BILLS OF EXCHANGE ORDINANCE, 1885

BILLS OF EXCHANGE ORDINANCE, 1885

ORDINANCE fro. ~ 9 of .3855.

Bills of Exelaangge.

Bills of Exchange Ordinance,' 1885.

ARRANGEMENT of SECTIONS.

PART I.

PRELIMINARY.

1. Short title.

2. Interpretation of terms.

3. Bi.ll.of exchange defined. .

4. Inland and foreign bills.

5. Effect where different parties to bill are the same person.

6. Address to drawee.

i . Certainty required as to payee.

8. What bills are negotiable.

9. Sum payable.

10. Bill payable on demand.

11. Bill payable .at a future time.

12. Omission of date in bill payable after date.

13. Ante-dating and post-dating.

14. Computation of time of payment.

15. Case of need.

16. Optional stipulations by drawer or indorser.

1?'. Definition and requisites of acceptance.

1$-Time for acceptance.

19. General and qualified acceptances.

20. Inchoate instruments.

21. Delivery.

PART If.

BILLS of EXCHANGE.
Am and interpretation.

Capacity and authority of parties.

22. Capacity of parties.

23. Signature essential to liability.

24. Forged or unauthorised signature.

25. Procuration signatures.

26. Person signing as agent or in representative capacity.
ORDINANCE No. 9 of 1885.

Bills of .Exchange.

T. he consideration for a bill.

Section.

27. Value, and holder for value.
28. Accommodation bill or party.
29. Holder in due course.
:30. Presumption of value and good faith.

Negotiation of bibs.

:;1. Negotiation of bill.
32. Requisites of a valid indorsement. .,
33. Conditional indorsement.
34. Indorsement in blank and special icidorsemeut.
.`35. Restrictive indorsement. '
36. \Tegotiation of over-due or dishonoured hill. ,
37. Negotiation of bill to party already-liable, thereon.
38. Rights of the holder.

I\' on-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 of non-notice.
Rules as to notice of dishonour.
Excuses for non-notice and delay.
Noting or protest of bill.
Duties of holder as regards drawee or acceptor.

General duties of the holder.

39. When presentment far acceptance is necessary.
40. Time for presenting bill payable after sight.
41. Rules as to presentment for acceptance and excuses for
non-presentment.

42.
43.
44.
45.
46.
47.
48.
49.
~e7 0.
51.
a2.

Liabilities o
11 f parties.

.53. Funds in hands of drawee.
S54. Liability of acceptor.
56. Liability of drawer or indorser.
.56. Stranger signing bill liable as indorser.
57. Measure of damages against parties to dishonoured bill.
58. Transferor by deliveryand transferee.

18494
ORDINANCE.: ho.-=

.Bills$of.:Ed:.

Discharge of , mill..

Rec;tion.

.59. Payment in due course.

60. Banker paying demand draft whereon indor3em©nf~ is Iorgea.
61. Acceptor the holder at maturity.

62. Express waiver. .
63. Cancellation
64. Alteration of bill.

Acceptance and payment, for honoeto .

65. 'Acceptance for honour supra protest.
fib. Liability of acceptor for honour.
67. Presentment to acceptor for honour..
Ei$: Payment far honour supra protest.

Lost insh-aments.

fig. Holder's right to duplicate of lost bill.
?0. Action on lost bill.

r 3. Cheque defined.
i 4. Presentment of cheque for payment.
15. Revocation of banker's authority.

71. Roles as to sets.

i `3. Rules where laws conflict.

Bill in a set.

Conflict- of laws.

PART TIT.

CI1EQUb;s ON A BANKF1t.

Grossed cheques.

f

~G. General and special crossings defined.
77. Crossing lay drawer or after issue.
7 8. Crossing a material pert of cheque.
7 9. Duties of banker as to crossed cheques.
$0. Protection to banker and drawer where cheque is crossed.
$1. Effect of crossing on holder.
$2. Protection to coliectina banker.
GDI N ANCr' ' No. ' j9 ojp ' 1985;

' BUl9. orAWhange.

,PART IV. .

Section.

83. Promissory note defined.

84. Delivery necessary.

85. Joint and several notes.

86. Note payable on demand.

8'l.- Presentment of note for-payment.

88. Liability of maker.

89. Application of Part II. to notes.

PROnLISSOAY NOTES.

PART V.

SUPPLEMENTARY.

90. Good faith.

91. Signature.

92. Computation of time.

93. When noting equivalent to protest.

94. Proto'st when notary not accessible.

95. Dividend warrant may be crossed.

96: Repeal.

97. Savings.

98. Construction with other Ordinances, &c.

SCHEDULE L--Form of protest.

NOTE, The Arrangement of Sections has been placed before instead of after
the Ordi-

nance.

n No. 9 Qf 188.

An Ordinance entitled The Bills of Exchange Ordinance.

[4th May, 188. ]

~E it enacted by the Governor of HonPgkon~, with the advice of the
Legislative Council thereof,' as follows:-

PART I.

PRELIMINARY.

This Ordinance may be cited as the Bills of Exchange ordinance, shoft
tide.

188.
ORhINA NCE No. -9 OF` 1885.

Bills of Exchawge.

Iuterprel.a- ~'~w', In this Ordinance, unless the context otherwise
requires,-
tipn of terms.
' Acceptance' means an acceptance completed by delivery or
notification.
' Action' means 'suit or action' and includes counter claim
and set off.
' Banker' includes a body of persons whether incorporated or
not who carry on the business of banking.
Bankrupt' includes any person whose estate is vested in a.
trustee or assignee cinder the law for the time being in
force relating.to bankruptcy.
Bearer' means the person in possession of a bill or~ note which
is payable to bearer. '
Bill' means bill of exchange, and 'note' means promissory
note.
' Delivery ' means transfer of possession, actual ~or constructive,
from one person to another.
' Molder' means the payee or indorsee of a bill or note who is
ire possession of it, or the bearer thereof.
'Indorsement' means an indorsernent completed by delivery.
`` Issue' means the first delivery of a bill or note, complete inform to
a person who takes it as a holder.
' Person' includes 'a body of pers< ns whether incorporated or

not.

' Value' means valuable consideration.
'Written' includes printed, and 'writing' includes print.
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.
ORDINANCE No. 9 OF 1885.

Bills of Exchange.

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

(3.) An order to pay out of a particular fund is not unconditional
within the meaning of this section ; but an unqualified order to pay,
coupled with (a) an indication of. a particular fund out of which the
drawee is to~ re-imburse himself or a particular account to be debited
with
the amount, or (b) a statement of the transaction which gives rise to the
bill, is unconditional.

(4.) A bill is not invalid br reason

(a.) That it is not dated;

(b.) That it does not specify the value given, or that anti 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.e (I.) An inland bill is a bill which is or on the face of it purports
.Inland al,a
to be (a) both drawn and payable within this Colony, or (b) drawn foreign
bill.
within this Colony, upon some person resident therein. Any other bill
is a-foreign bill.

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

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

Effect where
different
parties to
bill are the
same person.
Cortainty,
required as,
to Payee.

Wh.M bills
gyre ncaoti
~able.

OWINANCB Na;.,.9,-40'FV: IWX

. ._y{{;: (::lr: ) Where a ,bill; .is, not payabl.6- to;, :bearerj- the
.: payee must be
ri=edioryotherwise indicated therein with .reasonable certainty.

