Bills of Exchange Act 1887 No 13a (NSW)
No. II .
An Act to codify the law relating to Bills of
Exchange, Cheques, and Promissory Notes.
[8th July, 1887.]
| BE it enacted by t h e Queen ' s | t h e advice and consent of t h e Legis la t ive Counci l and Legisla |
Mos t Exce l l en t Majes ty , by and wi th
| t ive Assembly | of | N e w South W a l e s in | P a r l i a m e n t assembled, | and | by |
| t h e au thor i ty of | t h e same, as follows :— |
P A R T I . PRELIMINARY.
" D e l i v e r y "
1. This A c t m a y be cited as the " Bills of E x c h a n g e Ac t , 1887."
2. I n th i s Act , unless t h e con tex t otherwise requ i res ,—
" A c c e p t a n c e " means an acceptance completed b y del ivery or notification.
" A c t i o n " includes suit in equi ty , counte r claim, a n d set off.
" Aus t ra l a s i a" means and includes Austra l ia , Tasmania , N e w Zealand, and the Fiji I s lands .
" B a n k e r " includes a body of persons w h e t h e r incorporated or n o t who carry on the business of bank ing .
" B a n k r u p t " includes any person whose es ta te is vested in a
t rus tee or assignee u n d e r t h e law for t he t ime be ing in force
re la t ing to b a n k r u p t c y or insolvency. " B e a r e r " means t h e person in possession of a bil l or note which is payable to bearer .
" B i l l " means bill of exchange .
" D e l i v e r y " means t ransfer of possession, ac tua l or const ruct ive ,
f rom one person to ano the r .
" Ho lde r " means t h e payee or indorsee of a bil l or no te w h o is in possession of i t , or t he bearer thereof.
" I n d o r s e m e n t " means a n indorsement completed by del ivery. " I s sue " means t h e first del ivery of a bill or note , comple te in form to a person who takes i t as a holder.
" N o t e " means promissory note.
" Person " includes a body of persons w h e t h e r incorporated or no t ." Va lue " means valuable considerat ion.
" W r i t t e n " includes pr in ted , a n d " wr i t i ng " inc ludes p r in t .
P A R T I I . BILLS OF EXCHANGE.
Form and Interpretation.
3. (1) A bil l of exchange is a n uncondi t iona l order in wr i t ing ,
addressed by one person to another , s igned by t h e person g iv ing it , r equ i r ing t h e person to w h o m it is addressed to pay on demand, or a t a fixed or de te rminab le fu tu re t ime , a s u m cer ta in in money to or to t h e order of a specified person, or to bearer .
(2) A n i n s t r u m e n t wh ich does n o t comply w i t h these
condit ions, or wh ich orders any ac t to be done in addit ion to t h e pay
m e n t of money, is no t a bil l of exchange .(3) A n order to pay ou t of a par t i cu la r fund is n o t u n condi t ional w i th in t h e m e a n i n g of th i s sec t ion ; b u t an unqualif ied order to pay , coupled wi th (a) a n indicat ion of a pa r t i cu la r fund ou t of w h i c h t h e drawee is to re imburse himself, or a pa r t i cu la r account to
be debi ted w i t h t h e a m o u n t , or (b) a s t a t e m e n t of t h e t ransac t ion which gives rise to t h e bill , is uncondi t ional .
(4) A bi l l is no t inval id b y reason—
(a) T h a t i t is no t d a t e d ;
(b) T h a t i t does no t specify t h e va lue given, or t h a t any va lue has
been given the re fo r ;
(c) T h a t i t does n o t specify t h e place whe re i t is d r a w n or t he
p lace whe re i t is payable . 4. (1) A n in land bill is a bil l wh ich is. or on t h e face of i t pu r
ports to be , (a) bo th d rawn and payable wi th in Australas ia , or (b) d rawn
wi th in Aus t ra las ia u p o n some person resident there in . A n y o ther bil l is a foreign bill .
(2) Unless t h e con t ra ry appear on t h e face of t h e bill t he
holder m a y t r ea t it as a n in land bill . 5. (1) A bi l l m a y be d rawn payab le to , or to t h e order of, t h e
d r a w e r ; or i t m a y be d rawn payable to , or to t he order of, t h e drawee. (2) "Where in a bil l d rawer and drawee are t h e same person, or where t h e drawee is a fictitious person, or a person n o t hav ing capaci ty to con t rac t , t h e holder m a y t rea t t h e i n s t rumen t , a t his option, e i ther as a bill of exchange or as a promissory note .
6. (1) The drawee m u s t be named or otherwise indicated in a (2) A bill m a y be addressed to two or more drawees whe the r t hey are par tners or not , b u t an order addressed to two drawees in t h e a l te rna t ive or to two or more drawees in succession is no t a bil l of exchange .
bill w i t h reasonable cer ta in ty .
7. (1) W h e r e a hil l is no t payable to bearer , t he payee m u s t be
| named or otherwise indicated the re in wi th reasonable | cer ta in ty . |
(2) A bill may be m a d e payable to two or more payees
| jo int ly , or i t m a y be made payable in t h e a l te rna t ive to one of | two, |
| or one or some of several payees. | A bill m a y also be made payable to |
t h e holder of a n office for t he t ime be ing .
(3) W h e r e t h e payee is a fictitious or n o n exis t ing person
| t h e hill m a y be t rea ted as payable to | hearer. |
8. (1) W h e n a bil l contains words proh ib i t ing transfer , or
indica t ing an in ten t ion t h a t i t should no t be t ransferable , i t is valid as
| be tween t h e par t ies there to , b u t | is | no t | negot iable . |
(2) A negot iable bil l m a y be payable ei ther to order or to
bearer .
(3) A hill is payable to bearer wh ich is expressed to be so payable , or on wh ich the only or last indorsement is an indorsement in b lank .
(4) A hill is payable to order which is expressed to be so
payable , or which is expressed to be payable to a par t i cu la r person,
a n d docs no t conta in words prohib i t ing t ransfer or indica t ing a n
| in ten t ion t h a t i t should no t be | t ransferable . |
(5) W h e r e a bill , e i ther original ly or by indorsement , is ex
pressed to be payable to t he order of a specified person, and not to h i m or his order, i t is never theless payable to h i m or his order at his opt ion.
| 9. (1) The sum payable by a bill is a s u m certain w i th in the m e a n i n g of th is A c t a l t hough it is required to be | pa id— |
(a) W i t h interest . (b) By s tated ins ta lments . (c)
By stated ins ta lments , wi th a provision t h a t u p o n defaul t in p a y m e n t of any ins ta lment t he whole shall become due.
(d)
Accord ing to an indicated r a t e of exchange , or according to a r a t e of exchange to be ascer tained as directed by t h e bill .
(2) W h e r e t he s u m payable is expressed in words and also
in figures, and the re is a d iscrepancy be tween the two, t he sum denoted
| by t h e words is t he a m o u n t | payable . |
(3) W h e r e a bil l is expressed to be payable wi th interest ,
| unless t h e i n s t r u m e n t | otherwise provides, in teres t r uns from the date of |
t h e bill , and if t he bil l is unda t ed from t h e issue thereof.
10. (1) A bill is payable on d e m a n d —
(a) Which is expressed to be payable on demand, or at sight, or on
p resen ta t ion ; or (b) I n which no t ime for paymen t is expressed.
(2) W h e r e a hill is accepted or endorsed w h e n i t is overdue,
i t shall , as regards t he acceptor who so accepts, or any indorser who so
indorses it , he deemed a bill payable on demand .
1 1 . A hill is payable a t a de te rminable fu tu re t i m e wi th in t h e
m e a n i n g of th is A c t which is expressed to be payable—
(1) A t a fixed period after da te or sight .
(2) On or a t a fixed period af ter t he occurrence of a specified
event which is cer ta in to happen, t h o u g h the t ime of happen
ing m a y be uncer ta in .
| A n i n s t r u m e n t expressed to be payable on a cont ingency is not a bill , and the h a p p e n i n g of t he event does no t cure t h e | defect. |
12. W h e r e a bill expressed to be payable a t a fixed period after da te is issued unda ted , or where t h e acceptance of a bill payable a t a fixed period af ter s igh t is undated , a n y holder m a y insert there in t h e t r u e da te of issue or acceptance, and t h e bill shall be payable accordingly.
Provided t h a t (1) where t h e holder in good faith and by mis take
inser ts a wrong date , and (2) in every case where a wrong da te is
inserted,
inserted, if t h e hill subsequent ly conies in to t h e hands of a holder in due course t h e bil l shal l no t be avoided thereby, b u t shall operate a n d be payable as if t h e date so inser ted h a d been the t r u e date .
13 . (1) W h e r e a bill or an acceptance or any indorsement on a bill is dated, the date shall, unless t h e cont ra ry be proved, be deemed to be t h e t r u e date of t h e drawing, acceptance, or indorsement , as t h e case m a y be.
(2) A bil l is n o t inval id b y reason only t h a t it if an te-da ted ,
or post-dated, or t h a t i t bears da te on a Sunday .
14. W h e r e a bill is no t payable on demand the day on which it
falls due is de te rmined as fol lows—
(1) Three days, called days of grace , a re , i n every case where t h e
bill itself does no t otherwise provide, added to t h e t ime ofpaymen t as fixed by the bill , and t h e bill is due a n d payable
on the las t day of grace : Provided t h a t — W h e n the last day of grace falls on Sunday, or on a b a n k holiday unde r t he " B a n k Hol idays Ac t , 1 8 7 5 , " a n d Ac t s amend ing or ex tend ing it , or on a day appointed by proc lamat ion b y t h e Governor- in-Counci l as a day
of publ ic fast or t hanksg iv ing , t he bil l is due a n d payable on t h e succeeding business day.
(2) W h e r e a bill is payable a t a fixed period after date, after
s ight , or after t he h a p p e n i n g of a specified event , t h e t ime of p a y m e n t is de te rmined
by exc lud ing the day f rom which
t h e
t i m e is to beg in to r u n and by inc lud ing the day of p a y m e n t . (3) W h e r e a bil l is payable a t a fixed period after s ight , t h e t ime begins to r u n from t h e da te of t he acceptance if t h e bil l be accepted, and from t h e da te of no t ing or protes t if t he bil l be noted or protested for non-acceptance, or for non-del ivery.
(4) The t e r m " m o n t h " in a bil l means calendar m o n t h .
