BILLS OF EXCHANGE ORDINANCE, 1885

BILLS OF EXCHANGE ORDINANCE, 1885

No. 3 of 1885.

To codify the Law relating to Bills of Exchange , Cheques and
Promissory Notes. [4th May , 1885.]
PART I
Preliminary provisions .
1. the Bills of Exchange ordinance , 1885.
2. in this ordinance, -
' acceptance ' means an accpetance completed by delivery or
notificatioon:
' action ' means action or suit and includes counterclaim and
set-off:
' banker' includes a body of person, whether incorporated or
not , who carry on the business of banking :
' bearer ' means the person in possession of a bill or note which
is payable to bearer:
' bill ' means bill of exhange , and ' note ' means promissory
note :
' delivery ' means transfer of possession , actual or constructive ,
from one person to another :
'general holiday ' has the same meaning as in the Holidays
ordinance 1912:
' holder ' means hte payee or indorsee of a bill or note who is
in possession of it , or the bearer thereof :





- Indorsement ' means an indorsement completed by delivery :
' Issue' - mean 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 consideration.

PART II.
BiLLS OF EXCHANGE.
Form and Interpretation.
3.-(1) A bill of exchange is an unconditional order in writing,
addressed by one person to another, signed by the person giving
it, requiring the 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
monev, 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 particiular fund out of which the drawee
is to reimburse himself or a particular account to be debited with
the amount; or
(b) a statement of the transaction which gives rise to the bill,
is unconditional,
(4) A bill is not Invalid by reason-
(a) that it is not dated;
(b) that it does not specify the value given or that any value has
been given therefor;
(c) that it does not specify, the place where it is drawn or the
place where it is payable.

4.-(1) An inland bill is a bill which is, or on the face of it
purports to be,-
(a) both drawn and payable within this Colony; or
(b) drawn within this Colony, upon some person resident therein.

As aniclided by No. 68 of 1911.





(2) Any other bill is a, foreign bill.

(8) 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
dramee.
(2) Where, in a bill, drawer and drawee are the same person,
or where the drawee is a fictitious person or a person not having
capacity to contract, the holder may treat the instrument, at his
option, either as a bill of exchange or as a promissory note.

6.-(1) The drawee must be named or otherwise indicated in a
bill with reasonable certainty.
(2) A bill may be addressed to two or more drawees, whether
they are partners or not, but an order addressod to two drawees
in the alternative, or to two or more drawees in succession, is not
a bill of exchange.
7.-(1) Where a, bill is not payable to bearer, the payee must
be named or otherwise indicated therein with reasonable certainty.
(2) A bill may be payable to two or more payees Jointly, or it
may be made payable in the alternative to one of two or one or
some of several payees. A bill may also be made payable to the
holder of an office for the time being.
(3) Where the payee is a fictitious or non-existing person, the
bill may be treated as payable to bearer.
8.-(1) Where a bill contains words prohibiting transfer or
indicating an intention that it should not be transferable, it is
valid as between the parties thereto, but is not negotiable.
(2) A negotiable bill may be payable either to order or to bearer.
(3) A bill is payable to bearer which is expressed to be so
payable, or on which the only or last indorsement is an indorse-
ment in blank.
(4) A bill is payable to which is expressed to be so pay-
able, 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 tansferable.
(15) Where a bill, either orginally or by indorsement, is ex-
pressed to be payable to the order of a specified person, and not
to him or his order, it is nevertheless payable to him or his order
at his option.





9.-(1) The sum payable by a bill is a sum certain within the
meaning of this Ordinance, although it is required to be paid-
(a) with interest;
(b) by stated instalments;
(c) by stated instalments, with a provision that, upon default in
payment of any instalment, the whole shall become due;
(d) according to an indicated rate of exchange or according to
a rate of exchange to be ascertained as directed by the bill.
(2) Where the sum payable is expressed in words and also in
figures, and there is a discrepancy between the two, the sum
denoted by the words is the amount payable.
(3) Where a bill is expressed to be payable with interest, unless
the 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 pavable 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 bolder in good faith and by mistake inserts a
wrong date ; and
(2) in every case where a wrong date is inserted,
if the bill subsequently comes into the hands of a holder in due





course, the bill shall not be avoided thereby, but shall operate and
be payable as if the date so inserted had been the true date.

13-(1) Where a bill or an acceptance or any indorsement on
a bill is dated, the date shall, unless the contrary is proved, be
deemed to be the true date of the drawing, acceptance, or indorse-
ment, as the case may be.
(2) A bill is not invalld by reason only that it, is ante-dated or
post-dated, or that it bears date on a Sunday or any other general
holiday.

