BILLS OF EXCHANGE ORDINANCE, 1885

BILLS OF EXCHANGE ORDINANCE, 1885

No. 3 of 1885.

An Ordinance to codity the law relating tho bills of exchange,
cheques and promissory notes.
[4th May, 1885.]

PART I.
Preliminary Provisions.

1. This Ordinance may be cited as the Bills of Exchange
Ordinance, 1885.

* As amended by Law Am. Ord., 1923.
+ As amended by Law Rev. Ord., 1923. The numbering of the sections in this
Ordinance corresponds with that of the sections in the Bills of Exchange
Act, 1882.
+ As amended by Law Rev. Ord., 1923.


2. In this Ordinance,

(a) Acceptance means an acceptance completed by
delivery or notification.

(b) Action means action or suit and includes counter-
claim and set-off.

(c) Banker inculdes a body of persons, whether incor-
porated or not, who carry on the business of banking.

(d) Bankrupt includes any person whose estate is vest-
ed in a trustee or assignee under the law relating to bank-
ruptcy.

(f) Bill means bill of excchange, and note means
promissory note.

(g) Delivery means transfer of possession,actual or
constructive, from one person to another.

(h) General holiday has the same meaning as in the
Holidays Ordinance, 1912.

(i) Holder means the payee or indorsee of a ill ornote
who is in possessionof it, or the bearer thereof.

(j) Indorsement means an indorsement completed by
delivery.

(k) Issue means the first delivery of a bill or note, com-
plete in from, to a person who takes it as a holder.

(l) Penson includes a body of persons, whether in-
corporated or not.

(m) Value means valuable consideration.

PART II.

BILLS OF EXCHANGE.

Form and interpretation.

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 peson to whom it is address-
ed 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 con-
ditions, 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 un-
conditional within the meaning of this section; but an
unqualified order to pay, coupled with-

(a) an indication of a particular fund out of which the
drawee is to reimburse himself or a particular account to be
debited with the amount; or

(b) a statement of the transaction which gives rise to the
bill, is unconditional.

(4) A bill is not invalid by reason-

(a) that it is not dated;

(b) that it does not specify the value given or that any
value has been given therefor;

(c) that it does not specify the place where it is drawn or
the place where it is payable.

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 this Colony; or

(b) drawn within this Colony, upon some person resident
therein.

(2) any other bill is a foreign bill.

(3) Unless the contrary appears on the face of the bill,
the holder may treat it as an inland bill.

5.-(1) A bill may be drawn pauable 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 exchagne or
as a promissory note.

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

(2) A bill may be addressed to two or more drawees,
whether they are partners or not, but an order addressed to








































twp drawees in the alternative, or to two or more drawees
in succession, is not a bill of exchange.

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

(2) A bill may be 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 pauable to bearer.

8.-(1) Where a bill contains words prohibiting transfer,
or indicating an intention that it should not be transfer-
able, it is valid as between the parties thereto, but is not
negotiable.

(2) A negotiable bill may be pauable either to order or to
bearer.

(3) A bill is pauable 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
peson, and does not contain words prohibitiing transfer or
indicating an intention that it should not be transferable.

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

9.-(1) The sum payable by a bill is a sum certain withn
the meaning of this Ordinance, although it is required to
be paid-

(a) with interest;

(b) by stated instalemtns;

(c) by stated instalemtns, with a provision that, upon
default in payment o fnay instalment, the whole shall
become due;




























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

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

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

10.-(1) Abill 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 over-
due, it shall, as regards the acceptor who so accepts or any
indorser who so indorses it, be deemed a bill payable on
demand.

11.-(1) A bill is paybale at a determinable future tme
within the meaning o fhtis Ordinance which is expressed to
be payable-

(a) at a fixed period after date or sight;

(b) 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.

(2) An instrument expressed to be payable on a con-
tingency is not a bill, and the happening of the event does
not cure the defect.

12. Where a bill expressed to be payable at a fixed period
after date is issued undated, or where the acceptance of a
bill pauable at a fixed period after sight is undated, any
holder may insert therein the true date of issue of accept-
ance, 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 but shall
operate and be payable as if the date so inserted had been
the true date.