15 . The drawer of a bill a n d any indorser m a y inser t t he re in
t he n a m e of a person to w h o m t h e holder m a y resort in case of need, t h a t is t o say, in case t he bill is d ishonoured by non-acceptance or non paymen t . Such person is called t h e referee in case of need. I t is in t he opt ion of t h e holder to resort to t h e referee in case of need, or not ,
as he m a y t h i n k fit. 16. The drawer of a bill , and any indorser, m a y inser t there in
a n express s t ipu la t ion—
(1) Nega t iv ing or l imi t ing his own liabil i ty to t h e holder : (2) W a i v i n g as regards himself some or all of t h e holder ' s dut ies . 17. (1) The acceptance of a bill is the signification by the
drawee of his assent to t h e order of t he drawer. (2) A n acceptance is inval id unless i t complies w i th t h e following
condit ions, n a m e l y —
(a) It must he written on the bill and be signed by the drawee.
The mere s igna ture of t h e drawee w i t h o u t addi t ional words is sufficient.
(b)
I t m u s t no t express t h a t t he drawee wil l per form his promise
b y any other means t h a n t h e p a y m e n t of money. 18 . A bil l m a y be accepted—
(1) Before i t has been signed by t h e drawer , or whi le o therwise
incomple t e :
(2) "When i t is overdue, or after i t has been dishonoured by a previous refusal to accept, or by n o n - p a y m e n t : (3) W h e n a bill payable after s ight is d ishonoured by non- acceptance, and t h e drawee subsequent ly accepts it , t h e holder , i n t he absence of any different agreement , is en t i t l ed to have t h e bill accepted as of the da te of first p r e sen tmen t to t h e drawee for acceptance .
19. (1) An acceptance is either (a) general, or (b) qualified.
(2) A genera l acceptance assents w i t h o u t qualification to
| t h e order of t he drawer. | A qualified acceptance in express t e rms |
| varies t h e effect | of t h e hill as d rawn . | I n | pa r t i cu la r a n | acceptance |
is qualified wh ich i s —
(a) condit ional , t h a t is to say, wh ich makes p a y m e n t by t h e acceptor dependent on t h e fulfi lment of a condit ion there in
s tated :
(b) par t ia l , t h a t is to say, an acceptance to pay pa r t only of t h e a m o u n t for wh ich t h e bill is d rawn :
(c) local, t h a t is to say, a n acceptance to pay only a t a pa r t i cu la r
specified p l a c e : A n acceptance to pay a t a par t icular place is a general acceptance,
unless it expressly s ta tes t h a t t h e bill is to be paid the re only
a n d n o t e l sewhere : (d) qualified as to t ime :
(e) the acceptance of some one or more of the drawees, hut not
of al l .
20. (1) W h e r e a s imple s igna tu re on a b l a n k s tamped paper is
delivered by the signer in order t h a t it m a y be conver ted in to a bi l l , i t operates as a p r ima facie au thor i ty to fill it u p as a comple te bill for any a m o u n t t h e s t amp will cover, u s ing the s igna ture for t h a t of t h e
| drawer , or | t h e acceptor , or a n i ndo r se r ; | and, | in l ike | manne r , w h e n a |
bil l is w a n t i n g in any mater ia l par t icular , t h e person in possession of i t has a p r ima facie au thor i ty to fill u p t h e omission in any way h e t h i n k s fit. W h e n t h e drawer of a bill s igns it and dies before i t has been accepted, t he drawee m a y still accept i t ; and w h e n the acceptor of a bill dies before the drawer has signed i t , t h e drawer m a y still
| complete | i t . |
(2) I n order t h a t any such i n s t r u m e n t w h e n completed
m a y be enforceable agains t a n y person who became a p a r t y the re to prior to i ts complet ion, i t m u s t he filled u p wi th in a reasonable t ime
| and str ict ly in accordance wi th t he au thor i ty given. | Reasonable | t i m e |
| for th i s purpose is a quest ion of | fact. |
Provided t h a t if a n y such i n s t r u m e n t after complet ion is
negot ia ted to a holder in due course i t shal l be valid and effectual for all purposes in his hands , and he may enforce it as if i t had been filled u p wi th in a reasonable t ime and str ict ly in accordance wi th
| t he | au tho r i t y | given. |
2 1 . (1) Eve ry cont rac t on a bill, whe the r it be t he drawer ' s , t h e
| acceptor ' s , or an indorser 's , is incomple te and revocable, un t i l delivery of |
| t he i n s t r u m e n t | in order to give effect | there to . |
Provided t h a t where a n acceptance is wr i t t en on a hill, and t h e
drawee gives notice to or according to t he directions of t h e person ent i t led to t he bi l l t h a t he has accepted i t , t h e acceptance t h e n becomes comple te and irrevocable.
(2) As be tween immed ia t e par t ies , a n d as regards a remote
| pa r ty o ther t h a n a holder in due course, t h e | del ivery,— |
(a) in order to be effectual must be made either by or under the
au thor i ty of t h e p a r t y drawing, accept ing, or indors ing, as t he case may b e :
(b) may be shown to have been conditional or for a special pur
pose only, and n o t for t he purpose of t ransferr ing t he proper ty in t he bill .
| B u t if t h e bill be in t h e hands of a holder in due course, a valid del ivery of t h e bill by all par t ies prior to h i m so as to m a k e t h e m | liable |
| to h i m is conclusively presumed. |
(3) W h e r e a bill is no longer in t h e possession of a p a r t y
w h o has signed i t as drawer , acceptor , or indorser, a valid and uncon
di t ional delivery b y h i m is p resumed u n t i l t h e cont ra ry is proved.
Capacity
Capacity and Authority of Parties. 22. (1) Capaci ty to incur l iabil i ty as a p a r t y to a bill is co
extensive wi th capaci ty to contract .
Provided t h a t no th ing in th i s section shal l enable a corporat ion
to m a k e itself l iable as drawer , acceptor, or indorser of a bil l unless i tis compe ten t to i t so to do u n d e r t h e l aw for t h e t ime being in force
re la t ing to corporat ions.
(2) W h e r e a bill is d r a w n or indorsed by an infant , minor , or corporat ion hav ing no capacity or power to i ncu r l iabil i ty on a bill, t he d rawing or indorsement ent i t les t h e holder to receive p a y m e n t of the
bill , a n d to enforce i t agains t a n y other pa r ty there to . 23. N o person is l iable as drawer, indorser, or acceptor of a bill
w h o has n o t s igned i t as such : Provided t h a t —
(1) W h e r e a person signs a bil l i n a t r ade or assumed n a m e , he is l iable thereon as if he h a d signed it in his own n a m e :
(2) The s igna ture of t h e n a m e of a firm is equiva len t to t h e
s igna ture by t h e person so s igning of t h e names of all persons
liable as pa r tne rs in t h a t firm. 24. Subject to t h e provisions of th is Ac t , whe re a s igna ture on a
bill is forged or placed the reon wi thou t t h e au thor i ty of t h e person
whose s igna ture i t pu rpor t s to be , t h e forged or unau thor ized signa
t u r e is whol ly inoperat ive , and no r igh t to r e t a in t h e bill , or to give
a discharge therefor, or to enforce p a y m e n t thereof, agains t any pa r ty
there to can be acqui red t h r o u g h or u n d e r t h a t s igna ture , unless t h e p a r t y agains t w h o m it is sought to re ta in or enforce p a y m e n t of t h e
bil l is precluded from set t ing u p t h e forgery or w a n t of au thor i ty .
Provided t h a t n o t h i n g in th i s section shal l affect t he rat if ication
of an unau thor ized s igna ture n o t a m o u n t i n g to a forgery.
25. A s igna ture by procura t ion operates as notice t h a t t h e agen t
has b u t a l imi ted au tho r i t y to sign, a n d t h e pr incipal is only bound by such s igna ture if t he a g e n t in so s igning was ac t ing wi th in t h e
ac tua l l imits of his au thor i ty . 26. (1) W h e r e a person signs a bi l l as drawer, indorser, or acceptor, and adds words to his s igna ture indica t ing t h a t h e signs for or on behalf of a pr incipal , or in a representat ive character , h e is no t personally liable t h e r e o n ; b u t t he mere addi t ion to his s igna ture of
words descr ibing h i m as a n agent , or as filling a representa t ive character ,
does no t e x e m p t h i m from personal l iabil i ty.
(2) I n de te rmin ing w h e t h e r a s igna ture on a bill is t h a t
of t h e pr inc ipa l or t h a t of t he agen t by whose h a n d i t is wr i t t en , t h e
cons t ruc t ion mos t favourable to t h e val idi ty of t h e i n s t r u m e n t shal l bo adopted. The Consideration for a Bill.
27. (1) Valuab le considerat ion for a bill may be const i tu ted b y —
(a) A n y considerat ion sufficient to support a s imple cont rac t :
(b) A n an teceden t deb t or l iabil i ty. Such a debt or l iabi l i ty
is deemed valuable considerat ion w h e t h e r t he bill is payable on d e m a n d or a t a fu tu re t ime .
(2) W h e r e va lue has a t any t ime been given for a bil l t h e
holder is deemed to be a holder for va lue as regards t h e acceptor and
all par t ies to t h e bi l l w h o became par t ies prior to such t ime.(3) W h e r e t h e holder of a bill has a l ien on i t ar is ing e i ther from cont rac t or by impl ica t ion of law, he is deemed to be a holder for va lue to t h e ex t en t of t h e s u m for wh ich he has a l ien.
28 . (1) A n accommoda t ion pa r ty to a bill is a person w h o has
s igned a bil l as drawer, acceptor , or indorser, w i t h o u t receiving va lue therefor, and for t h e purpose of l end ing his n a m e to some o ther person.
(2)
(2) A n accommodat ion pa r ty is l iable on t h e hil l to a
| holder for va lue ; a n d i t is immate r i a l whe the r , w h e n such holder | took |
| t h e hill , he k n e w such p a r t y to he a n accommodat ion p a r t y or | not . |
29. (1) A holder in due course is a holder w h o has t a k e n a
| bil l , comple te and regular on t h e face of it, u n d e r t he following | con |
| di t ions, | n a m e l y — |
(a) That he became the holder of it before it was overdue, and
w i t h o u t notice t h a t i t had been previously dishonoured, if
such was t h e f a c t : (b)
T h a t he took the bil l in good fai th a n d for va lue , a n d t h a t a t t h e t ime the bill was negot ia ted to h i m he had no not ice of any defect in t h e t i t le of t h e person who negot ia ted it.
