BILLS OF EXCHANGE ORDINANCE, 1885

BILLS OF EXCHANGE ORDINANCE, 1885

ORDINANCE No. 3 OF 1885.

Bills of Exchange

AN ORDINANCE to codify the Law relating to Bills of Exchange,
Cheques, and Promissory Notes. [4th May, 1885.]
BE it enacted by the Goivernor of Hongkon, with the advice of the
Legislative Council thereof, as follows:-
Preliminary Provisions.
1. This Ordinance may be cited as the Bills of Exchange Ordinance,
1885.
2. In this Ordinance, unless the context otherwise requires,-
'Acceptance' means an acceptance completed by delivery or
notification:
'Action' means action or suit and in cludes 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 for the time being in force relating to
bankruptey:
'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 trandsfer of possession, actual or constructive,
from one person to another:
'Holder' means the payee or indorsee of a bill or note who is in
possession of it, or the bearer thereof:
'Indorsement' means an indorsement completed by delivery:
'Issure' means the first delivery of a bill or note, complete in form,





to a person who takes it as a holder:
'Person' includes a body of persons, whether incorporated or not:
'Value' means valuable condsideration:
'Written' includes printed and 'writing' includes print.
PART I.
BILLS OF EXCHANGE.
Form and Interpretation.
3.-(1.) A bill of exchange is an unconditional order in writing,
addressed by one person to another, signed by the person giving it,
requiring the person to whom it is addressed to pay on demand or at a
fixed or determinable future time a sum certain in money to, or to the
order of, a specified person or to bearer.
(2.) An instrument which does not comply with these 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 apy,
coupled with-
(a.) an indication of a particular fund out of which the drawee is
to re-imburse himself or 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 give therefor;
(c.) that it does not specify the place where it is drawn or the place
where it is payable.
4.-(1.) An inland bill is a bill which is, or on the face of it purports
to be,-
(a.) both drawn and payable within this Colony; or
(b.) drawn within this Colony, upon some person resident therein.
(2.) Any other bill is a foreign bill.
(3.) Unless the contrary appears on the face of the bill, the holder
may treat it as an inland bill.
5.-(1.) A bill may be drawn payable to, or to the order of, the
drawer; or it may be drawn payable to, or to the order of, the drawee.
(2.) Where, in a bill, drawer and drawee are the same person, or where
the drawee is a fictitious person or a person not having capacity to

contract, the holder may treat the instrument, at his option, either as a
bill of exchange or as a promissory note.
6.-(1.) The drawee must be named or other wise 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 alter-
native, or to two or more drawees in succession, is not a bill of exchange.
7.-(1.) Where a bill is not payable to bearer, the payee must be
named or otherwise indicated therein with reasonable certainty.
(2.) A bill may be made payable to two or more payees jointly, or it
may be made payable in the alternative to one of two or one or some of
several payees. A bill may also be made payable to the holder of an
office for the time being.
(3.) Where the payee is a fictitious or non-existing person, the bill
may be treated a payable to bearer.
8.-(1.) Where a bill contains words prohibiting transfer, or indicat-
ing 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.-(1.) the sum payable by a bill is a sum certain within hte mean-
ing of this Ordinance, although it is required to be paid-
(a.) with interest;
(b.) by stated instalments;
(c.) by stated instalments, with a provision that, upon default in
payment of any instalment, the whole shall become due;
(d.) according to an indicated rate of exchange or according to a
rate of exchange to be ascertained as directed by the bill.
(2.) Where the sum payable is expressed in words and also in figures,
and there is a discrepancy between the two, the sum denoted by the
words is the amount payable.
(3.) Where a bill is expressed to be payable with interest, unless the
instrument otherwise provides, interest runs from the date of the bill,







