BILLS OF EXCHANGE ORDINANCE

BILLS OF EXCHANGE ORDINANCE

CHAPTER 19.

THE BILLS OF EXCHANGE ORDINANCE.

ARRANGEMENT OF SECTIONS.

Section Page
PART I.

1-2 Preliminary provisions ... ... ... ... ... ... ... ... 356

PART II.

3-21.................Form and interpretation ... ... ... ... ... ... ... 357-363
22-26 Capacity and authority of parties ... ... ... ... ... ... 363-364
27-30 Consideration for bill ... ... .... ... ... ... 364-366
31-38..............Negotiation of bill .... ... ... ... ... ... ... ... 366-369
39-52 General duties of the holder ... ... ... ... ... ... ... 369-378
53-58 Liabilities of parties ... ... ... ... ... ... ... 379-381
59-64............Discharge of bill ........ ... ... ... ... ... ... 381-382
65-68 Acceptance and payment for honour ... ... ... ... ... 383-384
69-70...........Lost instrument ........... ... ... ... ... ... ... ... 385
71 Bill in a set .......................... ... ... 385
72 Conflict.....of laws ................... ... ... ... ... ... 386

PART III.

73-75 Cheques on a banker........... ... ... ... ... ... ... 387-388
76-84 Crossed cheques .............. ... ... ... ... ... ... 388-390

PART IV.

85-91............Promissory Notes ............ ... ... ... ... ... ... 391-392

PART V.

92-98............Supplementary ............... ... ... ... ... ... ... 393-394

SCHEDULE.
(Form of protest, without notary)






CHAPTER 19.

BILLS OF EXCHANGE.
To codify the law mlating to bills of exchan(re, cheques
pi.ol?bi'ssorv notes.

[4th May, 1885.]

PART I

Preliminary Provisioits.

1. This Ordinance rnay be cited as the Bills of
Exchange Ordinance.

2. In this Ordinance
'acceptance' means an acceptance completed by delivery or notification:
'action' means action or suit and includes counterclaim and set-off;
'banker' includes a body of persons, whether incorporated or not,
who carry on the business of banking;
'bankrupt' includes any person whose estate is vested in a trustee or
assignee under the law relating to bankruptcy;
'bearer' means the person in possession of a bill or note which is
payable to bearer;
'bill' means bill of exchnage, and 'note' means promissory note;
'delivery' means transfer of possession, actual or constructive, from
one person to another;
'general holiday' has the same meaning as in the Holidays Ordinance;
'holder' means the payee or indorsee of a bill or note who is in
possession of it, or the bearer thereof;
'indorsement' means an indorsement completed by delivery;
'issue' means the first delivery of a bill or note, complete in form,
to a person who takes it as a holder;
'person' includes a body or persons, whether incorporated or not;
'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 iving it, requiring the Person to whom it is
Addressed to pay on demand or at a fixed or determinable
future tinie a sum certain in money to, or to the order
of, a specified Person or to bearer.

(2) An instrument which does not comply with these
conditions, or which orders any act to be done in addition
to the payment of money, is not a bill of exchange.

(3) An order to pay out of a particular fund is not
unconditional within the meaning of this section; but an
unqualified order to pay, coupled with-
(a)an indication of a particular fund out of which tile
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) 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 in inland bill.





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

(2) Where, in a bill, drawer and drawee are the same
person, or where the drawee is a fictitious person or a
person not having capacity to contract, the holder may treat
the instrument, at his option, either as a bill of exchange
or as a promissory note.

6. (I) The drawee must be named or otherwise
indicated in a bill with reasonable certainty.
(2) A bill may be addressed to two or more drawees,
whether they are partners or not, but an order addressed
to two drawees in the alternative, or to two or more drawees
in succession, is not a bill of exchange.

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

(2) A bill may be made payable to two or more payees
jointly, or it may be. made. payable in the alternative
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 indorsement in blank.

(4) A bill is payable to order which is expressed to
be so payable, or which is expressed to be payable to a
particular person, and does not contain words prohibiting
transfer or indicating an intention that it should not be
transferable.





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

9. (I) 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 arnount payable.

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

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 pay-
able 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 occuirence 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 accept-
ance 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 accord-
ingly : Provided that-
(a)where the holder in good faith and by mistake
inserts a wrong date; and
(b) in every case where a wrong date is inserted,
If the bill subsequently conies 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 indorse-
ment 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-
(a)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 la st
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, 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;





(b)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;
(c)where a bill is payable at a fixed period after sight,
the time begins to run from the date of the accep-
tance 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;
(d) 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 say, in case the bill is dishonoured
by non-acceptance or non-payment. Such person is called
the referee in case of need. It is in the option of the holder
to resort to the referee in case of need or not, as lie may
think fit.