( 2. ) A bill may be made payable to two or more payees jointly, or
it:may be'made payable: in the alternative to, one of two, or one or some
4f. several, payees. A bill: many also be made payable to the holder of
an,
offiee :for the time ~ being:

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

$. (1. ) Where a bill contains wordy prohibitiryg transfer, or indica-
ting 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,
oar which is expressed to be~ payalile,'to a particular. person, and does
not
contain words prohibiting. transfer or indicating an intention that it
shQUld 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.

'SuM Payable. $. (1. ) Tie sum payable: by a ,,bill is a svin 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 anal also in

figures, and there is a ,discrepancy between the two, the sum denoted by:
the words is the amount payable.
. (S. j' Where. a bill is: expressed ~ to ; be ~ payableo with, inte,
rest,. unless,
the instrument otherwise provides, interest. runs from the date ~ofthe
bill, aid if the bill is undated from the issue thereof.

10. ( L) 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 aecepted~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. A .bill is pa3 able ,at a. determinable future tune within the
mean- Bin ~-Atra.bn
ing of this Ordinance which is expressed to be payable-- t mGf
.
`tt.'1.`

( I : ) At a fixed period after date or sight.

( 2. ) On or at a fixed period after the occurrence of a specified
event which is certain to happen, though the time of
happening may.be uncertain.

An instrument expressed to, be payable on a contingency is not a
bill, and the happening of the event does not cure the defect.

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 bolder may insert therein the
true date of issue or acceptance, and the bill shall be payable
accordingly.

Provided that (1) where the holder in good faith and by mistake
inserts a wrong date, and ( 2) in every case wherea wrong date is
inserted,
if the' bilk subsequently cones 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 jn.serted had been the true date.

13. (l.) Where a bill or an'' acceptance or any indorsement on a~
t1ni,e-d;ztin
dill is dated, the date shill, unless the contrary be proved, be deemed:
~.~t,~s`t-
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 hears date on a Sunday. .

13111. payable
nn dcmau<i.

omission of
date in bill
payable after
date. ,
ORDINANCE No. 9. ©F I1335:

Bills of Exchange.

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

--='

(1,) Three days, called days of grace, are, in every case where the
bill itself does not otherwise provide, added to the time of payment as
fixed by the bill, and the bill is due an3 payable on the last day of
grace: Provided that-

(a.) When the last day of grace falls on Sunday, Christmas
Day, Good Friday, or a day appointed by proclamation
in the Gazette as a public fast or thanksngiving day, the
bill is, except in the case herein-after provided for, due
and payable on the preceding business day;

(b. ) ,Then the last day of grace is a bank holiday (other than

Christmas Day or Good Friday) or when the last day of
grace is a Sunday and the second day of brace is a bank
holiday, the bill is dne and payable on the succeeding
business day.

(2.) Where a bill is payable at a fixed period after date, after sight,
or after the happening of a specified event, the time of payment is deter-
mined by excluding the day from which the time is to begin to run and
by including the day of payment.

( 3. ) Where a bill is payable at a fixed period after sight, the time
begins to run from the date of the acceptance if the bill be accepted, and
from the date of noting or protest if the bill be noted or protested for
non-acceptance, or for non-delivery.

(4.) The term 'm=th' in a bill means calendar month.

Vasa or aml. RK. 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
;ion-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

stipulations

hp drawer or

indarser.

16. The drawer of a hill, and any indorser, rnay insert therein an
express stipulation-

(L) heaativing or limiting his oven liability to the holder
ORDINANCE No. 1 of x885.

Bills of Ea chaarge.

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

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

(2.) An a ccept.-Mce is invalid rnlecs it ccmplies -,A-ith tl:e following
conditions, namely

(a.) I t must he wlittcIl cD 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 -Till perform his pre-
mise by any other means than the payment of money.

18. A bill may be accepted.

(I .) Before it has been sigucd l-y the c?l air er, or while cthc i l%1m
incomplete

(`2.) When it is overdue, or after it has been dishonoured by a pre-
vious refusal to accept, or by non-payment

41
(3.) W hen 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. Generiiand
qualified
acceptane'.
(2.) A general acceptar;ce ascents without qualification to the order
of the drawer. A qualified acceptance in express terms varies the effect
,of the bill as drawn. a

Definition
and requisites
of. acceptance.

'Cimc for
slec:epta.nce.

In particular an acceptance is qualified which is-- .,

(a.,,) Conditional, that is to say, uhich 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 accept-ante to pay only at a parti-
cular specified place
:'ORDINANCE No:,`9_ of 1885.

$illi of Exohdn#e.

Inchoate
iutruments.

`A~ti acceptance to pay at: a~ particulat 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 tune
.(e.) The acceptance of some-one or more of the dra~.vees, but
not of all.

' 20. (1. ) Where a' simple s'iailature on a blank stamped paper is.
delrver-ed by' the signer' in order that it may be converted into a bill,
it
operates as a prirra4facie 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
want-
ing ire any material particular, the person in possession of it has a prim
,facie authority to fill up the omission in any way he thinks fit.

( 2. ) In order that any such instrument when completed may be
enforceable against any person who became a party thereto prior to its
completion,,it must be filled up within a reasonable time, and strictly in
accordance with the aEithority 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 iwaccordance with the authority given.

21. (1. ) Every contract on a bill, whether it be the drawer's, the
acceptor's, or an indorser's, is incomplete and revocable, until delivery
o£
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- en-
titled p the bill that he has accepted it, the acceptance then becomes
com-
plete and irrevocable.
( 2.)~ As between immediate parties, and as regards ~ 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 indor-
sing, 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.
ORDINANCE .No. - 9 up' 1855.

BiUr o, f .Exchange.

But. if the bill:be in the .:hands of a holder in .due course a valid de-
livery 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 de-R
livery 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' capacity of
with capacity to contract. n parties.

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 so to do under the law for the tune being in force
relating
to corporations.

(2.) Where a bill is drawn or indorsed by an infant, minor, or
corporation having no capacity or power to incur liability on a bill, the
drawing or indorsement entitles the holder to receive payment of the bill,
and to enforce it against any other party thereto,

23. No person is liable as drawer, indorser, or acceptor of a bill who
,signat,'re

essential t6
liability.

has .not signed it as such: -Provided that

l.) Where a person signs a bill in a trade or assumed name, he is
liable thereon as if he had signed it in his own name

( 2. ) The signature of the name of a firm is equivalent to the signature
°b~ the person so signing of the names of all persons liable as partners
in
that firm.

4. Subject to the provisions of this Ordinance, where a sinnature
on a ,bill is fumed or placed thereon without the authority~of the person
whose sigmrture it purports to be, the forged or unauthorised signature
is wholly inolierative, 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, uirless tire party against whom
it is sought to retain or enforce payment of the bill is precluded from
setting up tl;e forgery or want of authority.

Pruvidu<1 that vot hrng im this section shall affect the ratification of
an unauthorised signature not amounting to, a forgery.

Forged or
unauthorised
signature.
ORDINANCE No. 9 0ir 188:

.Bibs of Exchange.

Procuration
signatures.

11 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 anent in so signing was acting within the actual
limits of his authority.

Person gig- 26. (1. ) Where a person signs a bill as drawer, indorser, or
acceptor,
wing as agent
or in repre- and adds, words to his signature, indicating that he signs
for or on behalf
sentative
capacity. 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.

The consideration for a bill.

(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.

Value and 27. (1. ) Valuable consideration for a bill may be constituted
by,---=
holder for
value.

( 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 tune.
(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.

.eeooramoaa- 28. (1.) An accommodation party to a bill is a person who has
~$ill or ~a 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.
ORDINANCE No. 9 of 1885:

Bills of Pxchunge.