14. Where a bill is not payabhle 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,added to Ilie time of payment
as fixed by the bill, and the bill is due and payable on the last day
of grace : Provided that when the last day of grace is a general
holiday other than Sunday, Christmas Day or Good Friday, or
when the last day of grace and also the second day of grace are
general holidays the bill is due and payable on the succeeding
business day and provided also that, when the last day of grace
falls on a Sunday, Christmas Day or Good Friday which is not
immediately preceded by another General Holiday the bill is due
and payable on the preceding business day.
(2) where a bill is payable at a fixed period after date, after
sight, or after the happennig of a specified event, the time of
payment, is determined by excluding the day from which the time
is to begin to run and by including the day of payment;
(3) where a bill is payable at a fixed period after sight, the time
begins to run from the date of the acceptance if the bill is accepted,
and from the date of noting or protest if the bill is noted or
protested for non-acceptance 'or for non-delivery ;
(4) the term '' month ' in a bill means calendar month.

15. The drawer of a bill and any indorser may insert therein
the name of a person to whom the holder may resort in case of
need, that is to say, in case the bill is dishonoured by non-
acceptance or non-payment. Such person is called the referee in
case of need. It is in the option of the holder to resort to the
referee in case of need or not, as he may think fit.

* As amended by, No. 5 of 1912.






16. The drawer of a bill and any indorser may insert therein an
express stipulation-
(1) negativing or limiting his own liability to the holder;

(2) waiving, as regards himself, 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 follow-
ing 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 drawee will perform his promise
by any other means than the payment of nioney.

18.-(1) A bill may be accepted-
(a) before it has been signed by the drawer, or while otherwise
incomplete;
(b) when it Is overdue, or after it has been dishonoured by a
previous refusal to accept, or by non-payment.
(2) When a bill payable after sight is dishonoured by non-
acceptance, and the drawee subsequently accepts it, the holder,
in the absence of any different agreement , is entitled to have the
bill accepted as of the date of first presentment to the drawee for
acceptance.

19.-(1) An acceptance is ether (a) general; or (b) qualified.
(.2) A general acceptance assents without qualification to the
order of the drawer. A qulified acceptance in express terms varies
the effect of the bill as drawn.
(3) In particular, an acceptance is qualified which is-
(a) conditional, that is to say, which makes payment by the
acceptor dependent on the fulfilment of a condition therein stated;
(b) partial, that is to say, an acceptance to pay part only of the
anmount for which the bill is drawn
(c) local, that is to say, an acceptance to pay only at a particular
specified place; an accepatance to pay at a particular place is a
general acceptance, unless, it expressly state 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 shamped paper
is delivered by the signer in order that it may be converted into
a bill, it operates, as a prima facic authority to fill it up as a com-
plete bill for any amount the stamp will cover , using the signature
for that of the drawer, or tho acceptor, or an indorser; and, in
like manner, when a bill is wanting in any material particular, the
person in possession of it has a prima facic authority to fill up the
omission in any way he thinks fit.
(2) In order that any such instrument. when compleled, may
be, enforceable against any person who became a party thereto
prir to its completion, it must be filled up within a reasonable
time and stirictly in accordance with the authourity given. Reason-
able time for this purpose is a queation 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 stricty in accondance with
the authority given.

2L-(1) Every contract on a bill, whether it is the drawer's tbe
acceptor's or an indorser's, is imcomplete and revocable , until
delivery of the instrument in order ot give effect thereoto:
Provided that where an accceptance is written on a bill, and the
drawee gives notice to or according to the direelions of the person
entided 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 he made either by or under
the authority of the party drawing, accepting, or indorsing,as the
case may be;
(b) may be shown to have been conditional or for a special
purpose only, and not for the purpose of transferring the property
in the bill :
but if the bill is in the hand of a holder in due course, a valid
delivery of the bill by all parties prior to him, so as to make them
liable to him, is conclusively presumed.





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

Capacity authority of Parties.
21-(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 dramer, acceptor, or indorser of a bill unless
it is computetent to It to do so under the law relating to corporations.
(2) Where a bill is drawn or indorsed by an infant, minor, or
corporation having no capacity or pover 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 sigin a bill in a trade or assumed name, he
is liable thereon as if he had sIgned it in his own name;
(.2) the signature of the name of a firm is equivalent to the
signature by the person so sigintig of the names of all persons
liable as partners in that firm.

24. Subject to the provisions of this Ordinance, where a signa-
ture on a bill is forged or placed thereon without the authority of
the person whose signavore it purports to be, the forged or un-
authorised signature is wholly inoperative, and no right to retain
the bill, or to give a discharge therefor, or to enforce payment
thereof against, any party thereto can be acquired through or under
that signature, unless the party against whom it is sought to retain
or enforce payment of the bill is, precluded from setting up the
forgery or want of authority:
Provided nothing in this section shall affect the ratification'
of an unauthorised 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 signiture if the agent in so sign was acting within the
actual limits of his authority.






26.-(1) Where a person signs a bill as drawer, indorser, or
acceptor, and adds words to his signature, indicating that he signs
for or on behalf of a principal or in a representative character, he
is not personally liable thereon ; but the mere addition to his signa-
ture of words describing him as an agent, or as filling a representa-
tive character, does not exempt him from personal liability.
(2) in determining whether a signature on a bill is that of the
principal or that of the agent by whose hand it is written, the
construction most favourable to the validity of the instrument shall
be adopted.