13.-(1) Where a bill or in acceptance or any indorsement
on a bill is dated, the date shall, unless the contrary is proved,
be deemed to be the true date of the drawing, acceptance, or
indorsement, is 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 or any other
general holiday.

14. Where a bill is not payable on demand, the day on
which it falls due is detemined as follws:-

(1) three days, called days of grace, are, in every case
where the bill itself does not otherwise provide, added to the
time of payment as fixed by the bill, and the bill is due and,
payable on the last day of grace: Provided that when the
last day of grace, is a general holiday other than Sunday,
Christmas Day or Good Friday, or when the last day of grace
and also the second day of grace are general holidays the
bill is due and payable on the succeeding business day:
Provided also that when the last day of grace falls on a
Sunday, Christmas Day or Good Friday which is not
immediately preceded by another general holiday the bill is
due and payable on the preceding business day.

(2) where a bill is payable at a fixed, period date,
after sight, or after the happening o a specified event, the
time of payment, is determined by excluding the day from
which the time is 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 is accepted, and from the date of noting or protest if the
bill is noted or protested for non-acceptance or for non-
delivery;

(4) the term month in a bill means calendar month,

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. If is in theoption of the holder
to rsort to the referee in case of need or not, as he may
think fit.

16. The drawer of a bill and any indorser may insert
therein an express stupulation-

(1) negativing or limiting his own liabilit to the holder;

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

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 preform his
promise by aany other mens thant he payment of maoney.

18.-(1) A bill may be accepted-
(a) before it has been signed by the drawer, or while
other wise incomplete;

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

(2) When a bill payable after sifght 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.

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

(2) A genera;l acceptance asents without qualification to
the order of the drawer. A qualified acceptance in express
terms varies the effect of the bill as drawn.

(3) 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 more of the drawees,
but not of all.

20.-.(1) Where a simple signature on a blank stamped
paper is delivered by the signer in order that it may be con-
verted into a bill, it operates as a prima facie authority to
fill it up as a complete bill for any amount the stamp will
cover, using, the signature for that of the drawer, or the
acceptor, or an indorser; and, in like manner, when a bill is
wanting in any material particular, the person in possession
of it has a prima facie authority to fill up the omission in,
any way he thinks fit.

(2) In order that any such instrument, when completed,
may be enforceable against any person who became a party
thereto prior to its completion, it must be filled tip 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.

21.-(1) Every contract on a bill, whether it is 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 is in the hands of a holder in due course, a
valid delivery of the bill by all parties prior to him, or as to
make them liable to him, is conclusively presumed.

(3) Where a bill is no longe 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 dontrary
is proved.

Capacity and authority of parties.

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
corporatiion to make itself liable as drawer, acceptor, or
indorser of a bill unless it is competent to it to do so under
the law 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 paymeent of the bill, and to enfore it against any
other party thereto.

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 signng of the names of all
pesons liables as partners in that firm.

24. Subject to the provisions of this Ordinance, 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 ot retain the bill, or to give a discharge therefor,
or to enforce payment thereof agaisnt 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 authorised signature not amounting to a
forgery.

25. A signature by procuration operates as notice that the
agent limited 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.

26.-(1) Where a person signs a bill as drawer, indorser,
oracceptor, 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. instru-
ment shall be adopted.

Consideration for bill.

27. Valuable consideration for a bill may be con-
stituted by-

(a) any consideration sufficient to support a simple
contract;

(b) an antecedent debt or liabity. Such a debt or liability
is deemed valuable consideration whether the bill is payable
on deemed 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.


28.-(1) An accommodation party to a bill is a person
who has signed a bill as drawer, acceptor, or indorser, with-
out receiving, value therefor, and for the purpose of lending
his name to some other person.

(2) An accommodatio party is liableon the bill to a
holder for value;, and it is immaterial whether, when such
holder took the bill, he knew such party to be accommoda-
tion party or not.