(2) I n pa r t i cu la r t h e t i t le of a person who negot ia tes a bi l l
is defective wi th in t he m e a n i n g of th is A c t w h e n he obta ined t h e bill , or t h e acceptance thereof, by fraud, duress, or force and fear, or o ther un lawfu l means , or for a n i l legal consideration, or w h e n he negot ia tes i t
| in b reach of fa i th , or u n d e r such c i rcumstances as a m o u n t to a | fraud. |
(3) A holder (whether for va lue or no t ) , w h o derives his
| t i t le to a bil l t h r o u g h a holder in due course, and w h o is not himself | a |
| p a r t y to a n y fraud | or i l legal i ty affecting | it, | has al l | t h e r igh t s | of | t h a t |
| holder i n due course as regards t h e acceptor a n d all | par t ies to t h e bi l l |
| prior to t h a t holder. |
30. (1) Eve ry pa r ty whose s igna ture appears on a hil l is p r i m a
facie deemed to have become a p a r t y there to for va lue .
(2) E v e r y holder of a bill is p r ima facie deemed to be a
| holder in due cour se ; b u t if | in an ac t ion on a bi l l i t is admi t ted , or |
proved, t h a t t h e acceptance, issue, or subsequent negot ia t ion of t h e bil l is affected w i t h fraud, duress, or force a n d fear, or i l legal i ty, t he bu rden of proof is shifted, unless a n d u n t i l t he holder proves tha t , subsequen t to t he alleged f raud or i l legality, va lue has in good fai th been given
| for t he | bil l . |
Negotiation of Bills.
3 1 . (1) A bill is negot ia ted w h e n i t is t ransferred from one
| person to ano ther in such a m a n n e r as to cons t i tu te | t h e t ransferee | t he |
| holder of t h e bill . |
(2) A bill payable to bearer is negot ia ted b y delivery.
(3) A bill payable to order is negot ia ted by the indorse
m e n t of t h e holder comple ted by delivery.
(1) W h e r e t he holder of a bill payable to his order t ransfers
| i t for va lue w i t h o u t indors ing it, t he t ransfer gives t he t ransferree | such | |
| t i t l e as the t ransferor h a d in t he bill , and the t ransferee | in | addi t ion |
| acquires t he r igh t to have t h e indorsement of t he transferor. |
(5) W h e r e a n y person is u n d e r obligation to indorse a
bil l in a representa t ive capacity, he m a y indorse t he bill in such t e rms
| as to nega t ive personal | l iabil i ty. |
32. A n indorsement in order to operate as a negot ia t ion m u s t
| comply wi th t he following | conditions, | n a m e l y — |
(1) I t m u s t be wr i t t en on t h e bil l itself and be signed b y t h e
indorser . The s imple s igna tu re of t h e indorser on the hil l w i t h o u t addi t ional words is sufficient.
A n indorsement wr i t t en on an al longe, or on a " c o p y " of a bill , issued or negot ia ted in a coun t ry
where " c o p i e s " are
recog
nised, is deemed to be wr i t t en on t h e bill itself.
(2) I t m u s t be an indorsement of t h e ent i re bill . A par t i a l indorsement , t h a t is to say, an indorsement which purpor t s to t ransfer to t he indorsee a pa r t only of t he a m o u n t payable , or which purpor t s to t ransfer t he bill to two or more indorsees severally does not operate as a negot ia t ion of t he bill .
D (3) (3) W h e r e a bill is payable to the order of two or more payees
or indorsees who are n o t par tners , a l l m u s t indorse, unless t h e one indors ing has au thor i ty to indorse for t he o thers .
(4) W h e r e , in a bill payable to order, t h e payee or indorsee is wrongly designated, or his n a m e is mis-spelt , he m a y indorse t he bill as the re in described, add ing if he t h i n k fit his proper s igna ture .
(5) W h e r e the re a re two or more indorsements on a bill , each indorsement is deemed to have been made in t h e order in which i t appears on t h e bill , un t i l t h e contrary is proved.
(6) A n indorsement m a y be m a d e in b l a n k or special. I t m a y
also conta in t e rms m a k i n g i t restr ict ive.
33 . w h e r e a bil l purpor ts to be indorsed condit ional ly t h e
condit ion m a y be disregarded by the payer , and p a y m e n t to t h e
indorsee is valid w h e t h e r t h e condi t ion has been fulfilled or not . 34. (1) A n indorsement in b l a n k specifies no indorsee, and a
bil l so indorsed becomes payable to bearer .
(2) A special indorsement specifies t h e person to whom, or
to whose order, t h e bill is to be payable .
(3) The provisions of th i s A c t re la t ing to a payee apply w i t h
t h e necessary modifications to a n indorsee u n d e r a special indorsement . (4) W h e n a bil l has been indorsed in b lank , any holder m a y
conver t t h e b l a n k indorsement in to a special indorsement b y wr i t ing above the indorser 's s igna ture a direct ion to pay t h e bi l l to or to t h e order of himself or some other person.
35 . (1) A n indorsement is res t r ic t ive w h i c h prohib i t s t he
fu r the r negot ia t ion of t h e bil l or wh ich expresses t h a t i t is a m e r e au thor i ty to deal wi th t he bil l as t he r eby directed and no t a t ransfer of t h e ownership thereof ; as, for example , if a bill be indorsed " P a y D . on ly , " or " P a y D . for t he account of X , " or " P a y D. or order for col lect ion."
(2) A restr ict ive indorsement gives t h e indorsee t h e r i g h t
to receive paymen t of t h e bil l and to sue any p a r t y there to t h a t his indorser could have sued, b u t gives h i m no power to t ransfer his r igh t s as indorsee unless i t expressly author ize h i m to do so.
(3) W h e r e a restr ic t ive indorsement author izes fu r ther
transfer, all subsequent indorsees t ake t h e bill w i th t h e same r igh ts and subjec t to t he same liabilities as t h e first indorsee unde r t h e restr ict ive indorsement .
36. (1) W h e r e a bil l is negot iable in i ts origin i t cont inues to be negot iable u n t i l it has been
(a)
res t r ic t ively indorsed, or (b) dis
charged by paymen t or otherwise. (2) W h e r e a n overdue bil l is negotiated, i t can only be
negot ia ted subject to a n y defect of t i t le affecting i t a t i ts m a t u r i t y , and
thenceforward no person w ho takes i t can acquire , or give, a be t te r t i t le t h a n t h a t which t h e person from w h o m he took i t had. (3) A bil l payable on demand is deemed to be overdue, w i th in t h e m e a n i n g and for t he purposes of th i s section, w h e n i t appears on t h e face of i t to have been in c i rcula t ion for a n unreasonable l eng th of t ime . W h a t is a n unreasonable l eng th of t i m e for this purpose is a quest ion of fact.
(4) E x c e p t where a n indorsement bears da te after t he
m a t u r i t y of t h e bill , every negot ia t ion is p r i m a facie deemed to have been effected before t he bi l l was overdue.
(5) W h e r e a bil l wh ich is no t overdue has been dis
honoured, a n y person who takes i t w i th not ice of t he dishonour t akesi t subject to any defect of t i t le a t t ach ing the re to a t t h e t ime of dis
honour , b u t n o t h i n g in th i s sub-sect ion shall affect t h e r igh t s of a holder in due course.
37. W h e r e a hill is negot ia ted hack to t he drawer, or to a prior
indorser or t o t h e acceptor , such pa r ty may , subject to t he provisions of
t h i s Act , re-issue and fu r ther negot ia te t h e bill , b u t he is no t en t i t led
| to enforce | p a y m e n t | of | t h e bill agains t any in te rven ing p a r t y | to | w h o m |
h e was previously liable.
38. The r igh t s and powers of t he holder of a bil l a re as
fol lows—
(1) H e m a y sue on the bil l i n his own n a m e : (2) W h e r e he is a holder in d u e course, he holds t h e bi l l free from any defect of t i t le of pr ior par t ies , as well as from m e r e personal defences avai lable to prior part ies among themselves , and m a y enforce p a y m e n t against all par t ies l iable on t h e bill :
(3) W h e r e his t i t le is defective (a) if he negot ia tes t h e bill to a holder in due course, t h a t holder obta ins a good and com ple te t i t le to t h e bill , and (b) if he obta ins p a y m e n t of t h e bill t h e person who pays h i m in due course gets a valid dis charge for t h e bill .
General Duties of the Holder.
39. (1) W h e r e a bill is payable after s ight , p r e sen tmen t for
| acceptance is necessary in order to fix t h e m a t u r i t y of t he | i n s t rumen t . |
(2) W h e r e a bi l l expressly s t ipulates t h a t i t shall be pre
sented for acceptance, or where a bi l l is d r a w n payable e lsewhere t h a n a t t h e residence or place of business of the drawee, i t m u s t be presented for acceptance before i t can be presented for paymen t .
(3) I n no o ther case is p resen tmen t for acceptance neces
sary in order to render liable any pa r ty to t h e bill .
(4) W h e r e the holder of a bill , d r awn payable elsewhere t h a n a t t h e place of business or residence of t he drawee, has no t t ime, w i t h t h e exercise of reasonable dil igence, to present t he bill for accept ance before present ing it for p a y m e n t on t he day t h a t i t falls due, t he delay caused by present ing t h e hill for acceptance before presen t ing it for p a y m e n t is excused, and does no t discharge t h e drawer and indorsers .
40 . (1) Subject to t h e provisions of th is Act , w h e n a bill pay able after s ight is negot ia ted, t he holder m u s t e i ther present i t for acceptance or negot ia te it wi th in a reasonable t ime .
(2) If h e do not do so, t h e drawer and al l indorsers pr ior to
t h a t holder are discharged.
(3) I n de te rmin ing w h a t is a reasonable t i m e wi th in t h e
| t he usage of t r ade wi th respect to similar bills, and t h e facts of the | mean ing of this section, regard shall be had to t h e n a t u r e of t h e bill, | |
|
4 1 . (1) A bill is duly presented for acceptance which is pre
sented in accordance wi th t h e following rules :—
(a) The p resen tment m u s t he m a d e by or on behalf of t he holder to t h e drawee, or to some person author ized to accept or refuse acceptance on his behalf, a t a reasonable hou r on a business day and before t he bill is overdue : (b) Where a bill is addressed to two or more drawees, who are not
par tners , p r e sen tmen t m u s t be made to t h e m all , unless one
has au thor i ty to accept for all , t h e n p resen tmen t m a y be m a d e to h i m only :
(c)
W h e r e t he drawee is dead, p r e sen tmen t m a y be m a d e to his personal representa t ive :
(d)
W h e r e t h e drawee is bank rup t , p resen tment m a y be m a d e to h i m or to his t rus tee :
(e) W h e r e author ized b y ag reemen t or usage, a p resen tment
t h r o u g h t h e post-office is sufficient. (2)
(2) P r e s e n t m e n t in accordance w i t h these rules is excused,
and a bill m a y be t rea ted as d ishonoured by non-accep tance—
(a) W h e r e t h e drawee is dead or b a n k r u p t , or is a fictitious person, or a person no t hav ing capaci ty to cont rac t b y bil l :
(b) W h e r e , after t h e exercise of reasonable dil igence, such present m e n t canno t be effected : (c)
W h e r e , a l t h o u g h the p r e sen tmen t has been i rregular , accept ance has been refused on some o the r ground.
