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BILLS OF EXCHANGE ACT 1882

BILLS OF EXCHANGE ACT 1882 - LONG TITLE

An Act to codify the law relating to Bills of Exchange, Cheques,
and Promissory Notes.
[18th August 1882]
PART I

BILLS OF EXCHANGE ACT 1882 - SECT 1

1. This Act may be cited as the Bills of Exchange Act, 1882.

BILLS OF EXCHANGE ACT 1882 - SECT 2
Interpretation of terms.

2. In this Act, unless the context otherwise requires,

"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.

"Delivery" means transfer of possession, actual or constructive, from
one person to another.

"Holder" means the payee or indorsee of a bill or note who is in
possession of it, or the bearer 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.

Bill of exchange defined.

BILLS OF EXCHANGE ACT 1882 - SECT 3

3.(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.

(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 re-imburse 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.

BILLS OF EXCHANGE ACT 1882 - SECT 4
Inland and foreign bills.

4.(1) An inland bill is a bill which is or on the face of it
purports to be (a) both drawn and payable within the British
Islands, or (b) drawn within the British Islands upon some person
resident therein. Any other Bill is a foreign bill.

For the purposes of this Act "British Islands" mean any part of
the United Kingdom of Great Britain and Ireland, the islands of
Man, Guernsey, Jersey, Alderney, and Sark, and the islands adjacent
to any of them being part of the dominions of Her Majesty.

(2) Unless the contrary appear on the face of the bill the holder
may treat it as an inland bill.

BILLS OF EXCHANGE ACT 1882 - SECT 5
Effect where different parties to bill are the same person.

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

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 6
Address to drawee.

6.(1) The drawee must be named or otherwise indicated in a bill
with reasonable certainty.

(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 to two or more drawees in succession is not a bill
of exchange.

BILLS OF EXCHANGE ACT 1882 - SECT 7
Certainty required as to payee.

7.(1) Where a bill is not payable to bearer, the payee must be
named or otherwise indicated therein with reasonable certainty.

(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.

(3) Where the payee is a fictitious or non-existing person the bill
may be treated as payable to bearer.

BILLS OF EXCHANGE ACT 1882 - SECT 8
What bills are negotiable.

8.(1) When a bill contains words prohibiting transfer, or indicating
an intention that it should not be transferable, it is valid as
between 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
payable, 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
payable, or which is expressed to be payable to a particular
person, and does not contain words prohibiting transfer or indicating
an intention that it should not be transferable.

(5) Where a bill, either originally or by indorsement, is expressed
to be payable to the order of a specified person, and not to him
or his order, it is nevertheless payable to him or his order at
his option.

BILLS OF EXCHANGE ACT 1882 - SECT 9
Sum payable.

9.(1) The sum payable by a bill is a sum certain within the
meaning of this Act, although it was 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 according 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.

BILLS OF EXCHANGE ACT 1882 - SECT 10
Bill payable on demand.

10.(1) A bill is payable on demand

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

BILLS OF EXCHANGE ACT 1882 - SECT 11
Bill payable at a future time.

11. A bill is payable at a determinable future time within the
meaning of this Act which is expressed to be payable

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 12
Omission of date in bill payable after date.

12. Where a bill expressed to be payable at a fixed period after
date is issued undated, or where the acceptance of a bill payable
at a fixed period after sight is undated, any holder may insert
therein the true date of issue or acceptance, and the bill shall
be payable accordingly.

Provided that (1) where the holder in good faith and by mistake
inserts a wrong date, and (2) in every case where a wrong date is
inserted, if the bill subsequently comes into the hands of a holder
in due course the bill shall not be avoided thereby, but shall
operate and be payable as if the date so inserted had been the
true date.

BILLS OF EXCHANGE ACT 1882 - SECT 13
Ante-dating and post-dating.

13.(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.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 14
Computation of time of payment.

14. Where a bill is not payable on demand the day on which it
falls due is determined as follows:

[(1)The bill is due and payable in all cases on the last day of
the time of payment as fixed by the bill or, if that is a
non-business day, 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
payment 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.

BILLS OF EXCHANGE ACT 1882 - SECT 15
Case of need.

15. 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.