Consideration for bill.
27.-,(1) Valuable consideration for a bill may be 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 de-
mand or at a future time.
(2) Where value has at any time been given for a bill ,the holder
is deemed to be a holder for value as regards the acceptor and all
parties to the bill who became parties prior to such time.
(3) Where the holder of a bill has a lien on it, arising either.
from contract or by implication of law, lie is deemed to be a holder
for value to the extent of the sum for which he hasa lien.

28.(1) An accommodatlon party to a bill is a person who has
sigubd I 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 parLy or not.
29.-(1)A holder in due course is a holder who has taken a bill,
complete and regular on the face of it, under the following con-
ditions, 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 circurn-
stances as amount to a fraud.
(3) A holder (whetber 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 ana all parties
to the bill prior to that holder .
30-(1) Every party whose signature appears on a bill is prima
facie deemed to have become a party thereto for value.
(2) Every holder of a bill is prima facie deemed to be a holder
in due course ; but if, in an action on a bill, it is admitted or proved
that, the acceptance, issue, or subsequent negotiation of the bill is
affected with fraud, duress, or force and fear, or illegality, the
burden of proof is shifted unless and until the holder proves that,
subsequent to the alleged fraud or illegality, value has in good
faith been given for the bill.

Negotiation of bill.
31.-(1) A bill is negotiated when it, is transferred from one
person to another in such a manner as to constitute the transferee
the holder of the bill.
(21) 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 dolivery.
' (4) Where the holder a bill payable to his order transfers it for
value without indorsing it, the transfer gives the transferee such
title as the transferor had in the bill, and the transferee in addition
acquires the right to have the indorsement of the transferor.
(5) where any person is under obligation to indorse a bill in
a representative capacity, 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 indorser on the bill, with-






out additional words, is sufficlent. An indorsement written on an
allonge, or on a ' copy ' of a bill Issued or negotiated in a country
where ' copies' are recognised, is deemed to be written on the
bill itself;
(2) it must be an indorsement of the entire bill. A partial
indorsement, that is to say, an indorsement which purports to
transfer to the indorsee a part only of the amount payable, or
which purports to transfer the bill to two or more indorsees
severally, does not operate as a negotiation of the bill
(3) where a bill is payable to the order of two or more payees
or indorsees who are not partners, all must indorse, 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 mls-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 deerned to have been in the order in which it appears
on the bill, untill 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 condi-
tion may be disregarded by the payer, and payment to the indorsee
is valid whether the condition has been fulfilled or not.

34.-(1) An indorsement in blank specifies no indorsee, and a
bill so indorsed becomes payable, to bearer.
(2) A special indorsement speelfies the person to whom, or to
whose, order, the bill is to be payable.
(8) 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 som other person.

35.-(1) An indorsenient is restrictive which prohibits the further
neuctiation of the bill or expresses that it is a mere authority
to deal with the bill as thereby directed and not a transfer of the





ownership thereof, as, for example, if a bill is indorsed 'Pay D
only,' or '' Pay D for the account of X,' or ' Pay D or order for
collecti .'
(2) A restrictive indorsement gives the indorsee the right to
receive payinent of the bill and to sue any party thereto that his
indorser could have sued, but give him no power to transfer his
rights as indorsee, unless it expressly authorises him to do so.
- (3) Where a restrictive indorsement authorises further transfer,
all subsequent indorsees take the bill with the same rights and
subject to the same liabilities as the first indorsee under the restric-
tive indorsement.

36-(1) Where a bill is negotiable in its origin, it continues to
be negotiable until it has been-
,(a) restrictively indorsed; or
(b) discharged by payment or otherwise.
(2) Where an overdue bill is negotiated, it can only be negotiated
subject to any defect of title affecting it at its maturity, and thence-
forward no person who takes it can acquire or give a better title
than that which the person from whorn 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.
(4) Except where an indorsement bears date after the maturity
of the bill, every negotiation is prima facie deemed to have been
effected before the bill was overdue.
(5) where a bill which ls 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 pro-
visions of this Ordinance, re-issue and further negotiate the bill,
but he is not entitled to enforce payment of the bill against any
intervening party to whom he 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 in due course, be 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 lie negotiates the bill to a holder in due course, that holder
obtains a good and complete title to the bill ; and,
(b) if he obtains payment of the bill, the person who pays him
in due course gets a valid discharge for the bill.

General duties of the holder.
39.-(1) where a bill is payable after sight , presentment for
acceptance is necessary in order to fix the maturity of the instru-
ment.
(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 bolder of a bill, drawn payable elsewhere than
at the place of business or residence of the drawee, has not time,
with the exercise of reasonable diligence, to present the bill for
acceptance before presenting it for paynient. on the day that it falls
due, the delay caused by presenting the bill for acceptance before
presenting it for payment is excused, and does not discharge the
drawer and indorsers.

