BILLS OF EXCHANGE ORDINANCE, 1885

BILLS OF EXCHANGE ORDINANCE, 1885

No. 3 of 1885.
An Ordin 1 ance to codify the law relating to 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, 885.

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 ' includes a body of persons, whether incor-
porated or not, who carry on the business of banking.
(d)- ' Bankrupt ' includes any person whose estate is vested
in a trustee or assignee under the law relating to bankruptcy.
(e) ' 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.
(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 bill or note
who is in possession of it, or the bearer thereof.
(i) 'I Indorsement ' means an indorsement completed by
delivery.
(h) ' Issue ' means the first delivery of a bill or note, com-
plete in form, to a person who takes it as a holder.
(1) ' Person ' includes a body of persons, whether incor-
porated or not.
Value ' means valuable consideration.

The numbering of the sections in this Ordinance, except ss. 82 (2),
82A, 82B and 96, corresponds with that of the sections in the
Bills of Exchange Act, 1882.





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 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 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
unconditional within the meaning of this section; but an
unqualified order to pay, coupled with---

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

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

(4) A bill is not invalid by reason-
(a) that it is not dated;

(b) that it does not specify the value given or that any
value has been given therefor;
(c) that it does not specify the place where it is drawn or
the place where it is payable.

4.- (i) An inland bill is a bill which is or on the face of
it purports to be-

(a) b oth 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 he 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.

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, orto 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 reasonab!e
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.

8.--(1) Where 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 indorse-
ment in blank. .

(4) A bill is payable to order which is expressed to be so
:1
payable, or whichis 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.

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

(a) with interest;
(b) by stated instalments;
(c) by stated instalments, with a provision that, upon default
in payment of any instalment, the whole shall become due;
(d) according to an indicated rate of exchange or 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 inst ' rument otherwise provides, interest runs from the
date of the bill, and, if the bill is undated, from the issue
thereof.

10.-(i) 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.

11.--(i) A bill is payable at a determinable future time
within the meaning of this 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 contingency
is not a bill, and the happening of the event does not cure the
defect.

12. Where a bill expressed to be payable at a fixed period
after 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-

(i) 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.

13,-(1) Where a ' bill or an 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, 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 or any other
general holiday.

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

(i) 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 gra ' ce 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 fast day of grace falls on a Sunday, Christ-
mas 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 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 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.

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 sayY in
case the bill is dishonbured by nonacceptance 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.

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

(i) negativing or limiting his own liability to the holder;

(2) waiving, as regards himself, some or all of the holder's duties. 1

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.

18.-(1) A bill may be accepted

(a) before it has been signed by the drawer, or while otherwise
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 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.

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.

(,3) In particular, an acceptance is qualifiedwhich 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
riot of all.

20.-(1) Where a simple signature on a blank stamped
paper is delivered by the signer in order that it rnay be converted
into a bill, it operates as a primg 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 primil
fa cie authority to fill up the omission in any way he thinks fit.

(2) In order that any such instrument, when completed,
may be enforceabie against any person who became a party
thereto prior to its completion, it must be filled up. within a
reasonable tirne 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, so as to make
them liable to him, is conclusively presumed.

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

Capacity and. authority 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 cor-
poration 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 payment of the bill, and to enforce 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

(i) 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 narne.;

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

24. Subject to the provisions of this Ordinance, where a signature
on a bill is forged or placed thereor without the authority of the person
whose signature it purports to be, the forged or unauthorized signattire
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 : . 1

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

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.

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 instrtiment shall be
adopted.





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

(a) any consideration sufficient to support a simple con-
tract;

(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.

28.-(1) An accommodation party to a bill is a person who
has signed a bill as 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.

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 that it had been previously dishonoured, if
such was the fact;

(b) that he took the bit 1 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 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 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 ihe acceptor and all
parties, to the bill prior to that holder.

30.--(1) Every party whose signature appears on a bill is
prim~ facie deem~d to have become a party thereto for value.

(2) Every holder of a bill is Pri-mS 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.

31.-(1) A bill is negotiated when it is transferred from one
person to another in such a mariper 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 tran~feree
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.

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





(i) 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 recognized, 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,
uniess 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 thinks 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 m ay 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, and payment to the
indorsee is valid whether the condition has been fulfilled or not.

X-(i) 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 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, if 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 authorizes him to do so.

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

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 ~L had.