(3) The fact t h a t t he holder has reason to believe t h a t t he
bill , on p resen tment , wil l be dishonoured does no t excuse p re sen tmen t . 42 . W h e n a bil l is du ly presented for acceptance and is n o t
accepted w i th in t h e cus tomary t ime , t h e person presen t ing i t m u s t t r ea t
i t as d ishonoured b y non-acceptance . I f he do not , t h e holder shal l
lose his r i g h t of recourse aga ins t t h e drawer and indorsers . 4 3 . (1) A bill is d ishonoured by non-accep tance—
(a)
W h e n it is du ly presented for acceptance , and such an accept ance as is prescribed b y th is A c t is refused, or canno t he obta ined ; or
(b) W h e n p resen tmen t for acceptance is excused and t h e bil l is n o t accepted.
(2) Subject to t h e provisions of th is Act , w h e n a bi l l is dis
honoured b y non-acceptance , an immed ia t e r i g h t of recourse aga ins t
t h e drawer and indorsers accrues to t he holder, a n d no p r e sen tmen t for
p a y m e n t is necessary. 44. (1) The holder of a bill m a y refuse to t ake a qualified
accep tance , a n d if he does not ob ta in a n unqualif ied acceptance m a y t rea t t h e bill as d ishonoured by non-acceptance .
(2) W h e r e a qualified acceptance is t aken , and t h e drawer or a n indorser has no t expressly or impl iedly author ized t h e holder to t ake a qualified acceptance , or does no t subsequent ly assent there to , such drawer or indorser is d ischarged from bis l iabi l i ty on t h e bill .
T h e provisions of th i s sub-sect ion do no t app ly to a par t ia l acceptance , whereof due not ice has been given.
W h e r e a foreign bill
has been accepted as to par t , i t m u s t be protes ted as to t h e ba lance .
(3) W h e n t h e drawer or indorser of a bill receives not ice
of a qualified acceptance , and does no t w i th in a reasonable t ime expresshis dissent to t h e holder, he shall be deemed to have assented there to .
45 . Subjec t to t h e provisions of th i s Act , a bil l m u s t be du ly
presented for p a y m e n t . I f i t be no t so presented, t h e drawer and in dorsers shal l be discharged.
A bi l l is du ly presented for p a y m e n t w h i c h is presented i n
accordance w i t h t h e following ru les :—
(1) W h e r e t h e hi l l is no t payable on demand, p r e sen tmen t m u s t he m a d e on t h e day i t falls due .
(2) W h e r e t h e bill is payable on demand , t h e n subject to t h e provisions of th i s Ac t , p resen tmen t m u s t be m a d e wi th in a reasonable t ime after i ts issue in order to render t h e d rawer l iable, and w i th in a reasonable t i m e after i ts indorsement in order to render t h e indorser l iable .
I n de te rmin ing w h a t is a reasonable t ime , r ega rd shal l be h a d to t h e n a t u r e of the bill , t h e usage of t r ade wi th r ega rd to s imilar bills, a n d t h e facts of t h e par t i cu la r case.
(3)
P r e s e n t m e n t m u s t be m a d e by t h e holder, or b y some person author ized to receive p a y m e n t on his behalf, a t a reasonable hou r on a business day, a t t h e p roper place as hereinaf ter defined, e i ther to t h e person des ignated by t h e bil l as payer , or to some person author ized to pay or refuse p a y m e n t on his
behalf, if w i t h t h e exercise of reasonable di l igence such person can t he r e be found.
(4)
(4) A bill is presented a t t he proper p l ace—
(a) W h e r e a place of p a y m e n t is specified in t h e hill , and
t h e bil l is t he re presented.
(b)
W h e r e no place of p a y m e n t is specified, h u t t h e address of t h e drawee or acceptor is given in t h e hill , a n d t h e hil l is there presented.
(c) W h e r e no place of p a y m e n t is specified and no address given, and the hil l is p resented a t t h e drawee 's or acceptor 's p lace of business if known , and if not , a t his ordinary residence if known .
(d)
In any other case if presented to the drawee or acceptor wherever he can be found, or if presented a t his last k n o w n place of business or residence.
(5) W h e r e a bill is presented a t t he proper place, and after t h e exercise of reasonable di l igence no person author ized to pay or refuse p a y m e n t can be found there , no fur ther p r e sen tmen t to t he drawee or acceptor is required .
(6) W h e r e a bill is d rawn upon , or accepted by two or more
persons who are not par tners , and no place of p a y m e n t is
specified, p re sen tmen t m u s t be m a d e to t h e m all. (7) W h e r e t h e drawee or acceptor of a bil l is dead, and no place of p a y m e n t is specified, p re sen tmen t m u s t bo m a d e to a personal representa t ive , if such there be, and with t h e exercise of reasonable dil igence he can be found.
(8) W h e r e author ized by ag reement or usage, a p r e sen tmen t
t h r o u g h the post office is sufficient.
46. (1) Delay in m a k i n g p resen tment for p a y m e n t is excused
w h e n the delay is caused by c i rcumstances beyond the control of t he holder , a n d no t impu tab l e to his default , misconduct , or negl igence.
| W h e n t h e cause of delay ceases to operate, p r e sen tmen t m u s t be | made |
| w i t h | reasonable | dil igence. |
(2) P r e s e n t m e n t for p a y m e n t is dispensed w i t h —
(a)
W h e r e , after t he exercise of reasonable diligence, p r e sen tmen t as required by this Act , canno t be effected.
The fact t h a t t h e holder has reason to believe t h a t t he bil l will, on p resen tmen t , be dishonoured, does not dispense w i t h
t h e
necessity for p resen tmen t . (b) W h e r e t he drawee is a fictitious person.
(c)
As regards the drawer, where the drawee or acceptor is not bound, as be tween himself and the drawer, to accept or pay t h e bill , and t h e drawer has no reason to believe t h a t t he bill would be paid if presented.
(d)
As regards an indorser, where the bill was accepted or made for t he accommodat ion of t h a t indorser, and he has no reason to expect t h a t t h e bill would be paid if presented .
(e) B y waiver of p resen tment , express or implied.
47 . (1) A bill is dishonoured by non -paymen t (a) w h e n i t is duly
| presented | for | p a y m e n t | and p a y m e n t is refused or canno t be obtained, |
| or (b) w h e n p re sen tmen t | is dispensed wi th or excused a n d | t h e bill is |
| overdue and unpaid . |
(2) Subject to t he provisions of this Act , w h e n a bill is dishonoured by non-paymen t , a n immedia te r igh t of recourse agains t the drawer a n d indorsers accrues to t he holder .
48 . Subjec t to t h e provisions of this Act , w h e n a bill has been
dishonoured by non-acceptance or by non-paymen t , not ice of d ishonour m u s t be given to t h e drawer and each indorser, and any d rawer or in dorser to whom such notice is no t given is discharged : Provided t h a t —
(1) W h e r e a bill is d ishonoured by non-acceptance , and not ice of
d ishonour is no t given, t h e r igh t s of a holder in due coursesubsequent to t he omission, shall no t be pre judiced by t h e
omission. (2)
(2)
W h e r e a h i l l is d ishonoured by non-acceptance , and due notice of d ishonour is given, i t shall no t be necessary to give not ice of a subsequen t d ishonour by non-payment unless t h e bill
shal l i n t he m e a n t i m e have been accepted.
49. Not ice of d ishonour in order to be valid a n d effectual m u s t be given in accordance wi th t h e following rules :—
(1) The not ice m u s t be given by or on behalf of t h e holder , or by or on behalf of an indorser who, a t t h e t ime of giving it , is himself l iable on the bill .
(2) Not ice of d ishonour m a y be given b y a n agent e i ther in his own n a m e , or in t h e n a m e of
any
p a r t y ent i t led
to
give
not ice ,
w h e t h e r t h a t p a r t y be his pr inc ipal or not . (3) W h e r e t h e not ice is given by or on behalf of t h e holder, i t enures for t h e benefit of all subsequen t holders a n d al l pr ior indorsers who have a r i g h t of recourse aga ins t t he p a r t y to w h o m it is g iven.
(4) W h e r e not ice is given b y or on behalf of an indorser ent i t led to give not ice as hereinbefore provided, i t enures for t h e benefit of t h e holder and all indorsers subsequen t to t he par ty to w h o m not ice is given.
(5) The not ice m a y be given in wr i t ing or by personal com munica t ion , a n d may be given in a n y t e rms which sufficiently identify t h e bill , a n d in t ima te t h a t the bill has been dis honoured by non-acceptance or non-payment .
(6) The r e t u r n of a dishonoured bill to t h e drawer or a n indorser is, i n point of form, deemed a sufficient notice of dishonour.
(7) A wr i t t en not ice need no t be signed, and a n insufficient wr i t t en not ice m a y be supplemented and val idated b y verba l communica t ion . A misdescr ipt ion of t h e bil l shal l no t v i t ia te t h e notice, unless t he p a r t y to w h o m the not ice is given is in fact misled thereby .
(8) W h e r e notice of d ishonour is requi red to be g iven to any
person, i t m a y be given e i ther to t h e p a r t y himself, or to his
agen t in t h a t behalf.
(9) W h e r e t h e drawer or indorser is dead, a n d t h e pa r ty g iv ing not ice knows it, t h e notice m u s t be given to a personal repre sentat ive if such the re be, and wi th t h e exercise of reasonable di l igence he can be found.
(10) Where t h e drawer or indorser is b a n k r u p t , notice m a y be
given ei ther to t he p a r t y himself or to t h e t rus tee .
(11) W h e r e the re are two or more drawers or indorsers who are not par tners , notice m u s t be given to each of t hem, unless one
of t h e m has au tho r i t y to receive such not ice for t h e others . (12) The not ice m a y be given as soon as t h e bill is dishonoured, a n d m u s t be given wi th in a reasonable t ime thereaf ter . I n t he absence of special c i rcumstances not ice is no t deemed to have been given wi th in a reasonable t ime un l e s s—
(a)
Where the person giving and the person to receive not ice reside in t h e same place, t h e not ice is g iven or sent off in t ime to reach the la t t e r on t he day after t he dishonour of t h e bill .
(b)
Where the person giving and the person to receive not ice reside in different places, t he not ice is sent off on t h e day after t h e dishonour of t he bill , if t he re be a post a t a convenient hou r on t h a t day, and if t he re be no such post on t h a t day, t h e n b y the n e x t post thereaf ter .
