representative:

(d.) Where the drawee is insolvent, presentmcnt may be made
to him or to his trustcc:
( e. ) Where authorisccl by agreement or usage, a prescntment through the post office is suficient,
(2.) Prescntmcnt in accorrlalice with thcsc rulcs is cscused, and
a bill may be treated as dishonorcd by non-acceptance-
(a.) Where the drawee is dead or insolvent, or is a fictitious person, or n person not having capacity to contract by bill:
( 6. ) Where, after the exercise of reasonable cliligencc, such pre- sentment cannot be effected:

(C.) Where, although the presentment has bccn irregular, acccptwncct has been refused on sorr~e

other groui~l,

(3.3 The fhct that the holder has reason to helitw that the bill,
on presentment, will bc dishuilorocl does not excuse prcscwtment.

on-accoptmce.

42, (1.) When a bill is duly preserltcd for acceptance ant1 is not

accepted within the c~~stornary

tirnc., the pcrson ~n-esenting

it must

trcat it as clishonored by non-:tcceptaace.

If llc tlo not, the holtlcr

s l d l lose his right of rekoursc against the drawer and indorsers.
Dishonor by non-

acceptance and its

43, (1 .) A bill is dishonored by uon-~~ccctptance--

consequences.

( a, ) When it is duly prcsentccl for acceptance, and such an acceptance as is prescribed by this Act is rcfused or cannot be obtadncd; or

(6. )

TFThell prewntment for acceptance is exciwxl, and tllc bill is

not accepted,

(2.) Subject to the provisions of this Act, when a bill is dishonored by non-acceptance, an immediate right of recourse against the drawer and indorsers accrucs to the holder, and no presentment for payment is ncccssary.

Duties as t o qualified

44. (1.) The holder of n bill may ~.c?fusc

to take a qaalified

acceptances.

acc~pta~ncc,

and if hc does not obtain rui unqualified acceptance

may trcat thc bill as ctishonoreti by non-acceptance,
( 2. ) \Vhere a qndificcl acceptance is taken, and thc drawer or an
i n d o ~ s c ~ has not espresdy or impliedly authorised the holder to take
a qualified acceptance, or does not subsequciitly assent thereto, such
drawer or indorser is clischarged from his liability on the bill.
The
47" & 48" VICTORIfi, No. 312.
The Bills of E,crha?~ye Act.-l 884.

The provisions of this sub-section do not apply to n l)artial acceptance, whereof due notice has been gi\-m. Whcre a foreign bill has been accepted as to part, i t must be protested as to the balance.

PART

11.

(3.) When thc drawer or indorser of a bill receives notice of a

qualified acceptance, and does not within a rcasonahlc time cxprcss

his dissent to the holder he shall be deemed to have asscnted thereto.

45. Subject to the provisions of this Act, a, bill must bc duly Rules aa to pm-

preselltccl for payincnt.

If it be not so yrcscnted tlw drawer and mentforpR~ment.

indorsers shall be rtischargcil.

A bill is duly yrescntccl for p~zyment ~ d l i c h

is presented in

accorcttmcc ~vith

the following rules :-

(l.)

\\ ;her~

the bill is not pnyable on demand, presentincnt must be inadc on tlic day it falls duc.

(2.) Whmo the bill is payable on demand, thcn, subjcct to the provisions of this Art, prcscntmcnt must be made within n reasonable time after its issne, in order to render the drawer liable, and within a yensonable time after its indorsement, in order to render tht: iidorsw linblc.

In determining wha,t is a reasonable tim~b,

regard shall be liact to

tho nature of the bill, the usage of trade with regard to similar

bills, and the f i ~ t s

of tllc prticular case.

(8.) Presentment must be made by the holder or by some person :tuthoriscil to receive payment on his bchalf at n reasonable hour on a busincss clay, at the proper place as hereinafter dcfined, either to t. 1 ~ pcrson clcsignntcrl by the bill as payer, or to somc person authorised to pay or rcfusc payment on his bchalf if with thc cxercisc of reasonable diligence such person call there be found.

(4.) A bill is presented at the proper placc :-

(a.) Whcrc a place of payment is specificcl in the bill and the
bill is there presented:

( h. )

Whcre no placc of payment is sl)ecificd, but thc address of

the dramce or acccptur is given ill the bill, and the bill is

there yresen ted:

( C. ) Wilerc no place of payment is spccificd and no address
given, ant1 tllc bill is presented at the drarvee's or ucccl~tor's
placc of business if known, and if not at his ordinary
residence if known:
(d.) I11 any othct casc if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business or residence.
(5.) Whcre a bill is prcscnted at thc proper place, and after the

cxercisc of reasonable diligence no person authorised to PiLy or

refuse

47" & 48" VICTORIJE, NO. 312.

p----

The Bills of

Enchnye Act.-1881.

- -S -- -

- - -

v --

p. - p

.-

PART

ll.

-	refuse payment wii bc found there, no further presentment t o the drawee or acceptor is requirccl.

(6.) Where a. bill is dra~vn

upon, or acceptcd by two or more

persons wlio nre not partners, and no place of payment is
specified, presentme1lt must be nmdc to them all.
(7.) Where thr drawee or accoptor of n bill is dcad, and no place of payment is specified, prcuentmcnt must be made to n pcrsonal representative, if such there be, itlld with the cser- cise of reasonable diligence he cm be foilnd.
(8.) Whcrc authorised by xgrecmmll or usage a prescntnlcnt

tllrough

the post

ofice is s u f i ~ ' i ( ~ i - ~ t.

Excnsee for delay or

n o ~ r e ~ e n t m e n t f o r	46.	(1.) Drlny in	milliii~g p~+(~scntrnmt	for peymont is oxcused
payment.

whcn the delay is caused by circumsti~nrc.; beyond tllr control of'
the holdcr, and riot imputable to his dcfnnlt, iriisrondoct, or neg-
ligencc. When the cnuw of delay ccnsos to operntv l~resontmt~nt
must bc mack with reasonable diligmcv.

(2.)	Prescntlncnt for p y m e u t is dispansrd with-

(a.) Where, after the csmrisc of 1-c;~sonnblc

dilig:~~eri

prcscnt-

rncnt, as ~*cquirecl

by this Act, cannot bc t~ffcr~tccl.