and, if the bill is undated, from the issue thereof.
10.-(1.) A bill is payable on demand-
(a.) which is expressed to be payable on demand, or at sight, or
on presentation; or
(b.) in which no time for payment is expressed.
(2.) Where a bill is accepted or indorsed when it is overdue, it shall,
as regards the acceptor who so accepts or any indorser who so indorses
it, be deemed a bill payable on demand.
11.-(1.) A bill is payable at a determinable future time within the
meaning of this Ordinance which is expressed to be payable-
(a.) at a fixed period after date or sight;
(b.) on or at a fixed period after the occurrence of a specified event
which is certain to happen, though the time of happening may be uncertain.
(2.) An instrument expressed to be payable on a contingency is not
a bill, and the happening of the event does not cure the defect.
12. Where a bill expressed to be payable at a fixed period after date
is issued undated, or where the acceptance of a bill payable at a fixed
period after sight is undated, any holder may insert therein the true
date of issue or acceptance, and the bill shall be payable accordingly:
Provided that-
(1.) where the holder in good faith and by mistake inserts a wrong
date; and
(2.) in every case wher a wrong date is inserted,
if the bill subsequently comes into the hands of a holder in due course,
the bill shall not be avoided thereby, but shall operate and be payable
as if the date so inserted had been the true date.
13.-(1.) Where a bill or an acceptance or any indorsement on a bill
is dated, the date shall, unless the contrary is proved, be deemed to be
the true date of the drawing, acceptance, or indorsement, as the case
may be.
(2.) A bill is not invalid by reason only that it is ante-dated or post-
dated, or that it bears date on s Sunday.
14. Where a bill is not payable on demand, the day on which it falls
due 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 and 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 thanksgiving day, the bill is, except
in the case hereinafter provided for, due and payable on the
preceding business day; and
(b.)when 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 grace is a bank holiday, the
bill is due 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
determined by excluding the day from which the time is to begin
to run and by including the day of payment;
(3.) where a bill is payable at a fixed period after sight, the time
begins to run from the date of the acceptance if the bill is accept-
ed, and from the date of noting or protest if the bill is noted or
protested for non-acceptance or for non-delivery;
(4.) the term 'month' in a bill means calendar month.
15. The drawer of a bill and any indorser may insert therein the
name of a person to whom the holder may resort in case of need, that is
to 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 he option of
the holder to resort to the referee in case of need or not, as he may think fit.
16. The drawer of a bill and any indorser may insert therein an
express stipulation-
(1.) negativing or limiting his own liablity to the holder;
(2.) waiving, as regards himself, some or all of the holder's duties.
17.-(1.) The acceptance of a bill is the signification by the drawee
of his assent to the order of the drawer.
(2.) An acceptance is invalid unless it complies with the following
conditions, namely,-
(a.) it must be written on the bill and be signed by the drawee.
The mere signature of the drawee without additional words is sufficient;
(b.) it must not express that the drawee will perform his promise
by any other means than the payment of money.
18. A bill may be accepted-
(1.) before it has been signed by the drawer, or while otherwise in-
complete;
(2.) when it is overdue, or after it has been dishonoured by a previous
reusal to accept or by non-payment;
(3.) when a bill payable after sight is dishonoured by non-acceptance,

and the drawee subsequently accepts it, the holder, in the absence
of any different agreement, is entitled to have the bill accepted as
of the date of first presentment to the drawee for acceptance.
19.-(1.) An acceptance is either-
(a.) general; or
(b.) qualified.
(2.) A general acceptance assents without qulification 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 makjes payment by the ac-
ceptor 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 de-
livered 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
amound 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 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 en-
forceable against anyu person who became a party thereto prior to its
completion, it must be filled up wihtin a reasonable time and strictly
in accordance with the authority given. Reasonable time for this pur-
pose 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
accetpor'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 enti-





