Bills of Exchange Act 1884 (WA)

48 VICTORIIE. No. 10

Bills of Exchange

WESTERN AUSTRALIA

ANNO QUADRAGESIMO OCTAVO

VICTORIA; REGIME

No. 10

An Act to Codify the Law relating to Bills of Exchange,

Cheques, and Promissory Notes.

[Assented to 27th August, 1884.

the Legislative Council thereof, as follows :— B E it enacted by His Excellency the Governor of Western Australia and its Dependencies, by and with the advice and consent of

PART I.—PRELIMINARY

1. This Act may be cited as The Bills of Exchange Act of 1884.' Short title

2. This Act shall come into operation on the first day of January, Commencement

one thousand eight hundred and eighty-five. of Act

3. In this Act, unless the context otherwise requires—

Interpretation

of terms

' Acceptance' means an acceptance completed by delivery or

notification ;

Action' includes counter-claim and set-off;

Banker' includes a body of persons whether incorporated or

not who carry on the business of banking ;

`Bankrupt ' includes any person whose estate is vested in a trustee or assignee under the law for the time being in force relating to bankruptcy ;

Bearer' means the person in possession of a bill or note which is payable to bearer ;

Bill' means bill of exchange, and note ' means promissory

note ;

Colony' means the Colony of Western Australia ;

`Delivery ' means transfer of possession, actual or construc- tive, from one person to another ;

`Holder ' means the payee, or indorsee, of a bill or note who is in possession of it, or the beare/thereof ;

`Indorsement' means an indorsement completed by delivery ; `Issue' means the first delivery of a bill or note, complete in

form, to a person who takes it as a holder ;

`Person ' includes a body of persons whether incorporated or

not ;

Value ' means valuable consideration ;

' Written ' includes printed, and `writing' includes print.

48 VICTORI/E. No. 10

Bills of Exchange

PART II.—BILLs OF EXCHANGE

FORM AND INTERPRETATION

Bill 0 exchange	4. (1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer.
define*
(2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.
(3) An order to pay out of a particular fund is not unconditional within the meaning of this section ; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional.

(4) A bill is not invalid by reason

(a) That 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 specify the place where it is drawn or

the place where it is payable.

Inland biu

5. (1) An inland bill is a bill which is, or on the face of it purports

to be, (a) both drawn and payable within Australia, Tasmania, New

Zealand, or Fiji Islands, or (b) drawn within Australia, Tasmania, New

Foreign bill Zealand, or Fiji Islands, 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 it as an inland bill.

Effect where dif-	6. (1) A bill may be drawn payable to, or to the order of, the (2) Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.
ferent parties to
bill are the sonic	drawer ; or it may be drawn payable to, or to the order of, the drawee.
person
Address to	7. (1) The drawee must be named or otherwise indicated in a bill (2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or two or more drawees in succession is not a bill of exchange.
drawee	with reasonable certainty.
Certainty re-	8. (1) Where a bill is not payable to bearer the payee must be (2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two or one or some of several payees ; a bill may also be made payable to the holder of an office for the time being.
quired as to
Payee	named or otherwise indicated therein with reasonable certainty.
(3) Where the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer.

48 VICTORIX. No. 10

Bills of Exchange

an intention that it should not be transferable, it is valid as between negotiable 9. (1) When a bill contains words prohibiting transfer, or indicating Mat bills are

the parties thereto but is not negotiable.

(2) A negotiable bill may be payable either to order or to bearer. (3) A bill is payable to bearer which is expressed to be so pay-

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

blank.

(4) A bill is payable to order which is expressed to be so pay- able, 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 ex-

pressed to be payable to the order of a specified person, and not to him

or his order, it is nevertheless payable to him or his order at his option.

10. (1) The sum payable by a bill is a sum certain within the Sum payable

meaning of this Act, although it is required to be paid

(a) With interest.

(b) By stated instalments.

(c) By stated instalments, with a provision that upon

default in payment of any instalment the whole

shall become due.

(d) According to an indicated rate of exchange, or accord- ing to a rate of exchange to be ascertained as directed by the bill.

(2) Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable.

(3) Where a bill is expressed to be payable, with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof.

11. (1) A bill is payable on demand— Bin payable on

(a) Which is expressed to be payable on demand, or at demand

sight, or on presentation ; or

(b) In which no time for payment is expressed.

(2) Where a bill is accepted or indorsed when it is overdue, it shall, as regards the acceptor who so accepts, or any indorser who so indorses it, be deemed a bill payable on demand.

12. A bill is payable at a determinable future time within the Bill payable at a

meaning of this Act which is expressed to be payable— future time

(1) At a fixed period after date 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

happening 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.

13. Where a bill expressed to be payable at a fixed period after Omissionof date

date is issued undated, or where the acceptance of a bill payable at .igiudriablo

a fixed period after sight is undated, any holder may insert therein

48 VICTORI/E. No. 10

Bills of Exchange

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 date.

Ante-dating and	14. (1) Where a bill or an acceptance or any indorsement on a bill is dated, the date shall, unless the contrary be proved, be deemed to be the true date of the drawing, acceptance, or indorsement, as the case may be.
postdating
(2) A bill is not invalid by reason only that it is ante-dated or post-dated, or that it bears date on a Sunday.

Computation of 15. Where a bill is not payable on demand the day on which it (1) Three days, called days of grace, are in every case, where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace : Provided that

time of Payment falls due is determined as follows :-

(a) When the last day of grace falls on Sunday, Christmas Day, Good Friday, or a Bank Holiday under ' The Bank Holidays Act, 1884,' the bill is due and payable on the succeeding business day.

(2) Where a bill is payable at a fixed period after date, after sight, or after the happening of a specified event, the time of pay- ment is determined by excluding the day from which the time is to begin to run and by including the day of payment.