29.-(1) A holder in due course is a holder who 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 it had been previously dishonoured,
if such was the fact;

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

(3) A holder (whether for value or not) who derives his
title to a bill throught a holder in due course, and who is not
himself a party to any fraud or illegality affeting 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.

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

(2) Every holder of a bill is prima facie deemed to be a
holder in due course; but if, in an action on a bill, it is
admitted or porved that the acceptance, issue, or subsequent
negotiation of the bill is affected with fraud, duress, or force
and fear, or illegalty, 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.

(1) A bill is negotiated when it is transferred from
one person to another in such a manner is 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 indorse-
ment of the holder completed by delivery.

(4) Where the hold of a bill payable to his order transfers
it for value within 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 indorse-
ment 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
term as, to negative personal liability.

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 biol 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 designeated or is name is mis-spelt, he may indorse
the bill as therein described, adding, if he thinks fit, his
proper signature;

(5) where there are two or more indorsements on a bill,
each indorsement is deemed to have been 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.

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

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 pauable.

(3) The rovisionso of this Ordinance 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.

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,
is a bill is 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 authoritses
him to do so.

(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 authorises
him to do so.

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

36.-(1) Where a bill is negotiable in its origin, it
continuese to be negotiable until it has been-

(a) restrictively indorse; 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 froin
whom he took it had.

(3) A bill payable on dernand 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 prima 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
dishollour, but nothing in this. sub-section shall affect the
rights of a holder in due course.

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 Ordinance, re-issue and
negotiate the bill, but he is not entitled to enforce payment
of the bill against any interventing party to whom he was
previously liable.

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

(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 rnay enforce payment against all parties
liable on the bill;

(3) where his title is defective,

(a) if he negotiates the bill to a holder in due course, that
holder obtains a good and complete title to the bill; and,

(b) if he obtains payment of the bill, the person who pays,
him in due course gets a valid discharge for the bill.


General duties of the holder,

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 place of business or residence 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 neces-
sary 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.

40.-(1) Subbject to the provisions of this Ordinance,
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 does 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 bill,s
and the facts of the particular case.

41.-(1) a bill is duly presented for acceptancee 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
aere 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 te made
to his personal representative;

(d) where the drawee is bankrupt, presentment may be
made to him or to his trustee or assignee;

(e) where authorised by agreement or usage, a present-
ment through the Post Office is sufficient.

(2) Presentment in accordance with these rules is excused,.
and a bil may be treated as dishonoured by non-accept-
ance,-

(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 preseutnient has been irregular,
accptance 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.

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 does not, the holder shall lose his right of recourse
against the drawer and indorsers.

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 Ordinance is refused or
cannot be obtained; or

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

(2) Subjedt to the provisions of this Ordinance, when a
bill is dishonoured by non-acceptance, an immmediate right of
recourse against the drawer and indorsers accrues to the
holder, and no presentment for payment is necessary.

44.-(1) The holdel of a bill May refuse to take a quali-
fied acceptance, and, if he does not obtain an unqualified
acceptance, may treat the bill as dishonoured by non-accept-
ance.




(2) Where a qualified acceptance is taken, and the, drawer
has not expressly or impliedly authorised the
holder to take a qualified acceptance or does
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
hive assented thereto.


45. Subject to the provisions of this Ordinance a bill
must be duly presented for payment. If it is not so present-
ed, 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 Ordinance, presentment must be made
within a reasonable time after its issue, in order to render
to drawer liable, and within a resaonable time after its in-
dorsement, in order to rende the indorser liable. In deter-
mining what is a reasonable time, regard shall be hd to the
nature of the bill, the usage of trade with respect to similar
bills, and the facts of the particular casse;

(3) pesentment mus be made by the holder, or by some
person authorised to recceive payment on his behalf, at a
reasonable hour on a business day, at the propert place as
hereinafter defined, either to the person designated by the
bills 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 s 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 payinent 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 re-
sidence, 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 author-
ised 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 present-
ment through the Post Office is sufficient.

46.-(1) Delay in making presentment for payment is
exedsed 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, presentnient must he niade with reasonable
diligence.