40.-(1) Subject to the provisions of this Ordinance, when a bill
payable after sight is, negotiated, the holder must either present it
for acceptance or negotiate it within a reasonable time.
(2) If he does not do so, the drawer and all indorsers prior to
that holder are discharged.
(3) In determining what is a reasonable time within the mean-
ing 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,





4L-(1) A bill is duly presented for acceptance which is pre-
sented in accordance with the following rules:-
(a) the prosentment 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 belialf, at a reasonable hour on a business day
and before the bill is overdue;
(b) where a bill is addressed to two or more drawees, who are
not partners, presentment must be made to them all, unless one
has authority to accept for all, then presentment may be made to
him only ;
(c.) where the drawee is dead, presentment may be made to his
personal representative;
(d) where the drawee is bankrupt, presentment may be made
to him or to his trustee or assignee;
(e) where authorised by agreement or usage, a presentment
through the post Office is sufficient.
(2) presentment in accordance with these rules is excused, and
a bill may be, treated as dishonoured by non-acceptance,-
(o) where the drawee is dead or bankrupt, or is a fictitious per-
son or a, person not having capacity to contract by bill ;
(b) where, after the exercise of reasonable diligence, such pre-
sentment cannot be effected;
(c) where, altough the presentinent has been irregular, accept-
ance has been refused on some other ground.
(3) The fact that the holder has reason to believe that the bill,
on presentment , will be dishonoured does not excuse presentment.
42. when a bill is duly presented for acceptance and is not
accepted within the customary time , the perosn presenting it must
treat it as dishonoured by non-acceptance . if he does not , the
holder shall lose his right of recourse against the drawer and
indorsers.

43.-(1) A bill is dishonoured by non-acceptance-
(a) when it is duly presented for acceptance, and such an accept-
ance, 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 provision of this Ordinance, when a bill is dis-
honoured by non-acceptance, an immediate right of recourse, against
b 0





the drawer and indorsers accrues to the holder, and no present-
ment for payment is necessary.

44.-(1) The holder of a bill may refuse to take a qualified
acceptance , and, if he does not obtain an unqualified acceptance,
may treat the bill as dishonoured by non-acceptance.
(2) Where a qualified acceptance is taken, and the drawer or
an indorser has not expressly or impliedly authorised 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 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) When the drawer or indorser of a bill receives notice of a
qualified acceptance, and does not within a reasonable time express
his dissent to the holder, he shall be deemed to have assented
thereto.

45. Subject to the provisions of this Ordinance, a bill must be
duly presented for paynient. If it is not so prosented, the drawer
and indorsers shall be discharged. A bill is duly presented for
payment which is presented in accordance with the following
rules :-
(1 * ) where the bill is not payable on denumd, presentment must
-be made on the day it falls due;
(2) where the bill is payable on demand, then, subject to the
provisions of this Ordinance, presentment must be made within
a reasonable time after its issue in order to render the drawer liable,
and within a reasonable time after its indorsement , in order to
render the indorser liable. In determining what is a reasonable
time, regard shall be had to the nature of the bill, the usage of
trade with respect to Similar bills , and the facts of the particular
case ;
(3) presentment must, be made. by the holder, or by some person
authorised to receive payment on his behalf, at a reasonable hour
on a business day, at the proper place as hereinaffer 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) 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 lie 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 tbere, 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 payinent is specified,
presentment must be made to them all;
,(7) where the drawee or acceptor of a bill is dead, and no place
of payment is specified, presentment must be,made to a personal
representative, if such there be, and, with the exercise of reason-
able diligence, he can be found;
(8) where authorised 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, present-
ment must be made with reasonable diligence.
(2) Presentment for payrnent is dispense 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 present-
ment, be dishonoured does not dispense with the necessity for
presentment.;
(b) where the drawee is a fictitious person
(c) as regards the drawer, where the drawee or acceptor is not
bound, as between himself and the drawer, to accept or pay the
bill, and the drawer has no reason to believe that the bill would
be paid, if presented;





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

47.-(1) A bill is dishonoured by non-payment-
(a) when it is duly presented for paynient 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 holder.