16. The drawer of a bill and any indorser may insert
therein an express stipulation-
(a)negativing or limiting his own liability to the
holder;
(b)waiving, as regards himself, some or all of the
holder's duties.

17. (I) 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 rriust not express that the drawee will perform
his promise by any other means than the payment
of money.

18. (I) 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 presentirient
to the drawee for acceptance.

19. (I) 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 qualified which is-
(a)conditional, that is to say, which makes payment
by the acceptor dependent on the fulfilment of a
condition therein stated ;
(b)partial, that is to say, an acceptance to pay part
only of the amount for which the bill is drawn;
(c)local, that is to say, an acceptance to pay only at a
particular specified place; an acceptance to pay at
a particular place is a general acceptance, unless it
expressly states that the bill is to be paid there only
and not elsewhere;
(d) qualified as to time;
(e)the acceptance of some one or more of the drawees,
but not of all.

20. (1) Where a simple signature on a blank stamped
paper is delivered by the signer in order that it may be
converted 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 iriust be filled up within a
reasonable time and strictly in accordance with the authority
given. Reasonable time for this purpose is a question of
fact : Provided that if any such instrument, after completion





is negotiated to a holder in due course, it shall be valid and
effectual for all purposes in his hands, and he may enforce
it as if it had been filled up within a reasonable time and
strictly in accordance with the authority given.

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 longer in the possession of a
party who has signed it as drawer, acceptor, or indorser, a
valid and unconditional delivery by him is presumed until
the contrary is proved.

Capacity and authority of parties.

22. (I) Capacity to incur liability as a party to a bill
is co-extensive with capacity to contract : Provided that
nothing in this section shall enable a corporation to make
itself liable as drawer, acceptor, or indorser of a bill unless
it is competent to it to do so under the law relating to cor-
porations.

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

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 unauthorized signature is wholly inoperative,
and no right to retain the bill, or to give a discharge therefor,
or to enforce payment thereof against any party thereto can
be acquired through or under that signature, unless the party
against whom it is sought to retain or enforce payment of
the bill is precluded from setting up the forgery or want of
authority: Provided that nothing in this section shall affect
the ratification of an 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. (I) Where a person signs a bill as drawer, indorser,
or acceptor, and adds words to his signature, indicating that
he signs for or on behalf of a principal or in a representative
character, he is not personally liable thereon ; but the mere
addition to his signature of words describing him as an
agent, or as filling a representative character, does not
exempt him from personal liability.

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

Consideration for bill.

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





(a)any consideration sufficient to support a simple
contract ;
(b)an antecedent debt or liability. Such a debt or
liability is deemed valuable consideration whether
the bill is payable on demand or at a future time.

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

(3) Where the holder of a bill has a lien on it, a rising
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
lie 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 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 accommo-
dation 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 lie became the holder of it before it was over-
due, and without notice that it had been. previously
dishonoured, if such was the fact;
(b)that he took the bill in good faith and for value,
and that at the time the bill was negotiated to him
lie 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
lie 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 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 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 manner as to constitute the
transferee the holder of the bill.

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

(3) A bill payable to order is negotiated by the. indorse-
ment of the holder completed by delivery.

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

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

32. An indorsement in order to operate as a negotiation
must comply with the following conditions, namely-
(a)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;
(b)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;
(c)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;
(d)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;
(e)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;
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, and 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 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 indorse-
ment 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 same liabilities as the first indorsee
under the restrictive indorsement.

36. (1) Where a bill is negotiable in its origin, it con-
tinues to be negotiable until it has been-
(a) restrictively indorsed; or
(b) discharged by payment or otherwise.

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

(3) A bill payable on demand is deemed to be overdue,
within the meaning and for the purposes of this section,
when it appears on the face of it to have been in circulation
for an unreasonable length of time. What is an unreason-
able 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 dis-
honoured, any person who takes it with notice of the
dishonour takes it subject to any defect of title attaching
thereto at the time of dishonour, but nothing in this sub-
section shall affect the rights of a holder in due course.





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, reissue and
further negotiate the bill, but fie is not entitled to enforce
payment of the bill against any intervening party to whom
he was previously liable.