The fact that the llolrler has reasull to bclic\-c that tllc bill will,

p s m t n l e n t, bc

clisElonorecl, doe;

not

Clisp~nsc wit11 t h

necessity for prcselitment.

('b.)

Wherc thc drawec is n fictitious pcr.son:

(d.) As r e p & an indorser, wlmrc thc bill was acccpted or

niade for the accomn~octntiou

of that indorser, c 2 1 d I I V has

no reason to espect that the bill mould bc paid if

presented:

( eJ	By waiver of presentment, express or implied.

Dishonor by non-

payment.

47. (1.) A bill is dishonorecl by non-payment (a. ) wheil it is

duly presented for payment mid payinent is refusctl or ct/nnot be
obtained, or ( b. ) when presentinclit is excuscd ancl the bill is overdue
and unpaid.
(2.) Subject to thc pravisioiis of this Act, when a bill is dis-
honored by non-payment, m irnincdi ate right of recourse against

the drawer and irzdorse~s

accrues to the holder.

Notice of dishonor

and eKecect of non-

48. Subject to the provisioiis of this Act, when ;L bill has been

noticeA

dishonorecl by non-acceptancc nu by non-payment, notice of dis- honor must be given to the drawcr and each indorser, and any

drawer
47" & 48" VICTC)RIAZ, No. 312.

The Bill.~

of' Emhnnge Act.-1884.

drawer or indorser

to wlium such notice is no t given is ctischnrgcd:

PART ~ r.

P~ovidccl

that-

(1.) \\'here

;t bill is dishonored by non-ncceplancu, arid noticx of

dishoilor is not given, thrt rights of ;L holder in due course subsequent to the omission, shall not bc prejudiced by the omission.
(2.) Where n bill is diahonorcd by non-acceptance and clue notice of' dishonor is given, it slinll not bc neccssnry to g i w notice of a subsequent dishonor by non-pajment unless the bill
shall in thc mcantimc have been accepted.

49, Noticc of dishonor in order to be \-did and t~ffectud	must be	Rules ns to notice o f
dishonor.

givcn in accordailce wit11 t l ~:

following rules :-

(1,) Tllc noticc must bc given by or oil bcllalf of

thc l d d o r, or

by :incl on behalf of an indorser who, at tlic time of giving
it, is llimsclf liable on the bill.
( 2. ) Noticc of dishonor may be given by nil ngcnt cithcr ill his

own nanle, or in the nnnw of any party elititlcd to girc

notice whet1lc.r that party Ilr his princil)nl or not.

(3.) Whcre the notice is givctn hy or on behalf of thc holder, it
enures for thc bcnefit of all subscqucnt holtle~~s and all prior
intlorsc1.s who haw a riglit of recourse against thc party to

w4~om

it is given.

(4.) Where no ticc is givcbil hy or on behalf of an indorsrv c v

titled

to give notice as llcreinbefurc. provitlcd, i t enures for t l ~ c brncfit of the l i u l d ~ ~ iin(l al l indorsers subsequent to t l i ~ party to whom notice is given.

(6. ) The notic(: may irc qivcn in writiiig or hy personal communi- cation, and may & gi \w in :my terms which sufficiently	idciltifjr t l~u bill, and intimatc tliat the bill lias 1)cm clis-
lionored by non-acccptnnce or non-pi~yment.

(6.) The return of s dishonoretl bill to the dmwcr or an indorsrr is, in point of form, clecmccl a sufllicicnt notice of dishonor.
(7.) A written notice need not bc signcrl, and an insufficient
written noticc may bc supplemented nnd validated by verbal
coinmunicatioa. A rnisrlescription of thc bill shall not vitiabc

thc notice unless thc party to whom the notice i.: given is 1 :

fact misled thereby.

(P,) Where notice of didionor is required to be givm to any person, i t miiy hc givcn eithcr to the party hirrwlf, or to his
agent in that behalf'.
(9.) Where the dmvm or indorsm is dead, and the party giving noticc knows it, the notice must bc g iwn to :I personal rrprcd sentative if such thcrc. he, and with the cscrcise of reasorml~lc:
diligence hc can be fo~uiil,
47" & 48" VICTORI,E, No. 312.
The Bills of' Exchartye Act.-1884.

PART

11.

(10.) Where the drawer or indorser is insolvent, notice may be

given either to the party hinlseli' or to tllc: trustee.
(11.) Where tlleri: arc two or mow drawers or indol-sers who are
not partners, notice must be given to each of them, unless
one of them has authority to receive S U ~ I notice fur the othcrs.
(12.) The noticc may be given as soon as thc bill is dishoilored
and must be given within a reasonable time thereafter.
111 the absence of special circurnstsilces rlotice is not cleenlcd to
have been givcn within n reasonable time, nnless-
(a.) whcre the perron giving and the person to receive notice reside in tlle same placc, the notice is given or sent off in time t o 1-mr:h thtl latter oil the (lay :&:r the dis- llonor of the bill:
(b.) where thc person giving and the persoil to 1.cceive notice reside in diEcrent pl~~ccs, thc lioticc is scilt of? oil the day after the dishonor of the bill, if there be ;I post at ;t con- rcnient hour on that day, ancl i f thcrc /)c no such post on that day t lml by the next post tllercafter.
(13.) Where a bill when dishonorcd is ill the hands of an agent, Iic may either hinlself gil-e notice to thc partics liable on the hill, o i hc may give no&c to his l,rincipa~. If ha g i x notice to his principal: he must tlo so witliin the saine time as if he

(15.) MT1it!rc a notice of dishonor is duly :rtftlrcsacd :,nil r,ostecl,

the sendcr is cleernccl t o have givcil due notice of dishonor,

notwitlistanding m y iniscarriagc by thc post office.

Excuses for non-

50. (1.) Dchy in giving

~.ioliw of' d ishnor is excnsccl where

notice and delay.

the clclny is cnuscd by circunlstaiic~x

bcyoncl the control of thc party

giving notice, ancl not imp11t,!blc to his rlcf;~.ult,

rnisconciuct, or

negligence.

When the causc of (1cln.y ceases to opcrnte the notice

must be given ~16th

reasoiml~le

diligc~1cc.

