Bills of Exchange Act

Form of protest which may be used when the services of a notary cannot be obtained ENDNOTES

Bills of Exchange Act (2021 Revision) Section 1

BILLS OF EXCHANGE ACT (2021 Revision)

“acceptance” means an acceptance completed by delivery or notification;

“action” includes counter-claim and set-off;

“banker” includes a body of persons, whether incorporated or not, who carry on the business of banking;

“bankrupt” includes any person whose estate is vested in a trustee or assignee under the law for the time being in force relating to bankruptcy;

“bearer” means the person in possession of a bill or note which is payable to bearer;

“bill” means bill of exchange;

“delivery” means transfer 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;

Section 3 Bills of Exchange Act (2021 Revision)

“holiday” means and includes any day appointed by law or the Cabinet, to be kept as a public holiday, or as a day of fast or thanksgiving, but not Christmas Day or Good Friday;

“indorsement” means an indorsement completed by delivery;

“issue” means the first delivery of a bill or note, complete in form, to a person who takes it as a holder;

“month”, in a bill, means a calendar month;

“non-business day” means Saturday, Sunday, Good Friday, Christmas Day or any holiday, and any other day is a business day;

“note” means promissory note;

“person” includes a body of persons, whether incorporated or not;

“value” means valuable consideration;

“writing” includes print; and “written” includes printed.

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 certain sum in money to or to the order of a specified person, or to bearer.

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

(3) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with — (a) an indication of a particular fund out of which the drawee is to reimburse themselves, 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 that it — (a) is not dated;

(b) does not specify the value given, or that any value has been given therefor;

or

Bills of Exchange Act (2021 Revision) Section 4

(c) does not specify the place where it is drawn, or the place where it is payable.

(a) both drawn and payable within the Islands; or (b) drawn within the Islands 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.

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 the holder’s option, either as a bill of exchange or as a promissory note.

certainty.

(2) A bill may be addressed to two or more drawees, whether they are partners or not, but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill of exchange.

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 as payable to bearer.

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.

Section 9 Bills of Exchange Act (2021 Revision)

(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 that person or that person’s order, it is nevertheless payable to that person or that person’s order at that person’s option.

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; or (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.

(a) which is expressed to be payable on demand, 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.

which is expressed to be payable — (a) at a fixed period after date or sight; or

Bills of Exchange Act (2021 Revision) Section 12

(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.

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 — (a) where the holder in good faith and by mistake inserts a wrong date; and (b) in every case where a wrong date is inserted, if the bill subsequently 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.

shall, unless the contrary be 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 antedated or postdated, or that it bears date on a Sunday.

follows — (a) three days, called days of grace, are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace:

Provided that when the last day of grace falls on a Saturday, Sunday, Christmas Day, Good Friday or a holiday, the bill is, except in the case hereinafter provided for, due and payable on the preceding business day;

except that when the last day of grace is a holiday and the second day of grace is a Saturday, Sunday, Christmas Day or Good Friday, the bill is due and payable on the succeeding business day, and where, by reason of any period of public emergency, the transaction of normal business becomes onerous or impossible, the Cabinet may, by declaration published in the Gazette, retrospectively or otherwise, declare such period to be a holiday for the purpose of this section and any bill which would otherwise have

Section 15 Bills of Exchange Act (2021 Revision)

been payable during such period shall be payable on the next ensuing business day;

(b) where a bill is payable at a fixed period after date, after sight or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run, and by including the day of payment; and (c) where a bill is payable at a fixed period after sight, the time begins to run from the date of the acceptance if the bill be accepted, and from the date of noting or protest if the bill be noted or protested for non-acceptance or non-delivery.

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 the holder may think fit.

(a) negativing or limiting the drawer’s own liability to the holder; or (b) waiving as regards themselves some or all of the holder’s duties.

to the order of the drawer.

(2) An acceptance is invalid unless — (a) it is written on the bill and signed by the drawee, and in this regard the mere signature of the drawee without additional words is sufficient; and (b) it does not express that the drawee will perform the drawee’s promise by any other means than the payment of money.

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

Bills of Exchange Act (2021 Revision) Section 19

agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.

(2) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

(3) In particular, an acceptance is qualified which is — (a) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated;

(b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn; or (c) local, that is to say, an acceptance to pay only at a particular specified place:

Provided that 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; or (e) the acceptance of some one or more of the drawees, but not of all.

order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, the acceptor or an indorser; and, in like manner, when a bill is wanting in any material particular, the person in possession of it has a prima facie authority to fill up the omission in any way the person in possession thinks fit.