(3) Where a bill is payable at a fixed period after sight, the time begins to run from the date of the acceptance if the bill be accepted, and from the date of noting or protest if the bill be noted or protested for non-acceptance or for non-delivery.

(4) The term month ' in a bill means calendar month.

Case of need 16. The drawer of a bill and any indorser may insert therein the name of a person to whom the holder may resort in case of need; that is to say, in case the bill is dishonoured 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 he may think fit.

Optional stipul e,. 17. The drawer of a bill, and any indorser, may insert therein an (1) Negativing or limiting his own liability to the holder. (2) Waiving as regards himself some or all of the holder's

tions b drawer express stipulation—

or inr do yser

duties.

Definition and 18. (1) The acceptance of a bill is the signification by the drawee (2) An acceptance is invalid unless it complies with the follow-

tequisite,s of

aoceptance	of his assent to the order of the drawer.
ing conditions ; namely :—

48 VICTORIE. No. 10

Bills of Exchange

(a) It must be written on the bill, and be signed by the drawee. The mere signature of the drawee with- out additional words is sufficient.

(b) It must not express that the drawee will perform his promise by any other means than the payment of money.

19. A bill may be accepted— Time for accept,

(1) Before it has been signed by the drawer or while otherwise an"

incomplete ;

(2) When it is overdue, or after it has been dishonoured by a previous refusal to accept or by non-payment.

(3) When a bill payable after sight is dishonoured by non- acceptance, and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.

20. (1) An acceptance is either (a) general or (b) qualified. General andt-

(2) A general acceptance assents without qualification to the to.\\ces

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) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a con- dition therein stated :--

(b) partial ; that is to say, an acceptance to pay part only

of the amount for which the bill is drawn :

(c) local ; that is to say, an acceptance to pay only at a

particular specified place.

An acceptance to pay at a particular place is a general accept- ance, unless it expressly states that the bill is to be paid there only and not elsewhere :

(d) qualified as to time :

(e) the acceptance of some one or more of the drawees,

but not of all.

21. (1) Where a simple signature, on a blank stamped paper, is /notate in ru

delivered by the signer in order that it may be converted into a bill, it m`n

operates as a prima facie authority to fill it up as a complete bill for

any amount the stamp will cover, using the signature for that of the

drawer, or the acceptor, or an indorser ; and, in like manner, when a

bill is wanting in any material particular, the person in possession

of it has a prima facie authority to fill up the omission in any way he

thinks fit.

(2) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact.

Provided that if any such instrument after completion is nego-

tiated to a holder in due course, it shall be valid and effectual for all

48 VICTORDE. No. 10

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purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.

Delivery	22. (1) Every contract on a bill, whether it be the drawer's, the acceptor's, or an indorser's, is incomplete and revocable, until delivery of the instrument in order to give effect thereto.
Provided that where an acceptance is written on a bill, and the drawee gives notice to, or according to the directions of, the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable.
(2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery

(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 been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill.

But if the bill be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed.

(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved.

CAPACITY AND AUTHORITY OP PARTIES

Capacity of	23. (1) Capacity to incur liability as a party to a bill is co-extensive Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations.
parties	with capacity to contract.
(2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.

Signature essen- 24. No person is liable as drawer, indorser, or acceptor of a bill (1) Where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name.

tial to liability who has not signed it as such : Provided that

(2) The signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.

Forged or un-	25. Subject to the provisions of this Act, where a signature on a
authorised

signature bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and no right to retain the bill or to give a dis- charge therefor or to enforce payment thereof against any party

48 VICTORIA No. 10

Bills of Exchange

thereto can be acquired through or under that signature unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority.

Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.

26. A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by

Procuration

signatures

such signature if the agent in so signing was acting within the actual

limits of his authority.

27. (1) Where a person signs a bill as drawer, indorser, or acceptor, and adds words to his signature indicating that he signs for or on

Person signingits agent or in

representative

behalf of a principal or in a representative character, he is not person-

capacity

ally liable thereon; but the mere addition to his signature of words describing him as an agent or as filling a representative character does not exempt him from personal liability.

(2.) In determining whether a signature on a bill is that of the principal or that of the agent by whose hand it is written, the con- struction most favourable to the validity of the instrument shall be adopted.

THE CONSIDERATION FOR A BILL

28. (1) Valuable consideration for a bill may be constituted by	Value and holder
for value

(a) Any consideration sufficient to support a simple

contract ;

(b) An antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.

(2) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.

(3) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.

29. (1) An accommodation party to a bill is a person who has Accommodation

signed a bill as drawer, acceptor, or indorser without receiving value bill

or party

therefor, and for the purpose of lending his name to some other

person.

(2) An accommodation party is liable on the bill to a holder for value, and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.

complete and regular on the face of it under the following conditions, course 30. (1) A holder in due course is a holder who has taken a bill, Holder in due

namely,—

(a) That he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact :

(b) That he took the bill in good faith, and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it.

48 VICTORIX. No. 10

Bills of Exchange

(2) In particular the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.

(3) A holder '(whether for value or not) who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.

Presumption of

value and good 31. (1) Every party whose signature appears on a bill is prima

faith

facie deemed to have become a party thereto for value.

(2) Every holder of a bill is prima facie deemed to be a holder in due course ; but if in an action on a bill it is admitted, or proved, that the acceptance, issue, or subsequent negotiation of the bill is affected with fraud, duress, or force and fear, or illegality, the burden of proof is shifted, unless and until the holder proves that subsequent to the alleged fraud or illegality value has in good faith been given for the bill.