(a.)	TVIlm, aftrr tlw e s w: i a ? of w;tsold)lo (liliyrwe, notire as required bp this Act cannot be given to or does not reach the hawe er or indorser. sought to bc c h a r g d:

(b.) By waiver express or inylied. Nuticc of dishonor rrlii,y
be waived before the time of giving notice has arrived, or
after the omission to give dnc hotice:
P~~~ IT.

(C.) A s regards the drawrr in the follomii~p

rases, nnmclp, (1) - .

where drawer and drztwcc :IIY: the same ~)crson, ( 2 ) where tllc dmmce i h x fictitious person 01. a lWrhoi~ not having capacity to contract, ( 3 ) v tllc drawer is thc pcrson to whom the bill is preicntetl for pn! mnlt, (4) whcrc thc clranee or acceptor is as bctmccn hilnwlf anti tlic d m w ~ r

unrlrr ilo obligation to; i ( ~ ~: p t

or l ~ i ~ y

the bill, (5) wlwc

the clrawer has countermancl paymerit:

(d.) .4s regards t l i ~

iiidorscr in tlrc follo~ving cascs, namely.

(1) mllerc thc dmwec is ;L fictitious porson or n person not hi-iiig capacity to contract ;tnd tllr iildorscr was :Iwai.e of the fact at thc time hc indorsccl thr bill, ( 2 ) where the indorscr is tllc pcrson to wvhom tlrc bill is prescntrd for lmy- meat, (3) where thc bill was ncceptcd or made for h&

:iccummod n t'

lon.

51. (1.) Where an i n h d bill has been dishnliored it may, if Noting or protest of

bill.

tllc holder think fit, bc notecl for non-t~c~ceytaxe

or non-pa~;~neilt,

tlic casc my be; b i ~ t it shall not be ncwss:~ry to notc or protcst any such bill in order to prestirvc thc reconrsc against tllc drawer or indorser.
2. ) \Vhcrc n fnvrign bill, appcnring on iln: iace of it to be wch, has bcrn dishonorcd by no~~-;tcce~)tnn& it must be duly pro tcstcd for non-accepta.nc;e, and wlicrc such ;L bill, which has not been
previously dishonored 1)). non-acccptnncc, is dislronorcd by non-
payment it must bc duly protcsted for non-poymcnt. If i t be not so protested the ilri~wer; ~ n d indorsers arc discharged. Where n bill does not appear on the facc of i t to be a foreign bill, protcst thereof in case of dishonor is unnecessary.
(3,) A bill which has bocn protestrd for non-acceptnncc may be subsequently protcsted for non-payment.

(4.) Subjcct to the provisions of this Act? when a bill is noted or protested, it must bc noted on the day of its dishonor. When

a bill has been duly noted, the protcst may l)(: subsequently
extended as of thc date of the noting.

(5.) Where the ncccptor of ;L bill is i~solvent o r suspt:nrls paj-nzent befmc it matures, the l~oldrr

rriav citusc tllc bill to be

protested for better security t~gainst

the drawer ant1 inclorscrs.

( G. )

A E l l must he protested a t thc plncc where it is dishonored:

Provided thnt-
(a. ) TVlren a bill is presented tluongll the post olBcc md returned by post dishonorod, it inay be l,rotc.:ted at the 1)lacc to which it is returilccl and on thc day of' its return if receivetl during business l~ours, and i? not received during busincss hours, tllen not later thau the next busiwss day:
(b.) When a bill drawn payalilc at thc plncc of bnsinres or n:si-
dence of sonlc pcrson other than the drawcc, has been
cli shonorcii
20 47" & 48" VICTORIE, No. 312.

.----------p

- -- - -

-- - - --

- -

The Bills qf Ecxchnngc Act.--1884.

-- -

-W--

PART

11.

dishonorcd by non-acceptance, it must be protested for non- payment at the placc mllerc i t is expressed to be payable, and

I	no further prcscntinent for payment to, or demand on, the drawee is necessary.

(7.) A protest must contain a copy of the bill, and must be signed
by tEic notary making it, a i d must spccify-
(a.) The person at whosc request the bill is protested:
( h, ) The placc and datc of protcst, the cause or rmson for pro- testing the bill, thr demand made, and the answcr given, if any, or the fact that the drawoe or acccptor could not be found.
(8.) Whcre a bill is lost or dc.stroyecl, or is wrongly detained fyom

the person erltitlcd to hold it, protcst may be maclc on a copy or

written particulars tl~crcof.

(9.) Protest is dispensed with hq. any circnrn~tnncc which would dispciisc with notice of clislionor. Dclny in noting or protesting is cscused whcn the delay is caused by circumstances beyond the control of thc holilcr, 2nd llvt imputable to his dcfi~ult, iniscolduct,

or negligence.

When the cnusc of clclay ccascs to operate tlic bill

must bc notecl or protcstcd with reasonable dilig

(1 encc.

Duties of ho ld~r

52. (l.) \%%m

a bill is accepted gcnel-ally presentment for

R ~ a r d B

drawee Or

payment is not necessary in order to render the acceptor liablc.

sc~optor.
(2.) When by the terrms of a qmlificd acceptancc presontnient for payment is rquired, the acceptor, in the absencr of' an cspress stipulation to that cffcct, is not disrhargeci by the omission to prcscnt tho bill for payment on thc clay that it maturcu-

(3.) I n order to render tlic acceptor of

n bill liable it is not neces-

sary to protest it, or that noticc of disllunor shonlcl be given to him.
(4.) Wherc the holder of a bill presents it for payment, hc shall

whcn a bill is paid the holder shall forthwith deliver it up to the

exhibit thc bill to the person from wlmm hc dcmands psyinnlt, and

party paying it.

Lid ilities 9' Pn~ties.

Fur& iu hands of

53. (l.) A bill, of itself, does not operate as an assignment of

drawec.
funds in the hands of the r3sawce available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liablc on the iiistrument.

Liability of acceptor.

54. The acccptor of EL bill, by accepting it-

(1.) Eagagcs that he will pay it according t o thc tenor of ids

acceptance:
(2.) Is precluded from denying to n holder in due course-
(a.) The existence of the dmlver, the genuineness of his sig-
nature, and his capacity and authority to dram the bill:

(b. )

( b. ) In the case of a bill payable to clrawer's order, the then

PART

11.

ci~pacity

of tlic drawcr to indorse, hut not thc geiluirlciless

or validity of his inclorseiiieiit:
(C.) I11 the case of a hill payable to the orclcr of a third person,

the existence of the payee and his then cal~acity

to indorse,

but not the genui~icuess

or validity of his indorsement.