(3) A bill payable on demand is deemed to be overdue, Ivithin. 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 tirne. 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 p7imii facie deemed to llave been effected before the bill
was overdue.

(,s) Where a bill whi ch is not overdue has been dishonoured, any
person who takes it with notice of the dishonour takes it Stibject 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.





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 further negotiate
the bill, but he is not entitled to enforce payment of the bill
against any intervening party to whom he wa . s previously
liable.

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

(i) 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
mr
ere personal defences available to prior parties among ihem-
selves, and may enforce payment against all parties liable on
the bill;
(3) where his title is defective-

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

General duties of the holder.

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 pre-
sented 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 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 be-fore. presenting it for payment is excused, and
does not discharge the drawer and indorsem





~ 40.-(1) Subject 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 bills, and
the facts of the particular case.

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 sorne person authorized to accept
or refuse acceptance on bi-, 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 authorit * V 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 or assignee;

(e) where authorized 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 b), 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 e-.,,cuse
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) Subject to the provisions of this Ordinance, 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.

44.-(1) The ho Ider 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 authorized 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, i~ 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.

45. Subject to the provisions of this Ordinance, a bill must
be duly presented for payment. If it is not so presented, the
drawer and indorsers shall be discharged. A bill.is duly pre-
sented 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 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 respect to similar bills, 'and the
facts of the particular case;

(3) presentment must be made by the holder, or by some
person authorized to receive payment on his behalf, at a reason-
able hour on a business da * V, at the proper place as hereinafter
defined, either to the person designated by the bill as payer
or to some person authorized 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 acceptorys
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 authorized to
pay or refuse payment can be found there, no further present-
ment 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 authorized by agreement or usage, a presentment
through the Post Office is sufficient.

46.-(j) 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, mis-
conduct, or negligence. When the cause of delay ceases to-
operate, presentme'nt must be made with reasonable diligence.

(2) Presentment for payment is dispensed with-

(a) where, after the exercise of reasonable diligence, present-
ment, as required by this Ordinance, cannot he 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.

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 Ordinance, when a bill
is dishonoured by non-payment, an immediate right of recourse
against the drawer and indorsers accrues to the holder.

48. Subject to the provisions o . f this Ordinance, when a bill
has been dishonoured by non-acceptance or by non-paymenty
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-

(i) 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 has in the meantime been accepted.

49. Notice of dishonour,. in order to be valid and effectual, 1
must be givein in accordance with the following rules:-

(i) 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) the notice may be given by an agen t, either in his own
name or in the name of any party entitled to give notice,
,Yhether that party is 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 p i
prior
indorsers who have a right of recourse against the party to
whom it is given;

(4) where the notice is given by or on behalf of an indorser
entitled to give notice as hereinbefore 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 com-
munication, and may be given in any terms which sufficiently
identify the bill, and intimate that the bill has been dishonoured
by non-acceptance or non-payment;

(6) the return of a dishonoured bill to the'drawer or an
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 the notice is required to be given to any person, it
m 1 ay 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
b
representative, if such there be, and, with the exercise of reason-
able diligence, he can be found;

(io) where the drawer or indorser is bankrupt, the notice
may be given either to the party himself or to his trustee or
assignee;

(ii) 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 dis-
honoured 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 dav 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 convenient 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
aaent, he may either himself give notice to the parties liable
on the bill or he may give notice to his principal. If he 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;





0.5) 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.-(t) 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 delas, ceases to
operate, the notice must be given with reasonable diligence.

(2) Notice of dishonour is dispensed with-

(a) where, after t he 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, naniely-
(i) where draiver 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 pre-
sented for payment;
(iv) where the drawee or acceptor is, a-~ between himself
and the drawer, under no obligation to accept or pay the bill;
(v) where the drawer has countermanded payment;

(d) as regards the indorser, in 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
(i i) where the indorser is the person to whorn the bill is
presented for payment;
(iii) where the bill was accepted or made for his accom-
modation.

51.-(1 ) Where an inland bill has been dishonoured, it rnav,
if the holder thinks fit, be noted for non-acceptance or non-
payment, as the case may be; but it shall not he 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
9
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 dis-
honoured 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 and must be noted
not later than the next succeeding business day. When a bill
has been duly noted, the protest may be subsequenfly 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 dis-
honoured: Provided that-

(a) when a bill is presented through the Post Office, and
returned by post dishonoured, it may be protestedat 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 deman d 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 reaso n* 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, pyotest 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 ot 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-
ment 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 pay-
ment, and when a bill is paid the holder shall forthwith deliver
it up to the party, paying. it.