NEGOTIATION OF BILLS

Negotiation of

32. (1) A bill is negotiated when it is transferred from one person

(2) A bill payable to bearer is negotiated by delivery.

(3) A bill payable to order is negotiated by the indorsement of

bill

to another in such a manner as to constitute the transferee the holder

of the bill.

the holder completed by delivery.

(4) Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the indorsement of the transferor.

(5) Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability.

Requisites of a

valid indorse. 33. An indorsement in order to operate as a negotiation must (1) It must be written on the bill itself and be signed by the indorser. The simple signature of the indorser on the bill, without additional words, is sufficient.

meat comply with the following conditions, namely

An indorsement written on an allonge, or on a `copy' of a bill issued or negotiated in a country where `copies' are recognised, is deemed to be written on the bill itself.

(2) It must be an indorsement of the entire bill. A partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not operate as a negotiation of the bill.

48 VICTORIa No. 10

Bills of Exchange

(3) Where a bill is payable to the order of two or more payees or indorsees who are not partners all must indorse, unless the one indorsing has authority to indorse for the others.

(4) Where, in a bill payable to order, the payee or indorsee is wrongly designated, or his name is mis-spelt, he may indorse the bill as therein described, adding, if he think fit, his proper signature.

(5) Where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill until the contrary is proved.

(6) An indorsement may be made in blank or special. It may also contain terms making it restrictive.

tion may be disregarded by the payer, and payment to the indorsee is indoi,ement 34. Where a bill purports to be indorsed conditionally, the condi- Conditional

valid whether the condition has been fulfilled or not.

35. (1) An indorsement in blank specifies no indorsee, and a bill Imlorament bun ane nt spec

so indorsed becomes payable to bearer.	indorsement ial
(2) A special indorsement specifies the person to whom, or to whose order, the bill is to be payable.
(3) The provisions of this Act relating to a payee apply, with the necessary modifications, to an indorsee under a special indorsement.
(4) When a bill has been indorsed in blank, any holder may convert the blank indorsement into a special indorsement by writing above the indorser's signature a direction to pay the bill to or to the order of himself or some other person.

36. (1) An indorsement is restrictive which prohibits the further Restrictive is

negotiation of the bill, or which expresses that it is a mere authority to 'I'm'

deal with the bill as thereby directed and not a transfer of the owner-

ship thereof ; as,', for example, if a bill be endorsed Pay D. only,' or

Pay D. for the account of X.,' or ' Pay D. or order for collection.'

(2) A restrictive indorsement gives the indorsee the right to receive payment of the bill and to sue any party thereto that his indorser could have sued, but gives him no power to transfer his rights as indorsee unless it expressly authorise him to do so.

(3) Where a restrictive indorsement authorises further transfer, all subsequent indorsees take the bill with the same rights and subject to the same liabilities as the first indorsee under the restrictive indorsement.

37. (1) Where a bill is negotiable in its origin, it continues to be Negotiation of negotiable until it has been (a) restrictively indorsed, or (b) discharged rolefoduureerb fir by payment or otherwise.

(2) Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had.

(3) A bill, payable on demand, is deemed to be overdue within

the meaning and for the purposes of this section when it appears on

48 VICTORI2E. No. 10

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the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact.

(4) Except where an indorsement bears date after the maturity of the bill, every negotiation is prima fade deemed to have been effected before the bill was overdue.

(5) Where a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this sub-section shall affect the rights of a holder in due course.

Negotiation of	38. Where a bill is negotiated back to the drawer, or to a prior of this Act, re-issue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.
bill to party
already liable	indorser, or to the acceptor, such party may, subject to the provisions
thereon

Rights of the 39. The rights and powers of the holder of a bill are as

holder follows :—

(1) He may sue on the bill in his own name :

(2) Where he is a holder in due course, he holds the bill

free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill :

(3) Where his title is defective, (a) if he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill, and (b) if he obtains payment of the bill, the person who pays him in due course gets a valid discharge for the bill.

GENERAL DUTIES OF THE HOLDER

when present- 40. (1) Where a bill is payable after sight, presentment for accept-

meat for accept- ance is necessary, in order to fix the maturity of the instrument. ance is necessary

(2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment.

(3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill.

(4) Where the holder of a bill drawn payable elsewhere than at the place of business or residence of the drawee has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused and does not discharge the drawer and indorsers.

Time for Fe- 41. (1) Subject to the provisions of this Act, when a bill payable

seating bill Pay-	after sight is negotiated, the holder must either present it for accept-
able after sight	ance or negotiate it within a reasonable time.

48 VICTORIE. No. 10

Bills of Exchange

(2) If he do not do so, the drawer and all indorsers prior to that holder are discharged.

(3) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case.

42. (1) A bill is duly presented for acceptance which is presented Rules as to pee- sentment for

in accordance with the following rules :— acceptance and

(a) The presentment must be made by or on behalf of ep1cour,2,`„r""

the holder to the drawee, or to some person autho- rised to accept or refuse acceptance on his behalf, at a reasonable hour on a business day, and before the bill is overdue.

(b) Where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only.

(c) Where the drawee is dead, presentment may be made to his personal representative.

(d) Where the drawee is bankrupt, presentment may be made to him or to his trustee.

(e) Where authorised by agreement or usage, a present- ment through the post office is sufficient.

(2) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance-

(a) Where the drawee is dead or insolvent, or is a ficti- tious person, or a person not having capacity to contract by bill ;

(b) Where, after the exercise of reasonable diligence, such presentment cannot be effected ;

(c) Where, although the presentment has been irregular,

acceptance has been refused on some other ground.

(3) The fact that the holder has reason to believe that the bill,

on presentment, will be dishonoured, does not excuse presentment.