55. (1.) Tlir drawcr of n bill by drawing it-	Liability of drawer
or indorser.

(a.) Engages that on duc presentment it shdl br i~cceptcd

rtlld

paid according to its tcnor, ;ud that if it be dishonowl lic mill compenset,~ the holder or any indorser who is com-

prllrd to pay it, l)rovi'led that the requisite proceedind.	C':, 011
dishonor be duly taken:

( b. ) Is precluded from denying to ;l holder in duc course the

csiste~lce

of the payee and his then capacity to indorse.

( 2. ) 'l'hc

indo~wr

of s bill by indorsing it-

(cr. )

Engages that on duc presentment it shall be acccpted and paid according to it,s tenor, allcl that if i t be dishonored hc will cornpensatc tlle holder or a subscqnciit irldorscr who is rompellrtl to pay it, provided that the requisite prowtdings on dishonor ?X duly talrtn:

(b.) Is precluded from denying to ;I holder in duc course the

crel~uint.ncss	ant1 regularity in all respects of tlic drawer's
b.

signature and all prcvious indorsenicnts:

(C.)

Is pwclud~d

from dcnving to his inrincdiatc or a subsequent

indorscc that thr: bill k a s at thc time of

his indorscrncnt rt

valid and sul~sisti~ig	bill, and that hc had thcn a good title
t,hcrcto.

56. ~ ~ ~ w c ?

:L phrsoii s i p s a bill otherwise than as drawer or stmgm

biU

acceptor, hc thereby iuctrrs the liabiliticj of an indorser to a holdcr Gable	b"rser.
iri due couiw.

57. Whew n bill is dishoizorcd, the measure 01 damages, which Measure of damages

against

honorod

parties

bill.

to clis-

shall be dccmecl to bc liquidated damages, shall be as follows:

(1.) The holdc~*

niuj- recover fi-oin m y party liable on the bill,

ancl the drawer who has been compelled to pay tlic bill inay recover from the acceptor, and an indorser who has been compelled to pay the hill may recovcr from the acceptor or from the drnwcr, or from a prior indorser-
(a.) Thc amount of the bill:

( b. ) Interest idlereon at thc rate of

ten pounds per centuni per

nnnum from the time of 1mw:ntmcnt for paprncnt if the bill is payable on clemancl, ancl f rom the maturity of the bill
in any othcr case:
(C.) 'Chc

47" & 48" VICTORIA?, No. 312.

p--p--

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The Bills

E x c h n n ~ e Act.-1884.

PART

11.

(C.) The expenses of noting, or, when pro t~s t

is necessary,

and thc protest has been extended, the expenses of protcst.
(2.) In the case of :L i d 1 which has hcen dishonored abroad, in lieu of the abovc damages, the holdcr niag recover from thc drawer or an indorser, and the (Xritw~r OY an indorser who has been compelled to pay thc bill may recover from any party liable to him, the amount of the re-exchange with interest thercon until the time of paymcnt.

(3.) Where by this Act interest may bc rcco~rrcd as dnrnagcs, such interest may, if justicc require it, be ~ v i t l h ~ l d

wholly

or in part, and where a bill is expr~sscd to hc paynblc with interest at n given rate, iatcrest, as dnimges illay or may ilot be given at the same rate as interest proper.

Transferor by de-

58, (1.) Where the holder of n bill payablc to bearer negotiates

livery and transferee- it by delivery without indorsing it, he is called a "

transferor by

delivcry ."
(2.) A trmsfemr by delivery is not liable on thc instrument.
(3.) A tmnsferor by clelivcry who ncgotiatcs a. bill thereby
warrants to his immcdiatc trailsfelw being a holilcr for value that
the bill is mlmt it pnports to he, that he has a right to transfer it,
and that at the time of transfer he is not uw:m of m y f:i~ct which
rendcrs it valueless.
Discharge of' .Bill.

Payment in duo	59. (1.) A bill is discliargccl hv payrrlalt in ~ L N:	roursc by or on
cour~e.

bchalf of tl-~c

drawcc or acceptor.

Yaymcnt in due course " menns payment made at or aftcr the maturity of the bill to the holder thercof in good faith and without notice that his titlc to the bill is defective,

(2.) Subjcct to the provisions liweinnfteu contained, when a bill

is paid by the drawer or an iiidorser it is not disch~~l'ged;

but-

(a.) Where a bill payable to, or to the ordcr of, a, third party
is paid by the drnwcr, the drawer may enforce payment

thercof agniilst the ;~cccytor,

but may not Te-iss~~e

the bill:

(6.) When: a 1)iN is pnid by an iodorscr, or where a. bill papble to drawer's order is pnid by the drmve~, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if hc thinks fit, strike ont his owl1 and snbscqucilt indorsenleuts, ancl again negotiate the bill.
(3.) Where an accommodation bill is paid in due course by the party acconmodated the bill is dischargctl
Banker paying

demand draft whereon

60. When a bill payable to order on demand is draw11 on a

indorsement is forged. banker, and the banker on whom it is drawn yaj S the bill in good

frith

47" &L 48" VICTORLE, No. 312.
The Bills of B;cchanp? Act.-1884.

faith and in the ordinary comse of business, it is not incumbent on	PART 11.
the bankcr to show that the i~ldorscment of thc! payce or any sub- sccrucnt indomemcnt was made by or unclcr the authority of thc pekon whose indorsemcilt it purports to bc, mcl tllc banker is deemed to have paid the bill ill duc course, although such izldorst!-

ment has been f&y@

or made without mthoritg.

61. TYlien the acccptor of n bill is or beconies the holdcr of it at Acceptorth~hol(1er

at maturity.

or after it,s nmturitj, in his own right, the bill is discharged.

62. (1.) When thc holder of a. bill at or after its maturity abso- Express waiver.

lutely and u~~conditioaally	renounces his rights against the acceptor
the bill is discharged.

'l'llc

renunciation must

be in writing, ~ ~ i i l e s s

the bill is delivc~etl

np to the acccptor.