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

Reasonable time for this purpose is a question of fact:

Provided that if any such instrument, after completion, is negotiated to a holder in due course, it shall be valid and effectual for all purposes in the holder’s hands, and the holder may enforce it as if it had been filled up within a reasonable time, and strictly in accordance with the authority given.

indorser’s is incomplete and revocable until delivery of the instrument in order to give effect thereto:

Section 22 Bills of Exchange Act (2021 Revision)

Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that the drawee 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 in order to be effectual — (a) must be made either by or under the authority of the party drawing, accepting or indorsing, as the case may be; and (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 be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to the holder so as to make them liable to the holder is conclusively presumed.

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

Capacity and authority of parties

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

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

as such:

Provided that — (a) where a person signs a bill in a trade or assumed name, that person is liable thereon as if that person had signed it in that person’s own name; and (b) the signature of the name of a firm is equivalent to the signature, by the person so signing, of the names of all persons liable as partners in that firm.

Bills of Exchange Act (2021 Revision) Section 24

authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and no right to retain the bill, to give a discharge therefor or to enforce payment thereof against any party thereto, can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority:

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

to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of the agent’s authority.

that person’s signature indicating that that person signs for or on behalf of a principal, or in a representative character, that person is not personally liable thereon; but the mere addition to that person’s signature of words describing that person as an agent, or as filling a representative character, does not exempt that person from personal liability.

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

The consideration for a bill

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

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

Section 28 Bills of Exchange Act (2021 Revision)

(3) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, the holder is deemed to be a holder for value to the extent of the sum for which the holder has a lien.

acceptor or indorser, without receiving value therefor, and for the purpose of lending the accommodation party’s 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, that holder knew such party to be an accommodation party or not.

the face of it, under the conditions — (a) that the holder became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact; and (b) that the holder took the bill in good faith and for value, and that at the time the bill was negotiated to the holder the holder had no notice of any defect in the title of the person who negotiated it.

(2) The title of a person who negotiates a bill is defective, within the meaning of this Act, when that person obtained the bill, or the acceptance thereof, by fraud, duress, force, fear, unlawful means or for an illegal consideration, or when that person 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 that holder’s title to a bill through a holder in due course, and who is not themselves 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.

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, force, 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.

Bills of Exchange Act (2021 Revision) Section 31

Negotiation of bills

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 the holder’s 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, that person may indorse the bill in such terms as to negative personal liability.

conditions — (a) it must be written on the bill itself, and be signed by the indorser; the simple signature of the indorser on the bill, without additional words, is sufficient;

(b) 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;

(c) 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;

(d) 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;

(e) where, in a bill payable to order, the payee or indorsee is wrongly designated, or that payee’s or indorsee’s name is misspelt, that payee or indorsee may indorse the bill as therein described, adding, if that payee or indorsee thinks fit, that payee’s or indorsee’s proper signature;

(f) 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; and

Section 33 Bills of Exchange Act (2021 Revision)

(g) an indorsement may be made in blank or special; it may also contain terms making it restrictive.

by the payer, and payment to the indorsee is valid, whether the condition has been fulfilled or not.

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 Act 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 themselves, or some other person.

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 be 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 the indorsee’s indorser could have sued, but gives the indorsee no power to transfer the indorsee’s rights as indorsee, unless it expressly authorises the indorsee 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 restrictive indorsement.

been restrictively indorsed or discharged by payment or otherwise.

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

Bills of Exchange Act (2021 Revision) Section 37

(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 the purpose is a question of fact.

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

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

such party may, subject to this Act, reissue and further negotiate the bill, but such party is not entitled to enforce payment of the bill against any intervening party to whom such party was previously liable.

(a) the holder may sue on the bill in the holder’s own name;

(b) where the holder is a holder in due course, the holder holds the bill free from any defect of titles 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; and (c) where the holder’s title is defective — (i) if the holder negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill; and (ii) if the holder obtains payment of the bill, the person who pays the holder in due course gets a valid discharge for the bill.

General duties of the holder

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 residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment.

Section 40 Bills of Exchange Act (2021 Revision)

(3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill.

(4) Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and indorsers.

either present it for acceptance or negotiate it within a reasonable time.

(2) If the holder 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.

the following rules — (a) the presentment must be made by or on behalf of the holder to the drawee, or to some person authorised to accept or refuse acceptance on the drawee’s 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 that drawee only;

(c) where the drawee is dead, presentment may be made to the drawee’s personal representative;

(d) where the drawee is bankrupt, presentment may be made to the drawee or to the drawee’s trustee; and (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 — (a) where the drawee is dead or bankrupt, a fictitious person or a person not having capacity to contract by bill;

(b) where, after the exercise of reasonable diligence, such presentment cannot be effected; or

Bills of Exchange Act (2021 Revision) Section 42

(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 excuse presentment.

time, the person presenting it must treat it as dishonoured by non-acceptance. If that person does not, the holder shall lose the holder’s right of recourse against the drawer and indorsers.

(a) when it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused, or cannot be obtained; or (b) when presentment for acceptance is excused and the bill is not accepted.

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

does not obtain a 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 the drawer’s or indorser’s liability on the bill.