43. When a bill is duly presented for acceptance, and is not xon.acceptance

accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he do not, the holder shall lose his right of recourse against the drawer and indorsers.

44. (1) A bill is dishonoured by non-acceptance-- Dishonour by

(a) When it is duly presented for acceptance, and such an ,:,°,attes'etel."'

acceptance as is prescribed by this Act is refused Vent"

or cannot be obtained ; or

(b) When presentment for acceptance is excused and the bill is not accepted.

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

45. (1) The holder of a bill may refuse to take a qualified accept- Duties as to

48 VICTOBLE. No. 10

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qualified accept- ance, and if he does not obtain an unqualified acceptance may treat

maces	the bill as dishonoured by non-acceptance.
(2) Where a qualified acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the bill. The provisions of this sub-section do not apply to a partial acceptance whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance.
(3) When the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto.
Rues as to pre-

sentment for 46. Subject to the provisions of this Act, a bill must be duly

payment

presented for payment. If it be not so presented the drawer and

indorsers shall be discharged.

A bill is duly presented for payment, which is presented in accordance with the following rules : —

(1) Where the bill is not payable on demand, presentment

must be made on the day it falls due.

(2) Where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue in order to render the drawer liable, and within a reasonable time after its indorsement in order to render the indorser liable.

In determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the par- ticular case.

(3) Presentment must be made by the holder or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person desig- nated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf, if with the exercise of reasonable diligence such person can there be found.

(4) A bill is presented at the proper place

(a) Where a place of payment is specified in the bill and

the bill is there presented.

(b) Where no place of payment is specified, but the ad- dress of the drawee or acceptor is given in the bill, and the bill is there presented.

(c) Where no place of payment is specified and no ad- dress given and the bill is presented at the drawee's or acceptor's place of business, if known, and if not, at his ordinary residence if known.

48 VIOTORIE. No. 10

Bills of Exchange

(c1) In any other case if presented to the drawee or

acceptor, wherever he can be found, or if presented

at his last known place of business or residence.

(6) Where a bill is presented at the proper place, and after the exercise of reasonable diligence no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required.

(6) Where a bill is drawn upon, or accepted by two or more persons who are not partners, and no place of pay- ment is specified, presentment must be made to them all.

(7) Where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found.

(8) Where authorised by agreement or usage, a presentment

through the post office is sufficient.

47. (1) Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the	or non-present-
Excuses for delay
ment for pay-
holder, and not imputable to his default, misconduct, or negligence.	ment
When the cause of delay ceases to operate, presentment must be made with reasonable diligence.

(2) Presentment for payment is dispensed with

(a) Where, after the exercise of reasonable diligence, pre-

sentment as required by this Act cannot be effected.

The fact that the holder has reason to believe that the bill

will on presentment be dishonoured, does not dis-

pense with the necessity for presentment.

(b) Where the drawee is a fictitious person.

(c) As regards the drawer, where the drawee or acceptor

is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if pre- sented.

(d) As regards an indorser, where the bill was accepted or made for the accommodation of that indorser, and he has no reason to expect that the bill would be paid if presented.

(e) By waiver of presentment, express or implied.

48. (1) A bill is dishonoured by non-payment (a) when it is duly presented for payment and payment is refused or cannot be ob-

Dishonour by

non-payment

tained, or (b) when presentment is excused and the bill is overdue and

unpaid.

(2) Subject to the provisions of this Act, when a bill is dis- honoured by non-payment, an immediate right of recourse against the drawer and indorsers accrues to the holder.

49. Subject to the provisions of this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour

Notice of dis-

honour and elicet

of non-notice

48 VICTORI.E. No. 10

Bills of Exchange

must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged : Provided that

(1) Where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission shall not be prejudiced by the omission.

(2) Where a bill is dishonoured by non-acceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non-payment unless the bill shall in the meantime have been accepted.

Rules as to notice

of dishonour 50. Notice of dishonour, in order to be valid and effectual, must be given in accordance with the following rules :-

(1) The notice must be given by or on behalf of the holder, or by or on behalf of an indorser, who at the time of giving it is himself liable on the bill.

(2) Notice of dishonour may be given by an agent, either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not.

(3) Where the notice is given by or on behalf of the holder, it inures for the benefit of all subsequent holders and all prior indorsers who have a right of recourse against the party to whom it is given.

(4) Where notice is given by or on behalf of an indorser entitled to give notice as hereinbefore provided, it inures for the benefit of the holder and all indorsers subsequent to the party to whom notice is given.

(5) The notice may be given in writing or by personal com- munication, and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non- payment.

(6) The return of a dishonoured bill to the drawer or an in- dorser is in point of form deemed a sufficient notice of dishonour.

(7) A written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication. A misdescription of the bill shall not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.

(8) Where notice of dishonour is required to be given to any person it may be given either to the party himself or to his agent in that behalf.

(9) Where the drawer or indorser is dead, and the party giving notice knows it, the notice must be given to a personal representative if such there be, and with the exercise of reasonable diligence he can be found.

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

given either to the party himself or to the trustee.

48 VICTORDE. No. 10

Bills of Exchange

(11) Where there are two or more drawers or indorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for the others.

(12) The notice may be given as soon as the bill is dishonoured,

and must be given within a reasonable time thereafter.

In the absence of special circumstances notice is not deemed to

have been given within a reasonable time unless

(a) Where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dis- honour of the bill.

(b) Where the person giving and the person to receive notice reside in different places the notice is sent off on the day after the dishonour of the bill, if there be a post at a convenient hour on that day, and if there be no such post on that day then by the next post thereafter.

(13) Where a bill when dishonoured is in the hands of an agent, he may either himself give notice to the parties liable on the bill, or he may give notice to his principal. If he give notice to his principal he must do so within the same time as if he were the holder, and the principal, upon receipt of such notice, has himself the same time for giving notice as if the agent had been an independent holder.