(2.) Thc linbilitics of any pnrty t o a bill may in like manner be

rcilouilced by the l~older before, at, or after its ma.tnrity; but

nothing in this section shall affect thc rights of a holder in due

co~ursc~

without notice of' tllc rcntulciation,

63. (1.) Whcrc a bill is intci1tion:dly na~la4cd

by thc holder or

c a l l c e ~ i ~ n -

his agent, ancl the cancellation is apparent thereon, the bill is dis-

clla~gccl.

(2.) I n like manner any party liable on a bill may be discharged by the intcntionul c:auccllntion of his signature by the holder or his agent. In such case any indorser who would have had a right of rerolxrscl against the party whose signature is cancelled, is also dis- charged.

(3.) A cancellation rmrllt uaintentiondly, or under a mistake, or without the authority of the llolcler is inoperative; but where a bill or any signature thereon appears to have bcen cancclletf the burden

of proof lies on the party who alleges that the cancellation was

made unintentioiially, or under a, mistake, or without authority.

64. (1.) IVherc n bill or acceptance is materially altcrcd without Alteration of bill.

the asseiit of all partics liablc on the bill, thc bill is avoided cxcept as against n party who has himsclf made, authorised, or assented to the alteration, and subsequent indorsers:

Provided that-

Where it bill has been niatcrinlly altered, but the alteri~tion

is not

apparent, ant1 the bill is in the hands of a holder in due course, such holder may avail himself of the hill as if it hacl riot h e n altered, and may enforce payment of it accord- ing to its original tenor.
). I n 1)articulnr the following alteratioils are material, namely, any alteration of thc datc, thc sum payable, the time of payirient, the place of p:~yrnent, and, vhere a bill has been acccptcd generally,
(3.
the addition of a plscc of payment without the acceptor's assent.
Acceptance
47' & 48' VICTORI.E, No. 312.
The Bills qf Bxchmtge Act.-1884.

PART

11.

Acceptance and Pnjmnt .fbr ITunor.

Acceptance for honor

szcpni protest.

65, (1.) Where a bill of exchange has been proteited for clishonor by non-acceptance, or protcstcd fo r better scculity, and is not overdnc, any person, not being il pnrty alreadc liable thercon, may, with the consent of thc holilcr, interrene n l h ncccpt ~ i l e bill sup6 protest, for the honor of any party liable thereon, or for tllc honor of tllc person for whose account the bill is drawn.

( 2. ) 9

bill may be acceptcd for homr f o ~

part only of the smn

for which it is drawn.

(3.) An acceptance for honor sqwri protest in orck~.

to I)c valid

must -
(a.) be writtcn on the bill, and indicatc that it is an ncccptailca
for honor:
(6.) be signed by the acccptor for houor.
(4.) Where an acceptancc for honor does not c.spr.essly state for
whose honor it is made, i t is deemed to bc ail acccptanct. for tlw
honor of the rlrawer.

( 5. ) \\Jherc. a hill payable after sight is ncccptctl for hoiiou, its maturity is calculated Sronl the il:~,te

of tlic noting fbr non-acceptance,

and not from t h

date of' the acccptai~ce

for honor.

Liability of accept or

for honor.

66, (1.) Thc acccptor for honor of a bill b y i~cceptiilg

it cng;~gcs

that llc will, 011 t h e 1xcsentinent. pily the hill according to t,he tenor
of his acceptance, if i t is ]lot p i d by the drance. providctl i t has
bccn duly presented for payment, and protwtrd fbr ~loll-pi~pmellt,
and that he receives noticc of thew facts.
(2.) The acceptor for honor is liable to the holdor m d to all

parties to the bill subsequent to the party for whose honor hc 11;~s

accepted.

Presentment to

acceptor for honor.

67, (1.) JVhcre a dishono~ecl bill has been ucccpted for llo~ior

s u p d protest, or contains n i.efereiice in case of necd, it must he pro- tested for non-paymciit before i t is preseatcd for l) i~yn~ent to the acceptor for hoilor, or refercc in cnsc of necd,
(2.) Where the address of thc ncccptor for honor is in the smie place w h r e the bill is protestc:d for non-payment, the bill must bc presented to him not l a t n than the day following its nintndty; aud where the addrcss of the acceptor Sor llonor is in somc place othcr
than the place whcrc it was p-m.otrstccl for non-payrncnt, thc bill
must bc forwarded not later than the d q folloving its maturity for
preselltrncn t to him.

(3.) Delay in prescntnient or non-prescntmei~t

is wcused by any

circumstancc ~vhich

would escusc delay in l~rescntment

for payment

or non-presentment for payment.
(4.) When a bill of exchange is dishonorcc1 by the acceptor for
honor it must bc protested for non-payment by him,

68,

(l.)

Where

(S.) Where two or more pcrsons offm to pay n bill for the honor

of different parties, the person whosc paylncrlt will dischnrgc most

partics to tllc bill shall hitvc~

tltc pwfrrcwco.

(3.) Payment for llonor s q m i protcst, in orclcr to operato as such and not as n merc vo1unt;xry papnlcnt, niust l)c attested by n notarid: ~ r t of honor which nlay 1x1 aiqxhlldnl to thc p t c s t or form an cstension of it.

(4.) Tlie notnrial act of bonor must bc founded on n cleclaration 111ac!e by the payer fol- Iionor, or his agent in that behalf. tlcclnring his intention to i n y the hill for honor, and fbr whose llonor he pays.

( 5. ) Where a bill has been paid for honor, all parties subsequent to the l m t y for whosc honor it is paid arc tlischargctl, but the payer for honor is snl~~.og:.ated fbr, and s ~ ~ c c c ~ c i s to both tlrr: rights ancl duties of, the Iloltler :t& regnids the party for whose lionor he pays, ilnd all piutim liablt: to that p:ut,y.

(6.) Thtl p ~ \. ~ r

for h n o r on paying. to I

holdor the alnouot of

the bill and the notnrial eslmiscs ~ncitleiital to its dishonor is cntitlcrl to recciw both tlic bill itscilf i~ncl thc protest. If the holder do not on tlonliultl delircr thcnx up he shall be liable to t41o p y o r for llonor in dau~ages.

( 7. ) Whcre the holder of

a bill rcfnscs to rcccivc p q m e n t sup"\

prutest 11': shall lose his right of recourse against ally party ~vllu

would have been tlischarged hy such payincat.