(13) W h e r e a bil l w h e n dishonoured is in t h e hands of a n agen t ,
he m a y e i ther himself give not ice to t h e par t ies l iable on t h e
bill ,
bill, or he m a y give notice to his pr incipal . I f h e give notice to his pr incipal , he m u s t do so wi thin t he same t ime as if ho were t h e holder , and the pr incipal upon receipt of such notice has himself the same t i m e for giving not ice as if t h e agen t had been a n independent holder.
(14) W h e r e a pa r ty to a bill receives due not ice of dishonour, he has after t h e receipt of such notice t he same period of t ime for giving not ice to an tecedent par t ies t h a t t h e holder has after t he dishonour.
(15) W h e r e a not ice of d ishonour is du ly addressed and posted, t h e sender is deemed to have given due not ice of
dishonour,
no twi ths t and ing any miscarr iage by the post office.
50. (1) Delay in g iv ing not ice of dishonour is excused where t h e delay is caused by c i rcumstances beyond the control of t h e p a r t y g iving notice, and not impu tab l e to his default , misconduct , or negl i gence. W h e n the cause of delay ceases to operate, t h e notice m u s t be given wi th reasonable dil igence.
(2) Not ice of d ishonour is dispensed w i t h —
(a)
When, after the exercise of reasonable diligence, notice as requi red by th is Ac t cannot be given to, or does not reach, the drawer or indorser sought to be charged :
(b) By waiver express or implied. Not ice of dishonour m a y be waived before t h e t ime of g iv ing not ice has arr ived, or after
t h e omission to give due notice :
(c) As regards the drawer, in the following cases, namely :—(1) where drawer and drawee a re t h e same person, (2) where t h e drawee is a fictitious person, or a person no t hav ing capaci ty to contract , (3) where t h e d rawer is t h e person to w h o m t h e bill is presented for p a y m e n t , (4) where t he drawee or acceptor is, as be tween himself and the drawer, u n d e r no obligat ion to accept or pay t h e bill , (5) where t h e d rawer has
coun te rmanded paymen t : (d) As regards the indorser, in the following cases, namely :—(1) where t he drawee is a fictitious person, or a person no t hav ing capaci ty to contract , and t h e indorser was aware of t h e fact a t t he t ime he indorsed the bill, (2) where t he indorser is t he person to w h o m the bill is presented for paymen t , (3) where
t h e bil l was accepted or m a d e for his accommodat ion . 5 1 . (1) W h e r e a n in land bil l has been dishonoured, it may , if
t h e holder t h i n k fit, be no ted for non-acceptance or non-payment , as
| t he case m a y be ; b u t i t shall no t be necessary to no te or pro tes t such bill in order to preserve t h e recourse against t h e drawer or indorser. any | (2) W h e r e a foreign bill, appear ing on the face of i t to be |
such, has been dishonoured b y non-acceptance, i t m u s t bo duly pro tested for non-acceptance ; and where such a bill, which has not been previously dishonoured by non-acceptance , is dishonoured by non p a y m e n t , i t mus t be duly protested for non-paymen t . If it be not so protested t he drawer and indorsers are discharged. W h e r e a bill does no t appear on t h e face of it to be a foreign bill , protes t thereof in case of d ishonour is unnecessary.
(3) A bill which has been protested for non-acceptance
m a y be subsequent ly protested for non-payment .
(4) Subject to the provisions of th is Act , when a bil l is
noted or protested, i t m u s t be noted on the day of its dishonour. W h e n
a bi l l has been duly noted, t he pro tes t may be subsequent ly extended
| as of t h e da te of t h e | not ing . |
(5) W h e r e t h e acceptor of a bill becomes b a n k r u p t or
insolvent or suspends p a y m e n t before it ma tu re s , t h e holder may cause t h e bill to be protested for be t t e r securi ty aga ins t t h e drawer a n d indorsers.
(6)
(6) A bil l m u s t be protes ted a t t h e place where i t is dis
honoured : Provided tha t—
(a)
W h e n a bi l l is p resen ted t h r o u g h the post office, and r e tu rned by post dishonoured, it may be protested a t t he place to which i t is re turned , and on t h e day of its r e t u r n if received du r ing
business hours , and if no t received du r ing business hours t h e n
no t la ter t h a n the n e x t business d a y :
(b) W h e n a bi l l d r a w n payable a t t he place of business or resi dence of some person o ther t h a n t h e drawee, has been dis honoured b y non-acceptance, i t m u s t be protested for non-pay m e n t a t t he place where i t is expressed to be payable , and no fu r ther p resen tment for p a y m e n t to , or demand on, t he drawee is necessary.
(7) A protes t m u s t conta in a copy of t he bill, and m u s t
be signed by the no ta ry m a k i n g it , a n d m u s t specify—
(a) T h e person a t whose reques t t he bi l l is protested : (b)
The place and date of protest, the cause or reason for pro tes t ing t he bill , t h e demand made , and t h e answer given, if any, or t h e fact t h a t t h e drawee or acceptor could no t be found.
(8) W h e r e a bil l is lost, or destroyed, or is wrongly deta ined
from the person ent i t led to hold it, protes t m a y be m a d e on a copy
or wr i t t en par t i cu la r s thereof.
(9) Pro tes t is dispensed wi th by a n y c i rcumstance which
wou ld dispense w i t h not ice of dishonour . Delay in n o t i n g or protest i n g is excused w h e n t h e delay is caused by c i rcumstances beyond t h e control of t h e holder , and no t impu tab le to his defaul t , misconduct , or negl igence. W h e n t h e cause of delay ceases to operate, t he bil l m u s t be noted or protes ted wi th reasonable di l igence.
52. (1) W h e n a bill is accepted general ly, p r e sen tmen t for pay
m e n t is no t necessary in order to render t he acceptor liable.
(2) W h e n b y the t e rms of a qualified acceptance present
m e n t for p a y m e n t is required, t h e acceptor , in the absence of a n
express s t ipula t ion to t h a t effect, is not discharged by t h e omission to
presen t t h e bil l for p a y m e n t on t h e day tha t it ma tu r e s . (3) I n order to render t h e acceptor of a bil l l iable, i t is
no t necessary to protes t it, or t h a t not ice of dishonour should be given
to h i m .
(4) W h e r e t he holder of a hil l presents it for p a y m e n t , ho
shal l exh ib i t t h e bil l to t he person from w h o m he demands p a y m e n t ;
and w h e n a bill is paid, t he holder shal l for thwith deliver i t u p to
t h e pa r ty p a y i n g it.
Liabilities of Parties.
53 . A bill of itself does not opera te as an ass ignment of funds
in t h e hands of t he drawee avai lable for t h e p a y m e n t thereof, a n d t h edrawee of a bill w h o does n o t accept as requi red b y th is Ac t is no t
l iable on t h e i n s t rumen t . 54. The acceptor of a bill by accepting it—
(1) E n g a g e s t h a t he will pay i t according to t he tenor of
his acceptance :
(2) I s prec luded from denying to a holder in due course :—
(a) The existence of the drawer, the genuineness of his
s igna ture , and his capaci ty and au tho r i t y to draw t h e bill ;
(b)
I n t h e case of a bil l payable to drawer ' s order, t h e t h e n
capac i ty of t h e drawer to indorse, b u t no t t he genu ine ness or val id i ty of his indorsement ;
(c)
(c) I n t h e case of a hil l payable to t h e order of a t h i rd person, t he exis tence of t h e payee a n d his t h e n capaci ty to indorse, b u t not t h e genuineness or val idi ty of his indorsement .
55 . (1) The drawer of a bill by drawing i t—
(a)
E n g a g e s t h a t on due p r e sen tmen t i t shal l be accepted and paid according to its tenor , and t h a t if i t be dishonoured he will compensa te t he holder or any indorser w ho is compelled to pay it, provided tha t t he requis i te proceedings on dishonour be duly t a k e n ;
(b)
Is precluded from denying to a holder in due course the exis tence of t h e payee and his t h e n capaci ty to indorse.
(2) The indorser of a bill by indors ing i t —
(a) Engages that on due presentment it shall be accepted and paid according to i ts tenor, and t h a t if it be dishonoured he will compensa te t h e holder or a subsequent indorser who is compelled to pay it , provided t h a t t h e requisi te proceedings on dishonour be duly t aken ;
Provided t h a t where two or more persons indorse as co-sureties, no th ing in th is sub-section shal l disenti t le any one or more of t h e m to cont r ibut ion from t h e o ther or others , b u t t he r igh ts and liabilities in te r se of such indorsers shall be subject to t he cont rac t in pur suance of which they became indorsers ;
(b) Is precluded from denying to a holder in due course the
genuineness and regu la r i ty in all respects of t h e drawer ' s s igna ture and all previous indorsements ;
(c) Is precluded from denying to his immediate or a subsequent indorsee t h a t t h e bill was a t t h e t ime of his indorsement a valid and subsis t ing bill, and t h a t he had t h e n a good t i t le there to .
5G. W h e r e a person signs a bill o therwise than as drawer or acceptor, he the reby incurs t h e liabilities of an indorser to a holder in due course.
57. W h e r e a bill is dishonoured, t he measure of damages , which
shall be deemed to be l iquidated damages , shall be as follows :
(1)
The holder m a y recover from a n y p a r t y l iable on t h e bill, and t h e drawer who has been compelled to pay t h e bill m a y recover from the acceptor, and an indorser who has been compelled to pay the bill m a y recover from t h e acceptor or from the drawer, or from a pr ior indorser—
(a) The a m o u n t of t h e b i l l :
(b) In te res t thereon from t h e t ime of p resen tmen t for
p a y m e n t if t h e bill is payab le on demand, and from t h e m a t u r i t y of the bill in any other case :
(c) The expenses of noting, or, when protest is necessary, a n d the protest has been extended, t he expenses of protest .
(2) I n t h e case of a bill which has been dishonoured abroad, in l ieu of t he above damages , t he holder m a y recover f rom the drawer or an indorser, and t h e drawer or a n indorser w ho has been compelled to pay t h e bil l m a y recover from any pa r ty
l iable to h im, t he a m o u n t of t h e re -exchange w i t h in teres t
the reon un t i l t h e t i m e of paymen t . (3) W h e r e by this A c t in teres t may be recovered as damages , such interest may , if jus t ice requ i re it, be wi thhe ld whol ly or in par t , and where a bil l is expressed to be payable w i th in teres t a t a given rate , interest as damages m a y or m a y not be given a t t h e same ra te as in teres t proper .
N o t h i n g in this section shall deprive any person of t he r igh t to
recover any unl iqu ida ted damages to which he may be b y law enti t led.
E 58.