(14) Where a party to a bill receives due notice of dishonour, he has after the receipt of such notice the same period of time for giving notice to antecedent parties that the holder has after the dishonour.

(15) Where a notice of dishonour is duly addressed and posted the sender is deemed to have given due notice of dis- honour, notwithstanding any miscarriage by the post office.

51. (1) Delay in giving notice of dishonour is excused where the Excuses for non- delay is caused by circumstances beyond the control of the party giving " se am delay notice, and not imputable to his default, misconduct, or negligence.

When the cause of delay ceases to operate the notice must be given with reasonable diligence.

(2) Notice of dishonour is dispensed with —

(a) When, after the exercise of reasonable diligence, notice

as required by this Act cannot be given to, or does not

reach, the drawer or indorser sought to be charged ;

(b) By waiver express or implied. Notice of dishonour

may be waived before the time of giving notice has

arrived, or after the omission to give due notice ;

(a) As regards the drawer in the following cases, namely,

(1) where drawer and drawee are the same person,

(2) where the drawee is a fictitious person or a person

not having capacity to contract,

48 VICTORIE. No. 10

Bills of Exchange

(3) where the drawer is the person to whom the bill is

presented for payment,

(4) where the drawee or acceptor is as between himself and the drawer under no obligation to accept or pay the bill, or

(5) where the drawer has countermanded payment;

(d) As regards the indorser in the following cases, namely,

(1) where the drawee is a fictitious person or a person not

having capacity to contract and the indorser was

aware of the fact at the time he indorsed the bill,

(2) where the indorser is the person to whom the bill is

presented for payment,

(3) where the bill was accepted or made for his accom-

modation.

Noting or pro.

test of bill	52. (1) Where an inland bill has been dishonoured it may, if the holder think fit, be noted for non-acceptance or non-payment, as the case may be ; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or indorser.
(2) Where a foreign bill appearing on the face of it to be such has been dishonoured by non-acceptance, it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non-acceptance, is dishonoured by non-payment, it must be duly protested for non-payment. If it be not so protested the drawer and indorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary.
(3) A bill which has been protested for non-acceptance may be subsequently protested for non-payment.
(4) Subject to the provisions of this Act, when a bill is noted or protested it must be noted on the day of its dishonour. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.
(5) Where the acceptor of a bill becomes insolvent or suspends payment before it matures, the holder may cause the bill to be pro- tested for better security against the drawer and indorsers.

(6) A bill must be protested at the place where it is dishonoured;

Provided that

(a) When a bill is presented through the post office, and returned by post dishonoured, it may be protested at the place to which it is returned and on the day of its return, if received during business hours ; and if not received during business hours, then not later than the next business day.

(5) When a bill, drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non-acceptance, it must be pro- tested for non-payment at the place where it is ex- pressed to be payable, and no further presentment for payment to or demand on the drawee is necessary.

48 VICTORDE. No. 10

Bills of Exchange

(7) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify

(a) The person at whose request the bill is protested :

(b) The place and date of protest, the cause or reason for

protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee or acceptor could not be found.

(8) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

(9) Protest is dispensed with by any circumstance which would dispense with notice of dishonour. Delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct, or negli- gence. When the cause of delay ceases to operate the bill must be noted or protested with reasonable diligence.

53. (1) When a bill is accepted generally, presentment for payment Duties of holds as regards

is not necessary in order to render the acceptor liable. drawee or ac-

(2) When by the terms of a qualified acceptance presentment ceptor

for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day that it matures.

(3) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him.

(4) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.

LIABILITIES 01? PARTIES

54: A bill of itself does not operate as an assignment of funds in Funds in band of

the hands of the drawee available for the payment thereof, and the drawee

drawee of a bill who does not accept as required by this Act is not

liable on the instrument.

55. The acceptor of a bill, by accepting it— Liability of ac-

(1) Engages that he will pay it according to the tenor of his cep tor

acceptance.

(2) Is precluded from denying to a holder in due course-

(a)'The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill.

(b) In the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuine- ness or validity of his indorsement.

(c) In the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to indorse, but not the genuineness or validity of his

indorsement.

48 VICTORI)E. No: 10

Bills of Exchange

Liability of	56. (1) The drawer of a bill by drawing it
draiver or in-

dorser	(a) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dis- honoured he will compensate the holder or any in- dorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken.
(b) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.

(2) The indorser of a bill by indorsing it

(a) Engages that on due presentment it shall be accepted and paidaccording to its tenor, and that if it be dishonoured he will compensate the holder or a subsequent indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken.

(b) Is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer's signature and all previous indorsements.

(c) Is precluded from denying to his immediate or a sub- sequent indorsee that the bill was, at the time of his indorsement, a valid and subsisting bill, and that he had then a good title thereto.

Stranger signing	57. Where a person signs a bill otherwise than as drawer or
bill liable as in-

dorser

acceptor, he thereby incurs the liabilities of an indorser to a holder in

due course.

Measure of	58. Where a bill is dishonoured, the measure of damages, which (1) The holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior indorser
damages against

parties to dis-	shall be deemed to be liquidated damages, shall be as follows :-
honoured bill

(a) The amount of the bill :

(b) Interest thereon from the time of presentment for pay-

ment if the bill is payable on demand, and from the

maturity of the bill in any other case :

(c) The expenses of noting, or, when protest is necessary, and

the protest has been extended, the expenses of protest.

(2) In the case of a bill which has been dishonoured abroad, in

lieu of the above damages the holder may recover from

the drawer or an indorser, and the drawer or an indorser

who has been compelled to pay the bill may recover from

any party liable to him, the amount of the re-exchange,

with interest thereon until the time of payment.