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 bill in goo:I faith and for value, and that
at the time the bill vas 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 under such circumstances as amount to a fraud.

(3.) A holder (whether for value or not), who derives his title to a
bill through a holder in due course, and who is not himself a party to
any fraud or illegality affectin& it, h4,s 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 faccie 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 bills.

Holcler in due
course.

Presumption,
of value and
good faith.

31. (1. ) A bill is negotiated when it is transferred from one person
Negotiatiou,
to another in such a manner as to constitute the transferee the holder of
°f bill.
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.
ORDINANCE-,- No. 9= o~ 1885.

Bills s -.of Exehang&

(4.). Where the holder of a bill payable to his order transfers it for
value without endorsing it, the transfer gives the transferee such title
as
the transferor hail in the bill, and the transferee in addition acquires
the
right to have the indor5ement of the transferor. `

aWhere ) where any person is under obligation to endorse a bill in a
representative capacity, he may endorse the bill in such terms as to
negative personal liability.
Reqnisites of 3,2, An endorsement in order to operate as a negotiation must
valid
inaaxsemmt. comply with the following conditions, namely:-
(L) It must be written on the bill itself and be signed by the endorser.
The simple signature of the endorser on the bill, without additional
words,
is sufficient:

An endorsement written on an allonge, or an a 'copy' of a bill
issued or negotiated in a country where 'copies' are recognised is
deemed to be written on the bill itself.

`(2..) It nmst be au indorsernent of the entire bill. A partial
endorsement, that is to say, an endorsement which purports to transfer to
the iridorsee a part only of the amount payable, or which purports to
transfer the bill to two or more endorsees severally, does not operate as
u negotiation of the bill.

( 3. ) Where a bill is pay7ble to the order of two or more payees or
endorsees who are not partners all must endorse, unless the one endorsing
r
has authority to endorse for the others.

4. ) Where, in 'a bill payable to order; the payee or endorsee is
wrong-'y designated, or ,his name is mis-spelt, he may endorse the bill as
therein described, adding, if he think fit, his proper signature.

n
(5.) Wliere there are two or more ~indorsements on a bill, each
endorsement is deemed to have been made in the order in which it appears
on the bill, until the contrary is larovO.

(6. ) An indorsemc3nt may be made in blank or special. It may also
contain terms making it restrictive.

Conditional `u'3. Where a bill purrorts to be endorsed conditionally the
condition
'`la°rgeru°nt: may be disregarded by the payer,, and payment to the
endorsee is valid
whether the condition has been fulfilled or not.
ORDINANCE No. 9 of 1885.

Bills of .Exchange.

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 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.
iudarsemen nesttietive
t.
negotiation of the 'bill or wbich expresses that it is a mere authority to
deal with the bill as thereby directed and not a transfer of the ownership
thereof, as, for example, if a bill be indorsed ' Pay D. only,' or ' Pay
D.
for the account of Y.,' or ' Pay D., or order for collection.'
(2.) A restrictive indorsement gives the indorsee the rigbt to receive
payment of the bill and to cue any party thereto that his indorser could
have sued, but gives him no power to transfer his rights as indorsee
unless it expressly authorise him to do so. y

(3.) 'Tbere a restrictive indorsement authorises further transfer,
all subsequent indorsees take the bill, with the same rights and subject
to
the wine liabilities as the first indorsee under the restrictive
indorsement.

'' 36. (1.) ''Nhere a bill is negotiable in its origin it continues to be
Negotintiot)
of overdue car
negotiable until it has been (a) restrictively indorsed or (b) discharged
dishonoured
by payment or otherwise. bill.

1
(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 whib takes it can acqu,*re or give a better title than that
which
the person from whom he took it had.

(3.) A bill payable' on demand is deemed to be overdue within the
meaning and for the purposes, of this section, when it appears on the face
of it to have been in circulation for an unreasonable length of time.
What is an unreasonable length of time for this purpose is a question of
fact.

lnaoisenctettt
in blank and
special
itldorement.
864

ORDINANCE No. 9 of 1885.

Bills of Exchange.

(4.) Except where an indorsemcnt b3ars date after the maturity of
the bill, every negotiation is prirni facie deemed to have been effected
before the bill was overdue.

(5.) Where a bill which is not overdue has been dishonoured any
person who takes it with notice of the dishonour takes it subject to any
defect of title attaching thereto at the time of dishonour, but nothing in
this sub-section shall affect the rights of a holder in due course.

zeotation 3'l. Where a bill is negotiated back to the drawer, or to a prior
~~ ~u to

party, already indorser or to the acceptor, such party may, subject to the
provisions of
liablethereon. 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 was previously liable.

Rlghte of the 38. The rights and powers of the, holder of a bill are as
follows
holster.
(1.) He may sue on the bill in his own name
(2.) Where he is a holder in due course, he holds the bill free from
any defect of title of prior parties, as well as from mere personal
defences
available to prior parties among themselves, and may enforce payment
against all parties liable on the bill
(3.) Where his title is defective (a) if he negotiates the bill to a
holder in due course, that holder obtains a good and complete title to the
bill, and (b) if he obtains payment of the bill the person who pays him
in due course gets a valid discharge for the bill.

General ditties of the holder°.

When pre. 39. (1:) Where a bill is payable after sight, presentment for
accept-
sentment for
.acceptance is ance is necessary in order to fix the maturity of the
instrument.
A
( L. ) Where a bill expressly stipulates that it shall be presented for
acceptance, or where a bill is drawn payable elsewhere than at the resi-
dence or place of business of the drawee it must be presented for accept-
ance 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
ORDINANCE 1\'o. 9 of 1885.

Bills of Exchange.

presenting it for payment on the day that it falls. due, the delay caused
by presenting the bill for acceptance before presenting it for payment is
excused, and does not discharge the drawer and indorsers.

40. (i.) 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 do not do so, the drawer and all indorsers prior .to that
holder are discharged.

( 3. ) In determining what is a~ reasonable time within the meaning
of this section, regard shall be had to the nature of the bill, the usage
of
trade with respect to similar bills, and the facts of the particular case.

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

(a.) The presentment must be made by or on behalf of the
holder to the drawee or to some person authorised to
accept or refuse acceptance on his behalf at a reasonable
hour on a business day and before the bill is overdue

(b.) Where a bill is addressed to two or more drawees, who
are not partners, presentment must be made to them all,
unless one has authority to accept for all, then present-
ment 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.

14 (e.) Where authorised by agreement or usage, a presentment

through the Post Office is sufficient.

(2.) Prc-centment in accordance with these rules is excused, and
-a bill may be treated as dishonou-Aed 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 a reasonable diligence, such
presentment cannot be effected

Time fur pre.
eenting hilt '
payable Mter

Rules <z, to
presentment
for accept-
ance, and
excuses for,
non-prese1it,-
1ncnt.
ORDINANCE No'. 1.4 ~or,1885.

Bills of R~change.

(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, krill be dishonoured does not excuse presentment.

-Non-accept- 42. (1.) When a bill is duly presented for acceptance and is
riot
ance' accepted within the customary time, the person presenting it must
treat
it as dishonoured by non-acceptance. If he do not, the holder shall lose
his right of recourse against the drawer and indorsers.

MxlonQUr by 43. (1. ) A bill is dishonoured by non-acceptance nonaccept-
ance and its
consequences.

Mules as to
presentment
fox payment.

(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-acceNtance, an immediate right of recourse against
the drvwer and indorsers accrues to the holder, and no presentment for
payment is necessary.