BILLS OF EXCHANGE ACT 1882 - SECT 16
Optional stipulations by drawer or indorser.

16. The drawer of a bill, and any indorser, may insert therein an
express stipulation

(1)Negativing or limiting his own liability to the holder.

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

BILLS OF EXCHANGE ACT 1882 - SECT 17
Definition and requisites of acceptance.

17.(1) The acceptance of a bill is the signification by the drawee
of his assent to the order of the drawer.

(2) An acceptance is invalid unless it complies with the following
conditions, namely:

(a)It must be written on the bill and be signed by the drawee.
The mere signature of the drawee without 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.

BILLS OF EXCHANGE ACT 1882 - SECT 18
Time for acceptance.

18. A bill may be accepted

(1)Before it has been signed by the drawer, or while otherwise
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.

BILLS OF EXCHANGE ACT 1882 - SECT 19
General and qualified acceptances.

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

(2) A general acceptance assents without qualification to the order
of the drawer. A qualified acceptance in express terms varies the
effect of the bill as drawn.

In particular an acceptance is qualified which is

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

(b)partial, that is to say, an acceptance to pay part only of the
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 acceptance,
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.

BILLS OF EXCHANGE ACT 1882 - SECT 20
Inchoate instruments.

20.(1) Where a simple signature on a blank... paper is delivered by
the signer in order that it may be converted into a bill, it
operates as a prima8 facie authority to fill it up as a complete
bill for any amount..., 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 prima8 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 negotiated
to a holder in due course it shall be valid and effectual for all
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.

BILLS OF EXCHANGE ACT 1882 - SECT 21
Delivery.

21.(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 of parties.

BILLS OF EXCHANGE ACT 1882 - SECT 22

22.(1) Capacity to incur liability as a party to a bill is
co-extensive with capacity to contract.

Provided that nothing in this section shall enable a corporation to
make itself liable as a 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.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 23
Signature essential to liability.

23. No person is liable as drawer, indorser, or acceptor of a bill
who has not signed it as such: Provided that

(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:

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 24
Forged or unauthorised signature.

24. Subject to the provisions of this Act, where a signature on a
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 discharge therefor or to enforce payment thereof against
any party 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.

BILLS OF EXCHANGE ACT 1882 - SECT 25
Procuration signatures.

25. A signature by procuration operates as notice that the agent
has but a limited authority to sign, and the principal is only
bound by such signature if the agent in so signing was acting
within the actual limits of his authority.

BILLS OF EXCHANGE ACT 1882 - SECT 26
Person signing as agent or in representative capacity.

26.(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 behalf of a principal, or in a representative character,
he is not personally 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
construction most favourable to the validity of the instrument shall
be adopted.

Value and holder for value.

BILLS OF EXCHANGE ACT 1882 - SECT 27

27.(1) Valuable consideration for a bill may be constituted by

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 28
Accommodation bill or party.

28.(1) An accommodation party to a bill is a person who has signed
a bill as a drawer, acceptor, or indorser, without receiving value
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.

BILLS OF EXCHANGE ACT 1882 - SECT 29
Holder in due course.

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

(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 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.

BILLS OF EXCHANGE ACT 1882 - SECT 30
Presumption of value and good faith.

30.(1) Every party whose signature appears on a bill is prima8
facie deemed to have become a party thereto for value.

(2) Every holder of a bill is prima8 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 bill.

BILLS OF EXCHANGE ACT 1882 - SECT 31

31.(1) A bill is negotiated when it is transferred from one person
to another in such a manner as to constitute the transferee the
holder of the bill.

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

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

BILLS OF EXCHANGE ACT 1882 - SECT 32
Requisites of a valid indorsement.

32. An indorsement in order to operate as a negotiation must comply
with the following conditions, namely,

(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.

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.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 33
Conditional indorsement.

33. Where a bill purports to be indorsed conditionally the condition
may be disregarded by the payer, and payment to the indorsee is
valid whether the condition has been fulfilled or not.

BILLS OF EXCHANGE ACT 1882 - SECT 34
Indorsement in blank and special indorsement.

34.(1) An indorsement in blank specifies no indorsee, and a bill so
indorsed becomes payable to bearer.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 35
Restrictive indorsement.