Lost fistrzcnzents.
69, Vhert: n bill 'has: been lost before i t is overdue, thc person Ilol(lcr's right to

who was the holticr of i t may a1)ply to the drawer to give him ilupliorrtc: of lust bill

another bill of thc sainc? tenor, giving security to thc c!rnwer if 1-equiretl to inrlcmnify hiin against all persons whatcwr in cnsc the bill alleged to have been lost shall bt: f'ouncl again.

If the drawer on request as uforcwitl rcfusc~s to give such dup- lica.tc3 bill, he may be compelled to do so.

I n any action or proceeding upon a bill, the court or a, judge may order that the loss of the instrument shall not be set up, providecl an indemnity bc given to the satisfaction of thc court or judge aeainst the claims of any o t h ~ r person upon thc instrument in question.

On lo"t"ill.

70.

Bill

i r ~

cn Set.

71. (1.) Wlicrl: a bill is drawn in a set, cach part of the sct being Rules as to sets.

numbered, ancl containing tt, rcfereiicc to thc other parts, the

whole of the parts constitute one bill.

(2.) Where
38 47" Kc 48" VICTORIE, No. 312.

.--W------- -p---

------.p

- -.

-
The Bills of Bxchnnge Act.-1884.

PART

11.

--
(2.) Where the holder of ;l, set indorses two or more parts to different persons, he is liable on evcry such part, and every indorser
subsequent to him is liable on thc part hc has himself indorsed as if
the said parts were scparate bills.
(S. j Where two or more parts of a set arc negotiated to different holders in due course, the holder whose title first accrues is as lwtween such holders clecrnotl the true owner of the bill; but nothing in this sub-section shall affect the right.; of a person who in due

course accepts or pays tlle pi~rt

first presented to him.

(4.) The acceptance may 1)e writtcri oil any part, and it wust bc written on one part only.
If the drawee accepts inorc t11an one part, and such accepted

parts get into the hands of different hul(ilcrs in clue course, he is

liablc 011 every such part as if i t were a separate bill.

(5.) When the acccptor of

a bill drawn in n srt pays it without

requiring the part ba r ing hit; scccptancc to 11c dclivcred up to him, and that part at matnrity is outstanding in thc hands of a llolcler in due course, he is liable to thc holder thereof.
(6.) Subject to tlic preceding rules, wherc ;luv one part of a bill drawn in a sct is discllargcd by payment or dtherwise, thc whole bill is discharged.
l h l c s where lams

ronfli~t.

72. TVhcre a bill drawn in one country, or colony, is negotiated,

acccptccl, or payable in another, thc rights, duties, and liabilities of

the parties tht~rcto

n w cictc~rminrti

as follows-

(1.) Thv valitlity of u bill i ls rrgarcls requisites in form is dctw
m i n d by thc law of the place of issue, and the validity as
regards requisites in form of the supcrvcning contracts, k l i

as acceptance, or indorsement, or acceptancc S Z I ~ ~ is dctcrixincd by tllc law of thc placc whcrc such contract protest,

was made:

Provided that-
(a.) Where a bill is issued out of the province it is not invalid
by reason only that it is not stamped in accordance with thc law
of the placc of issue:
(71.) Where it bill, issued out of the province, conforms, as regards requisites in form, to the law of the provincc, it may,
for the purpose of enforcing payment thereof, be treated as
valid as between all persons who negotiate, hold, or become
par ties to it i11 thc province.
(2.) Subject to the provisions of this Act, thc interpretation of
the drawing, indorsement, accepttuice, or acceptance s u p 1 protcst of a hill, is clctcrrnimxi by thc law of the place where

si~cll

contract is made:

Provided

47" cP- 48" VICTORIA$ NO. 312.

-
-
The Bills of' Ezchauge Act.--1884.

---

PART XI.

Provided that whcrc an inland bill is inciorsed in :L

fowigtl

country the indorsemcn t shall as regards thc payer bc ill ter-
preted according to the law of' the pro'i7ince.

(4.) T

is 1

out of

but y i l y a l l ~

in ihc provincc

a i d the smn payable is not exp~essed in the c1mwic.y
of the province, thc amount shall, in thc ahscnrc of so~nc
express stipulation. be calculated according to the mtc of
cscllangc for sight drafts a t tllc plncc of lm,ynient oii the d:~y
tllc bill is payable.
( 5. ) TVlvw n bill is drawn in onc conntry and is pnynblc in
mother, the dnc clzltc thcreof is cletcr.nlinct1 according to thc
law of the plnct: wherr i t is payable.
Except as othermisc proviclccl ill this Part, the provisions of this

-4ct applicx1)l~:	to ;L bill of excl~:angc: pny;~Wc	on tlcm:nld :lpply to n
cheque.

74. Subject to the provisions of this Act-	1'lec;entmm~t
for nnvment.

of cl~eque

(1.) Where n clreqne is not prcsmtccl for pngrn~nt within n

rcnsonsblc timc of its isslrc, and the c l r a ~ w ~

or tlic per.;on on

whoscb account i t is rl~xwn

liad the right at the: timc of sucah

l~~csentment as between him and t l r ~ bi~nkcr tro JI:I,VO the chtquc 1mid and suffCrs actual damngc through tllc delay? 1~ is discharged to the estent of such tl;lan;lge, that is to ssy, to the cstcnt to which such drawer or person is a crcdit& of snch banker to a I a i y c ~ amo~ur t than he would have been had such cheque been paid.
( 2. ) In determining what is a reasonable time rrgiwd shilll1)e had to the nature of the instrument, the usage of trade and of bankers, and the facts uf thtl particular clasr:.
(8. ) The holder of such cheque as to n-liidi such dr;nvcr or person is clischarged s l d be a creditor, in lien of such drawer or person, of surll l~unker to the extent of s~ch;~dischargc, and entitled to recover the amount from him.
75, The duty and authority of d a n k e r to pay a cllcquc drawn Revocationofbanlwfi

012 him by his customer are determined by-

authority.

(l	.) Countermand

47' & 48" VICTORIR, No. 312.
(2.) Notice of the customer's clent,h.

General and sperid	76.	(l.) Where a cheque bcars across its fitcc an addition of-
crossings defined.

(a.) The words "and company" or m y abbrcr-iation thereof between two parallel transverse lines, eitlwr with or

without the words

not negotiable": or.