38. The rights and powers of the holder of a bill are
as follows-
(a) he may sue on the bill in his own name;
(b) where he is a holder in due course, he holds the
bill free from any defect of title of prior parties, as
well as from mere personal defences available to
prior parties among themselves, and may enforce
payment against all parties liable on the bill;
(c) where his title is defective-
(i) if he negotiates the bill to a holder in due
course, that holder obtains a good and complete
title to the bill ; and
(ii) if lie 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
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 pay-
ment 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) 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 bolder 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 some person
authorized to accept or refuse acceptance on his
behalf, at a reasonable hour on a business day
and before the bill is overdue;
(b)where a bill is addressed to two or more drawees,
who are not partners, presentment must be made
to them all, unless one has authority to accept for
all, then presentment may be made to him only;
(c)where the drawee is dead, presentment may be
made to his personal representative;
(d)where the drawee is bankrupt, presentment may be
made to him or to his trustee or assignee ;
(e)where authorized by agreement or usage, a present-
ment through the Post Office is sufficient.

(2) Presentment in accordance with these rules is
excused, and a bill may be treated as dishonoured by non-
acceptance-
(a)where the drawee is dead or 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 irre-
gular, acceptance has been refused on some other
ground.





(3) The fact that the holder has reason to believe that
the bill, on presentment, will be dishonoured does not
excuse presentment.

42. When a bill is duly presented for acceptance and
is not accepted within the customary time, the person pre-
senting 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. (I) 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. (I) The holder of a bill may refuse to take a
qualified acceptance, and, if he does not obtain an un-
qualified 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 subsection do not apply to a partial acceptance,
whereof due notice has been given. Where a foreign bill
has been accepted as to part, it must be protested as to the
balance.

(3) When the drawer or indorser of a bill receives
notice of a qualified acceptance, and does not within a
reasonable time express his dissent to the holder, he shall
be deemed to have assented thereto.

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





bill is duly presented for payment which is pres ented in
accordance with the following rules-
(a)where the bill is not payable on demand, present-
ment must be made on the day it falls due;
(b)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 ;
(c)presentment must be made by the holder, or by
some person authorized to receive payment on his
behalf, at a reasonable hour on a business day, at
the proper place as hereinafter defined, either to
the person 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
(d) a bill is presented at the proper place-
(i) where a place of payment is specified in the
bill and the bill is there presented;
(ii) 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;
(iii) where no place of payment is specified and
no address given, and the bill is presented at the
drawee's or acceptor's place of business, if known,
and, if not, at his ordinary residence, if known ;
(iv) in any other case, if presented to the drawee
or acceptor wherever he can be found, or if pre-
sented at his last-known place of business or
residence;
(e)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 presentment to the drawee or
acceptor is required;
(f) 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;
(g)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,
lie can be found ;
(h)where authorized by agreement or usage, a present-
ment through the Post Office is sufficient.

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

(2) Presentment for payment is dispensed with-
(a)where, after the exercise of reasonable diligence,
presentment, as required by this Ordinance, cannot
be effected. The fact that the holder has reason to
believe that the bill will, on presentment,. be dis-
honoured 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 accep-
tor 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 tor 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. (I) A bill is dishonoured by non-payment-
(a)when it is duly presented for payment and pay-
ment is refused or cannot be obtained; or
(b)when presentment is excused and the bill is over-
due 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 of this Ordinance, when
a bill has been dishonoured by non-acceptance or by non-
payment, notice of dishonour must be given to the drawer
and each indorser, and any drawer or indorser to whow
such notice is not given is discharged : Provided that-
(a)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 ;
(b)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 mean-
time been accepted.

49. Notice of dishonour, in order to be valid and
effectual, must be given in accordance with the following
rules-
(a)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;
(b)the notice may be given by an agent, either in his
own name or in the name of any party entitled
to give notice, whether that party is his principal
or not;
(c)where the notice is given by or on behalf of the
holder, it enures for the benefit of all subsequent
holders and all prior indorsers who have a right
of recourse against the party to whom it is given;
(d)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 whoni
notice is given;
(e)the notice may be given in writing or by personal
communication, and may be given in any terms
which sufficiently identify the bill, and intimate
that the bill has been dishonoured by non-accept-
ance or non-payment;