Duties asto 44.~ ( l,.) The holder of a bill may refuse to take a
qualified accept-

~~d

accante, and if he does nut obtain an unqualified acceptance may treat the
bill as dishonoured by non -acceptance.

(2.) Where a qualified.acceptance is taken, and the drawer or an
indorser has not expressly or impliedly authorised the holder to take. a.
qualified acceptance, or does not subsequently assent thereto, such drawer
or indouser is discharged from his liability on the bill.

. The provisions of this sub-section do not apply to a partial accept-
ance, 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. ) Wlien the drawer or indor^ser of a bill receives notice of a.
qualified acceptance, and does not within a reasonably tuna 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 pay meilt. If it be not so presented the: drawer and
indocvera
shall be discharged.
ORDINANCE

. . Abill: is duly, presented for;payinent whichis 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 regard,
to similar bills, and the facts of the particular case.

( 3.) Presentment must be, made by the holder or by some
person authorised to receive payment on his behalf at a
reasonable hour on a business day, at the proper place
as hereinafter defined, either to the person designated
by the bill as payer, or to some person authorised to
pay or refuse payment on his behalf if with the exercise
. of reasonable diligence such person can there be found.

( 4. ) A bill is presented at the proper place:-

(a.) Where a place of payment is specified in. the bill
and the bill is there presented.

(b. ) `here no place of payment is specified, but the
address of the drawee or acceptor is given in the
bill,` and the bill is there presented.

(c. ) Where no, place of payment is specified and no
address given, and the bill is presented, at the
drawee's or acceptor's place of busingss if kriown,
and if not, at his ordinary residence i£ known.

( d: ) In any other case if presented to the drawee or
14
acceptor wherever he can be found, or if presented
at his last known place of business or residence.

( 5. ) Where a bill is presented at the proper place, and after
the exercise of reasonable diligence no person authorised
to pay or. refuse payment can be found there, no further
presentment to the drawee -or acceptor is required.
ORDINANCE N-0.4-o'k,'1995.,

Bills. of Exchange.

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.
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. -
( $. ) Where authorised by agreement or usage a presentment
through the Post Office is sufficient.

Excuses f°r 48. (1.) Delay in making presentment for payment is excused
delay or non-
nresentment when. the delay is caused by circumstances beyond the control
of the
nor payment' 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 present-
ment, as required by this Ordinance, cannot be effected.
The fact that the holder has reason to. believe that the bill will,
on presentment; be dishonoured,` does not dispense with
the necessity for presentment.

' ( b. ) Where the drawee is a fictitious person.
(c.) As regards the drawer, where the drawee or acceptor is
r not bound, ,~s 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 endorser, where the bill ..was accepted or
made for the accommodation of that endorser, aid he
has no reason to expect that the bill would be paid if
presented. -
( e. ) By waiver of presentment, express . or implied.

Dibhon°u,~ by 4'l. (1.) A bill is dishonoured by non-payment (a) when it
is dilly
rlou.papnEnt. 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 endorsers accrues to the holder.
ORDINANCE No,: 9 of 1885:

,Bills of ..Exchange.

48. Subject to the provisions of this Ordinance, when a bill has Notice

beeen dishonoured by non-acceptance or by non-payment, notice of
dishonour must, be given to the drawer and each indorser, and any, drawer
or indorser to whom such notice is not given is discharged ; Provided
that--

(1. ) Where a bill is dishonoured by non-acceptance, and notice
of dishonour is not ,given, the rights of .a-holder in due
course subsequent to the omission shall not be prejudiced
by the omission.

(2.) Where a bill is dishonoured by non-acceptance and due
notice of dishonour is given, it shall not be necessary to
give notice of a subsequent dishonour by non-payment
unless the bill shall in the meantime have been accepted.

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

(1.) The notice must be given by or on behalf of the holder,
or by or on behalf of an indorser who, at the time of
giving it, is himself liable on the bill.

(2.) Notice of dishonour may be given by ,an agent either in
his own name, or in the name of any party entitled to
give notice, whether that party be his principal or not.

(3.) Where the notice is given by or on behalf of the holder,. it
enures for the benefit of all subsequent holders and all
prior indorsers who have a right of recourse against the
party to whom it is given.

(4.) Where notice is given by or on behalf of an indorser entitled
to give notice as herein-before provided, it enures for
the benefit of the holder and all indorsera subsequent to
the party to whom notice is given.

(5.) `The notice may be given in writing or by personal
communication, and may be given in any terms which
sufficiently identify the bill; and intimate that the bill
has been dishonoured by non-acceptance or non-payment.

(6.) The return of a dishonoured bill to the drawer or an .
_ . indorser_is, in point of form, deemed a sufficient notice
of dishonour..

dishonour and
effect of non-
notice.

Rules as to
notice of
dishonour.
OrDIf E1NCB:N~ci: L 9.: oF_ ~tS

,Bills of 'Pxcla'9M'#'e.

( f:) A written notice need n6t ~ be signed, and ° an inshffzcient
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.

$. ) Where notice of dishonour is required to be given to any
person, it may be given either to the party himself, or

to his agent in that behalf.

( 9.) Where the drawer or indorser is dead; and the party giving
notice knows it, the notice must be given to a personal
representative if such there be, and with the exercise of
reasonable diligence he can be found.

(10. ) Where the drawer or indorser is bankrupt, notice may bye
given either to the, party himself or to the trustee or
assignee.

(11. ) Where there are two or more drawers or indorsers who
are not partners, notice must be given to each of them,
unless one of them has authority to receive such notice
for the others.

(12.) The notice may be given as soon as the bill is dishonoured
and must be given within a reasonable time thereafter.

In the absence of special circumstances notice is not deemed to

have been given within a reasonable time, unless-

(a.) Where the person . giving :end the person to receive
notice reside in the same place, the notice is given
or sent off in time to reach the latter on the day
after the dishonour of the bill.

( b.) Where the person giving and the person to receive

. notice reside in different places, the notice is sent

ofl-°: on the day after ; the dishonour of the bill, if
there be a,post at a convenient hour on that day,

. and. if there be no such post on that day then by

the next post thereafter.

1 3.) Where a bill when dishonoured is .in ;the; hands of an agent,
he may either himself give.-notice, to the parties liable on
ORDINANCR :\T:o. . 9 'OF 1885.

.Bills of :Exchan~e.

the bill, or he may give notice to his principal. If he
give notice to his principal, he must do so within the
same tine as if he were the holder, and the principal
upon receipt of such notice has himself the same time
for giving notice as if the agent had been an independent
holder..

(14.) Where a party to a bill receives due notice of dishonour,
he has after the receipt of such notice the same period of
time for giving notice to antecedent parties that the
holder has after the dishonour.

(15.) Where a notice of dishonour is duly addressed and posted,
the sender is deemed to have given due notice of dis-
honour, notwithstanding any miscarriage by the Post
Once.

60. (1.) Delay in giving, notice of dishonour is excused where the
L.:~:«5e» for
delay is caused by circumstances beyond the control of the party giving
and delay.

notice, and not imputable to his . default, misconduct, or negligence.
''hen the cause of delay ceases to operate the notice must be given with
reasonable diligence.

( 2. ) Notice of dishonour is dispensed with--

(a.) When, after the exercise of reasonable diligence, notice as
required by this 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 maybe
waived before the time of giving notice has arrived, or
after the omission to give due notice

(c. ). As regards the drawer in the following cases, namely, (1)
where drawer and drawee are the same person, ( 2 ) where
the drawee is a fictitious person or a person not having
capacity to contract, (3) where the drawer is the person
to whom the bill is presented for payment, (4) where
the drawee or acceptor is as between -himself and the
drawer under no obligation to accept or pay the bill, (5,)
where the drawer has countermanded payment
ORDINANCE No.: 9 :o~ 1385.