(2) Presentment for payment is dispensed with-

(a) where, after the exercise of reasonable diligence, pre-
sentment, as required by this Ordinarice, cannot be effected.
The fact that the holder has reason to believe that the bill
will, on presentment, be dishonoured dones 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

cf. No. 15 of 1916, s. 2 for delay ia presentment of a bill for payment due to war.


(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 waiveeeer of presentment, express or implied.

47.-(1) A bill is dishonoured by non-payment-

(a) when it is duly prrsented 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 Ordinance, when a
bill is dshonoured by non-payment, an immediate right of
recourse against the drawer and indorsers accrues to the
holder.

48. Subject to the provisions of this Ordinance, when a
bill has been dishonoured by non-acceptance or by non-
payment, notice of dishonour must begiven 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 ommission;

(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 has in the meantime been accepted.

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 an indorser who, at the time of giving
it, is himself liable on the bill;

(2) the notice may be given by an aagent, either in is own
name or in the name of any party entitled to give notice,
whether that party is his principal or not;

(3) where the notice is given by or on behalf of the holder,
it enurres fot the benefit of all subsequent holders and all
prior indorsers who have a right of recoruse against the
party to whom it is given;

























(4) where the notice is or given by or on behalf of all
indorser entitled to give notice as hereinbefore provided,
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 idenitify 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 migdescription 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 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, the notice
may be given either to the party himself or to his trustee or
assignee;

(11) where there are two or more drawers or indorsers
who are not partners, the 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 reachthe 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 is a post at a
conveient hour on that day, and, if there is 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 lie
gives 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, 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 the notice is duly addressed and posted, the
sender is deemed to have given due notice of dishonour,
notwithstanding any miscarriage by the Post Office.

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) where after the exercise of reasonable diligence, notice,
as required by this Ordinance, 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,-

(i) where drawer and drawee are the same person;

(ii) where the drawee is a fictitious person or a person not
having capacity to contract;

(iii) where the drawer is the person to whom the bill is
presented for payment.

(iv) wher e the drawee or acceptor is, as between himself
and the draer, under no obligation to accept or pay the bill;

(v) where the drawer has countermanded payment;















(d) as regards the indorser, inl the following cases, namely,-

(i) 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;

(ii) where the indorser is the person to whom the bill is
presented for payment;

(iii) where the bill was accpted or made his
accommodation.

51.-(1) Where an inland bill has been dishonoured, it
may, if the holder thinks 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 aginst 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 is 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 Ordinance, and of the
Holidays Ordinance, 1912, when a bill is noted or protested,
it may be noted on the day of its dishonour aud 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 bette 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,

* As amended by No. 4 of 1918.

















received during business hours, and, if not received during
business hours then not later than the next business day;

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 lrlust 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.

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 present-
meht 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 aid the holder shall forthwith
deliver it up to the party paying it.


Liabilitie sof parties.

53. A ill, of itself, does not operate as an sssignment 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 Ordinance, is not laiable on the instrument.

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 authoruity 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 snd his then capacity to
indorse, but not the genuineeness or validity of his indorsement.

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 is dishonoured
he will compensate the holder or any indorser who is
compelled to pay it, provided that the requistite proceedings
on dishonour are duly taken;

(b) is precluded from denying to a holder in due course
the existenceof the payee and his tehm capcity to indorse.

(2) the indorser of a bill, by indorsing it,-

(a) engages that, on due presentemnt, it shall be accepted
and paid according to its tenro, and that if it is dishonoured
he will compensate the holder or a subsequent indorser who
is compelled to pay it, provided that the requistite proceed-
ings on dishonour are 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 indorse that the bill was, and that he had
then a good title thereto.









































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.

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 ot 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 expense of protest;

(2) in the case of a bill which has been dishonoured abroad,
in lieu of the above damages,. the holder may recover from
the drawer or an indorser, and the drawer or an indorser
who has been compelled to pay the bill may recover, from
any party liable to him, the amount of the re-exchange, with
interest thereon until the time of payment;

(3) where by this Ordinance interest may be recovered as
damages, such interest may, if justice requires it, be with-
held wholly or in part, and where a bill i's 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.