58. (1) Where t h e holder of a bil l payable to bearer negot ia tes
i t b y delivery w i thou t indors ing it, he is called a " t ransferor b y del ivery ." (2) A transferor by delivery is no t l iable on t h e i n s t rumen t . (3) A transferor by delivery who negot ia tes a bill the reby
war r an t s to his immedia te t ransferee being a holder for va lue t h a t t h e bil l is w h a t i t purpor t s to be, t h a t h e has a r igh t t o t ransfer it , and t h a t a t t h e t i m e of t ransfer he is n o t aware of any fact which renders i t valueless .
Discharge of Bill.
59. (1) A bil l is discharged by p a y m e n t in due course b y or
on behalf of t h e drawee or acceptor .
" P a y m e n t in due c o u r s e " means p a y m e n t m a d e a t or after t h e
m a t u r i t y of t he bill t o t h e holder thereof in good fai th a n d w i t h o u t
not ice t h a t his t i t le to t h e bill is defective. (2) Subject to t h e provisions hereinafter conta ined w h e n a
bill is paid by the drawer or an indorser i t is n o t d i scha rged ; b u t
(a) "Where a bil l payable to , or to t h e order of, a t h i rd pa r ty is paid by t h e drawer , t he drawer m a y enforce p a y m e n t thereof against t h e acceptor , b u t m a y not re-issue t h e bill . (b) "Where a bill is paid by an indorser, or where a bill payable to drawer ' s order is paid by t h e drawer, t h e pa r ty pay ing i t is r emi t t ed to his former r igh t s as regards t h e acceptor or an te
cedent par t ies , a n d he may , if he t h i n k s fit, s t r ike out his own and subsequen t indorsements , and aga in negot ia te t he bill .
(3) "Where a n accommodat ion bill is paid in due course by
t h e p a r t y accommodated t h e bill is discharged.
60. W h e n a bill payable to order on demand is d r a w n on a banker , a n d t h e banker on w h o m i t is d r a w n pays t he bil l in good fai th and in t h e ordinary course of business, i t is no t i n c u m b e n t on t h e b a n k e r to show t h a t t he indorsement of t he payee or any subsequent indorsement was made by or u n d e r t he au tho r i t y of t h e person whose indorsement i t p u r p o r t s to be, a n d t h e b a n k e r is deemed to have paid t h e bi l l in due course, a l t h o u g h such indorsement has been forged or m a d e wi thou t a u t h o r i t y ; and such indorsement shal l be deemed to
give as valid a n au tho r i t y to t h e b a n k e r to pay t h e bill as t h o u g h it
were genu ine a n d m a d e wi th due au thor i ty . 6 1 . W h e n t h e acceptor of a hil l is or becomes the holder of i t
a t or af ter i ts m a t u r i t y , in his own r igh t , t he hill is discharged.
62. (1) W h e n t h e holder of a bill a t or after i ts m a t u r i t y abso
lu te ly and uncondi t ional ly renounces his r igh t s aga ins t t h e acceptor the bi l l is discharged.
The renunc ia t ion m u s t be in wr i t ing , unless t h e bil l is delivered
u p to t h e acceptor .
(2) The liabilit ies of any pa r ty to a bill m a y in l ike m a n n e r be renounced by the holder before, at, or after i ts ma tu r i t y , b u t no th ing in th is section shal l affect t he r igh t s of a holder in due course w i t h o u t
not ice of t h e renunc ia t ion .
63. (1) W h e r e a bill is in ten t iona l ly cancelled by t h e holder or
h is agent , and t h e cancel la t ion is appa ren t thereon, t h e bill is discharged.
(2) I n l ike m a n n e r any pa r ty l iable on a bill m a y be dis
charged by the in ten t iona l cancel la t ion of his s igna tu re by the holder or his agent . I n such case a n y indorser who would have h a d a r i g h t of recourse agains t t h e p a r t y whose s igna tu re is cancelled, is also discharged.
(3) A cancellat ion m a d e un in ten t iona l ly , or u n d e r a mis
take , or w i t h o u t t he au thor i ty of t h e holder is inoperat ive, b u t where a bill or any s igna ture the reon appears to have been cancel led t h e b u r d e n of proof lies on t h e p a r t y who alleges t h a t t h e cancel la t ion was m a d e
un in ten t iona l ly , or t inder a mis take , or w i t h o u t au thor i ty .
64. (1) W h e r e a hill or acceptance is mater ia l ly al tered wi thou t
| t h e assent of all par t ies l iable on t he bill , t h e bill is avoided except | as |
| aga ins t | a p a r t y who has himself made , authorized, or assented to t h e |
| a l tera t ion, and subsequen t | indorsers. |
Provided t h a t —
W h e r e a bill has been mate r ia l ly al tered, b u t t h e al terat ion is
no t apparen t , a n d t h e bil l is in t h e hands of a holder in due course, such holder m a y avail himself of t he bill as if i t had not been altered, and m a y enforce p a y m e n t of it according to i ts original tenor .
(2) I n par t i cu la r the following al terat ions are m a t e r i a l ; namely ,
| any a l te ra t ion of t h e date , t he s u m | payable , t h e | t ime | of | paymen t , | the |
| place of | p a y m e n t , and, where a bill has been accepted general ly, the | |||
| addi t ion |
|
Acceptance and Payment for Honour.
65. (1) W h e r e a bill of exchange has been protes ted for dis- honour b y non-acceptance , or protested for be t te r securi ty, and is n o t overdue, any person, no t be ing a par ty a l ready l iable thereon, m a y , wi th t he consent of t he holder, in te rvene and accept t h e bill supra protest , for t he honour of any pa r ty liable thereon, or for t h e honour of t h e person for whose accoun t t h e bill is d rawn.
(2) A bill m a y be accepted for honour for pa r t only of t h e
s u m for which it is d r awn .
(3) A n acceptance for honour supra, protest in order to be
| valid | m u s t — | |
|
for honour . (b) Be signed b y t h e acceptor for honour .
(4) W h e r e an acceptance for honour does not expressly s ta te for whose honour i t is made , i t is deemed to be an accep tance for t h e honour of t he drawer .
(5) W h e r e a bill payable after s ight is accepted for honour ,
| i ts m a t u r i t y is ca lcula ted | from | the date of t h e no t ing for | non- |
acceptance , and no t from t h e da te of t h e acceptance for honour .
66. (1) The acceptor for honour of a bil l by accept ing i t engages t h a t he will, on due presen tment , pay t h e bill according to t he tenor of his acceptance, if i t is no t paid by t h e drawee, provided i t has been du ly presented for paymen t , and protested for n o n p a y m e n t , and t h a t he receives not ice of these facts.
(2) The acceptor for honour is l iable to t h e holder a n d to
| all par t ies to t h e bil l subsequen t to t h e par ty for whose honour he has accepted. |
67. (1) W h e r e a d ishonoured bill has been accepted for honour supra protest , or conta ins a reference in case of need, i t m u s t be protested for n o n p a y m e n t before i t is presented for p a y m e n t to t he acceptor for honour , or referee in case of need.
(2) W h e r e t h e address of t he acceptor for honour is in t he same place where t h e bill is protested for non-paymen t , t h e bill m u s t be presented to h i m not la ter t h a n the day following i ts m a t u r i t y ; and where t h e address of t he acceptor for honour is in some place o ther t h a n the place where i t was protested for non-payment , t h e bill m u s t be forwarded no t la ter t h a n t h e clay following i ts m a t u r i t y for
| p resen tmen t | to | h im. |
(3) De lay in p resen tment or non-p resen tmen t is excused
by any c i rcumstance which would excuse delay in p r e sen tmen t for
| p a y m e n t | or non-p resen tmen t | for | paymen t . |
(4) W h e n a bill of exchange is d ishonoured b y the
acceptor for honour i t m u s t be protested for non -paymen t by h im.
68. (1) W h e r e a hi l l has been protes ted for non-payment , a n y
person m a y in te rvene a n d pay i t supra protest for the honour of a n y pa r ty l iable the reon , or for t h e honour of t he person for whose account t h e bill is d rawn.
(2) W h e r e two or more persons offer to pay a bil l for t h e
honour of different par t ies , t he person whose p a y m e n t will d ischarge most par t ies to t h e bil l shal l have t h e preference.
(3) P a y m e n t for honour supra protest , in order to operate
as such a n d not as a mere vo lun ta ry payment , m u s t be at tes ted by a no ta r ia l ac t of honour w h i c h m a y be appended to t h e pro tes t or form a n extension of i t . (4) The notar ia l ac t of honour m u s t be founded on a declarat ion m a d e by the payer for honour , or his agen t in t h a t behalf, declar ing his in ten t ion to pay t h e bil l for honour , a n d for whose honour he pays.
(5) W h e r e a bil l has been pa id for honour , a l l par t ies
subsequent to t h e p a r t y for whose honour i t is pa id are discharged, b u t t h e payer for honour is subrogated for, and succeeds to bo th t h e r igh t s a n d duties of, t h e holder as regards t h e pa r ty for whose honour he pays ,
a n d
all par t ies (6) The payer for honour on p a y i n g to t h e holder t h e
l iable to t h a t
pa r ty .
a m o u n t of t h e bi l l a n d t h e no ta r i a l expenses incidental to i ts dishonour
is ent i t led to receive bo th t h e bil l itself and t h e protes t . I f t he holder do n o t on demand deliver t h e m u p , he shall he l iable to t he payer for
h o n o u r in damages .
(7) W h e r e t h e holder of a bil l refuses to receive pay
m e n t supra protest , he shal l lose his r i g h t of recourse aga ins t any p a r t y who would have been discharged by such p a y m e n t .
Lost Instruments.
69. W h e r e a hill has been lost before i t is overdue, t h e person who was t he holder of it m a y apply to t he drawer to give h i m ano the r bill of t he same tenor , g iv ing securi ty to t h e drawer if r equ i red to indemnify h im agains t all persons wha tever in case t h e bil l al leged to have been lost shal l be found again .
I f t h e drawer on reques t as aforesaid refuses to give such dupl i cate hi l l he m a y be compelled to do so on a s u m m a r y appl ica t ion by order of a J u d g e of t h e Supreme Court , upon such t e rms as to securi ty , and as to costs to he paid by ei ther par ty , as to such J u d g e
shal l seem f i t ; provided t h a t no such costs shall be ordered to be pa id
by t h e drawer unless his refusal to give such dupl ica te bill was
vexat ious or unreasonable ; a n d such order shall be subject to a r i gh t
of appea l to t h e Supreme Court . Provided t h a t whe re t he s u m payable by t he bill is no t more
t h a n two h u n d r e d pounds such order as aforesaid m a y be m a d e upon t h e l ike t e rms as to securi ty a n d cost by a J u d g e of a Dis t r ic t Cour t to wh ich t h e person so app ly ing if h e were a plaintiff sue ing t h e drawer on such bil l would be ent i t led to cause t he defendant , or one of t h e defendants , t o be summoned ; a n d such order shal l be subjec t to t h e same r igh t of appeal as t h a t to which an order or decision m a d e
in a cause by a J u d g e of t he Dis t r ic t Cour t is, or shall hereaf ter be , subject .