Bills of..Exchange.

(d.) As regards the indorser in, the :following cases, namely,
(1) where the drawee is a fictitious person or a person
not having capacity to contract and the indorser was
aware of the fact at the time, he indorsed the bill, (2)
where the. indorser. is the person to whom the bill is
presented for payment, (3) where the bill was accepted
or made for his accommodation.

otin ~I 'r'~1. (1.) Where an inland bill has been dishonoured it may, if
the
prbtet. n bill., holder think fit, be noted for non-acceptance or
non-payment, as the case
may be; but it shall not be necessary to note or protest any such bill in
order to preserve the recourse against the drawer or indorser.

( 2. ) Where a foreign bill, appearing on the face of it to be such, has
been dishonoured by non-acceptance it must be duly protested for non-
acceptance, and where such a bill, which has not been previously dis-
honoured by non-acceptance, is dishonoured by non-payment it must be
duly protested for non-payment. If it be not so, protested the drawer
and indorsers are discharged. Where a bill does not appear on the face
of it to be a foreign bill, protest thereof in case of dishonouris
unnecessary.

(3:) A bill which, has been protested for non-acceptance may, be
subsequently protested for icon-payment.
.
(4.) Subject to the provisions of this Ordinance, when a; bill is noted
or protested, it must be noted on the day of its dishonour. When a bill
has been duly noted, the protest may be subsequently extended as of the
date of the noting.

(5.) Where the acceptor of a bill becomes bankrupt or insolvent or
suspends payment before it matures, the holder may cause the bill to be

protested for better security against the drawer and indorsers. '(6.) A
bill must be, protested at the place where it is dishonoured
Provided that--

(a.) When a bill is presented through the Post Office, and
returned by post dishonoured, it may be protested at
the place, to which it is returned and on the day of its
return if.received during business _ hours, and if not
received during business, hours, then not later than the
Y next business day:,
. ..
ORDINA;\TCF 'N0. 9 0F'18v,5.

.Bills'of Exchange.

(b.) When a bill drawn .payable at the place ~ of business or
residence of some person other than the drawee- bas been
dishonoured by non-acceptance, it must be protested for
non-payment at rthe~place where it is expressed to be
payable, and no further presentment for payment to, of
demand on, the drawee is necessary. ,

( 7. ). A protest must contain a copy of the bill, and must be signed
by the notary making it, and must specify-

(a.) The person at whose mquest the bill is protested

( b. ) The place and date' of protest, the cause or reason for
. protesting the bill, the demand made, and the answer
given, if any, or 'the fact that the drawee or acceptor
could not be found.

( 8. ) Where a bill is lost or destroyed, or is wrongly detained from
the person entitled to hold it, protest may be made on a copy or written
particulars thereof..

(9.) Protest is dispensed with by .any circumstance which would
dispense with notice of dishonour. Delay in noting or protesting is
excused when the delay is caused by circumstances beyond the control
of the holder, and not imputable to his default, misconduct, or
negligence.
When the cause of delay ceases to operate the bill must be noted or
protested with reasonable diligence. ,~

,, 52, ( l . ) When a bill is accepted generally, presentment for pay-
ment is not necessary in order to render the acceptor liable.

( 2. ) When by the terms of a qualified acceptance, presentment for
payment is required, the acceptor, in the absence of an express
stipulation
to that effect, is not discharged by the omission to present the bill for
payment on the day that it matures.

( 3. ) In order to render the acceptor of a bill liable it is not
necessary
to protest it, or that notice of dishonour should be given to his .

,(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 forth-with deliver it-up to the' party
paying
it.

197 IT - ,

Duties of
holder as
regards
drawee or
acceptor.
ORS:I;\IANCE

Bids-df, -4

Liabilities of pai?tie3: - .
Full& if) 53. A bill,' Of itself, does not operate.as an assignment of
funds in
bands of ara.wee. the hands of the draw- ee .

available for the pay cnentthel-eof; and the drawee
of a bill who does not accept its required by this Or.linance is not
liable

` on' the instrument.

r,i;~billty,of 54 The acceptor of a bill, by accepting it-

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

( 2. ) Is precluded from denying to a holder in due
course : .

(a.) The existence of the drawer, the genuineness of his signa-
ture, 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 genuine-
ness or validity of his endorsement ;

( 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 endorse, but not the.genuineness or
validity of his endorsement.

r,»~blihy of '~. ( I . ) The drawer of a bill by drawing it~
drawer or

fimloni;cr.

(a.) Engages that ota due presentment it shall be accepted and
paid according to its tenor, and that if it be dishonoured
he will compensate the holder or- any endorser who is
compelled to pay it, provided that the requisite proceedings

on dishonour be duly taken;

- (b. ) Is precluded from .denying to a 'bolder in due course. the
existence of the payee and his then capacity to endorse:

( 2. ) The indbrser of a bill by endorsing it--

(a.) Engages that on due presentment it shall be accepted and'
paid according . to its tenor, and that if it be dishonoured
he will compensate the holder or a subsequent endorser
«ho is compelled to pay it, provided that the requisite
proceedings on dishonour be duly taken ;
ORDINANCE No. 9 of 1885.

Bills of .Exchange.

(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.

w 57. Where a bill is dishonoured, the measure of damages, which
shall be deemed tQ be liquidated dan-iages, shall be as follows

(1.) The holder may recover from any party liable on the bill,
and the drawer who has been compelled to pay the bill
may recover from the acceptor, and an indorser who has
been compelled to pay the bill may recover, from the
acceptor or from the drawer, or from a prior indorser-

(a.) The amount of the bill

(b:) Interest thereon from the time of presentment for
payment if the bill is payable on demand, and
from the maturity of the bill in any other case

(c.) The expenses of notinn, or, when protest is neces-
sary, 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, sfich. interest may, if justice require it, be
withheld wholly or in part, and where a bill is expressed
to be payable with interest at a. given rate, interest as
damages m:ay or may not be given at the same rate as
interest proper.

1$76

stranger
signing bill
liable as
indorser.

Measure of
damages
against
parties to
dishonoured
bill.
ORDINANCE No. 9 of 1885.

Bills of Exchange.

Transf6rorby ~8. (I.) Where the holder of a bill payable to bearer
negotiates it
delivery and
t~a,risferee. ' by delivery without endorsing it, he is called a
'transferor by deli~ery.'
(2.) A transferor, by delivery is not liable on the instrument.
. (8. ) 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.

raymexxt zn ~'9. (1 ) A bill is discharged by payment in due course by or on
due course,
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 defectixle.

Subject to the provisions hereinafter contained, when a bill is
paid by the drawer or an endorser it is not discharged ; but

(a.) Where a bill payable to,' or to the order of, a third party
is paid by the drawer, the drawer may enforce payment
thereof against the acceptor, but may not re-issue the
bill.

(b.) Where a bill is paid by an indorser, or where a bill payable
to drawer's order is paid by the drawer; the party
paying it is' remitted to his former rights as regards the
acceptor or antecedent parties, and he may, if he thinks
. fit, strike out his own and subsequent endorsements;
and again negotiate the bill.