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 bills what it purports to be, that he has a right to
transferit, and that, at the time of transfer, he iS not aware
of any fact which renders it valueless.


Discharge of bill.

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 hns title to the bill is defective.

(2) Subject to the provisions hereinafter contained, when
a bill is paid by the drawer or an indorser it is not dis-
charged; 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 the
acceptor or antecedent parties, and he may, if he thinks fit,
strike out his own and 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.

60. When a bill payable dorder 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.

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 dis-
charged.

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.


















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 dis-
charged 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, under a mis-
take, 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
leges that the cancellation was made unintentionally, or
under it mistake, or without authority.

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 himiself made,
authorised, or assented to the alteration, and subsequent
indorsers: Provided thatwhere 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 with-
out the acceptor's assent.

Acceptance and payment for honour.

65.-(1) Where a bill has been protested for dishonour
by non- acceptance or protested for better security, and is not
overdue, any person, not being a party already liable thereon,
may, with the consent of the holder, intervene and accept
the bill supra protest, for the honour of any party liable thereon
or for the honour of the person for whose account the bill is
drawn.

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

(3) an acceptance for honour supra 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.

66.-(1) The acceptor for honour of a bill, hy 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 mid to
all parties, to the bill subseqnent to the party for whose
honour he has accepted.

67.-(1) Where a dishonoured bill has been accepted for
honour suprd protest or contains a referemce 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-payinent, the
bill must be presented to him not later than the day follow-
ing its maturity ; and where the address of the acceptor for
honour is i some place other than the place where the bill
was protested for non-payment, the bill must be
not later than the day following its maturity for presentment
to him.

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

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














68.-(1) Where a bill has been protested for non-payment,
any person may intervene and pay it supra 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
of different parties, the person whose payment will
discharge most parties to the bill shall have the preference.

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

(4) The notarial act of honour inust be founded on a
declaration, made by the payer for honour, or his agent
that behalf, declaring his intention to pay the bill for honour
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 dis-
charged 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
liabie 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 does not on demand deliver them up,
he shall be liable to the payer for honour in damages.

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

Lost instrument.

69.-(1) 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 secuirty
to the drawer, of required, to indemnify him against all
persons whosover in case the bill alleged to have been lost
shall be found again.

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

70. Im any action or proceeding upon a bill, the cout or
a judge may order that the loss of the instrument shall not



















be set up, provided all indemnity be given, to the satisfaction
of the court or judge, against the claims of aily other person
upon the instrument in question.

Bill in a set.

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 affeet the
rights of a person who in due course accepes or pays the
part first, present 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 difierent 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 reqiilriiig the part bearilig 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 other-
wise, the whole bill is discharged.

Conflict of laws.

72. Where a bill drawn in one country is negotiated,
accepted, or payable in another, the rights, duties, and
liablilities of the parties thereto are determined as follows:-

(1) the validity of a bill, as regards requisites in from,
is determined by the law of the place of issue, and the
validity, as regards requisites in form, of the supervening
contracts, such as acceptance or indorsement or acceptance

* As amended by No. 18 of 1921.

























supra protest, is determined by the law of the place where
such contract was made: Provided that-

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

(b) where a bill issued out of this Colony conforms, as
regards requistites in form, to the law of this Colony, 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 this Colony;

(2) subject to the provisions of this Ordinance, the
interpretation of the drawing, indorsement, acceptance, or
acceptance supra protest of a bill is detemined 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 this Colony;

(3) the duties of the holder with rrespect to presentment
for the 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;

(4) where a bill is srawn nout of but pauable in this
Colony and the sum payable is not expressed in the currency
of this Colony, the amount, if the bill is paid in this Colony
and in the currency of this Colony, shall, in the absence of
any express stipulation, be calculated according to the reate
of exchange for sight drafts in this Colony, shall, in the absence of
any express stipulation, be calculated according to the rate
of exchange for sight drafts in this Colony on the day on
which the bill is actually paid; and

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

PART III.