the return of a dishonoured bill to the drawer or
an indorser is, in point of form, deemed a suffi-
cient notice of dishonour;
(g)a written notice need not be signed, and an insuffi-
cient written notice may be supplemented and.
validated by verbal communication. A misdescrip-
tion of the bill shall not vitiate the notice unless
the party to whom the notice is given is, in fact
misled thereby;
(h)where the notice is required to be given to any
person, it may be given either to the party him-
self or to his agent in that behalf;
(i)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;
where the drawer or indorser is bankrupt, the
notice may be given either to the party himself
or to his trustee or assignee;
(k)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;
(l)the notice may be given as soon as the bill is
dishonoured and must be given within a reason-
able time thereafter. In the absence of special
circumstances, notice is not deemed to have been
given within a reasonable time, unless--
(i) where the person giving and the person to
receive notice reside in the same place, the notice
is given or sent off in time to reach the latter on
the day after the dishonour of the bill;
(ii) 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;
(m)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;
(n)where a party to a bill receives due notice, lie 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;
(o)where the notice is duly addressed and posted, the
sender is deemed to have given due notice of dis-
honour, 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 dis-
honour 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) where the drawee or acceptor is, as between
himself and the drawer, under no obligation to
accept or pay the bill;
(v) where the drawer has countermanded pay-
ment;





(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;
(ii) where the indorser is the person to whom
the bill is presented for payment;
(iii) where the bill was accepted or made for his
accommodation.

51. (I) 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 pre-
serve the recourse against the drawer or indorser.

(2) Where a foreign bill, appearing on the face of it
to be such, has been dishonoured by non-acceptance, it
must be duly protested for non-acceptance, and where such
a bill, which has not been previously dishonoured by non-
acceptance, is dishonoured by non-payment, it must be duly
protested for non-payment. If it 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, when a bill is noted or pro-
tested, it may, be noted on the day of its dishonour and
must be noted not later than the next succeeding business
day. When a bill has been duly noted, the protest may
be subsequently extended as of the date of the noting.
(s) Where the acceptor of a bill becomes bankrupt or
insolvent or suspends payment before it matures, the holder
may cause the bill to be protested for better security against
the drawer and indorsers.
(6) A bill must be protested at the place where it is
dishonoured : Provided that-
(a) when a bill is presented through the Post Office,
and returned by post dishonoured, it may be pro-





tested at the place to which it is returned, and on
the day of its return, if received during business
hours, and, if not received during business hours,
then not later than the next business day ;
(b)when a bill drawn payable at the place of business
or residence of some person other than the drawee
has been dishonoured by non-acceptance, it must
be protested for non-payment at the place where it
is expressed to be payable, and no further present-
ment for payment to, or demand on, the drawee
is necessary.

(7) A protest must contain a copy of the bill, and
must be signed by the notary making it, and must spccify-
(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 rnay
be made on a capy 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. (I) When a bill is accepted generally, present-
ment for payment is not necessary in order to render the
acceptor liable.

(2) When by the terms of a qualified acceptance pre-
sentment for payment is required, the acceptor, in the
absence of an express stipulation to that effect, is not dis-
charged 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 dishoneur
should be given to him.






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

Liabilities of parties.

53. A bill, of itself, does not operate as an assignment
of funds in the hands of the drawee available for the pay,-
ment thereof, and the drawee of a bill who does not accept,
as required by this Ordinance, is not liable on the instru-
ment.

54. The acceptor of a bill, by accepting it-
(a)engages that he will pay it according to the tenor
of his acceptance ;
(b)is precluded from denying to a holder in due
course
(i) the existence of the drawer, the genuine-
ness of his signature, and his capacity and
authority to draw the bill;
(ii) 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 indorse-
ment ;
(iii) 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 genuine-
ness 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, pro-
vided 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
docepted 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 dis-
honour 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 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-
(a) the holder may recover from any party liable on
the bill, and the drawer who has been compelled
to pay the bill may recover from the acceptor, and
an indorser who has been compelled to pay, the
bill may recover from the acceptor, or from the
drawer, or from a prior indorser-
(i) the amount of. the bill;
(ii) interest thereon from the time of present-
ment for payment, if the bill is payable on demand,
and from the maturity of the bill in any other
case ;
(iii) the expenses of noting, or when piotest is
necessary and the protest has been extended, the
expenses of protest;
(b)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;
(c) 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 instru-
ment.

(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 lie has a right to transfer it, and that, at the time of
transfer, he is not aware of any fact which renders it value-
less.

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 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 the acceptor, but
may not reissue the bill;
(b)where a bill is paid by ail 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 in 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 indorse-
ment 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 rnade 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 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
discharged by the intentional cancellation of his signature
by the holder or his agent. In such case, any indorser who
would have had a right of recourse against the party whose
signature is cancelled is also discharged.
(3) A cancellation' made unintentionally, or under a
mistake, or without the authority of the holder is inopera-
tive ; 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 part), 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, the addition of a place of payment
without 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 suprh 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 suprit 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 lie 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 suprd protest or contains a reference in case of need,
it must be protested for non-payment before it is presented
for payment to the acceptor for honour or referee in case
of need.