tled 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 ease may be;
(b.) may be shown to have been conditional or for a special pur-
pose only, and not for the purpose of transferring the property
in the bill:
but if the bil is in the hands of a holder in due course, a valid delvery
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-
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
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 for the time being in force relat=
ing to corporations.
(2.) Where a bill is drawn or indorsed by an infant, minor, or corpo-
ration 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
(1.) where a person signs a bill in a trade or assumed name, he is
liable thereon as if he had signed it in his own name;
(2.) the signature of the name of a firm is equifalent to the signature
by the person so signing of the names of all persons liable as part-
ners 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 dis-
charge 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 authoority.
26.-(1.) Where a person signs a bill as drawer, indorser, or accept-
or, 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 person-
ally 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 prin-
cipal 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 constituted by-
(a.) any consideration sufficient to support a simple contract:
(b.) an antecedent debt or liability. Such a debt or liability is
deemed valuable consideration whether the bill is payable on
demand or at a future time.
(2.) Where value has at any time been given for a bill, the holder is
deemed to be a holder for value as regards the acceptor and all parties
to the bill who become parties prior to such time.
(3.) Where the holder of a bill has a lien on it, arising either from
contract or by implication of law, he is deemed to be holder for value
to the extent of the sum for which he has a lien.
28.-(1.) An accommodation party to a bill is a person who has
signed a bill as drawer, acceptor, or indorser, without receiving value
therefor, and for the purpose of lending his name to some other person.
(2.) An accommodation pary is liable on the bill to a holder for
value; and it is immaterial whether, when such holder took the bill, he
knew such party to be an accommodation party or not.
29.-(1.) A holder in due course is a holder who has taken a bill,
complet and regular on the face of it, under the following conditions,
namely,-
(a.) that he became the holder of it before it was overdue, and
without notice that it had been previously dishonoured, if such
was the fact;

(b.) that he took the bill in good faith and for value, and that at
the time the bill was negotiated to him he had no notice of any
defect in the title of the person who negotiated it.

(2.) In particular, the title of a person who negotiates a bill is defective
within the meaning of this 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 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 part 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 is such a manner as to constitute the transferee the holder of
the bill.

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

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

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

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

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

(1.) it must be written on the bill itself and be signed by the indorser.
The simple signature of the indoorser on the bill, without additional
words, is sufficient. An indorsement written on an allonge, or
on a 'copy' of a bill issued or negotiated in a country where
'copies' are recognized, is deemed to be written on the bill
itself;

(2.) it must be an indorsement of the entire bill. A partial
indorsement, that is to say, an indorsement which purports to transfer to
the indorse a part only of the amount payable, or which purports
to transfer the bill to two or more indorsees severally, does not
operate as a negotiation of the bill;

(3.) where a bill is payable to the order of two or more payees or
indorsees who are not partners, all amust indorse, unless the one
indorsing has authority to indorse for the others;

(4.) where, in a bill payable to order, the payee or indorsee is
wrongly designated or his name is mis-spelt, he may indorse the
bill as therein described, adding, if he thinks fit, his proper
signature;

(5.) where there are two or more indorsements on a bill, each
indorsement is deemed to have been made in the order in which it
appears on the bill, until the contrary is proved;

(6.) an indorsement 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 indorse 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 indorsement by writing above the
indorser's signature a direction to pay the bill to or to the order of himself
or some other person.

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

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

(a.) restrictively indorsed; or

(b.) discharged by payment or otherwise.

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

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

(4.) 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.

37. Where a bill is negotiated back to the drawer, or to a prior indorser,
or to the acceptor, such party may, subject to the provisions of this
Ordinance, re-issue and futher negotiate the bill, but he 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:

(1.) he may sue on the bill in his own name;

(2.) where he is a holder is 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 Duties of the Holders.

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

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

(2.) If he does not do so, the drawer and all indorsers prior to that
holder are discharged.

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

41.-(1.) A bill is duly present 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 his trustee or assignee;

(e.) where authorized by agreement or usage, a presentment
throught the Post Office is sufficient.

(2.) Presentment in accordance with these rules is execused, and a bill
may be treated as dishonoured by non-acceptance,-

(a.) where the drawee is dead or bankrupt, or is a fictitions person
or a person not haing capacity to contract by bill;

(b.) where, after the exercise of reasonable diligence, such presentment
cannot be effected;
(c.) where, although the presentment has been irregular, acceptance
has been refused on some other ground.

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

42. When a bill is duly presented for acceptace and is not accepted
within the customary time, the person presenting is must treat it as
dishonoured by non-acceptance. If he does not, the holder shall lose his
right of recourse against the drawer and indorsers.

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

(a.) when it is duly presented for acceptance, and such an acceptance
as is prescribed by this Ordinance is refused or cannot be
obtained; or

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

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

44.-(1.) The holder of a bill may refuse to take a qualified acceptance,
and, if he does not obtain and unqualified acceptance, may treat the
bill as dishonoured by non-acceptance.