48. Subject to the provisions of this ordinance, when a bill is
been dishonoured by non-acceptance or by non-payment, notice of
dishonor must be given to the drawer and each indorser , and
any drawer or indorser to whom such notice is not given is dis-
charged: Provided that-
(l.) where a bill is dishonoured by non-acceptance and notice
of dishonour is not given, the rights of a holder in due course
subsequent to the omission shall not be prejudiced by the omission ;
(2.), where a bill is dishonoured by non-acceptance and due notice
of dishonour is given, it shall not be necessary to give notice of
a subsequent dishonour by non-payment , unless the bill has in the
meantime been accepted.
49. notice of dishonour, in order to bc valid and effectual, must
be given in accordance with the following rules:--
(1) the notice must be given by or on belalf of the holder or by
or on behalf of an indorser who, at the time of giving it, is himself
liable on the bill
(2) the notice may be given by an 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 in-
dorsers who have a right of recourse agailist 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
0





benefit of the holder and all indorsers subsequent to the party to
whorn notice is given
(5) the notice may be given in writing or by personal com-
munication , and may be given in any terms which sufficiently
identify the bill, and intimate that the bill has been dishonoured
by non-acceptance or non-payinent:
(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 nolice need not be signed, and an insufficient
written notice may be supplemented and validated by verbal com-
niunication. 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 representa-
tive, if such there be , and , with the exereise of reasonable diligelice,
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 or more drawers or indorsers who are
not partners, the notice must be given to each of them, unless one
of then, 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 dis-
honour of the bill, if there is a post at a convenient hour on that
day, and, if there is a post on that day, then by the next
post thereafter ;
(13) where a bill when dihonoured is in the hands of an agent, he
may either himself give notice to the parties liable on the bill or he.
may give notice to his principal. If lie gives notice to his principal,





he must do so within the same as time as if he were the holder, and the
principal, upon reciept 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 recelves he has, after the
receipt of such notice, the same period of time for giving notice to
antecent, 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 tho Post Office.
50.-(.1) Delay in giving notice of dishonour is excused where the
delay is caused by circumstances beyond the control of the party
giving notice, and not imputable to his default , misconduct, or
negligence.When the cause of delay ceases to operate, the notice
be given with reasonable diligence.
(2) notice of dishononr is dispensed with-
(a) where, after the exercise of reasonable dlillgence, notice, as
required by this Ordinance, cannot be given to or does not reach the
drawer or indorser songht to be;
(b) by waiver, express or implied. notice of dishonur may be
waived before the time of giving notice has arrived or after the
onission 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 ficlitions person or a person not having
capacity to contract;
(iii) where the drawer is the person to whom the bill is presented
for payment;
(iv) where the drawee or acceptor is, as between himself and the
drawer, under no obligation to accept or pay the bill;
(v) where the drawer has countermanded payment;
(d) as regards the indorser, in the folloming cases, namely, -
(i) where the drawee is 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-aceeptance or non-payment, as
the Case may be ;but 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 heen dishonoured by non-acceptance, it must be duly protested
for non-acceptance , and where such a bill , which has not been pre-
viously dishonoured by non-acceptance , is dishonoured by non-pay-
ment, it must be duly protested for non-payment If it is not so
protested, the drawer and indorsers are discharged. Where a bill
does not appear on the face of it to be a foreign bill, protest thereof
in case, of dishonour is unnecessary .
(3) A bill which has been protested for non-acceptance may be
subsequently protested for non-payment.
(4) Subject to the provisions of this Ordinance, and of the Holi-
day Ordinance 1912 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 ,it the place where it is dishonoured:
Provided that-
(a) when a bill is presented through the Post Office, aud 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 residelice.
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 persentment for pay-
ment 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;

* As ai.,leiide(l by '5u, 5 of 1912,





(b) the place and date of protest, the cause or reason for protest-
ing the bill, the demand made,and the answer given, if any, or tbe
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 con-
trol of the holder, and not imputable to his default, misconduct, or
negligence. When the cause of delay cause to operate, the bill must
be noted or protested with reasonable. diligence.

52.--(1) 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 stipu-
lation 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 ne-
cessary to protest it or that notice or dishonour should be given to

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

Liabilities of parties.
53. A bill of itself,does not operate as an assignment of fonds in
the hands of hte 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 genuineness of his signature,
and his capacity and authority to draw the bill;




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

55.-(1) The drawer of a bill, by drawing it,--
(a) engages that, on due presentment, it shall be accepted and
paid according to its tenor, and that if it is dishonoured he will com-
pensate the holder or any indorser who is compelled to pay it, pro-
vided that the requisite proceedings on dishonour are duly taken ;
(b) is precluded from denying to a holder in due course the exist-
ence of the payee and his then capacity to indorse.
(2) The indorser of a bill , by indorsing it,-
(a) enuages that, on due presentment, it shall be accepted and
paid according to its tenor, and that if it is dishonoured he will com-
pensate the holder or a subsequent indorser who is compelled to pay
it, provided that the requisite proceedings on dishonour are dully ,,?nour are duly
taken;
(b) is precluded from denying to a holder in due course the
genuineness and regularity in all respects of the drawer's signature
and all previous indorsements;
(c) is precluded from denying to his immediate or a subsequent
indorsee that the bill as, at the time of his indorsement, a valid and
subsisting bill, and that he had then a good title thereto.

56. Where a person signs a bill otherwise than as drawer or
acceptor, he thereby incurs the liabilities of an indorser to a holder
in due course.