70. I n any act ion or proceeding upon a bill , t h e Supreme Cour t
or a n y J u d g e of t h e Cour t i n wh ich such ac t ion or proceeding is b r o u g h t
m a y order t h a t t he loss of t he i n s t r u m e n t shall no t be set u p , provided
an i n d e m n i t y be given to t h e satisfaction of t h e Cour t or J u d g e agains t
t h e claims of any other person upon t h e i n s t r u m e n t in quest ion.
Bill
Bill in a Set.
7 1 . (1) W h e r e a hill is d rawn in a set, each par t of the set be ing
| numbered , a n d con ta in ing a reference to | t h e o ther par ts , t he whole of |
| t h e par t s | cons t i tu te | one | bill. |
(2) W h e r e t he holder of a set indorses two or more pa r t s
to different persons, he is l iable on every such par t , and every indorser subsequent to h i m is l iable on t h e pa r t he has himself indorsed as if t h e said pa r t s were separate bills.
(3) W h e r e two or more parts of a set are negot ia ted to different holders in due course, t he holder whose t i t le first accrues is as be tween such holders deemed the t r u e owner of t h e bill, b u t no th ing in th i s sub-section shall affect t h e r igh ts of a person who in due course accepts or pays the pa r t first presented to h im.
(4) The acceptance m a y be wr i t ten on any par t , and i t
| m u s t be wr i t t en on one pa r t | only. |
If t h e drawee accepts more t h a n one par t , and such accepted
par ts get in to t he hands of different holders in due course, he is l iable
on every such p a r t as if i t were a separate bill .
| (5) W h e n t h e acceptor of a bill d rawn in a set pays it w i thou t r e q u i r i n g t h e pa r t bear ing his acceptance to be delivered u p | to h im, | and |
| t h a t p a r t a t m a t u r i t y is ou t s t and ing | in | t h e | hands of | a | holder in | due |
course, h e is l iable to t he holder thereof.
(6) Subject to t h e preceding rules, where any one pa r t of a bill d r a w n in a set is discharged by p a y m e n t or otherwise, t h e whole bill is discharged.
Conflict of Laws.
72. W h e r e a hill d rawn in one count ry or colony is negotiated, accepted, or payable in another , t he r ights , duties, and liabilities of t he part ies there to are de te rmined as follows :—
(1) The val id i ty of a bill as regards requis i tes in form is deter mined by t h e l aw of t h e place of issue, and t h e val idi ty as regards requisi tes in form of t he supervening contrac ts , such as acceptance, or indorsement , or acceptance supra protest , is de termined by t h e law of t h e place where such cont rac t was
made . Provided t h a t —
(a) Where a bill is issued out of this Colony it is not inval id b y reason only t h a t it is no t s tamped in accord
ance wi th t h e law of t he place of issue : (b) Where a bill issued, out of this Colony, conforms, as regards requisi tes in form, to t h e law of this Colony, i t m a y , for t he purpose of enforcing p a y m e n t thereof, be t rea ted as valid as be tween all persons who negociate , hold, or become part ies to i t in th is Colony.
(2) Subjec t to t h e provisions of th is Act , t he in terpre ta t ion of t he drawing, indorsement , acceptance , or acceptance supra protest of a bill , is de te rmined by t h e law of t h e place where such con t rac t is made . Provided t h a t where a n in land bill is indorsed in a foreign count ry t h e indorsement shal l as regards t h e payer be in te rpre ted according to t he law of th is Colony. (3) The dut ies of the holder w i th respect to p resen tmen t for acceptance or p a y m e n t and t h e necessity for or sufficiency of a protes t or not ice of dishonour, or otherwise, are de te rmined by the law of t h e place where t he ac t is done or t h e bill is dishonoured.
(4)
(4) W h e r e a hil l is d r a w n out of h u t payable in th i s Colony, and the s u m payable is no t expressed in the cu r rency of th i s Colony, t he a m o u n t shall , in t h e absence of some express s t ipulat ion, be calcula ted according to t h e r a t e of exchange for s ight drafts a t t h e place of p a y m e n t on t h e day the bill is payable .
(5)
W h e r e a bil l is d r a w n in one coun t ry or colony and is payable in another , t h e due date thereof is de termined according to t he law of t h e place where i t is payable .
P A R T I I I . CHEQUES ON A BANKER.
73 . A cheque is a bil l of exchange d rawn on a b a n k e r payable
on demand to or to t h e order of a specified person, or to bearer.
E x c e p t as otherwise provided in this Pa r t , t he provisions of this A c t appl icable to a bill of exchange payable on demand apply to a cheque .
74. Subjec t to t he provisions of th i s A c t —
(1) W h e r e a cheque is not presented for p a y m e n t wi th in a reasonable t ime of its issue, a n d the drawer, or t he person on whose account i t is d rawn, had t h e r igh t a t t h e t ime of such
p resen tmen t , as be tween h i m and t h e banker , to have t h e cheque paid, and suffers ac tua l d a m a g e t h r o u g h the delay, he is d ischarged to t h e e x t e n t of such damage , t h a t is to say, to t h e e x t e n t to which such drawer or person is a credi tor of such b a n k e r to a la rger a m o u n t t h a n he would have been h a d such cheque been paid.
(2) I n de te rmin ing w h a t is a reasonable t i m e rega rd shal l be
had to t h e n a t u r e of t he i n s t r u m e n t , t h e usage of t r ade and
of bankers , a n d t h e facts of t h e pa r t i cu la r case. (3) The holder of such cheque as to which such drawer or person
is discharged shal l be a creditor , in l ieu of such drawer orperson, of such b a n k e r to t h e ex t en t of such discharge, and
ent i t led to recover t h e a m o u n t from h i m .
75. The du ty and au tho r i t y of a b a n k e r to pay a cheque d rawn
on h i m b y his cus tomer a re de te rmined b y —
(1) Coun te rmand of p a y m e n t :
(2) Not ice of t h e cus tomer ' s dea th .
Crossed Cheques.
76. (1) W h e r e a cheque bears across i ts face a n addi t ion of—
(a.)
The words " a n d company , " or the word " b a n k , " or any abbrevia t ion thereof respectively, be tween two para l le l t r ans
verse lines, e i ther wi th or wi thou t the words " not nego t i ab l e " — o r (b.)
Two paral le l t ransverse l ines simply, e i ther wi th or w i t h o u t
t h e words " no t n e g o t i a b l e " —
t h a t addi t ion const i tu tes a crossing, and the cheque is crossed general ly . (2) W h e r e a cheque bears across its face an addit ion of
t h e n a m e of a banke r , e i ther w i t h or w i t h o u t t he words " no t negot iab le ," t h a t addit ion const i tu tes a crossing, and the cheque is crossed
specially and to t h a t banker . 77.
77. (1) A cheque may be crossed genera l ly or specially b y t h e (2) W h e r e a cheque is uncrossed, t h e holder may cross i t
drawer .
general ly or specially.
(3) W h e r e a cheque is crossed general ly, t h e holder m a y
cross i t specially.
(4) W h e r e a cheque is crossed general ly or specially, t h e
holder m a y add the words " not negot iab le ."
(5) W h e r e a cheque is crossed specially, t h e banke r to
w h o m it is crossed m a y again cross i t specially to ano ther b a n k e r for
collection.
(6) W h e r e an uncrossed cheque, or a cheque crossed gene ral ly, is sent to a b a n k e r for collection, he may cross i t specially to
himself.
78. A crossing author ized by this A c t is a ma te r i a l pa r t of t h e
| c h e q u e ; | i t | shall no t be lawful for any person to obl i terate , or, except |
as author ized by this Act , to add to, or a l ter t h e crossing.
79. (1) W h e r e a cheque is crossed specially to more t h a n one
banker , excep t when crossed to an agen t for collection being a banker ,
| t h e b a n k e r | on w h o m | it is d rawn | shall refuse p a y m e n t | thereof. |
(2) W h e r e t h e b a n k e r on w h o m a cheque is d rawn which
is so crossed never theless pays t he same, or pays a cheque crossed genera l ly otherwise t h a n to a banke r , or if crossed special ly o therwise t h a n to t he banker to w h o m it is crossed, or his agen t for collection being a banker , he is l iable to t he t rue owner of t he cheque for any loss he m a y sus ta in owing to t he cheque hav ing been so paid.
Provided t h a t where a cheque is presented for p a y m e n t wh ich
does no t a t the t i m e of p re sen tmen t appear to be crossed, or to have had a crossing which has been obli terated, or to have been added to or al tered otherwise t h a n as author ized by th is Act , t h e b a n k e r pay ing t h e cheque in good fai th and wi thou t negl igence shall not be responsible or incur any liabil i ty, nor shal l t he paymen t be quest ioned by reason of t he cheque h a v i n g been crossed, or of t h e crossing h a v i n g been obl i terated or hav ing been added to or a l tered otherwise t h a n as author ized by th is Ac t , a n d of p a y m e n t hav ing been made otherwise t h a n to a banker , or to t h e b a n k e r to w h o m the cheque is or was crossed, or to his agent for collection be ing a banker , as t he case may be.
80. W h e r e t he h a n k e r on w h o m a crossed cheque is d r a w n in
good faith a n d wi thou t negl igence pays it, if crossed general ly, to a banker , and , if crossed specially, to t he banke r to w h o m it is crossed, or his agen t for collection being a hanker , t h e hanke r pay ing t h e cheque ,
| and, if t h e cheque has come in to t he hands of t he payee, t h e | drawer, |
| shall respect ively be ent i t led to t h e same | r igh ts , and be placed in t h e |
| same position, as if p a y m e n t of the cheque h a d been | made to t h e t r u e |
| owner thereof. |
8 1 . W h e r e a person takes a crossed cheque which bears on i t
t he words " not negot iab le ," he shall not have, and shall no t be capable of giving, a be t te r t i t le to t he cheque t h a n t h a t which the person from w h o m he took i t had.
82. W h e r e a banker in good fai th a n d wi thou t negl igence
| receives p a y m e n t for a cus tomer of a cheque crossed general ly | or |
| specially to himself, and t h e customer has no t i t le or a defective | t i t le |
| the re to , t he banke r shall no t incur | any liabili ty to t he t r u e owner | of |
t he cheque by reason only of hav ing received such payment .