(8) Where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be pay- able with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.

48 VICTORIE. No. 10

Bills of Exchange

59. (1) Where the holder of a bill payable to bearer negotiates it Transferor by

by delivery without indorsing it, he is called a transferor by delivery.' tttra elinv:irey and

(2) A transferor by delivery is not liable on the instrument.

(3) A transferor by delivery who negotiates a bill thereby

warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless.

DISCHARGE OF BILL

60. (1) A bill is discharged by payment in due course by or on Payment indite

behalf of the drawee or acceptor.	course
Payment in due course' means payment made at or after the maturity of the bill to the holder thereof, in good faith and without notice that his title to the bill is defective.
(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged ; but

(a) Where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce pay- ment thereof against the acceptor, but may not re-issue the bill.

(1)) Where a bill is paid by an indorser, or where a bill pay- able to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subse- quent indorsements, and again negotiate the bill.

(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.

61. When a bill payable to order on demand is drawn on a banker, Banker paying ktvel e andutratr

and. the banker on whom it is drawn pays the bill in good faith and in n

the ordinary course of business, it is not incumbent on the banker to meatisforng

show that the indorsement of the payee or any subsequent indorsement

was made by or under the authority of the person whose indorsement

it purports to be, and the banker is deemed to have paid the bill in due

course, although such indorsement has been forged or made without

authority.

62. When the acceptor of a bill is or becomes the holder of it at or Acceptor the holder at

after its maturity, in his own right, the bill is discharged. maturity

63. (1) When the holder of a bill at or after its maturity absolutely Express waiver

and unconditionally renounces his rights against the acceptor the bill

is discharged.

The renunciation must be in writing, unless the bill is delivered

up to the acceptor.

(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity ; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.

64. (1) Where a bill is intentionally cancelled by the holder or his Cancellation

agent, and the cancellation is apparent thereon, the bill is discharged.

48 VICTORIE. No. 10

Bills of Exchange

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

(3) A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inoperative ; but where a bill or any signature thereon appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally or under a mistake or without authority.

Alteration of	65. (1) Where a bill or acceptance is materially altered without the assent of all parties liable on the bill, the bill is -avoided except as against a party who has himself made, authorised, or assented. to the alteration and subsequent indorsers.
bill
Provided that where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, such holder may avail himself of the bill as if it had not been altered, and may enforce payment of it according to its original tenor.
Provided that nothing in this section shall affect the provisions of The Stamp Act, 1882; and Acts amending it.
(2) In particular the following alterations are material—namely, any alteration of the date, the sum payable, the time of payment, the place of payment, and where a bill has been accepted generally the addition of a place of payment without the acceptor's assent.

ACCEPTANCE AND PAYMENT FOR HONOUR

Acceptance for	66. (1) Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supra protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.
test
(2) A bill may be accepted for honour for part only of the sum for which it is drawn.

honour supra pro-

(3) An acceptance for honour supra protest in order to be valid (a) be written on the bill, and indicate that it is an accept-

must

ance for honour.

(b) be signed by the acceptor for honour.

(4) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.

(5) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour.

ceptor for honour that he will, on due presentment, pay the bill according to the tenor Liability of no- 67. (1) The acceptor for honour of a bill by accepting it engages

of his acceptance, if it is not paid by the drawee, provided it has been

48 VICTORLE. No. 10

Bills of Exchange

duly presented for payment and protested for non-payment, and that

he receives notice of these facts.

(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.

68. (1) Where a dishonoured bill has been accepted for honour Presentneath

supra, protest, or contains a reference in case of need, it must be pro- i. e.= for

tested for non-payment before it is presented for payment to the acceptor

for honour, or referee in case of need.

(2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity ; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment, the bill must be forwarded not later than the day following its maturity for present- ment to him.

(3) Delay in presentment or non-presentment is excused by any circumstance which would excuse delay in presentment for payment or non-presentment for payment.

(4) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him.

69. (1) Where a bill has been protested for non-payment, any Payment for lionoursuprhpro

person may intervene and pay it supra protest for the honour of any tesi

party liable thereon, or for the honour of the person for whose account

the bill is drawn.

(2) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference.

(3) Payment for honour supra, protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour, which may be appended to the protest or form an extension of it.

(4) The notarial act of honour must be founded on a declara- tion made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays.

(5) Where a bill has been paid for honour all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for, and succeeds to both the rights and duties of, the holder as regards the party for whose honour he pays, and all parties liable to that party.

(6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest. If the holder do not on demand deliver them up he shall be liable to the payer for honour in damages.

(7) Where the holder of a bill refuses to receive payment supra, protest he shall lose his right of recourse against any party who would have been discharged by such payment.

48 VICTORIE. No. 10

Bills of Exchange

LOST INSTRUMENTS

Holder's right to	70. Where a bill has been lost before it is overdue, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer if required to indem- nify him against all persons whatever in case the bill alleged to have been lost shall be found again.
duplicate of lost
bil/
If the drawer on request as aforesaid refuses to give such dupli- cate bill, he may be compelled to do so.
Action on lost	71. In 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, provided an indemnity be given to the satisfaction of the court or judge against the claims of any other person upon the instrument in question.
hill

BILL IN A SET

Rules as to sets	72. (1) Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill.
(2) Where the holder of a set indorses two or more parts to different persons, he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if the said parts were separate bills.
(3) Where two or more parts 6f a set are negotiated to different holders in due course, the holder whose title first accrues is, as between such holders, deemed the true owner of the bill ; but nothing in this sub-section shall affect the rights of a person who in due course accepts or pays the part first presented to him.
(4) The acceptance may be written on any part, and it must be written on one part only.
If the drawee accepts more than one part, and such accepted part gets into the hands of different holders in due course, he is liable on every such part as if it were a separate bill.
(5) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof.
(6) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.