57. Where a bill is dishonoured, the measure of damages, which
shall be deemed to he lliquidated 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 in 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 nothing, 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
lien of the above damages, the holder may recover from the drawer
or an indorser, and the drawer or an indorser who bas been compel-
led 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 dama-
ges, 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
delivey. '
(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 transfer,being a holder for value,
that the bill is what it purports to be, that he has a right to
transfer it, and that, at the time of transfer, he is not aware of
any fact which renders it valueless.

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





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

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

61. when the acceptor of a bill is or becomes the. holder of it at
or after its maturity, in his own right, the bill is discharged.
62.-(1) When the holder of a bill at or after its maturity
absolutely and unconditionlly renounce 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 where a
bill or any signature thereon appears to have been cancelled, the
burden of proof lies on the party who alleges that the cancellation
was made unintentionally, or under a mistake, or without
authority.

64.-(1) Where a bill or acceptance is materially altered without
the assent of all parties liable on the bill, the bill is avoided except
as against a party who bas 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 clue 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 sun payable, the time of payment,
the place, of payment ,and, where a bill has been accepted generally,
the addition of a place of without the acceptor's assent.

Acceptance and payment for honour.
65.-91) Where a bill has been protested for dishonour by non-
acceptance or protested for better security, and is not overdue, any
person, not being a party already liable thereon, may, with the
consent of the holder, intervene and accept the bill supra protest,
for the honour of any party liable thereon or for the honour of the
person for whose account the bill is drawn.
(2) A bill may be accepted for honour for part only of the sum
for which it is drawn.
(3) An acceptance for honour supra protest in order to be valid
must-
(a) be written on the bill, and indicate that it is an acceptance
for honour .
(b) be signed by the acceptor for honour.
(4) Where an acceptance for honour does not expressly state for
Whose honour it is made, it is deemed to be, all acceptance for the
honour of the drawer.
.(5) Where a bill payable after sight. is accepted for honour, its
maturity is calculated from the date of the noting for non-
acceptance, and not from the date of the acceptance for honour.

66.-(1) The acceptor for honour of a bill, by accepting it,
engages that he will, on due presentment, pay the bill according
to the tenor of his acceptance, if it is not paid by the drawee,
provided it has been duly presented for payinent 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 need, it must be
protested for non-payment before it is presented for payment to
the acceptor for honour or referee in case of need.
(2,) where the adderss of the acceptor for honour is in the same
place where the bill is protested for non-payrnent, 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 pay-
ment or non-presentment for payment.
(4) When a bill is dishonoured by the acceptor for honour, it
must, be protested for non-payment by him.

68.-(1.) Where a bill has been protested for non-paynient, any
person may intervene and pay it 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 discharbye most
parties to the bill sball 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 honoour which may be appended to the protest or
forni 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 discharge, but the
paver for honour is subrogated for, and succeeds to both the rights
and duties of, the holdor as regards the party for whose honour
he pays and all parties liable to that party.
(6) The payer for honour, on paying to the holder the amount
of the bill and the notarial expenses incidental to its dishonour, is





entitled to receive both the bill itself and the protest. If the holder
does not on demand deliver them up, lie shall be liable to the payer
for honour in damages.

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

Lost instrunent.
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 secuity to the drawer,
if required, to indemnify hiin 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 salisfaction of the Court
or Judge, against the claims of any other person upon the instru-
ment in question.

Bill in a set.
71.-(1) Where a bill is drawn in a set, eacb part of the set
being numbered and containing a reference to the other parts, the
whole of the parts constitute one bill.
(2) Where the holder of a set indorses two or more parts to
different persons, he is liable on every such part, and every indorser
subsequent to him is liable on the part he has himself indorsed as
if the said parts were separate bills.
(3) Where two or more parts of a set are negotiated to different
holders in due course, the holder whose title first accrues is, as
between such holders, deened the true owner of the bill; but
nothing in this sub-section shall affect the right of n 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 boating his acceptance to be delivered up to him,
and that part at maturity is outstanding in the hands of a holder
in due course, he is liable to the holder thereof .
(6) subject to the preceding rules, where any one part of a bill
drawn in a set is discharged by payment or otherwise, the whole
bill is discharged.

Conflict of laws.
72. Where a bill drawn in one, country is negotiated, accepted,
or payable in another, the rights, duties, and. liabilities of the
parties thereto are deterroined as follows:--
(1) the validity of a, bill, as regards requisites in form, is de-
termined by the law of the place of issue, and the validity, as
regards requisites in form, of the supervening contracts, such as
acceptance or indorsement or acceptance sitl~rd protest, is deter-
inined. 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
(12) subject to the provisions of this Ordinance, the interpretation.
of the drawing, indorsement, acceptance, or acceptance supra pro-
test of a bill is determined by the law of the place where such
contract is made : Provided that where an inland bill is indorsed
in a foreign country, the indorsement shall, as regards the payer,
be interpreted according to the law of this Colony;
(3) the duties of the holder with respect to presentment for
acceptance or payment and the necessity for or sufficiency of a
protest or notice of dishonour, or otherwise, are determined by the
law of the place where the act is done or the bill is dishonoured;
(4) where a bill is drawn out of but payable ill this Colony and
the sum payable is not expressed in the currency of this Colony,
the amount shall, ill 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 deternined accordilng to the law
of the place where it is payable.