(2.) Where a qualified acceptance is taken, and the drawer or an
indorser has not expressly or impliedly authorized the holder to take a
qualified acceptance or does not subsequently assent thereto, such
drawer or indorser is discharged from his liability on the bill. The
provisions of this sub-section do not apply to a partial acceptance,
whereof due notice has been given. Where a foreign bill has been
accepted as to part, 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 there to.

45. Subject to the provisions of this Ordinance, a bill must be duly
presented for payment. If it is not so presented, the drawer an indorsers
shall be discharged. A bill is duly presented for payment which
is presented in accordance with the following rules:-

(1.) where the bill is not payable on demand, presentment must be
made on the day it falls due;

(2.) where the bill is payable on demand, then, subject to the provisions
of this Ordinance, presentment must be made within a reasonable
time after its issue in order to reader the drawer liable,
and within a reasonable time after its indorsement, in order to
render the indorser liable. In determining what is a reasonable
time, regard shall be had to the nature of the bill, the usage of
trade with respect to similar bills, and the facts of the particular
case;

(3.) presentment must be made by the holder, or by some person
authorized to receive payment on his behalf, at a 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 or reasonable diligence, such person can there be found;

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

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

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

(c.) where no place of payment is specified and no address given,
and the bill is presented at the drawee's or acceptor's place of
business, if known, and, if not, at his ordinary residence, if known;

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

(5.) where a bill is presented at the proper place, and, after the exercise
of reasonable diligence, no person authorized to pay or refuse
payment can be found there, no further presentment to the drawee
or acceptor is required;

(6.) where a bill is drawn upon or accepted by two or more persons
who are not partners, and no place of payment is specified, presentment
must be made to them all;

(7.) where the drawee or acceptor of a bill is dead, and no place or
payment is specified, presentment must be made to a personal representative,
if such there be, and, with the exercise of reasonable
diligence, he can be found;

(8.) where authorized by agreement or usage, a presentment through
the Post Office is sufficient.

46. (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 dishonoured does not dispense with the necessity
for resentment;

(b.) where the drawee is a fititious person;

(c.) as regards the drawer, where the drawee or acceptor is not
bound, as between himself and the drawer, to accept or pay the
bill, and the drawer has no reason to believe that the bill would
be paid, if presented;

(d.) as regards an indorser, where the bill was accepted or made
for the accommodation of that indorser, and he has no reason to
expect that the bill would be paid, if presented;

(e.) by waiver of presentment, express or implied.

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

(a.) when it is duly presented for payment and payment is refused
or cannot be obtained; or

(b.) when presentment is excused and the bill is overdue and unpaid.

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

48. Subject to the provisions 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 whom such notice is not given is discharged: Provided
that-

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

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

49. Notice of dishonour, in order to be valid and effectual, 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
lkiable on the bill;

(2.) 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;

(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 the notice is given by or on behalf of an indorser entitled
to give notice as hereinbefore provided, it enures for the benefit
of the holder and all indorsers subsequent to the party to whom
notice is given;

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

(6.) the return of a dishonoured bill to the drawer or an indorser is,
in point of form, deemed a sufficient notice of dishonour;

(7.) a written notice need not be signed, and an insufficient written
notice may be supplemented and validated by verbal communication.
A misdescription of the bill shall not vitiate the notice
unless the party to whom the notice is given is in fact misled thereby;

(8.) where notice is required to be given to any person, it may be
given either to the party himself or to his agent in that behalf;

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

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

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

(12.) the notice may be given as soon as the bill is dishonoured and
must be given within a reasonable time thereafter. In the absence
of special circumstances, notice is not deemed to have been given
within a reasonable time, unless,-

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

(b.) where the person giving and the person to receive notice reside
in different places, the notice is sent off on the day after the
dishonour of the bill, if there is a post at a convenient hour on
that day, and, if there is no such post on that day, then by the
next post thereafter;

(13.) where a bill when dishonoured is in the hands of an agent, he
may either himself give notice to the parties liable on the bill or
he may give notice to his principal. If he gives notice to his
principal, he must do so within the same time as if he were the
holder, and the principal, upon receipt of such notice, has himself
the same time for giving notice as if the agent had been an independent
holder:

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

(15.) where the notice is duly addressed and posted, the sender is
deemed to have given due notice of dishonour, notwithstanding
any miscarriage by the Post Office.