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

Banker pay- 60. When a bill payable to order bn demand is drawn on a,
banker,
aia~weofhn and the banker on whom it is drawn.pays the bill in good,
faith and in
711d01'SEriIeTI
is :epv;ged , the ordinary course of business, it is not incumbent on the
banker to
shown that the endorsement of the payee or any subsequent endorsement
vas made by or under the authority -of the person whose endorsement it
purports to be, and the banker is deemed to `have paid the bill in due
course, although such endorsement has been forged or made without
authority. '.
ORDINANCE \ o. 9 of 1985.

Bills of Exchange.

l8i r

61. When the acceptor of a bill is o `r becomes the holder of it at or
=or the
lioldes at
after its maturity, in his own right, the bill is discharged. maturity:

2. (1.) When the holder of a bill at or after its maturity abso- Express

~wiW r.
lutely 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 ti holder in due course without
notice
of the: renunciation.

63. (1.) Where a bill is intentionally cancelled by the holder or
cancellation.
leis 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 bad a, right of recourse against
the party whose signature is cancelled, is, also discharged.

(3.) A cancellation made unintentionally, or under a mistake, or.
without the authority of the holder is inoperative; but where a bill or
any signature thereon appears to have been cancelled the burden of proof
lies on the party who alleges that the cancellation was made uninten-
tionally, or under a mistake, or without authority.

64. (1.) Where a bill or acceptann is materially altered without
Alremtion of
the assent of all parties liable on the bill, the bill is avoided except
as bill.
against a party who has himself made, authorised, or assented to the
alteration, and subsequent indorsers. _
.Provided that,
Where a bill has been materially altered, but the alteration is
not apparent, and the bill is in the hands of a holder in
due course, such holder may avail himself of the bill as if it
w
bad not been altered, and inay enforce payment of it accord-
ing to its original tenour.

(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
it
place of payment without the acceptor's assent.
,ORDINANCE No. 9 0F 1880'.

Bills of Exchange.

Acceptance
for honour
supria protest.

Acceptance and payment for honour.

(~3~. (1.) Where a bill' of exchange has been protested for dishonour
by non-acceptance, or protested for better security, and is not overdue,

any person, not being a party already liable thereon, may, with the con-
sent of the holder, intervene and accept the bill supra protest, for the
honour of any party liable thereon, or for the honour of the person for
whose account the bill is drawn.

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

(3.) .An acceptance for honour supra protest in order to be valid
must----

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

(b.) Be signed by the acceptor for honour.

(4,) Where an acceptance for honour does not expressly state for
whose honour itis made, it is deemed to be an acceptance for the honour
of the drawer.

.) 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.

Liability of 8E3. (1.) The acceptor for honour of a bill by accepting it
enuages
acceptor for ~a, 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 r~-
ceives notice of these facts.

(2.) The acceptor for honour is liable to the holder and to all par-
ties to the bill subsequent to the party for whose honour he has accepted.

Presentment 67. (1.) Where a dishonoured bill has been.accepted for honour
supra
to acceptor
fox honour. protest, or contains a reference in case of need, it must b8
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

Tsented to him not later than the day following it turity ; and, where

-e s ma
the address of the acceptor for honour is -in some place other than the
ORDINANCE. No. 9 ;op .1880'.

Bills of Exchange.

place where it was protested for. non-payment, the bill must be forwarded
not later than the day following its maturity for presentment to him.'
t .
(3.) Delay in presentment or non-presentment is excused by any
circumstance which would excuse delay in presentment for payment tar
non-presentment for payment.

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

6$. (1.) Where a bill has been protested . for non-payment, any
person may intervene and pay it supra' protest for the honour of any
party liable thereon, or for the honour of the person for whose account
the bill is drawn.

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

(3.) Payment for honour supra' 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. A

(6.) The payer for honour on paying to,the `holder the amount of
the bill and tllt-- notarial expenses incidental to its dishonour is
entitled
to receive both the bill itself and the protest. If the holder do not on
demand deliver them up he shall be liable to the payer for honour in
dama
17 ges.

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

I'HyIIIGtlt for
110IIUUr,c?tP~4
protest.
oRDm~INCL No: 9 oF mss.

Bills of Exchange.

Lost instruments. -
tr~,l~i~x.~n,:;~.t~ 69. ~Where a bill has been lost before it is overdue,
the person echo
t<r `ttit'z;car`
of lost bill'. was the holder of it may ap~lY to the drawer to give been
another bill of
1~ ., l
the same tenour, giving security to the dratver if required to indemnify
him against all persons whatever in case the bill aliened to have been
lost
shall be found again.
If the drawer on request as aforesaid refuses to dive such duplicate-
will, he may be compelled to do so.

ActO;i-f;;l lost 70. In any action or proceeding upon a bill, the Court or
a Judge

'bill. . ,` 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.

lt,lte~ ns, to
sots.

73111 in a set.

- 71. (I.) 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. v

(2: ) Where the holder of a set endorses two or more ports to different
persons; he is liable on every such part, and every endorser subsequent
to hire is liable ~on the part, he has himself endorsed as if the said
parts
were separate bills.

(3.) Wloere 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 suub-
sectiony shall affect the rights of a person who in due course accepts or
pays the paft first presented to him.

(4.) The acceptance may be written on any part, 11nd- it must be.
written on one part only. y

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
reqrairmg the part bearing his acceptance to be delivered up to him, and
that part at maturity is outstanclina is the hands of a holder in due
con<rse, he its liable to the holder thereof.
ORDI\'AN CE No. 9 of 1885.

Bills of Exchange.

(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.

1881

72. Where a bill drawn in one country is negotiated, accepted, or r.llles
where
l.;iw. a«xltlict.
payable in another, the riuhts, duties, and liabilities of the parties
thereto
are determined as follows

(1. ) The validity of'a bill as regards requisites in form is determined
by the law of the place of issue, and the validity as regards requisites
in
form of the supervening contracts, such as acceptance; or indorsernent, 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 ire accordance with
the law of the place of.issue

(h.) Where a bill, issued out of t1jis 'Colony, conforms, as regards
requisites in form, to the law of this ColQny, it may, for
the purpose of enforcing payment thereof, be treated as
valid as between all persons who negotiate, hold, or
become parties to it in this Colony.

(2.) Subject to the provisions of this Ordinance, the interpretation
of the drawing, indorseinent, acceptance, or acceptance supra protest of
a.
bill, is determined by the law of the place where such contract is made.
10 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 accept-
ance 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 shall, in the absence of some express stipulation, be calculated
according to the rate of ekchanae for sight drafts at the place of payment
on the day the bill is payable. ,..
Cheque cleft-,

demand.

ORDINANCE No. 9 of I88-5.

Billy of Exchange.

(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. A cheque is a bill of exchange drawn on a banl~er payable on

Except as otherwise provided in this part, the provisions of this
Ordinance applicable to a bill of exchange payable on demand apply to a
cheque. r.

74. Subject to the provisions of this Ordinance-

Where a cheque is. not presented for payment within a
reasonable time of its issue, and the drawer or the person
on whose account it is drawn had the right at the time
of such presentment as between. him and the banker to
have the cheque paid and suffers actual damage through
the delay, he is discharged to the extent. of such damage,
that is to say, to the extent to which such drawer or
person is o creditor of such banker to a larger amount
than he would have been had such cheque been paid.

(l.) In determining what is a reasonable time regard shall te
had to the nature of the instrument, the usage of trade
and of bankers, !tnd the facts of the particular case.

(3.) The bolder' 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
dischar;;e and entitled to recover the amount from him.

~oocat;on pf 75. The dLity and authority of a banker to pay a cheque drawn
on
bFL11,6G''S-AU»
~h~t~. him by his customer are determined by--

(1. ) Countermand of payment
(,2.) Notice of the czistomer's death.
ORDINANCE No. 9 OF 1885.