35.(1) An indorsement is restrictive which prohibits the further
negotiation of the bill or which expresses that it is a mere
authority to deal with the bill as thereby directed and not a
transfer of the ownership thereof, as, for example, if a bill be
indorsed "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.

BILLS OF EXCHANGE ACT 1882 - SECT 36
Negotiation of overdue or dishonoured bill.

36.(1) Where a bill is negotiable in its origin it continues to be
negotiable until it has been (a) restrictively indorsed or (b)
discharged 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
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 prima8 facie 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.

BILLS OF EXCHANGE ACT 1882 - SECT 37
Negotiation of bill to party already liable thereon.

37. Where a bill is negotiated back to the drawer, or to a prior
indorser or to the acceptor, such party may, subject to the
provisions 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.

BILLS OF EXCHANGE ACT 1882 - SECT 38
Rights of the holder.

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

When presentment for acceptance is necessary.

BILLS OF EXCHANGE ACT 1882 - SECT 39

39.(1) Where a bill is payable after sight, presentment for
acceptance is necessary in order to fix the maturity of the
instrument.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 40
Time for presenting bill payable after sight.

40.(1) Subject to the provisions of this Act, when a bill payable
after sight is negotiated, the holder must either present it for
acceptance or negotiate it within a reasonable time.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 41
Rules as to presentment for acceptance, and excuses for
non-presentment.

41.(1) A bill is duly presented for acceptance which is presented
in accordance with the following rules:

(a)The presentment must be made by or on behalf of the holder to
the drawee or to some person authorised 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 presentment 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 bankrupt, or is a fictitious 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.

BILLS OF EXCHANGE ACT 1882 - SECT 42
Non-acceptance.

42. When a bill is duly presented for acceptance and is not
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.

BILLS OF EXCHANGE ACT 1882 - SECT 43
Dishonour by non-acceptance and its consequences.

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

(a)when it is duly presented for acceptance, and such an acceptance
as is prescribed by this Act is refused 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
dishonoured by non-acceptance, an immediate right of recourse against
the drawer and indorsers accrues to the holder, and no presentment
for payment is necessary.

BILLS OF EXCHANGE ACT 1882 - SECT 44
Duties as to qualified acceptances.

44.(1) The holder of a bill may refuse to take a qualified
acceptance, and if he does not obtain an unqualified acceptance may
treat 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.

BILLS OF EXCHANGE ACT 1882 - SECT 45
Rules as to presentment for payment.

45. Subject to the provisions of this Act a bill must be duly
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 particular 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 herein-after defined, either
to the person designated 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 address 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 address 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.

(d)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.

(5)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 payment 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.

BILLS OF EXCHANGE ACT 1882 - SECT 46
Excuses for delay or non-presentment for payment.

46.(1) Delay in making presentment for payment is excused when the
delay is caused by circumstances beyond the control of the holder,
and not imputable to his default, misconduct, or negligence. 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 presentment, 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 dispense 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 presented.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 47
Dishonour by non-payment.

47.(1) A bill is dishonoured by non-payment (a) when it is duly
presented for payment and payment is refused or cannot be obtained,
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
dishonoured by non-payment, an immediate right of recourse against
the drawer and indorsers accrues to the holder.

BILLS OF EXCHANGE ACT 1882 - SECT 48
Notice of dishonour and effect of non-notice.

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

BILLS OF EXCHANGE ACT 1882 - SECT 49
Rules as to notice of dishonour.

49. 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
enures 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 herein-before provided, it enures 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 communication,
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 indorser
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 bankrupt, notice may be given either to the party himself or to the trustee.

<(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 dishonour 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 dishonour, notwithstanding any miscarriage by the post office.

BILLS OF EXCHANGE ACT 1882 - SECT 50
Excuses for non-notice and delay.

50.(1) Delay in giving notice of dishonour is excused where the
delay is caused by circumstances beyond the control of the party
giving 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:

(c)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, (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, (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 accommodation.

BILLS OF EXCHANGE ACT 1882 - SECT 51
Noting or protest of bill.

51.(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 may be noted on the day of its dishonour, and
must be noted not later than the next succeeding business day].
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 bankrupt or insolvent or
suspends payment before it matures, the holder may cause the bill
to be protested 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:

(b)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 protested for non-payment at the place
where it is expressed to be payable, and no further presentment for
payment to, or demand on, the drawee is necessary.