50.-(1.) Delay in giving notice of dishonour is execused where the
delay is caused by circumstances beyond the control of the party giving
notice, and not inputable to his default, misconduct, or negligence.
When the cause of delay ceases to operate, the notice must be given
with reasonable diligence.

(2.) Notice of dishonour is dispensed with-

(a.) where, after the exercise of reasonable diligence, notice, as
required by this Ordinance, cannot be given to or does not reach
the drawer or indorser sought to be charged;

(b.) by waiver, express or implied. Notice of dishonour may be
waived before the time of giving notice has arrived or after the
omission to give due notice;

(c.) as regards the drawer, in the following cases, namely,

(i.) where drawer and drawee are the same person;
(ii.) where the drawee is a fictitious person or a person not
having capacity to contract;
(iii.) where the drawer is the person to whom the bill is presented
for payment;
(iv.) where the drawer is the person to whom the bill is presented
for payment;
(v.) where the drawer has countermanded payment;

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

(i.) werhe 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.-(1.) Where an inland bill has been dishonoured, it may, if the
holder thinks fit, be noted for non-acceptance or non-payment, as the
case may be; but it shall not be necessary to note or protest any such
bill in order to preserve the recourse 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 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, 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 next business day;

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

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

(a.) the person at whose request the bill is protested;

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

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

(9.) Protest is dispensed with by any circumstance which would dispense
with notice of dishonour. Delay in noting or protesting is excused
when the delay is caused by circumstance beyond the control of the
holder, and not imputable to his default, misconduct, or negligence.
When the cause of delay ceases to operate, the bill must be noted or
protested with reasonable diligence.
52.-(1.) When a bill is accepted generally, presentment for payment
is not necessary in order to render the acceptor liable.

(2.) When by the temrs 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 ommission to present the bill
for payment on the day that is matures.

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

(4.) where the holder of a bill presents if 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 payment thereof, and the
drawee of a bill who does not accept, as required by this Ordinance, is
not liable on the instrument.

54. The acceptor of a 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 genuiness of his signature,
and his capacity and authority to draw the bill

(b.) in the case of a bill payable to drawer's order, the then capacity
of the drawer to indorse, but not the genuineness or validity of
his indorsement;

(c.) in the case of a bill payable to the order of a third person, the
existence of the payee and his then capacity to indorse, but not
the genuineness or validity of his indorsement.

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

(a.) engages that, on due presentment, it shall be accepted and paid
according to it tenor, and that if it is dishonoured he will compensate
the holder or any indorser who is compelled to pay it,
provided that the requisite proceedings on dishonour are duly
taken;

(b.) is precluded from denying to a holder in due course the existence of the
payee and his then capacity to indorse.

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

(a.) engages that, on due presentment, it shall be accepted and paid
according to its tenor, and that if it is dishonoured he will compensate
the holder or a subsequent indorser who is compelled to
pay it, provided that the requisite proceedings on dishonour are
duly taken;

(b.) is precluded from denying to a holder in due course the genuineness
and regularity n 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 this 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:-

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

(a.) the amount of the bill;

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

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

(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 indorsor who has been compelled
to pay the bill may recover from any party liable to him, the
amount of the re-exchange, with interest thereon until the time of
payment;

(3.) where by this Ordinance interest may be recovered as damages,
such interest may, if justice requires it, be withheld wholly or in
part, and where a bill is expressed to be payable with interest at a
given rate, interest as damages may or may not be given at the
same rate as interest proper.

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

(2.) A transferor by delivery is not liable on the instrument.

(3.) A transferor by delivery who negotiates a bill thereby warrants
to his immediate transferee, being a holder for value, that the bill is
what is purports to be, that he has a right to transfer it, and that, at the
time of transfer, he is not aware of any fact which renders it valueless.

Discharge of Bill.