Liabilities of paTties.

53. 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 Ordinance, is not liable on the instrument.

54. The acceptor of a billy by accepting it-
(i) 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 exist ence 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 indorseffie * nt ;

(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.

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 lie
will compensate the holder or any indorser who is compelled
to pay it, provided that the requisite proceedings on dishonour
are 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 is dishonoured
he will compensate the holder or a subsequent indorser who is
compelled to pay it, provided that the requisite proceedings 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 sub-
Z21
sequent indorsee that the bill was, at the time of his indorsement,
a . valid and subsisting bill, and that he had then a good title
thereto.

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 : --





(i) 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 com-
pelled 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 pay-'
ment, if the bill is payable on demand, and from the maturity
of the bill in any other case;

(c) the expenses of noting, or when protest is necessary and
the protest has been extended, the expenses of protest;

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

(3) where by this Ordinance interest may be recovered as
damages, such interest may, if justice requires 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.

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.

Discharge of bill.

59.-(1) A bill is discharged by payment in due course
by or on behalf of tile drawee or acceptor. ' Payment in due
course ' means payment made at or after the maturity of the
bill to the holder ;hereof in good faith and without notice that
his title to the bill is defective.





(2) Subject to the provisions hereinafter contained, when
a bill is paid by the drawer or an indorser it is not discharged;
but-

(a) where a.bill payable to, or to the order of, a third party
is paid by the drawer, the drawer may enforce payment thereof
against t~e 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 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 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.

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.

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
writ ing, unless the bill is delivered tip to the acceptor.

(2) The liabilities of ans, 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) N 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.

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,
authorized, 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, die addition of-a place of payment without
the acceptor's assent.

Acceptance anti payment foy 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 supril protest, for the honour of any party liable thereon
or for the honour of the person for whose account 1 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 supril 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, 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.

67.-(1) Where a dishonoured bill has been accepted for
honour supr~ protest or contains a reference in case. of need, it
must he 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-payrflent, 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 the bill was protested
for non-payment, the bill must be forwarded not later than the
day following its maturity for presentment to him.

(3) llelay 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 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 ans, 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 supr4 protest, in order to operate
as such and not as a mere voluntary payment, must be attested
by a notarial act of honour which may be appended to the
protest or form an extension of it.
(4) The notarial act of honour must be founded on a declara-
tion made by the payer for honour, or his agent in that behalf,
declaring his intention to pay the bill for honour and for whose
honour he pays.

(5) Where a bill has been paid for honour, all parties sub-
sequent 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 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
suprh 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 security to
the drawer, if required, to indemnify him against all persons
whomsoever 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. In any action or proceeding upon a bill, the court or a
judge may order that the loss of the instrument shall not be set
up, provided an indemnity be given, to the satisfaction of the
court or judge, against the claims of any other person upon the
instrument in question.





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 onthe 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
dillerent holders in due course, the holder whose title first accrues
is, as between such holders, deerned 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 ihe 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.
(s) When the acceptor of a bill drawn in a set pays it
without requiring the part bearing his acceptance to be delivered
up to him, and that part at maturity is outstanding in the
hands of a holder in due course, he is liable to the holder
thereof.

(6) Subject to the preceding rules, where any one part of a
bill drawn in a set is discharged by payment or otherwise, the
whole bill is discharged.

Conflict of laws.

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

(i) 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 supervening contracts, such
as acceptance or indorsement or acceptance 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 it 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 requisites 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 inter-
pretation of the drawing, indorsement, acceptance, or acceptance
sup7iL 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 this
Colony;

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

(4) where a bill is drawn out of but payable in 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 rate of exchange for
silght 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 thereof 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 Part, the provisions
Of this Ordinance applicable to a bill of exchange payable on
deffland apply to a cheque.





74. Subject to the provisions of this. Ordinance-

(i) 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 dis-
charged 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.

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

ki) countermand of payment;

(2) notice of the customer's death.

Crossed cheques.

M-(i) 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 with-
out the words ' not negotiable ',

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

1
k2) 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 ' iot 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) XYhere. an uncrossed cheque, or a cheque crossed
generally, is sent to a banker for collection, he may cross it
specially to himself.