CHEQUES ON A BANKER.

73.-(1) A cheque is a bill of exchange drawn on a banker
payable on demand.

(2) Except as otherwise provided in this Prat, the provi-
sions of this Ordinance applicable to a bill of exchange pay-
able on demand apply to a cheque.































74. Subject to the provisions of this Ordinance,-

(1) where a cheque is not presented for payment withn a
reasonable time of its issu,e 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 anker, 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 holde of such cheque as to which such drawer or
person is discharged shall be a creditor, in lieu of such
drawer or person, of sch banker to the extent of such dis-
charge and entitled to recover the amount from him.

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.

Crossed cheques.

76.-(1) Where a cheque bears across its face an ad-
dition of-

(a) the words and company, or any abbreviation there-
of, between two parallel transverse lines, either with or
without the words not negotiable: or

(b) two paralledl transverse lines simply, either with or
without the words not negotiable,

that addition constitutes a crossing, and the cheque is crossed
generally.

(2) Where a cheque bears across its face an addition of
the name of 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.

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 inay cross it
specially to himself.

78. A crossing authorised by this Ordinance is a material
part of the cheque; it shall not bb, lawful for any person to
obliterate or, except as authorised by, this Ordinance, to add
to or alter the crossing.

79. (1) Where a cheque is crossed specially to niore than
one banker, except when crossed to an agent for collection
beilig 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 hael a crossing which has been obliterated,
or to have been added to or altered otherwise than as
authorised by this Ordinance, the banker paying the cheque,
in good faith and without negligence, shall not be responsible.
orincur any liability, nor shall the payment be questioned
by reason of the cheque having been crossed, or: of the cross-
ing having been obliterated or having been added to or
altered otherwise than as authorised by this Ordinance, 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 banke, as the case may be.




























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 hanker, 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.

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
than that which the person from whom he took it had.

82.-(1) Where a banker, in good faith and without
negligence, receives payment for a customer of a cheque
crossed generally or specially to himself, and the customer
has no title or a defective title thereto, the banker shall not
incur any liability to the true owner of the cheque by reason
only of havilig received such payment.

(2) A banker receives payment of a crossed cheque for a
customer within the meaning of this sectiort notwithstanding
that he credits his customer's account with the amount of
the chequie before receiving payment.

82A. Any draft or order drawn upon a banker for a sum
of money payable to order on demand which shall, when
presented for payment, purport to be indorsed by the person
to whom the same shall be drawn payable, shall be a sufficient
authority to such banke to pay the amount of such draft or
order to the bearer thereof: and it shall not be incumbent
on such banker to prove that such indorsement or any
subsequent indorsement was made by or under the direction
or authority of the person to whom the said draft or order
was or is made pauable either by the drawer or any indorser
thereof.

PART IV.

PROMISSORY NOTES.

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 this Colony is in inland note,
Any other note is a foreign note.

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

85. 4 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 proinise to pay and is signed
by two or more persons, it is deemed to be their joint and
several note.

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 is not so presented,
the indorser is'discharged.

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

(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.

87.-(1) Where a promissory note is in the body of it
made payable at a particular place, it must be presented f
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 all indorser liable; but when a place of pay-
ment 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.

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.

89.-(1) Subject to tbe provisions in this Part and except
as by this section Provided, the provisions of this Ordinance
relating to bills of exchange apply, with the necessary
modifications, to promissory notes.

(2) In applying those provisions, the maker of a note shall
hd 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 relatillg to-

(a) presentment for acceptance;
(b) acceptance;
(c) acceptance supra protest;
(d) bills in a set.
(4) Where a foreign note is dishonoured, protest thereof is
unecessary.

PART V.

SUPPLEMENTARY.

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

91.-(1) Where by this Ordinance any instrument or
writing is required to be signed by any person, it is not
necessary that lie 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 thos Ordinance
any instrument or writing is required to be signed, it is
sufficient if the instrument or writing is sealed with the,
corporate seal.