59.-(1.) A bill is discharged by payment in due course by or on
behalf of 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 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 indorsement, and again negotiate the bill.

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

60. When a bill payable to order on demand is drawn on a banker,
and the banker on whom it is drawn pays the bill in good faith and in
the ordinary course of business, it is not incumbent on the banker to
show that the indorsement of the payee or any subsequent indorsement
was made by or under the authority of the person whose indorsement it
purports to be, and the banker is deemed to have paid the bill in due
course, although such indorsement has been forged or made without
authority.

61. When the acceptor of a bill is or become the holder of it at or
after it 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 inoperative; but hwere a bill or any
signature thereon appears to have been cancelled, the burden of proof
lies on the party who alleges that the cancellation was made unintentionally,
or under a mistake, or without authority.

64.-(1.) Where a bill or acceptance is materially altered without
the assent of all parties liable on the bill, the bill is avoided except as
against a party who has himself made, authorized, or assented to the
alteration, and subsequent indorses: Provided that where a bill has
been materially atlered, 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 accetped 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 supra protest, for the honour
of any party liable thereon or for the honour of the persone for whose
account the bill is drawn.

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

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

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

(b) be signed by the acceptor for honour.

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

(5.) Where a bill payable after sight is accepted for honour, its
maturity is calculated from the date of the noting for non-acceptance,
and not from the date of the acceptance for honour.
66.-(1.) The acceptor for honour of a bill, by accepting it, engages
that he will, on due presentment, pay the bill according to the tenor of
his acceptance, if it is not paid by the drawee, provided it haw 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
supra protest or contains a reference in case of needs, it must be protested
for non-payment before it is presented for payment to the acceptor
for honour or reference 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 presentment for payment or
non presentment for payment.

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

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

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

(3.) Payment for honour supra protest, in order to operate as such
and not as a mere voluntary payment, must be attested by 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 and discharge, but the payer for
honour is subrogated for, and succeeds to both the rights and duties of,
the holder as regards the party for whose honour he pays and all parties
liable to that party. (6.) the payer for honour, on paying to the holder the amount of the
bill and the notarial expenses incidental to its dishonour, is entitled to
receive both the bill itself and the protest. If the holder does not on
demand deliver them up, he shall be liable to the payer for honour in
damages.

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

Last Instrument.

69.-(1.) Where a bill has been lost before it is overdue, the person
who was the holder of it may apply to the drawer to give him another
bill of the same tenor, giving security to the drawer, if required, to
indemnify him against all persons whomsoever in case the bill alleged to
have been lost shall be found again.

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

70. In any action or proceeding upon a bill, the Court or a Judge
may order that the loss of the instrument shall not be set up, provided
an indemnity be given, to the satisfaction of the Court or Judge, against
the claims of any other person upon the instrument in question.

Bill in a Set.

71. (1.) Where a bill is drawn in a set, each part of the set being
numbered and containing a reference to the other parts, the whole of
the parts constitute one bill.

(2.) Where the holder of a set indorses two or more parts to different
persons, he is liable on every such part, and every indorser subsequent
to hime 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 whoses 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 outstanding in the hands of a holder in due
course, he is liable to the holder thereof.
(6.) Subject to the preceding rules, where any one part of a bill
drawn in set is discharged by payment or otherwise, the whole bill is
discharged.

Conflict of Laws.

72. Where a bill drawn in one country is negotiated, accepted, or
payable in another, the rights, duties, and liabilities of 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 acceptances
or indorsement or acceptance supra protect, is determined by the
law of the place where such contract was made: Provided that-

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

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

(2.) subject to the provisions of this Ordinance, the interpretation of
the drawing, indorsement, acceptance, or acceptance supra protest
of a bill is determined by the law of the place where such contract
is made: Provided that where an inland bill is indorse in a
foreign country, the indorsement shall, as regards the payer, be
interpreted according to the law of this Colony;

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

(4.) where a bill is drawn out of but payable in this Colony and the
sum payable is not expressed in the currency of this Colony,
the amount shall, in the absence of some express stipulation, be
calculated according to the rate of exchange for sight drafts at the
place of payment on the day the bill is payable; and

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

PART II.