CONFLICT OF LAWS

Rules whom laws

conflict

73. Where a bill drawn in one country is negotiated, accepted, or

payable in another, the rights, duties, and liabilities of the parties

thereto are determined as follows :—

(1) The validity of a bill as regards requisites in form is deter- mined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance, or indorsement, or acceptance supra

48 VICTORDE. No. 10

Bills of Exchange

protest, is determined by the law of the place where such

contract was made.

Provided that

(a) where a bill is issued out of the Colony it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue.

(b) where a bill issued out of the Colony conforms, as regards requisites, in form to the law of the Colony, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold, or bonnie parties to it in the Colony.

(2) Subject to the provisions of this Act, the interpretation of the drawing, indorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made.

Provided that where an inland bill is indorsed out of the Colony the indorsement shall as regards the payer be interpreted according to the law of the Colony.

(3) The duties of the holder with respect to presentment for acceptance or payment, and the necessity for or sufficiency of a protest or notice of dishonour or otherwise, are deter- mined by the law of the place where the act is done or the bill is dishonoured.

(4) Where a bill is drawn out of but payable in the Colony, and the sum payable is not expressed in the currency of the Colony, the amount shall, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable.

Where a bill is drawn in one country and is payable in

(5)

another, the due date thereof is determined according to

the law of the place where it is payable.

PART M.—CHEQUES ON A BANKER

74.   A cheque is a bill of exchange drawn on a banker payable on Cheque defined

demand.

Except as otherwise provided in this part, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque.

75. Subject to the provisions of this Act— Presentment of

(1) Where a cheque is not presented for payment within a °„ 1,ter for

reasonable time of its issue, and the drawer or the person on whose account it is drawn had the right at the time of such presentment as between him and the banker to have the cheque paid, and suffers actual damage through the delay, he is discharged to the extent of such damage —that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid.

48 VICTORIE. No. 10

Bills of Exchange

(2) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.

(3) The holder of such cheque as to which such drawer or person is discharged shall be a creditor in lieu of such drawer or person of such banker to the extent of such discharge, and entitled to recover the amount from him.

Revocation of

76. The duty and authority of a banker to pay a cheque drawn on

(1) Countermand of payment.

(2) Notice of the customer's death.

banker's

authority him by his customer are determined by

CROSSED CHEQUES

General and

special crossings 77. (1) Where a cheque bears across its face an addition of

defined	(a) The words and company' or any abbreviation thereof between two parallel transverse lines either with or without the words not negotiable' ; or,
(b) Two parallel transverse lines simply, either with or

without the words not negotiable' ;

that addition constitutes a crossing, and the cheque is crossed

generally.

(2) Where a cheque bears across its face an addition of the name of the banker, either with or without the words not negotiable,' that addition constitutes a crossing, and the cheque is crossed specially and to that banker.

Crossing by

drawer or after 78. (1) A cheque may be crossed generally or specially by the (2) Where a cheque is uncrossed, the holder may cross it

issue	drawer.
generally or specially.

(3) Where a cheque is crossed generally, the holder may cross

it specially.

(4) Where a cheque is crossed generally or specially, the holder may add the words not negotiable.'

(5) Where a cheque is crossed specially, the banker to whom it

is crossed may again cross it specially to another banker, for collection.

(6) Where an uncrossed cheque or a cheque crossed generally

is sent to a banker for collection, he may cross it specially to himself.

Crossing a

material part of 79. A crossing authorised by this Act is a material part of the

cheque

cheque ; it shall not be lawful for any person to obliterate or, except

as authorised by this Act, to add to or alter the crossing.

Duties of banker

as to crossed

80. (1) Where a cheque is crossed specially to more than one banker (2) Where the banker on whom a cheque is drawn which is so crossed, nevertheless pays the same or pays a cheque crossed gene- rally otherwise than to a banker, or if crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection being a

cheques

except when crossed to an agent for collection being a banker, the

banker on whom it is drawn shall refuse payment thereof.

48 VICTORI.E. No. 10

Bills of Exchange

balker, he is liable to the true owner of the cheque for any loss he

may sustain owing to the cheque having been so paid.

Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be respon- sible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be.

81. Where the banker, on whom a crossed cheque is drawn, in Protection to good faith and without negligence pays it, if crossed generally to a Trtateerratre banker, and if crossed specially to the banker to whom it is crossed, or cheque is

his agent for collection being a banker, the banker paying the cheque, e"ssed

and, if the cheque has come into the hands of the payee, the drawer,

shall respectively be entitled to the same rights and be placed in the

same position as if payment of the cheque had been made to the true

owner thereof.

82. Where a person takes a crossed cheque which bears on it the Effector crossing

words 'not negotiable,' he shall not have and shall not be capable of "twit

giving a better title to the cheque than that which the person from

whom he took it had.

83. Where a banker in good faith and without negligence receives Protection to

payment for a customer of a cheque crossed generally or specially to bantering

himself and the customer has no title or a defective title thereto, the

banker shall not incur any liability to the true owner of the cheque by

reason only of having received such payment.

PART IV.—Pnomssoav NOTES

84. (1) A promissory note is an unconditional promise in writing Promissory note

made by one person to another signed by the maker, engaging to pay defined

on demand or at a fixed or determinable future time, a sum certain in

money, to, or to the order of, a specified 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 unless and until it is indorsed by the maker.

(3) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.

(4) A note which is, or on the face of it purports to be, both made and payable within Australia, Tasmania, New Zealand, or the Fiji Islands, is an inland note. Any other note is a foreign note.