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

92.-(1) Where by this Ordinance the time limited for
doing any act or thing is less than three days, in reckoning
time, non-business days are excluided.

(2) Non-business days, for the purpose of this Ordi-
nance, mean general holidays.

93. For the purposes of this Ordinance, 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.

94. (1) Where a dishonoured bill or note is authorised
or reqired to be protested, and the services of a notary
be obtained at the place where the bill is dishonoured,
cannot be otained 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.

(2) The form in the Schedule may used, with necessary
modifications, and, if used, shall be sufficient.

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

96.-(1) The rules in bankruptcy relating to bills of
exchange, promissory notes, and cheques shall continue to
apply thereto, notwithstanding anything in this Ordinance.

(2) The rules of common law, including the law merchant,
save in so far as they are inconsistent with the express
provisions of this Ordinance, shall continue to apply to bills
of exchange, promissory notes, and cheques.


(3) Nothing in this Ordinance shall affect-
(a) the provisions of any Stamp Ordinance or any law or
enactment relating the revenue; or


(b) the provisions of any Ordinance relating to
banks or companies; or

(c) the validity of any usage relating to dividend warrants
or the indorsements thereof.

SCHEDULE. [s.94.]

FORM OF PROTEST WHICH MAY BE USED WHEN THE SERVICE THE SERVICES OF A
NOTARY CANNOT BE OBTAINED.

Know all men that I, A.B., of. at the request of C.D., there
being no notary public available, did on the day of
19 , at demand payment [or acceptance] of the bill of
exchange hereunder written from E.F., to which demand hee 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 the day of 19

(Signed.) A.B.

G.H.
J.K. Witneses.

N.B.-The bill itself should be annexed, or a copy of the bill and all
that is written thereon should be underwritten.
[Originally No. 9 of 1885. No. 4 of 1918. No. 18 of 1921. Law Rev. Ord., 1924.] 45 & 46 Vict.c. 61. Short title. Interpretation. [cf. No. 7 of 1891.] Ordinance No. 5 of 1912. Definition of bill of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty require as to payee. What bills are negotiable. Sum payable. Bill payable on demand. Bill payable at future time. Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. General and qualified acceptances. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorised signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation party. Holder in due course. Presumption of value and good faith. Negotiation of bill. Requisities of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentment for acceptance, and execues for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Execuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. [s. 49 contd.] Excuses for non-notice and delay. Noting or protest of bill. Ordinance No. 5 of 1912. Duties of holder as regards drawee or acceptor. Fund in hands of drawee. Liability of acceptor. Liability of drawer of indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transfer by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the holder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Protection to collecting banker. Account may be credited, before payment of cheque. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part II to notes. Good faith. Signature. Computation of time. When noting equivalent to protest. Protest when notary not accessible. Schedule. Crossing of dividend warrant. Savings. [cf. No. 8 of 1921.] [cf. No. 58 of 1911.]

[Originally No. 9 of 1885. No. 4 of 1918. No. 18 of 1921. Law Rev. Ord., 1924.] 45 & 46 Vict.c. 61. Short title. Interpretation. [cf. No. 7 of 1891.] Ordinance No. 5 of 1912. Definition of bill of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty require as to payee. What bills are negotiable. Sum payable. Bill payable on demand. Bill payable at future time. Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. General and qualified acceptances. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorised signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation party. Holder in due course. Presumption of value and good faith. Negotiation of bill. Requisities of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentment for acceptance, and execues for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Execuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. [s. 49 contd.] Excuses for non-notice and delay. Noting or protest of bill. Ordinance No. 5 of 1912. Duties of holder as regards drawee or acceptor. Fund in hands of drawee. Liability of acceptor. Liability of drawer of indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transfer by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the holder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Protection to collecting banker. Account may be credited, before payment of cheque. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part II to notes. Good faith. Signature. Computation of time. When noting equivalent to protest. Protest when notary not accessible. Schedule. Crossing of dividend warrant. Savings. [cf. No. 8 of 1921.] [cf. No. 58 of 1911.]

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