PART III.
CHEQUES ON A BANKER,
71-(1) A cheque is a bill of exchange drawn on a banker
payable on demand.
(2) Except as otherwise provided in this Part, the provisions of
this Ordinance applicable to a bill of exchange payable on demand
apply to a cheque.

74.subject to the provisions of this ordinance,-
(1) where a cheque is not presented for payment within a rea-
sonable time of its issue, and the drawer or the person on whose
account, it is drawn had the right, at the time of presentment
as between him and the banker, to have the cheque paid suffers
actual damage through the delay, he is discharged to the extent of
such damage, that is to say, to the extent to which such drawer
or person is a creditor of such banker to a larger amount than he
would have been had such cheque been paid:
(2) in deterinining 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 cbeque as to which such drawer or person
is discharged shall be a creditor, in lien 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

76-(1) Where a cbeque 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

* AS 1LMCII(ICC1 IDY l~l). G~, O~ 1911.





(b) two parallel transverse, lines simply, either with or without
the words ' not negotiable',
that addition constitutes a crossing, and the cheque is crossed
generally.
(.2) Where a cheque bears across its face an adddition of the
name of a banker, either with or without the words ' not
negrotiable', 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 is crossed generally , the holder may cross
it specially.
(4) Where a cheque Is crossed generally or specially, the holder
may add the words ' not negotiable'.
(.5) Where a cheque is crossed specially,.the banker to whom
it is crossed may again cross it specially to another banker for
collection.
(6) Where an uncrossed cheque, or a cheque crossed generally,
is sent to a banker for collection, he may cross it specially to
himself.

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

79.-(1) Where cheque is crossed specially to more than one
banker, except when crossed to an agent for collection being a
banker, the banker on whoni 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, other
wise than to the banker to whom it is crossed or his agent for
collection being a banker, be is liable to the true owner of the
cheque for any loss he may sustain owing to the cheque having
been so paid:





Provided that where a cheque is presented for payment which
does not,at the time of presentment appear to be crossed, or to
have had a crossing which has been obliterated,or to have been
added to or altered otherwise. than as authorised by this Ordinance,
the banker paying the cheque, in good faith and withont negligence
shall not be responsible or incur any liability, nor shall the pay
ment be questioned by reason of the cheque having been crossed,
or of the crossing having been obliternted or having been added
to or altered otherwise than as authorised by this Ordinwice, and of
payment having been made otherwise, to a banker , or to the
banker to whom the cheque is or was crossed, or to his agent for
collection being a banher, 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 pay.
ing the cheque, and, if the cheque has come into the hands of the
payee, the drawer, shall respectivly be entitled to the same rights
and be placed in the same position as if payment of the cheque
had been made to the true owner thereof,

81. Where a person takes a crossed cheque which bears on it
the words 'not negotiable ', he shall not have, and shall not be
capable of giving, better title to the cheque than that which the
person from whom he took it had.

82.-(1) Where a banker, in good faith and whitout negligence,
receives payment for a customer of a cheque crossed generally or
soecially to himself , and the customer has no title or defective title
,thereto, the banker shall not incur any liability to the true owner
of the cheque by reason only of having received such payment.
(2) A banker receives paymen, of a crossed cheque for a
customer within the meaning of this section notwithstanding that
he credits his customer's account with the amount of the cheque
before receiving payment.

82a. Any draft or order drawn upon a banker for a sum of money
payable to order on demand which shall , when presented for pay-
ment, purport to be indorsed by the person to whom the same
shall be drawn payable, shall be a sufficient authority to such







banker to pay the amount of such draft or order to the bearer
thereof: and it shall not be incumbent on such banker to prove
that such indorsement or any subsequent indorsement was made
by or under the direction or authority of the person to whom the
said draft or order was or is payable cillher by the drawer or
any indorser thereof.


PART IV.
PROMISSORY NOTES.
83.-(1) A promissory note is an unconditional promise in
writing made by one person to another signed by the maker,
engaging to pay, on deniand 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 tbat 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,
maker, 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 elapsed
since its issue.

87.-(1) Where a promissory note is in the body of it made
payable at a particular place, it must be presented for payment at
that place in order to render the maker liable .in any other Case,
presentment for payment is not necessary in order to render the
maker liable.
(2) Presentment for payment is necessary in order to render the
indorser of a note liable.
(3) Where a note is in the body of it made payable at a particular
place, presentment at that place is necessary in order to render an
indorser liable; but when a place of payment is indicated by way
of memorandum only, presentment at that place is sufficient to
render the indorser liable, but a presentment to the maker else-
where, 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 correpond with the acceptor of a bill, and the first
indorser of a, note shall be decined to correspond with the drawer
of an accepted bill payable to dramer's order.
(3) The following provisions as to bills do jiot 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 V.
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.