CHEQUES ON A BANKER.

73.-(1.) A cheque is a bill of exchange drawn on a banker payable
on demand. (2.) Except as otherwise provided in this Part, the provisions this
Ordinance applicabel to a bill of exchange payable on demand apply to
a cheque.

74. Subject to the provisions of this Ordinance,
(1.) where a cheque is not presented for payment within a reasonable
time of its issue, and the drawer or the person on whose account
it is drawn had the right, at the time of such presentment, as between
hime and the banker, to have the cheque paid and suffers
ctual damage through the delay, he is discharged to the extent of
such damage, that is to say, to the extent to which such drawer or
person is a creditor of such banker to a larger amount than he
would have been had such cheque been paid;

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

(3.) the holder of such cheque as to which such drawer or person is
discharged shall be a creditor, in lieu of such drawer or person, of
such banker to the extent of such discharge and entitled to recover
the amount from him.

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

(1.) countermand of payment;
(2.) notice of the customer's death.

Crossed Cheques.

76.-(1.) Where a cheque bears accross its face an addition of-
(a.) the words 'and company', or any abbreviation thereor, between two
parallel transverse line, either with or without the
words 'not negotiable'; or

(b.) two parallel transverse line simply, either with or without the
words 'not negotiable',

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

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

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

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

(3.) Where a cheque is crossed generally, the holder may cross it
specially. (4.)Where a cheque is crossed generally or specially, the holder may
add the words 'not negotiable'.
(5.)Where a cheque is crossed specially, the banker to whom it is
crossed may again cross it specially to another banker for collection.
(6.)Where an uncrossed cheque, or a cheuque crossed generally, is
sent to a banker for collection, he may cross it specially to himself.

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

79.-(1.) Where a cheque is crossed specially to more than one banker,
except when crossed to an agent for collection being a banker,the
banker on whom it is drawn shall refuse payment thereof.
(2.)Where the banker on whom a cheque is drawn which is so crossed
nevertheless pays the same, or pays a cheque crossed generally otherwise
than to a banker,or. if crossed specially, otherwise than to the banker to
whom it is crossed or his agent 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
ineur any liability, nor shall the payment be questioned by reason of the
cheque having been added to or altered otherwise than as authorized by this
Ordinance, and of payment having been made otherwise than to a banker,
or to the banker to whom the cheque is or was crossed,or to his
agent for collection being a banker,as the case may be.

80.Where the banker on whom a crossed cheque is drawn, in good
faith and without negligence, pays it,if crossed generally, to a banker,
and, if crossed specially, to the banker to 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 respect-
ively be entitled to the same rights and by 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.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 on 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.

PART III.

PROMISSORY NOTES.

83.-(1.) A promissory note is an unconditional promise in writing
made by one person to another signed by the maker, engaging to pay,
on demand or at a fixed or determinable future time, a sum certain in
money to, or to the order of, a specified person or to bearer.

(2.) An instrument in the form of a note payable to maker's order is
not a note within the meaning of this section, unless and until it is indorsed
by the maker.

(3.) A note is not invalid by reason only that it contains also a pledge
of collateral security, with authority to sell or dispose thereof.

(4.) A note which is, or on the face of it purports to be, both made
and payable within this Colony is an inland note. Any other note is a
foreign note.

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

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

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

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

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

87.-(1.) Where a promissory note is in the body of it made payable
at a particular place, it must be presented for payment at that place in
order to render the maker liable. In any other case, presentment for
payment is not necessary in order to render the maker liable.
(2.) Presentment for payment is necessary in order to render the indorser
of a note liable.

(3.) Where a note is in the body of it made payable at a particular
place, presentment at that place is necessary in order to render an indorser
liable; but when a place of payment is indicated by way of
memorandum only, presentment at that place is sufficient to render the
indoser liable, but a presentment to the maker elsewhere, if sufficient in
other respects, shall also suffice.

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

(1.) engages that he will pay it according to its tenor;

(2.) is precluded from denying to a holder in due course the existence
of the payee and his then capacity to indorse.

89.-(1.) Subject to 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 the 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.

PART IV.

SUPPLEMENTARY PROVISIONS.