Bills of Exchange.

Crossed Cheques.

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

(a.) The words ' and company ' or- any abbreviation thereof
between two parallel transverse lines, either with or
without the words 'not negotiable ; ' or

(b.) Two parallel transverse lines simply, either with or with-
out the words 'not negotiable;'
that addition constitutes a crossing, and the cheque is crossed generally.

(2.) Where a cheque bears across its face tan addition of the name
of a banker, either with or without the words 'not negotiable,' that
addition constitutes a: crossl.nff, and the cheque is crossed specially
and to
that banker.

77. (1.) A cheque may be crossed generally or specially by the crossing
v3.

drawer or
drawer. after issue.

(2.) Where a cheque is uncrossed, the holder may cross it generally
or specially.
(3.) Where a cheque is crossed generally the holder play cross it
specially.
(4 ) Where a cheque is crossed generally or specially, the holder
rnay 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 authorised by this Ordinance is a material part of
crossing a
the cheque,; it shall not be lawful for any person to obliterate or
except material part
5 p of cheque.
as authorised by this Ordinance, to add to or alter the crossing.

79. (1.) Where a cheque is crossed specially to inure than one Duties
banker except when crossed to an anent for collection being a banker, the
banker a5 to-
CD crossed

banker on whom it is drawn shall refuse payment thereof.

(2.) Where the banker on Nv hom a cheque is drawn which is so
crossed nevertheless pays the sane, , or pays a cheque crossed generally.
otherwise than to a banker, or if crossed specially otherwise than to the
baker 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.

General and
special cross-
ings defined.

as83~

cheques.
prOtf:Ct1011 td

haztker.and
drawer where
cheque is
vromecl.

aRnINA ~'CE No. 9 of 1885.

Bills -of Exchange.

Provided that where a cheque is presented for payment which does
not -at the time of presentment appear to be crossed, or to have had a
crossing which has been obliterated, or to have been added to or altered
otherwise than as authorised by this Ordinance, the banker baying 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 ot altered otherwise than as authorised by this
Ordinance, and of payment having been made otherwise than to a banker
or to the banker to whom the cheque is or was crossed, or to his agent
for collection being a banker, as the case maybe.
$0. Where the banker, on whom a crossed cheque is drawn, in.
food faith and without, negligence pays it, if crossed generally, to a
ban-
ker, and if crossed specially, to the banker to whom it is crossed, or his
anent 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 res-
pectively be entitled to the same rights and be placed in the same posi-
tion as if payment of tl:e cheque had been made to the true owner
thereof.

H ffeet of $1. Where a person takes a crossed cheque ~~hich bears on it
the.
hcrossing 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.

Protection to v $2. Where a banker ,fin good faith and without negligence
receives

collecting
banker. payment for a customer of a cheque crossed generally or specially
to
hirriself, 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.

PARE IV.

PROMISSORY NOTES.

Pl~omissoly ~ $3, (1.) A promissory note is an unconditional promise in
writing
note, defined.
a 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 mo-
g xtey, to, or to the order of, a specified person or to bearer.
ORDINANCE No. 9 of 1885.

Bills of Exchange. .

(Z.) 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
in-
dorsed 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 au inland note. Any other note is a
foreign note.

84. A promissory note is inchoate and incomplete until delivery ,
]Delivery
thereof to the payee or bearer. neee,sary.

$~. (1.) A promissory note may be made by two or more makers, JoWtaud
and they may be liable thereon jointly, or jointly and severally
according ,e°~s~n'res.
to its tenour. .

(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.

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

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

A
(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
Presentment
at a particular ]place, it must be presented for payment at that place in
of note .far
Payment.
order to render the maker liable. , In any other case, presentment for
payment is not necessary in order to render the maker liable. s

f
(2.) Presentment for payment is necessary in order to render the
indorser of a note liable.

-. (3:) Where a note is in the body- of it- made payable at a particular
place, pre4entment at that place is necessary- in order to render an
indorser

Nlote payable
on aemaua.
ORI)INAV'U~ No. _ 9 :~ov DIM..

Bills of Excleongei .N

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.

Liability cd $$, The maker of a promissory note by making it-
maker.
(1. ) Engages that be will .pay it according to its tenour ;
(2.) Is precluded from denying to a holder in due course the
existence of the payee and his then capacity to indorse.

$$. (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 correspond with the drawer of an accepted bill payable
to drawer's order.

sary:

(3.) The following provisions as to bills do not apply to notes;
namely, provisions relating to--

(a.) Presentment far acceptance;

(b.) Acceptance; '
(c.) Acceptance supra` protest; '
(d.) Bills in a seta.

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

PAST v:

01 SUPPLEMENTARY.

'-t9O. A throb is deemed to be done in good faith, zvithiA the meaning.
of this Ordinance, where it is in fact none lionestly, whether it is done
negligently or not.

$1. (1.) ''There, by this Ordinance, any instrument or writinb 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 ~b3Tor. under. his: .authority.
ORDINANCE No. 9 of 1885.

Bills of Exchange.

(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 -be sealed with the corporate seal.
But nothing in this section shall be construed as requiring the bill
or note 'of a corporation to be under seal..

92. Where, by this Ordinance, the tine limited for doing any act
or thing is less than three days, in reckoning time, non-business days are
excluded.
'Non-business days' for the purposes of this Ordinance ineans-
Sundays and public holidays and brink holidays within the
meaning of these terms as used in Ordinance 6 of 18(5.

93. For the purposes of this Ordinance, where a bill or note is When
noting ,-
required tc>
required to be protested within a specified time or before some further
protest.
proceediilg 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 he atended at any time thereafter as of the .
date of the noting .

94. Where a dishonoured bill or note is authorised or required to
be protested, and the services of a notary cannot be obtained at theplace
where the bill is dishonoured, any householder or substantial resident of
the place may, in the presence of two witnesses, give a certificate,
signed
by them, attesting the dishonour of the bill, and the certificate shall in
all respects operate as if it were a formal protest of the bill.
The form given in the schedule to this Ordinance may be used with
necessary modifications, and if used shall be sufficient.

9,5. The provisions of this Ordinance as to crossed cheques shall
apply-to a warrant for payment of dividend.

Computs,tioa
of time.

96. Sec. 7 of Ordinance 13 of 1864 is hereby repealed.

Provided''that such repeal shall not affect anything done or cuff Bred,
or any right, title, or interest acquired or accrued before the commence-
ment of this Ordinance, or any legal proceeding or remedy in respect of
any such thing, right, title, or interest.

97. (1. ) the ~ rules in bankruptcy relating to bills of exchange,
promissory notes, and cheques, .shall continue to apply thereto notwith-
standing anything in this Ordinance contained. i

Protest when..
notary not
accessible.

Dividend
warrants may
be crossed.

Repeal.

Savings-
With other

ORDINANCE No; 9 OF 188.

Bills of .Exchange.

ordi~11aces (2.) The rules of common law including the law merchant, save
in
ucyt affected.
so far as they .-re inconsistent with the express provisions of this Ordi-
nance, shall continue to apply to bills of exchange, promissory notes, and
cheques. ,

(3.) Nothing in this Ordinance or in any repeal effected thereby
shall affect-
.

(a.) The provisions of the Stamp Ordinances, 1884, 1885, or
Ordinances amending the same or any lave or enactment
for the time beinb in force relating to the revenue

(h.) The provisions of the Companies' Ordinance, 1865, or
Ordinances amending it or any Ordinance relating to
joint stock banns or companies

(e.) The validity of any usage relating to dividend warrants,
or the indorsements thereof.