(2) Where the address of the acceptor for honour is
in the same place where the bill is protested for non-payment,
the bill must be presented to him not later than the day
following its maturity; and where the address of the acceptor
for honour is in some place other than the place where 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) Delay in presentment or non-presentment is excused
by any circumstance which would excuse delay in present-
ment for avment 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 suprd protest,
for the honour of any party liable thereon or for the honour
of the person for whose account the bill is drawn.

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

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

(4) The notarial act of honour must be founded on a
declaration made by the payer for honour, or his agent in





that behalf, declaring his intention to pay the bill for honour
and for whose honour he pays.

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

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

(7) Where the holder of a bill refuses to receive pay-
ment 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 hirn 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, fie 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 satis-
faction 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 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 subsection shall affect the
rights of a person who in due course accepts or pays the
part first presented to him.

(4) The acceptance may be written on any part, and
it must be written on one part only. If the drawee accepts
more than one part and such accepted parts get into the
hands of different holders in due course, he is liable on
every such part as if it were a separate bill.

(5) When the acceptor of a bill drawn in a set pays
it without requiring the part bearing his acceptance to be
delivered up to him, and that part at maturity is outstand-
ing 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
liabilities of the parties thereto are determined as follows-
(a)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 indorse-
ment or acceptance supra protest, is determined by
the law of the place where such contract was made:
Provided that-
(i) 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;
(ii) where a bill issued out of this Colony con-
forms, 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;
(b)subject to the provisions of this Ordinance, the.
interpretation of the drawing, indorsement, diccep-
tance, or acceptance supra protest of a bill is deter-
mined 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;
(c)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;
(d)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 stipula-
tion, 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
(e)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 pro-
visions of this Ordinance applicable to a bill of exchange
payable on demand apply to a cheque.

74. Subject to the provisions of this Ordinance-
(a)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 daniage through the delay, lie 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 lie
would have been had such cheque been paid;
(b)in determining what is a reasonable time, regard
shall he had to the nature of the instrument, the
usage of trade and of bankers, and the facts of the
particular case;
(c)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-
(a) countermand of payment ;
(b) notice of the customer's death.

Crossed cheques.

76. (1) Where a cheque bears across its face an addi-
tion of-
(a)the words 'and company', or any abbreviation
thereof, between two parellel transverse lines, either
with or without the words 'not negotiable'; or
(b)two parallel transverse lines simply, either with or
without the words 'not negotiable'
that addition constitutes a crossing, and the cheque is
crossed generally.

(2) Where a cheque bears across its face an addition
of the name of 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 (I) A cheque may be crossed generally or specially
by the drawer.

(2) Where a cheque is uncrossed, the holder may cross
it generally or specially,





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

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

(5) Where a cheque is crossed specially, the banker to
whom it is crossed may again cross it specially to another
banker for collection.

(6) Where an uncrossed cheque, or a cheque crossed
generally, is sent to a banker for collection, he may cross
it specially to himself.

78. A crossing au thorized 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 Ordin-
ance, 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 col-
lection 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
che que crossed generally otherwise than to a banker, or,
if crossed specially, otherwise than to the banker to whom
it is crossed or his agent for collection being a banker, he
is liable to the true owner of the cheque for any loss he
may sustain owing to the cheque having been so paid:
Provided that where a cheque is presented for payment which
does not, at the time of presentment, appear to be crossed,
or to have had a crossing which has been obliterated, or to
have been added to, or altered otherwise than as 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 pay-
ment 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 whom it is crossed or his agent for collection
being a banker, the banker paying the cheque, and, if the
cheque has come into the hands of the payee, the drawer,
shall respectively be entitled to the same rights and be placed
in the same position as if payment of the cheque had been
made to the true owner thereof.

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 notwithstand-
ing that lie credits his customer's account with the amount
of the cheque before receiving payment.

83. 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 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. [82A

84. 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
Accountant General shall be deemed to be a banker, and the
public officers drawing on him shall be deemed customers.
[82B

PART IV.

PROMISSORY NOTES.

85. (I) 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 deter-
minable 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 rnade and payable within this Colony is an inland note.
Any other note is a foreign note. [83

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

87. (I) A promissory note may be made by two or more
makers, and they may be liable thereon jointly, or jointly
and severally, according to its tenor.