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

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, othenvise 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 0
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 cros~.ed,
or to have had a crossing which has been obliterated, or to
have b 1 cen added to or altered otherwise than as authorized by
this Ordinance, 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 authorized 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 banker, 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 whoffi,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.

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.

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 having received
such payment.

(2) A banker receives payment of a crossed cheque for a
customer within the meaning of this section notwithstanding t`hat
he credits his customer's account with the amount of the cheque
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
sarne shall be drawn payable, shall be a sufficient authority
to such banker 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 payable either
by the drawer or any indorser thereof.





92B. Sections 76 to 82, both inclusive, shall extend to any
document issued by a customer of any banker,.and intended to
enable any person or body corporate to obtain payment from
such banker of the sum mentioned in such document, and shall
so extend in like manner as if the said document were a cheque:
Provided that nothing in this section shall be deemed to. render
any such document a negotiable instrument. For the purposes
of this section the Colonial Treasurer shall be deemed to be a
banker, and the public officers drawing on him shall be deemed
customers.

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 an inland note. Any
other note is a foreign note.

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

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 he their joint and several
note.

As amended by N6. 9 of 1936 [31.1.36).





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 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.

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
c
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.

88. The maker of a promissory note, by making it-

(i) 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 the 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 modifica-
tions, 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 suprh protest;
(d) bills in a set.
(4) WheTe a foreign note is dishonoured, protest thereof is
unnecessary.

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
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 Ordinance
any, instrument or writing is requi red 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 requir-
ing 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 excluded.
(2) ' Non-business days ',, for the purposes of this Ordin-
ance, 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 authorized or
required to be protested, and the services of a notary cannot be
obtained at the place where the bill is dishonoured, any house-
holder 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 be 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 ex---
change, 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 to the revenue; or
(b) the provisions of any Ordinance relating to joint-stock
banks or companies; or
(c) the validity of any usage relating to dividend warrants
or the indorsements thereof.

SCHEDULE. Is. 94.1
FoRbi OF PROTEST WHICII MAY BE U.SED 'WHEN THE qERVICES OF A
NOTARY CANNOT BE OBTAINED.
Know all men that 1, A.B., of , at the request
of C.D., there being no notary public available, did on the
day of 1 19 1 at demand payment [or
acceptance] of the bill of exchange hereunder written f;om E.F.,
to which deniand he made answer [state answer, if any]; wherefore
1 now, in the presence of GA-1. and J.K., do protest the said bill of
exchange.
Dated the day Yi 19
(Signed) A.B.
G.M
J.K. Witnesses,

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. 9 of 1936.] 45 & 46 Vict. C. 61. Short title. Interpretation. [cf. No. 10 of 1931.] Ordinance No. 5 of 1912. Definition of bills of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty required 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. [cf. No. 5 of 1912, s. 6.] Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. General and qualified acceptance. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized 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. Requisites 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 excuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Excuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect non-notice. Rules as to notice of dishonour. Excuses for non-notice and delay. Noting or protest of bill. Ordinance No. 5 of 1912. Duties of holder as regards drawee or acceptor. Funds in hands of drawee. Liability of acceptor. Liability of drawer or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor 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. 6 Edw. 7, c. 17, s. 1. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. 16 & 17 Vict. c. 59, s. 19. Extension of sections 76 to 82 to certain other documents. 46 & 47 Vict. C. 55, s. 17. 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. 39 of 1932.]

[Originally No. 9 of 1885. No. 9 of 1936.] 45 & 46 Vict. C. 61. Short title. Interpretation. [cf. No. 10 of 1931.] Ordinance No. 5 of 1912. Definition of bills of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty required 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. [cf. No. 5 of 1912, s. 6.] Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. General and qualified acceptance. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized 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. Requisites 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 excuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Excuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect non-notice. Rules as to notice of dishonour. Excuses for non-notice and delay. Noting or protest of bill. Ordinance No. 5 of 1912. Duties of holder as regards drawee or acceptor. Funds in hands of drawee. Liability of acceptor. Liability of drawer or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor 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. 6 Edw. 7, c. 17, s. 1. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. 16 & 17 Vict. c. 59, s. 19. Extension of sections 76 to 82 to certain other documents. 46 & 47 Vict. C. 55, s. 17. 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. 39 of 1932.]

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