9$, Where any Ordinance, or document refers to any enactment
repealed by this Ordinance, the Ordinance or document shall be construed,
and shall operate; as if it referred to the corresponding provisions of
this
k- Ordinance.

S,CHEDUI,L.

Form of protest which may be used xahe~t the services of a -notary cannot
be obtained.

-Know all men that I, A.B. o£

at the request of
C.D., there being no notary public available, did on the
day of 1$8 at demand payment [or acceptance] of the bill
of ex-c4ange b`ereunder written, from E.F., to which demand be made
answer [state
answer, i£ any] whtre£ore I now, ire the preqenV of G,H. end T.K. do
protest the said
bill of exchange.

(Signed) A.B.
G.H.
J8.
Witnesses.

w ' :1.1~Y,B~-TVe bill itself should be annexed, or a copy of the bill
and all that is written
thereon should-bewnderwritteti.
1848
1849
1850
1851
Short title.
1852
Interpretation of terms.
Bill of exchange defined.
1853
Inland and foreign bills.
Effect where different parites to bill are the same person.
Address to drawee.
1854
Certainty required as to payee.
What bills are negotiable.
Sum payable.
1855
Bill payable on demand.
Bill payable at a future time.
Omission of date in bill payable after date.
Ante-dating and post-dating.
1856
Computation of time of payment.
Case of need.
Optional stipulations by drawer or indorser.
1857
Definition and requisites of acceptance.
Time for acceptance.
General and qulified acceptances.

1858
Inchoate instruments.
Delivery.
1859
Capacity of parties.
Signature essential to liability.
Forged or unauthorised signature.
1861
Procuration signatures.
Person signing as agent or in representative capacity.
Value and holder for value.
Accommodation bill or party.
1861
Holder in due course.
Presumption of value and good faith.
Negotiation of bill.
1862
Requisites of a valid indorsement.
Conditional indorsement.
1863
Indorsement in blanl and special indorsement.
Restrictive indorsement.
Negotiation of overdue or dishonoured bill.
1864
Negotiation of bill to party already liable thereon.
Rights of the holder.
When presentment for acceptance is necessary.
1865
Time for presenting bill payable after sight.
Rules as to presentment for acceptance, and excuses for non-presentment.
1866
Non-acceptance.
Dishonour by non-acceptance and its consequences.
Duties as to qualified acceptance.
Rules as to presentment for payment.
1867
1868
Excuses for delay or non-presentment for payment.
Dishonour by non-payment.
1869
Notice of dishonour and effect of non-notice.
Rules as to notice of dishonour.
1870
1871
Excuses for non-notice and delay.
1872
Noting or protest of bill.
1873
Duties of holder as regards drawee or acceptor.
1874
Funds in hands of drawee.
Liability of acceptor.
Liability of drawer or indorser.
1875
Stranger signing bill liable as indorser.
Measure of damages against parties to dishonoured bill.
1876
Transferor by delivery and transferee.
Payment in due course.
Banker paying demand draft whereon indorsement is forged.
1877
Acceptor the holder at maturity.
Express waiver.
Cancellation.
Alternation of bill.
1878
Acceptance for honour supra protest.
Liability of acceptor for honour.
Presentment to acceptor for honour.
1879
Payment for honour supra protest.
1880
Holder's right to duplicate of lost bill.
Action on lost bill.
Rules as to sets.
1881
Rules where laws conflict.
1882
Cheque defined.
Presentment of cheque for payment.
Revocation of banker's authority.
1883
General and special crossings defined.
Crossing by drawer or after issue.
Crossing a material part of cheque.
Duties of banker as to crossed cheques.
1884
Protection to banker and drawer where cheque is crossed.
Effect of crossing on holder.
Protection to collecting banker.
Promissory note defined.
1885
Delivery necessary.
Joint and serveral notes.
Note payable on demand.
Presentment of note for payment.
1886
Liability of maker.
Application of part II to notes.
Good faith
Signature.
1887
Computation of time.
When noting equivalent to protest.
Protest when notary not accessible.
Dividend warrants may be crossed.
Repeal.
Savings.
1888
Ordinaces not affected.
Construction with other Ordinance.

1848
1849
1850
1851
Short title.
1852
Interpretation of terms.
Bill of exchange defined.
1853
Inland and foreign bills.
Effect where different parites to bill are the same person.
Address to drawee.
1854
Certainty required as to payee.
What bills are negotiable.
Sum payable.
1855
Bill payable on demand.
Bill payable at a future time.
Omission of date in bill payable after date.
Ante-dating and post-dating.
1856
Computation of time of payment.
Case of need.
Optional stipulations by drawer or indorser.
1857
Definition and requisites of acceptance.
Time for acceptance.
General and qulified acceptances.

1858
Inchoate instruments.
Delivery.
1859
Capacity of parties.
Signature essential to liability.
Forged or unauthorised signature.
1861
Procuration signatures.
Person signing as agent or in representative capacity.
Value and holder for value.
Accommodation bill or party.
1861
Holder in due course.
Presumption of value and good faith.
Negotiation of bill.
1862
Requisites of a valid indorsement.
Conditional indorsement.
1863
Indorsement in blanl and special indorsement.
Restrictive indorsement.
Negotiation of overdue or dishonoured bill.
1864
Negotiation of bill to party already liable thereon.
Rights of the holder.
When presentment for acceptance is necessary.
1865
Time for presenting bill payable after sight.
Rules as to presentment for acceptance, and excuses for non-presentment.
1866
Non-acceptance.
Dishonour by non-acceptance and its consequences.
Duties as to qualified acceptance.
Rules as to presentment for payment.
1867
1868
Excuses for delay or non-presentment for payment.
Dishonour by non-payment.
1869
Notice of dishonour and effect of non-notice.
Rules as to notice of dishonour.
1870
1871
Excuses for non-notice and delay.
1872
Noting or protest of bill.
1873
Duties of holder as regards drawee or acceptor.
1874
Funds in hands of drawee.
Liability of acceptor.
Liability of drawer or indorser.
1875
Stranger signing bill liable as indorser.
Measure of damages against parties to dishonoured bill.
1876
Transferor by delivery and transferee.
Payment in due course.
Banker paying demand draft whereon indorsement is forged.
1877
Acceptor the holder at maturity.
Express waiver.
Cancellation.
Alternation of bill.
1878
Acceptance for honour supra protest.
Liability of acceptor for honour.
Presentment to acceptor for honour.
1879
Payment for honour supra protest.
1880
Holder's right to duplicate of lost bill.
Action on lost bill.
Rules as to sets.
1881
Rules where laws conflict.
1882
Cheque defined.
Presentment of cheque for payment.
Revocation of banker's authority.
1883
General and special crossings defined.
Crossing by drawer or after issue.
Crossing a material part of cheque.
Duties of banker as to crossed cheques.
1884
Protection to banker and drawer where cheque is crossed.
Effect of crossing on holder.
Protection to collecting banker.
Promissory note defined.
1885
Delivery necessary.
Joint and serveral notes.
Note payable on demand.
Presentment of note for payment.
1886
Liability of maker.
Application of part II to notes.
Good faith
Signature.
1887
Computation of time.
When noting equivalent to protest.
Protest when notary not accessible.
Dividend warrants may be crossed.
Repeal.
Savings.
1888
Ordinaces not affected.
Construction with other Ordinance.

https://oelawhk.lib.hku.hk/items/show/475

1890

v4

No. 9 of 1885

41