( b. 'l'

parallel trmsverso lines simply, either with OY withont

the words

not negotit~blc"; that aclditioiz constit~ltes n

cros&q.., and the chcqr~c

is crossd generally.

2, Wherc u r:hcquc bcnrs across its facc all acidition of t'tle n a n ~
of ;t banlicr, citlicr with or ~vitlmnt the words not nt3go- tinble," that iddition constitutes a crossing, aud the cllequt~ is crossed spccidlg ancl to that banker.
Crossing by dmwer

or after issue.

77. (1 .) d r:licquce may be cbl.osst.d generally or q)ccinlly by tlw

drawer.
(2.) Where a cheq~ltt is uncrossed, tile holder map cross it gcncr:tlly or spcci:~lly.
(3.) W l m c n clmqw is crosscd yemwlly the holcler nmy cross i t
specially.

(6.) Where an uncrossrd chequc, or a cheque crossed ge~lerally, sent to a banker for collection, hc Inay cross it specially tci

himself.

Crossing n material

part of chcquc.

78. A crossing nutllorisctl bj- this Act is n material pnxt of thc rhcquc; i t slla11 not k)c l l awful for any person to ol~litcmte

or, except

as n~tlmtisctl

by this Act, to add to (w-dtcr the crossing.

D d e s of bnnkeras	79* (I.) \Y~ICTC	:I cheque is crosa:d spra idlyto mow than one
to crossed cheques.

banker except when crossccl to :m agent for collectioli bcing s

bmker,

the banker on whoxu it is drawn sliall refuat: pvrnent tllcreof:

(L.) TVhcrc t l ~

baulu:r. 0x1 whoin a C I I ~ I I C

is drawn mllich is so

C ~ O S S C L ~ n c v ( ~ t h e l c s ~ pays thc sanic, or pays a c h q u c crosscd

crencra11.y. othcrivisc than to a baalier, or if crossed spctcially otherwist:

tllan to tlic I~anlier to whom i t is crossed, or his agcut f w collection

being ;L

banker, lie is liable to the true o w n c ~

of the chque for any

Inss hc may sustain owing to tlie chcquc haling been so paid:

Provicltxl tlmt where a chcquc is presented for payment which
does
47' S: 48" VICTOIZIE, No. 312.
Thc Bills of' lihclzunge Ad.- 1884.

.--p--

-. -- - - ----

.--

---

does not at the time of prescntmcilt appcar to be crossccl, or to have hid a crossiiig \vhic:h has been obliterated, or to have bwn :ul(led to or altered otherwise than as authorised by this Act, the banker paying the cheque in good faith and witllont llegligence shall not be responsible or incur any liability, nor shall the pyrncnt bc qucs- tioned by reason of thc chcquc having been crossccl, or of the cross-

ing having been obliterated or having been added to or altered other- wise t11an as authorised by this Act, and of payment having been

nade othcrwisc than to a banker or to the banlwr to whoin the cheque is or was crossed, or to his agent for collection being rt banker, as the case may bc.

80. Where the banker, on whom x crossed cheque is drawn, in

Protection to banker

(rood faith and without ncgligcncc pays it, if crossed generally,	and drawer where
t,	cheque is crossed.
to a ba~iker, im(l if C I ' O S S ~ ~ hpecially, to the banker. to whom it is crosscd, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the harids of the payce, t lx drawer, s l d 1 respectivclv Fe entitled to the Ramp rights and 1~ placed in the same position as if payment of the cheque had been irlade to the true owner thered.

81, Where a person talics a crossed chequc which bears on it

Effect of crossing 011

the words "not negotiable," he shall not h a w and shall not be

holder.

capable of giving a better title to the cheque than that which the

pason from whom hc took it had.

$2, Where a, bankcr in good faith and without ncgligcncc rcccivcs payment for a custonlcr of a chequc crossed gencrally or specially to himself, and the customer has no titlc or a dcfwtive titlc tlicretg, the banker shall not incur any liability to thc true owncr of thc chcqtzc by reason only of having rcceived such paymalt.

PART IV.

$3. (1.) A promissory note is m unconditional prornisc in

Promissory note

writing nmdc by one person to anothcr signc~d by the i ~ l t e r,	dcfined.
uilgagiiig to pay on dcniand, or at a fixed or determinal~lc future time, a sum certain in money, to, or to tllc order of a spccifiecl person or to bearer.
(2.) An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unlcss ancl until it is indorsed by the maker.

(3.) A note is not invalid by reason only that it contains also a
of collateral security with authority to sell or dispose tllereof.
(4.) A note which is, or on the face of it purports to bc? both made

and payable within Australia, is an inland note.	Any other note
is a foreign note.

The Bills o f EccAnnge Act.--1884.

PART m.

84.

A prornissnry note

i q inchontc :~nd

incomplete until delivel.~

Dclivcry necessary.

thcreof to the payee or bcnrcr.

Joint and several	85. (1.) A promissory note may bc rn;~dn	by two or morc makers,
notes.

and t h y niny be liable tlrercon jointly, or joiiltly and sc\.rmlly
according to its tenor.

(2.)

W l m e a note runs " I promise to p ;~y

" nnd is sigiicd by two

or more persons it is deemed to be t l l ~ i r

joint and severid note.

Note payable ou

86,

(1.) \C'here a notc pnyrtblc on deinantl has been inclorsccl, it

demand.

must be presentccl for payncat witllin a. reasonnblc time of tlic. in-

dorsement.

If it bc not so pwenteil the indorser i u discharged

(2.) In clctcrmining what is a rc;tsonnblc time, regard ~ 1 ~ ~ 1 1

bc lind

to the nntim of t l ~	metr~umcnt,	the ilsage of tradc, ;uid tlie i i lc t~	of
thc particular case.

(3.) Where n note pilYi~l)1c

011 demand is ncgoti;~trd,

i t is not

deemed to hc ovcrdnr, for the purpose of affwting the holder with dcfects of title of which hc lrad nn notice, hy reason that it appcars that a reasonable time for presenting it for paj ment has t~lalwrl since its issue.

Presentment of note	87,	(1.) Whcre i~ 1)rornissory not^ is ill t l i ~	body of it made
for payment.

pajable at 21, particular plaac, i t ims t bc presented for payment a t that place in orclcr to render thtl maker liablc. 111 iniy other case, prcsentrncnt for payment is not ilcccssaq ill orclcl* to render tlio makcr liable.
(2.) Presentment for payment is rlccessary in ordcr to rendr-!Y the inciorser of a note liable.