(7) A protest must contain a copy of the bill, and must be signed
by 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
negligence. When the cause of delay ceases to operate the bill must
be noted or protested with reasonable diligence.

BILLS OF EXCHANGE ACT 1882 - SECT 52
Duties of holder as regards drawee or acceptor.

52.(1) When a bill is accepted generally presentment for payment is
not necessary in order to render the acceptor liable.

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

Funds in hands of drawee.

BILLS OF EXCHANGE ACT 1882 - SECT 53

53.(1) A bill, of itself, does not operate as an assignment of
funds in the hands of the drawee available for the payment thereof,
and the drawee of a bill who does not accept as required by this
Act is not liable on the instrument...

BILLS OF EXCHANGE ACT 1882 - SECT 54
Liability of acceptor.

54. The acceptor of a bill, by accepting it

(1)Engages that he will pay it according to the tenor of his
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 genuineness 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.

BILLS OF EXCHANGE ACT 1882 - SECT 55
Liability of drawer or indorser.

55.(1) The drawer of a bill by drawing it

(a)Engages that on due presentment it shall be accepted and paid
according to its tenor, and that if it be dishonoured he will
compensate the holder or any 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
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 paid
according 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 subsequent
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.

BILLS OF EXCHANGE ACT 1882 - SECT 56
Stranger signing bill liable as indorser.

56. Where a person signs a bill otherwise than as drawer or
acceptor, he thereby incurs the liabilities of an indorser to a
holder in due course.

BILLS OF EXCHANGE ACT 1882 - SECT 57
Measure of damages against parties to dishonoured bill.

57. Where a bill is dishonoured, the measure of damages, which
shall be deemed to be liquidated damages, shall be as follows:

(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

(a)The amount of the bill;

(b)Interest thereon from the time of presentment for payment 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.

Subs.(2) rep. by 1977 c.38 s.32(4) sch.5 Pt.I

(3)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 payable with interest at a
given rate, interest as damages may or may not be given at the
same rate as interest proper.

BILLS OF EXCHANGE ACT 1882 - SECT 58
Transferor by delivery and transferee.

58.(1) Where the holder of a bill payable to bearer negotiates it
by delivery without indorsing it he is called a "transferor by
delivery."

(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.

Payment in due course.

BILLS OF EXCHANGE ACT 1882 - SECT 59

59.(1) A bill is discharged by payment in due course by or on
behalf of the drawee or acceptor.

"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 herein-after 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 payment thereof against
the acceptor, but may not re-issue the bill.

(b)Where a bill is paid by an indorser, or where a bill payable
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
subsequent indorsements, and again negotiate the bill.

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

BILLS OF EXCHANGE ACT 1882 - SECT 60
Banker paying demand draft whereon indorsement is forged.

60. When a bill payable to order on demand is drawn on a banker,
and the banker on whom it is drawn pays the bill in good faith
and in the ordinary course of business, it is not incumbent on the
banker to 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.

BILLS OF EXCHANGE ACT 1882 - SECT 61
Acceptor the holder at maturity.

61. When the acceptor of a bill is or becomes the holder of it
at or after its maturity, in his own right, the bill is
discharged.

BILLS OF EXCHANGE ACT 1882 - SECT 62
Express waiver.

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

BILLS OF EXCHANGE ACT 1882 - SECT 63
Cancellation.

63.(1) Where a bill is intentionally cancelled by the holder or his
agent, and the cancellation is apparent thereon, the bill is
discharged.

(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
discharged.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 64
Alterations of bill.

64.(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.

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.

(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 for honour supra0 protest.

BILLS OF EXCHANGE ACT 1882 - SECT 65

65.(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 supra0 protest,
for the honour of any party liable thereon, or for the honour of
the person for whose account the bill is drawn.

(2) A bill may be accepted for honour for part only of the sum
for which it is drawn.

(3) An acceptance for honour supra0 protest in order to be valid
must

(a)be written on the bill, and indicate that it is an acceptance
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.

BILLS OF EXCHANGE ACT 1882 - SECT 66
Liability of acceptor for honour.