9L-(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 lie construed as requiring
the bill or note of a corporation to be under seal.

92.-(1) Where by this Ordinance the time limited for doing
any act or thing is less than 3 days, in reckoning time, non-business
days are excluded.
(.2) - 'non-business days ' for the purposes of this Ordinance,
mean general holidays.

93. For the purposes of this Ordinance, where a bill or note is
required to be protested within a specified time or before some
further proceeding is take , 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 anthorised 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 or the place may, in the presence of two
witnesses, give a certificate , sign by them , attesting the dis-
honour of the bill, and the certificate shall in all respects operate
as if it were a formal protest of the bill.
(2) The form in the schedule may be used , with necessary
modifications, and, if used, shall be sufficient.

95. the provision of this ordinance relating to crossed cheques
shall apply to warrant payment of divIdend.

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

(2) The rules of common law, including the law merchant, save
in so far as they are inconsistent with the express provisions of
this Ordinance, shall continue to apply to bills of exchange, pro-
missory notes, and cheques.
(3) Nothing in this Ordinance shall affect-
(a) the provisions of any stamp ordinance relating to joint stock banks
or companies; or
(b)the provision of any ordinance relating to joint stock banks
or companies ;or
(c) the validity of any usage relating to dividend warrants or the
indorsements thereof .
SCHEDULE. [S.94.]
FORM OF PROTEST WHICH MAY BE USED WHEN THE SERVICES OF A
NOTARY CANNOT BE OBTAINED.
Know all men that I, A .B,.of at the request of C,D, there beinn no
notary public available , did on the day of , 19 ,at
demand payment [or acceptance ] of the bill of exchange hereunder written from E,F,
to which demand be made answer [stat answer, if any ]; wherefore I now , in the pre-
sence fo G, H, and J, K, do protest the said bill of exchange .
Dated the day of , 19.
(signed.) A, B.
G.H/ witnesses.
JK/
N.B- the bill itself should be annexed, or a copy of the bill and all that is written
thereon should be underwritten .
[45 & 46 Vict.c. 61.] Short title. Interpretation of terms. [cf. No. 7 of 1891.] [cf. No. 5 of 1912.] Definition of bill of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty 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 requisites 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 courses. Presumption of value and good faith. Negotiation of bill. Requisites of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentment for acceptance, and excuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Excuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect 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 bands of drawee. Liability of acceptor. Liability of drawer or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the holder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Protection to collecting banker. Account may be credited, before payment of cheque. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part II to notes. Good faith. Signature. Computation of time. When noting equivalent to protest. Protest when notary not accessible. Crossing of dividend warrant. Savings. [cf. No. 16 of 1901.] [cf. No. 58 of 1911.]

[45 & 46 Vict.c. 61.] Short title. Interpretation of terms. [cf. No. 7 of 1891.] [cf. No. 5 of 1912.] Definition of bill of exchange. Inland and foreign bills. Effect where different parties to bill are the same person. Address to drawee. Certainty 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 requisites 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 courses. Presumption of value and good faith. Negotiation of bill. Requisites of valid indorsement. Conditional indorsement. Indorsement in blank and special indorsement. Restrictive indorsement. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights and powers of holder. When presentment for acceptance is necessary. Time for presenting bill payable after sight. Rules as to presentment for acceptance, and excuses for non-presentment. Non-acceptance. Dishonour by non-acceptance and its consequences. Duties as to qualified acceptances. Rules as to presentment for payment. Excuses for delay or non-presentment for payment. Dishonour by non-payment. Notice of dishonour and effect 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 bands of drawee. Liability of acceptor. Liability of drawer or indorser. Stranger signing bill liable as indorser. Measure of damages against parties to dishonoured bill. Transferor by delivery and transferee. Payment in due course. Banker paying demand draft whereon indorsement is forged. Acceptor the holder at maturity. Express waiver. Cancellation. Alteration of bill. Acceptance for honour supra protest. Liability of acceptor for honour. Presentment to acceptor for honour. Payment for honour supra protest. Holder's right to duplicate of lost bill. Action on lost bill. Rules as to bill in set. Rules where laws conflict. Definition of cheque. Presentment of cheque for payment. Revocation of banker's authority. Definition of general and special crossings. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of banker as to crossed cheque. Protection to banker and drawer where cheque is crossed. Effect of crossing on holder. Protection to collecting banker. Account may be credited, before payment of cheque. Drafts on bankers payable to order on demand sufficient authority for payment without proof of indorsement. Definition of promissory note. Delivery necessary. Joint and several notes. Note payable on demand. Presentment for payment. Liability of maker. Application of Part II to notes. Good faith. Signature. Computation of time. When noting equivalent to protest. Protest when notary not accessible. Crossing of dividend warrant. Savings. [cf. No. 16 of 1901.] [cf. No. 58 of 1911.]

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