P A R T
P A R T I V . PROMISSORY NOTES.
83 . (1) A promissory no te is an uncondi t ional promise in •writing m a d e by one person to a n o t h e r signed by t h e maker , engag ing to pay on demand, or a t a fixed or de terminable fu tu re t ime , a s u m cer ta in in money to, or to t h e order of, a specified person, or to bearer .
(2) A n i n s t r u m e n t in t h e form of a no te payable to make r ' s
order is no t a no te wi th in t h e m e a n i n g of th is section unless and un t i l i t is indorsed by the maker .
(3) A no te is no t invalid by reason only t h a t i t conta ins also
a p ledge of collateral secur i ty w i t h au thor i ty to sell or dispose thereof.
(4) A no te wh ich is, or on t he face of i t purpor t s t o be,
bo th m a d e and payable wi th in Aust ra las ia is an in land note . A n y o ther no te is a foreign note .
84. A promissory note is inchoate and incomplete un t i l del ivery
thereof to t he payee or bearer .
85 . (1) A promissory no te m a y be m a d e b y two or more
makers , a n d t h e y m a y be l iable thereon jo in t ly , or jo in t ly and severally, according to i ts t enor . (2) W h e r e a no te runs " I promise to p a y , " and is signed
by two or more persons, i t is deemed to be the i r jo in t and several note .86. (1) W h e r e a no te payable on demand has been indorsed,
i t m u s t be presented for p a y m e n t w i th in a reasonable t ime of t h e
indorsement . I f i t be no t so presented t h e indorser is discharged.
(2) I n de te rmin ing w h a t is a reasonable t i m e regard shal l
be h a d to t he n a t u r e of t he in s t rumen t , t h e usage of t rade , and the
facts of t h e par t i cu la r case. (3) W h e r e a note payable on demand is negot ia ted, i t is no t deemed to be overdue for t he purpose of affecting t h e holder w i th defects of t i t le of wh ich he had no notice, b y reason t h a t it appears t h a t a reasonable t ime for p resen t ing i t for p a y m e n t has elapsed since i t s issue.
87. (1) W h e r e a promissory note is in t h e hotly of i t m a d e
payable a t a par t i cu la r place, i t m u s t be presented for p a y m e n t at t h a t
place in order to render t he m a k e r l iable. I n any o ther ease, present m e n t for p a y m e n t is no t necessary in order to render t h e m a k e r l iable.
(2) P r e s e n t m e n t for p a y m e n t is necessary in order to
render t h e indorser of a no te l iable.
(3) W h e r e a no te is in t he body of i t m a d e payable a t a
par t i cu la r place, p r e s e n t m e n t a t t h a t place is necessary in order to
r ender an indorser l iable ; b u t w h e n a place of p a y m e n t is indicated b y
w a y of m e m o r a n d u m only, p re sen tmen t a t t h a t place is sufficient to
r ende r t h e indorser l iable, b u t a p r e sen tmen t to t he m a k e r elsewhere, if sufficient in o ther respects , shal l also suffice.
88. T h e m a k e r of a promissory no te by m a k i n g i t—
(1) Engages t h a t he will pay it according to i ts t e n o r ; (2) I s prec luded from deny ing to a holder in due course t he exis tence of t h e payee and his t h e n capaci ty to indorse.
89. (1) Subjec t to t h e provisions in this Pa r t , and except as b y
th is section provided, t h e provisions of th i s Ac t r e l a t ing to bills of
exchange app ly wi th the necessary modifications to promissory notes .
(2) I n app ly ing those provisions t h e m a k e r of a no te shall
be deemed to correspond wi th t h e acceptor of a bi l l , and the first indorser of a no te shall be deemed to correspond wi th t h e drawer of an accepted bill payab le to drawer 's order.
(3)
(3) The following provisions as to hil ls do not app ly to
| notes ; name ly , | provisions re la t ing | t o — |
(a) P r e s e n t m e n t for acceptance ; (b) A c c e p t a n c e ; (c) Accep tance supra p r o t e s t ; (d) Bills in a set.
(4) W h e r e a foreign no te is dishonoured, pro tes t thereof
| is | unnecessarv . |
P A R T V. SUPPLEMENTARY.
90. A t h i n g is deemed to be done in good faith, w i th in t h e
| mean ing of th i s Ac t , where i t is in fact | done | honest ly , w h e t h e r | i t | is |
| done negl igent ly or not . |
9 1 . (1) W h e r e by th is Act , any i n s t r u m e n t or wr i t i ng is re
quired to be signed b y a n y person, it is no t necessary t h a t he should sign i t wi th his own h a n d , b u t i t is sufficient if his s ignature is wr i t t en thereon by some other person b y or u n d e r his au thor i ty .
(2) I n t h e case of a corporation, where b y th is A c t any
| i n s t r u m e n t or wr i t ing is required to be signed, it is sufficient | if | t h e |
| i n s t r u m e n t | or wr i t ing be sealed wi th | the corporate | seal. |
B u t n o t h i n g in th is section shall be construed as r equ i r ing t h e
bill or no te of a corporat ion to be unde r seal.
92. W h e r e by th is A c t t he t ime l imited for doing any ac t or
t h i n g is less t h a n th ree days, in reckoning t ime, non-business days are
excluded.
" N o n - b u s i n e s s days" for t he purposes of th i s A c t m e a n —
(a) Sunday . (b) A bank holiday under the " Bank Holidays Act, 1875", or
Ac t s a m e n d i n g or ex tend ing it. (c)
A day appointed by proclamation by the Governor in Council as a publ ic fast or t hanksg iv ing day.
A n y other day is a business day.
93 . For t h e purposes of th is Act , where a bill or no te is required
to be protested w i t h i n a specified t ime, or before some fur ther pro ceeding is t aken , i t is sufficient t h a t t h e bil l has been noted for protes t before t he expira t ion of t he specified t ime , or t he t a k i n g of the pro
ceeding ; and the formal protes t m a y be ex tended at any t ime there
| after as of t h e da te of the no t ing . |
94. W h e r e a dishonoured bill or note is author ized or required
to be protested, and t h e services of a no ta ry canno t be obta ined a t t h e place w h e r e t h e bil l is dishonoured, any householder or subs tant ia l resident of the place, may , in t he presence of two witnesses, give a certificate, s igned by t hem, a t tes t ing t he dishonour of t he bill , and the certificate shall in all respects operate as if i t were a formal pro tes t of
| t h e | bill . |
The form given in t he F i r s t Schedule to this Ac t may be used wi th necessary modifications, and if used shall be sufficient.
95 . The provisions of th is A c t as to crossed cheques shall apply
| to a war ran t for p a y m e n t of | dividend. |
96. The Ac t s men t ioned in t h e Second Schedule to th i s Ac t
are, so far as t hey m a y be in force in t he Colony, hereby repealed,
| as from t h e commencemen t of th is | A c t . |
Provided t h a t such repeal shall no t affect a n y t h i n g done or
suffered, or any r ight , t i t le, or interest , acquired or accrued before t he
c o m m e n c e m e n t of th i s Act , or any legal proceeding or remedy in
| respect of a n y such th ing , r ight , t i t le , or | interest . |
F 97 . 97. (1) This Act shall not extend to any hill of exchange, promissory-note, cheque, warrant, or other document, drawn, accepted, or made, before the commencement of this Act; and every right, title, interest, or liability, in respect of such document shall remain as if this
Act had not been passed.
(2) The rules in bankruptcy and insolvency relating to
bills of exchange, promissory notes, and cheques, shall continue to
apply thereto, notwithstanding anything in this Act contained.(3) The rules of Common Law, including the Law Mer
chant, save in so far as they are inconsistent with the express pro visions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques.
(4) Nothing in this Act, or in any repeal effected thereby,
shall affect—
(a) The provisions of the " Stamp Duties Act of 1880," the " Stamp Duties Act Amendment Act of 1886," or any Act amending them or either of them, or any law or enactment for the time being in force relating to the revenue.
(b) The provisions of the " Companies Act 1874," or Acts amending it, or any Act relating to joint stock banks or companies. (c) The provisions of any Act relating to or confirming the privileges of the Bank of England or the Bank of Ireland respectively. (d) The validity of any usage relating to dividend warrants, or the indorsements thereof.
98. Where any Act or document refers to any enactment
repealed by this Act, the Act or document shall be construed, and shall
operate, as if it referred to the corresponding provisions of this Act.
SCHEDULES.
FIRST S C H E D U L E .
Form of Protest which may be used when the services of a Notary cannot be obtained.
K N O W all men that I , A . B . [householder], of in the Colony of New South
Wales, at the request of C.D., there being no notary public available, did on the
day of 18 at demand payment [or acceptance] of the bill
of exchange hereunder written, from E.E., to which demand he made answer [state
answer if any], wherefore I now in the presence of G.H. and J . K . do protest the said
bill of exchange.
Dated this day of at
(Signed) A . B .
G.H.J.K} Witnesses.
N . B . — T h e bill itself should be annexed, or a copy of the bill and all that is written thereon should be underwritten.
S E C O N D
S E C O N D S C H E D U L E .
R E P E A L OF A C T S .
Session and Chapter. Title of Act.
| 9 Will . III c. 17 | An Act for the better payment of Inland Bills of Exchange. |
| 3 & 4 Anne c. 8 (printed in | An Act for giving like remedy upon Promissory Notes as |
| Ruffhead's Edition as | is now used upon Bills of Exchange and for the better An Act for further restraining the negotiation of Promis sory Notes and Inland Bills of Exchange under a limited sum within that part of Great Britain called England. |
| 3 & 4 Anne, c. 9 ) | payment of Inland Bills of Exchange. |
17 Geo. III c. 30
| 39 & 40 Geo. III c. 42 | ... | An Act for the better observance of Good Friday in certain |
cases therein mentioned.
| 48 Geo. III c. 88 | An Act to restrain the Negotiation of Promissory Notes and Inland Bills of Exchange under a limited sum in England. |
| 1 & 2 Geo. I V c. 78 | An Act to regulate acceptances of Bills of Exchange. |
| 7 Geo. I V No. 3 | An Act to repeal an Act intituled " An Act to make |
Promissory Notes and Bills of Exchange payable in Spanish dollars available as if such Notes and Sills
had been drawn payable in sterling money of the realm and to promote the circulation of sterling money of Great
Britain in New South Wales."
| 7 & 8 Geo. I V c. 15 | An Act for declaring the law in relation to Bills of Ex change and Promissory Notes becoming payable on Good Friday or Christmas Day. |
| 20 Victoria No. 7 | An Act to amend the laws relating to Drafts on Bankers. |
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