(3.) Whcre a note is in tlie body of it mxlc payable at a parti-

cular place, presentment a t that place is necessary in order to render

an indorser linblc; but when n place of pnyrnrnt is iiidicatnl by

way of ~nern~l'anchrn

only, 1)resentmrnt at that place is sufficicilt to

rentlcr t h ~

indors~r

liablc, but n prcsc3utmcnt to thc maker clscwhore,

if sufficient in othcr rcspwts, sllnll also suffice.

Liability of maker.

88. The mnkrr of a promissory imtc by making it-

(1). Engages that he will pay it according to its tenor:

(2). Is prccludccl from dtinyii~g to a holder in cltie course the

existelm of

the payee and his then c:itp:t~ity

to indorse.

Applic,ation of Pal t	89. (1,) Qubjcct to the pmvisions in this part m d, t:xccpt	as by
11. to notea.

this scction provided, the provisions of this Act relating to bills of exchangc apply, with the necessary modifications, to promissory notes.
(2.) In applying those provisions tlrc maker of n note shall bo
deemed t o correspond with the nccrptor of n bill, and the first indorser.
of n note shall bc drcimd. to correspond with the drawer of ;l11

accepted bill payable to clrawer's ordcr.

(3.) The

47' & 48" VICTORIX, No. 312.

_ _ _ 11111-11

L p p _ I - - I - -

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I he Bills of Exclrange Act.-1881.

W -

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(3.) Thc following provisions as to bills do not apply to notes,

PART IV.

provisions relating to-
(u.) Presentment for accaptance:
( b. ) Acccptnnct::
(C.) Acceptancc szyril protest:
(d. j Bills in ;1: set.

(4.) TTherc a foreign notc is dishonorcd, protest thereof is nni~cccssltl.y.

SUPTLEIIENTSRY.
90. A thing is deemed tu 1)o dolitb in goo(1 fhith, within tlm Good faith.
meaning of this Act, mhcrc i t is in fact clone honestly, whether it is
done negligently or not.
91. (1.) MTherc, by this Act, any instrument or writing is re- Signature.
q u i t d to bc sigilcd by any person, it is not nrwssiiry thiit he

should s i w it with his ov7n hand, but i t is sufficient if his	signature is writtcil tllrrcon by some other person by or under his b
authority.
(2.) In the case of a corporation, where, by this Act, any instru- ment or writing is rcquircd to bc signal, it is snfficicnt if the
instrument, 01% wit ing, kc scaled with the corporate seal.

Rnt nothing in this scction ~ h i ~ l l

l x construed as requiring tllc

bill or notc of a,

corporation to bc unclcr seal.

92. TI7herc, by this Act, thr time limited for doing any act or computationof t h e

thing is less than three days, in xeclroninq

L timc, non-business days

are c~xclnded.

Non-businc?sx days " for the purposes of this Act mean-
(a.) Sunday, Good Friday, Christmas Day:

( b. ) A

bank or public holiday:

( c, ) A day appointed by Proclamation as a public fast or thanlrs-
giving day.
Any other day is a business day.
93. For the purposes of this Act, whcrc a hill or note is required When noting

to be protested within a specified time or before some further pro- proteat.	equivalent to
ceeding is taken, i t is sufficient that the bill has bcon noted for p o t c s t bcforc the expiration of the spccificil time or thc taking of the proceeding; an6 the formal protest may be extended at any time thereafter as of the date of the noting.

94, Where
32 47" & 48" VICTOKIW, No. 312.

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The Bills of' Exclzaye Act.-1884.

PART

94, Where n clislionorcct bill or note is authorised or required

- - - --

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Protest when notary	to be protested, and the scrviccs of n aotxy cannot bc obtained at
not accessible.	the place where the hill is dlishonorc.d, any householder or sub-
stantial resident of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the ciishonor of the bill, arid the certificate shall in all respects operate as if it were a formal protcst of the bill.
The form givciz in the Schedule to this Act may be uscd with neceswry rnoclifications, and if used shall be sufficient.

Savings.

95. (1.) l'lic rulcs in insolvency rclating to bills of exchange,

promissory notes, and cheques, shall continue to apply thereto not-
withstanding anything in this Act contained.
(2.) 'I'Bc rulcs of common law including the law merchant, save
in so far as they are inconsistent with the express provisions of this
Act, shall continue to apply to bills of exchange, pvornissory notes, and cheques.

(3.) Nothing in this Act or in any w p ( ~ n l

rffcxted tlmreby shall

affect the provisions of the Companies Act, 1564, or Acts amending
it, or any Act relating to joint stock banks or companies.
Repeal of 3, 1561,

ss. 4, 5; and 100,

96. The fourth and fifth sections of The Mercantile Law Amend-

1878. merlt Act, 1861, :mtl tliv whole of The Mercantile Law Further
Amendment Act, 18'78, and of Act No. 19 of 1570-71, intituled an
Act to arncnd the law rclating to the cndorsomcnt of cheques, drafts, or orders, are hereby repealcd; but such repeal shall not affect anything done or suffered, or ;my right, title, or interest acquired before the comncnccmcnt of this Act, or any legal pro- ceeding or remedy in respect of any such thing, right, title, or

I11 thc namc and on behalf of IIer Majesty, I hereby assent to

this Bill.
WILI,IARI C. F. ROBISSON, Governor.
SCHEDULE.
47" R- 48" VICTOKIdE, NO. 312.

The Bills ot Exchange Act.--1884.
SCHEDULE,
Form of protest which may be used when the services of a notary cannot
be obtained.
Know all men that I, A. B. [householder], of
, at the request of C. D., there being

no notary public available, did on the

day of

, 188

at, demand payment [or acceptance] of the bill of exchange here-

under written, from E. F., to which demand he made answer [state answer, gay],	wherefore I now, in the presence of G. H. and J. IC , do protest the said bill of
exchange.

(Signed)

A. B.

Witnesses.

N.B.-The

bill itself should bc annexed, or a copy of the bill and all that is

writtcn thereon should be underwritten.

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Adelaide: By authority, E. SPILLER, Government Printe~,

North-terrace.

E-S12.