66.(1) The acceptor for honour of a bill by accepting it engages
that he will, on due presentment, pay the bill according to the
tenor of his acceptance, if it is not paid by the drawee, provided
it has been 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.

BILLS OF EXCHANGE ACT 1882 - SECT 67
Presentment to acceptor for honour.

67.(1) Where a dishonoured bill has been accepted for honour supra0
protest, or contains a reference in case of need, it must be
protested 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 presentment 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.

BILLS OF EXCHANGE ACT 1882 - SECT 68
Payment for honour supra0 protest.

68.(1) Where a bill has been protested for non-payment, any person
may intervene and pay it supra0 protest for the honour of any
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 supra0 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 declaration
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 supra0
protest he shall lose his right of recourse against any party who
would have been discharged by such payment.

Holder's right to duplicate of lost bill.

BILLS OF EXCHANGE ACT 1882 - SECT 69

69. 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 indemnify him against all persons whatever in case the
bill alleged to have been lost shall be found again.

If the drawer on request as aforesaid refuses to give such
duplicate bill he may be compelled to do so.

S.70 rep. by 1978 c.23 s.122(2) sch.7 Pt.I

Rules as to sets.

BILLS OF EXCHANGE ACT 1882 - SECT 71

71.(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 of 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 parts
get 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.

Rules where laws conflict.

BILLS OF EXCHANGE ACT 1882 - SECT 72

72. 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
determined by the law of the place of issue, and the validity as
regards requisites in form of the superventing contracts, such as
acceptance, or indorsement, or acceptance supra0 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 United Kingdom 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 United Kingdom, conforms as
regards requisites in form, to the law of the United Kingdom, it
may, for the purpose of enforcing payment thereof, be treated as
valid as between all persons who negotiate, hold, or become parties
to it in the United Kingdom.

(2)Subject to the provisions of this Act, the interpretation of the
drawing, indorsement, acceptance, or acceptance supra0 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 in a foreign country
the indorsement shall as regards the payer be interpreted according
to the law of the United Kingdom.

(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 determined by the
law of the place where the act is done or the bill is
dishonoured.

Subs.(4) rep. by 1977 c.38 s.32(4) sch.5 Pt.I

(5)Where a bill is drawn in one country and is payable in another,
the due date thereof is determined according to the law of the
place where it is payable.

Cheque defined.

BILLS OF EXCHANGE ACT 1882 - SECT 73

73. A cheque is a bill of exchange drawn on a banker payable on
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.

BILLS OF EXCHANGE ACT 1882 - SECT 74
Presentment of cheque for payment.

74. Subject to the provisions of this Act

(1)Where a cheque is not presented for payment within a 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.

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 75
Revocation of banker's authority.

75. The duty and authority of a banker to pay a cheque drawn on
him by his customer are determined by

(1)Countermand of payment:

(2)Notice of the customer's death.

General and special crossings defined.

BILLS OF EXCHANGE ACT 1882 - SECT 76

76.(1) Where a cheque bears across its face an addition of

(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";

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

BILLS OF EXCHANGE ACT 1882 - SECT 77
Crossing by drawer or after issue.

77.(1) A cheque may be crossed generally or specially by the
drawer.

(2) Where a cheque is uncrossed, the holder may cross it 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.

BILLS OF EXCHANGE ACT 1882 - SECT 78
Crossing a material part of cheque.

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

BILLS OF EXCHANGE ACT 1882 - SECT 79
Duties of banker as to crossed cheques.

79.(1) Where a cheque is crossed specially to more than one banker
except when crossed to an agent for collection being a banker, the
banker on whom it is drawn shall refuse payment thereof.

(2) Where the banker on whom a cheque is drawn which is so
crossed nevertheless pays the same, or pays a cheque crossed
generally 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 banker, 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
responsible 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.

BILLS OF EXCHANGE ACT 1882 - SECT 80
Protection to banker and drawer where cheque is crossed.

80. Where the banker, on whom a crossed cheque is drawn, in good
faith and without negligence pays it, if crossed generally, to a
banker, and if crossed specially, to the banker to whom it is
crossed, or his agent for collection being a banker, the banker
paying the cheque, 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.

BILLS OF EXCHANGE ACT 1882 - SECT 81
Effect of crossing on holder.