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

91.-(1.) Where by this Ordinance any instrument or writing is
required to be signed by any person, it is not necessary that he should
sign it with his own hand, but it is sufficient if his signature is written
thereon by some other person by or under his authority.

(2.) In the case of a corporation, where by this Ordinance any instrument
or writing is required to be signed, it is sufficient if the instrument
or writing is sealed with the corporate seal.

(3.) But nothing in this section shall be construed as requiring the bill
or note of a corporation to be under seal.
92.-(1.) Where by this Ordinance the time limited for doning 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
Sundays and public holidays and bank holidays, within the meaning of
these terms as used in the Holidays Ordinance, 1875.

93. For the purposes of this Ordinance, where a bill or note is required
to be protested within a specified time or before some further
proceeding is taken, it is sufficient that the bill has been noted for protest
before the expiration of the specified time or the taking of the proceeding;
and the formal protest may be extended at any time thereafter as
of the date of the noting.

94.-(1.) Where a dishonoured bill or note is authorized or required
to be protested, and the services of a notary cannot be obtained at the
place where the bill is dishonoured, any 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 to this Ordinance may be used, with
necessary modifications, and, if used, shall be sufficient.

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

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

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

(3.) Nothing in this Oridnance shall affect-

(a.) the provisions of any Stamp Ordinance for the time being in
force or any law or enactment for the time being in force relating
to the revenue; or

(b.) the provisions of the Companies Ordinance, 1865, or any Ordinances
amending it, or 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.

FORM OF PROTEST WHICH MAY BE USED WHENT HE SERVICES OF A

NOTARY CANNOT BE OBTAINED.

Know all men that I, A.B., of at the request of C.D., there
being no notary public available, did on the day of , I .
at demand payment [or acceptance] of the bill of exchange here-
under 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 , I .

(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.
A.D. 1885. Ordinance NO. 9 of 1885. 45 & 46 Vict. 61.
Short title.
Interpretation of terms.
See Ordinance No. 7 of 1891. 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 payable on demand. Bill payable at future time. Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisties of acceptance. Time for acceptance. General and qualified acceptances. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation bill or party. Holder in due course. Presumption of value and good faith. Negotiation of bill. Requisties of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentmetn for acceptance and execuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptance. Rules as to presentment for payment. Execuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. Excuses for non-notice and delay. Noting or protest of bill. Duties of holder as regards drawee or acceptor. Funds in hands of drawee. Liability of acceptor. Liability of drawee or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the bolder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Potection to collecting banker. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part 1 to notes. Good faith. Signature. Computation of time. No. 2 of 1875. When noting equivalent to protest. Protest when notary not accessible. Schedule. Crossing of dividend warrant. Savings. See Ordinance NO. 16 of 1901. No. 1 of 1865. Section 94.

A.D. 1885. Ordinance NO. 9 of 1885. 45 & 46 Vict. 61.
Short title.
Interpretation of terms.
See Ordinance No. 7 of 1891. 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 payable on demand. Bill payable at future time. Omission of date in bill payable after date. Ante-dating and post-dating. Computation of time of payment. Referee in case of need. Optional stipulations by drawer or indorser. Definition and requisties of acceptance. Time for acceptance. General and qualified acceptances. Inchoate instruments. Delivery. Capacity of parties. Signature essential to liability. Forged or unauthorized signature. Procuration signature. Person signing as agent or in representative capacity. Value and holder for value. Accommodation bill or party. Holder in due course. Presumption of value and good faith. Negotiation of bill. Requisties of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentmetn for acceptance and execuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptance. Rules as to presentment for payment. Execuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect of non-notice. Rules as to notice of dishonour. Excuses for non-notice and delay. Noting or protest of bill. Duties of holder as regards drawee or acceptor. Funds in hands of drawee. Liability of acceptor. Liability of drawee or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the bolder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Potection to collecting banker. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part 1 to notes. Good faith. Signature. Computation of time. No. 2 of 1875. When noting equivalent to protest. Protest when notary not accessible. Schedule. Crossing of dividend warrant. Savings. See Ordinance NO. 16 of 1901. No. 1 of 1865. Section 94.

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