(2) Where a note runs 'I promise to pay' and is signed
by two or more persons, it is deemed to be their joint and
several note. [85

88. (I) Where a note payable on demand has been
indorsed, it must be presented for payment within a reason-
able 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 usige 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. [88

89. (I) Where a promissory note is in the body of it
made payable at a particular place, it must be presented for
payinent 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 payible at
a particular place,
zpresentment 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, present
ment 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. [87

90. The maker of a promissory note, by making it-
(a) engages that he will pay it according to its tenor
(b) is precluded from denying to a holder in due course
the existence of the payee and his then capacity to
indorse. [88

91. (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 modifications, to promissory notes.
(2) In applying those provisions, the maker of a note
shall be deemed to correspond with the acceptor of a bill,
and the first indorser of a note shall be deemed to corres-
pond 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 supra protest;
(d) bills in a set.
(4) Where a foreign note is dishonoured, protest thereof
is unnecessary. [89

PART V.

SUPPLEMENTARY.

92. 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. [90

93. (I) 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 required to be signed, it is
sufficient if the instrument or writing. is scaled with the
corporate seal.

(3) But nothing in this section shall be. construed as
requiring the bill or note of a cor oration to be under seal.
[91

94. (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
Ordinance, mean general holidays. [92

95. 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. [93

96. (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 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 be used, with neces
sary modifications, and, if used, shall be sufficient. [94

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

98. (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.

(13) 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. [s. 96.]

FORM OF PROTEST WHICH MAY BE USED WHEN THE SERVICES OF A
NOTARY CANNOT BE OBTAINED.
Know all men that I, A.B., ofat 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 he made answer [state answer, if any]; wherefore
I now, in the presence of G.H., and J.K., do protest the said bill of
exchange.
Dated the day of 19
.(Signed) A.B.
G.H. Witnesses.
J.K.
N.B.-The bill itself should be annexed, or a copy of the bill and
all that is written thereon should be underwritten.
Originally 9 of 1885. Fraser. 3 of 1885. 45 & 46 Vict. C. 61. Short title. Interpretation. (Cap. 149.) Definition of bill 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 payment on demand. Bill payable at future time. [s. 11 cont.] Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. [cf. Cap. 149, s. 6.] Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. [s. 18 cont.] General and qualified acceptance. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized signature. Procuration signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation party. Holder in due course. [s. 29 cont.] 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. [s. 39 cont.] 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. [s. 45 cont.] Excuses for delay or non-presentment for payment. Dishonour by non-payment. [s. 47 cont.] Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. [s. 49 cont.] Excuses for non-notice and delay. Nothing or protest of bill. (Cap. 149.) [s. 51 cont.] Duties of holder as regards drawee or acceptor. Funds in hand of drawee. Liability of acceptor. Liability of drawer or indorser. [s. 55 cont.] 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. Alternation of bill. Acceptance for honour supra protest. Liability of acceptor for honour. [s. 66 cont.] 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. [s. 71 cont.] Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. [s. 74 cont.] 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. [s. 88 cont.] 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. [s. 96 cont.] Schedule. Crossing of dividend warrant. Savings. (Cap. 117.) (Cap. 32.)

Originally 9 of 1885. Fraser. 3 of 1885. 45 & 46 Vict. C. 61. Short title. Interpretation. (Cap. 149.) Definition of bill 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 payment on demand. Bill payable at future time. [s. 11 cont.] Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. [cf. Cap. 149, s. 6.] Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisites of acceptance. Time for acceptance. [s. 18 cont.] General and qualified acceptance. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized signature. Procuration signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation party. Holder in due course. [s. 29 cont.] 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. [s. 39 cont.] 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. [s. 45 cont.] Excuses for delay or non-presentment for payment. Dishonour by non-payment. [s. 47 cont.] Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. [s. 49 cont.] Excuses for non-notice and delay. Nothing or protest of bill. (Cap. 149.) [s. 51 cont.] Duties of holder as regards drawee or acceptor. Funds in hand of drawee. Liability of acceptor. Liability of drawer or indorser. [s. 55 cont.] 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. Alternation of bill. Acceptance for honour supra protest. Liability of acceptor for honour. [s. 66 cont.] 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. [s. 71 cont.] Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. [s. 74 cont.] 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. [s. 88 cont.] 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. [s. 96 cont.] Schedule. Crossing of dividend warrant. Savings. (Cap. 117.) (Cap. 32.)

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