81. Where a person takes a crossed cheque which bears on it the
words "not negotiable," he shall not have and shall not be capable
of giving a better title to the cheque than that which the person
from whom he took it had.

S.82 rep. by 1957 c.36 s.6(3) sch.

Promissory note defined.

BILLS OF EXCHANGE ACT 1882 - SECT 83

83.(1) A promissory note is an unconditional promise in writing made
by one person to another signed by the maker, engaging 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.

(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 the British Islands is an inland note. Any
other note is a foreign note.

BILLS OF EXCHANGE ACT 1882 - SECT 84
Delivery necessary.

84. A promissory note is inchoate and incomplete until delivery
thereof to the payee or bearer.

BILLS OF EXCHANGE ACT 1882 - SECT 85
Joint and several notes.

85.(1) A promissory note may be made by two or more makers, and
they may be liable thereon jointly, or jointly and severally
according 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.

BILLS OF EXCHANGE ACT 1882 - SECT 86
Note payable on demand.

86.(1) Where a note payable on demand has been indorsed, it must
be presented for payment within a reasonable time of the
indorsement. If it be not so presented the indorser is discharged.

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

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 87
Presentment of note for payment.

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

BILLS OF EXCHANGE ACT 1882 - SECT 88
Liability of maker.

88. The maker of a promissory note by making it

(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.

BILLS OF EXCHANGE ACT 1882 - SECT 89
Application of Part II to notes.

89.(1) Subject to the provisons 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

(a)Presentment for acceptance;

(b)Acceptance;

(c)Acceptance supra0 protest;

(d)Bills in a set.

(4) Where a foreign note is dishonoured, protest thereof is
unnecessary.

Good faith.

BILLS OF EXCHANGE ACT 1882 - SECT 90

90. A thing is deemed to be done in good faith, within the
meaning of this Act, where it is in fact done honestly, whether it
is done negligently or not.

BILLS OF EXCHANGE ACT 1882 - SECT 91
Signature.

91.(1) Where, by this Act, any instrument or writing is required to
be signed by any person it is not necessary that he should sign
it with his own hand, but it is 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.

BILLS OF EXCHANGE ACT 1882 - SECT 92
Computation of time.

92. Where, by this Act, the time limited for doing any act or
thing is less than three days, in reckoning time, non-business days
are excluded.

"Non-business days" for the purposes of this Act mean

(a)[Saturday], Sunday, Good Friday, Christmas Day:

(b)A bank holiday under [the Banking and Financial Dealings Act
1971]:

(c)A day appointed by Royal proclamation as a public fast or
thanksgiving day:

[(d)A day declared by an order under section 2 of the Banking and
Financial Dealings Act 1971 to be a non-business day.]

Any other day is a business day.

BILLS OF EXCHANGE ACT 1882 - SECT 93
When noting equivalent to protest.

93. For the purposes of this Act, where a bill or note is
required to be protested within a specified time or before some
further proceeding 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 proceeding; and the formal protest may be
extended at any time thereafter as of the date of the noting.

BILLS OF EXCHANGE ACT 1882 - SECT 94
Protest when notary not accessible.

94. 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 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 Schedule 1 to this Act may be used with
necessary modifications, and if used shall be sufficient.

BILLS OF EXCHANGE ACT 1882 - SECT 95
Dividend warrants may be crossed.

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

S.96 rep. by SLR 1898

BILLS OF EXCHANGE ACT 1882 - SECT 97
Savings.

97.(1) The rules in bankruptcy relating to bills of exchange,
promissory notes, and cheques, shall continue to apply thereto
notwithstanding 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). . . any law or enactment for the time being in force
relating to the revenue:

(b)The provisions of the Companies Act, 1862 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.

BILLS OF EXCHANGE ACT 1882 - SECT 99
Construction with other Acts, &c.

99. Where any Act or document refers to any enactment repealed by
this Act, the Act or document shall be constured, and shall
operate, as if it referred to the corresponding provisions of this
Act.

Know all men that I, A.B. [householder], ofin the county ofin the
United Kingdom, at the request of C.D., there being no notary
public available, did on theday of188 < atdemand payment [or acceptance] of the bill of exchange hereunder written, from E.F., 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.

(Signed) 




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