85. A promissory note is inchoate and incomplete until delivery Delivery nem. eery

thereof to the payee or' earer.

86. (1) A promissory note may be made by two or more makers, T .2ico g st and sever al

48 VICTORIA No. 10

Bills of Exchange

and they may be liable thereon jointly, or jointly and severally, accord-

ing to its tenor.

(2) Where a note runs, ' I promise to pay,' and is signed by two or more persons, it is deemed to be their joint and several note.

Note payable on

87. (1) Where a note payable on demand has been indorsed, it (2) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case.

demand

must be presented for payment within a reasonable time of the indorse-

ment. If it be not so presented the indorser is discharged.

(3) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

Presentment of 88. (1) Where a promissory note is in the body of it made payable

note for payment at a particular place, it must be presented for payment at that place in

order to render the maker liable. In any other case, presentment for

payment is not necessary in order to render the maker liable.

(2) Presentment for payment is necessary in order to render the indorser of a note liable.

(3) Where a note is in the body of it made payable at a parti- cular place, presentment at that place is necessary in order to render an indorser liable ; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the indorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.

Liability of	89. The maker of a promissory note, by making it
maker

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

(2) Is precluded from denying to a holder in due course the

existence of the payee and his then capacity to indorse.

Application of	90. (1) Subject to the provisions in this part and except as by this section provided, the provisions of this Act relating to bills of exchange apply with the necessary modifications to promissory notes.
(2) In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer's order.
(3) The following provisions as to bills do not apply to notes ; namely, provisions relating to

Part IL to notes

(a) Presentment for acceptance.

(b) Acceptance.

(c) Acceptance supra protest.

(d) Bills in a set.

(4) Where a foreign note is dishonoured protest thereof is

unnecessary.

48 VICTORIE. No. 10

Bills of Exchange

PART V.—SUPPLEMENTARY

91. A thing is deemed to be done in good faith, within the meaning Good faith

of this Act, where it is in fact done honestly, whether it is done negli-

gently or not.

92. (1) Where, by this Act, any instrument or writing is required signature

to be signed by any person, it is not necessary that he should sign it with his own hand, but it shall be sufficient if his signature is written thereon by some other person by or under his authority.

(2) In the case of a corporation, where, by this Act, any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal.

But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.

93. Where by this Act the time limited for doing any act or thing ttnineiput on of

is less than three days, in reckoning time, non-business days are

excluded.

`Non-business days' for the purposes of this Act mean

(a) Sunday, Good Friday, Christmas Day.

(b) A bank holiday under ' The Bank Holidays Act, 1884,'

or Acts amending it.

Any other day is a business day.

94. For the purposes of this Act, where a bill or note is required to be protested within a specified time, or before some further proceed-

When noting

equivalent to

protest

ing is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceed- ing ; and the formal protest may be extended at any time thereafter as of the date of the noting.

95. Where a dishonoured bill or note is authorised or required to be protested, and the services of a notary cannot be obtained at the place

Protest when

notary not ac-

cessible

where the bill is dishonoured, any householder or substantial resident of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the dishonour of the bill, and the certificate shall in all respects operate as if it were a formal protest of the bill.

The form given in the Schedule to this Act may be used with necessary modifications, and, if used, shall be sufficient.

96. The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.

Crossed cheques and warrants for

payment of divi-

dend

97. (1) A negotiable bill, other than a cheque, and a negotiable note, shall not be drawn or made for any sum less than twenty

Bills and notes

under twenty

shillings.

shiilings

(2) An instrument which contravenes this rule shall be void, and any person who issues or negotiates it shall be liable, on summary conviction before two justices in petty sessions, to a penalty not exceed- ing twenty pounds, and not less than five pounds.

(3) Provided that no complaint under this section shall be entertained after the expiration of twenty days from the commission of the offence.

48 VICTORI.E. No. 10

Bills of Exchange

Repeal	98. e The Bills of Exchange Act, 1879,' and all other Acts and parts of Acts in force in this Colony contrary to or inconsistent with the provisions of this Act are hereby repealed.
Provided that such repeal shall not affect anything done or suffered, or any right, title, or interest acquired or accrued before the commence- ment of this Act, or any legal proceeding or remedy in respect of any such thing, right, title, or interest.
Savings	99. (1) The rules in Bankruptcy relating to bills of exchange, promissory notes, and cheques shall continue to apply thereto notwith- standing anything in this Act contained.
(2) The rules 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, promissory notes, and cheques.

(3) Nothing in this Act, or in any repeal effected thereby,

shall affect

(a) The provisions of The Stamp Act, 1882,' or Acts amending it, or any law or enactment for the time being in force relating to the revenue.

(1)) The provisions of The Joint Stock Companies Ordinance, 1858,' or Acts amending it, or any Act relating to joint stock banks or companies.

(c) The validity of any usage relating to dividend warrants

or the indorsement thereof.

Construction

with other Acts, 100. Where any Act or document refers to any enactment repealed

to.

by this Act, the Act or document shall be construed, and shall operate,

as if it referred to the corresponding provisions of this Act.

F. NAPIER BROOME,

GOVERNOR.

THE 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

in the Colony of Western Australia, at the request of C.D., there being no notary public available, did on the day of , at (aforesaid, or in the said Colony), demand payment (or acceptance) of the bill of exchange (here- unto annexed or hereunder written) inn H.R., to which demand he made answer (state answer, if any) ; wherefore I no v, in the presence of G.H. and J.K., do protest the said bill of exchange.

Signed A.B.

.

G.H., Witnesses.

witnesses.

N.B.—The bill itself should be annexed, or a copy of the bill, and all that is written thereon should be underwritten.