(3) Subsection (2) does 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.

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

presented the drawer and indorsers shall be discharged.

(2) A bill is duly presented for payment which is presented in accordance with the following rules —

Section 45 Bills of Exchange Act (2021 Revision)

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

(b) where the bill is payable on demand, then, subject to this Act, 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; and in determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills and the facts of the particular case;

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

(d) a bill is presented at the proper place — (i) where a place of payment is specified in the bill and the bill is there presented;

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

(iii) where no place of payment is specified and no address given, and the bill is presented at the drawee’s or acceptor’s place of business, if known, and if not, at the drawee’s or acceptor’s ordinary residence, if known; or (iv) in any other case, if presented to the drawee or acceptor wherever the drawee or acceptor can be found, or if presented at the drawee’s or acceptor’s last known place of business or residence;

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

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

(g) where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence a personal representative can be found; and (h) where authorised by agreement or usage, a presentment through the post office is sufficient.

Bills of Exchange Act (2021 Revision) Section 46

by circumstances beyond the control of the holder, and not imputable to the holder’s 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 Act, cannot be effected. The fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment;

(b) where the drawer is a fictitious person;

(c) as regards the drawer, where the drawee or acceptor is not bound, as between themselves 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 that endorser has no reason to expect that the bill would be paid if presented; or (e) by waiver of presentment, express or implied.

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

drawer or indorser to whom such notice is not given is discharged:

Provided that — (a) where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission shall not be prejudiced by the omission; or (b) where a bill is dishonoured by non-acceptance and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non-payment unless the bill shall in the meantime have been accepted.

Section 49 Bills of Exchange Act (2021 Revision)

with the following rules — (a) the notice must be given by or on behalf of the holder, or by or on behalf of an indorser who, at the time of giving it, is themselves liable on the bill;

(b) notice of dishonour may be given by an agent, either in the agent’s own name, or in the name of any party entitled to give notice, whether that party be the agent’s principal or not;

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

(d) where 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;

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

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

(g) 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;

(h) where notice of dishonour is required to be given to any person, it may be given either to the party themselves, or to the party’s agent in that behalf;

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

(j) where the drawer or indorser is bankrupt, notice may be given either to the party themselves or to the trustee;

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

(l) the notice may be given as soon as the bill is dishonoured, and must be given within a reasonable time thereafter:

Provided that in the absence of special circumstances, notice is not deemed to have been given in a reasonable time, unless —

Bills of Exchange Act (2021 Revision) Section 50

(i) where the person giving and the person to receive notice reside in the same place, the notice is given or sent in time to reach the latter on the day after the dishonour of the bill; or (ii) where the person giving and the person to receive notice reside in different places, the notice is sent off on the day after the dishonour of the bill, if there be a post at a convenient hour on that day, and if there be no such post on that day, then by the next post thereafter;

(m) where a bill, when dishonoured, is in the hands of an agent, the agent may either themselves give notice to the parties liable on the bill, or the agent may give notice to the agent’s principal; and if the agent gives notice to the agent’s principal, the agent must do so within the same time as if the agent were the holder, and the principal, upon receipt of such notice, has themselves the same time for giving notice as if the agent had been an independent holder;

(n) where a party to a bill receives due notice of dishonour, that party 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; and (o) where a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.

circumstances beyond the control of the party giving notice, and not imputable to the party’s 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) when, after the exercise of reasonable diligence, notice, as required by this Act, 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 — (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;

Section 51 Bills of Exchange Act (2021 Revision)

(iv) where the drawee or acceptor is as between themselves and the drawer under no obligation to accept or pay the bill; or (v) where the drawer has countermanded payment; and (d) as regards the indorser — (i) where the drawee is a fictitious person or a person not having capacity to contract and the indorser was aware of the fact at the time the indorser indorsed the bill;

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

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 dishonoured by non-acceptance, is dishonoured by non-payment, it must be duly protested for non-payment. If it be not so protested the drawer and indorser 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 this Act, when a bill is noted or protested it may be noted on the day of its dishonour and must be noted not later than the next succeeding business day. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.

(5) Where the acceptor of a bill becomes bankrupt 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; or

Bills of Exchange Act (2021 Revision) Section 52

(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, be signed by the notary making it and specify — (a) the person at whose request the bill is protested; and (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 obtained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

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

order to render the acceptor liable.

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

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

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

Liabilities of parties

available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.

Section 54 Bills of Exchange Act (2021 Revision)

(a) engages that the acceptor will pay it accordingly to the tenor of the acceptor’s acceptance; and (b) is precluded from denying to a holder in due course — (i) the existence of the drawer, the genuineness of the drawer’s signature and the drawer’s capacity and authority to draw the bill;

(ii) in the case of a bill payable to drawer’s order, the then capacity of the drawer to indorse, but not the genuineness or validity of the drawer’s endorsement; or (iii) in the case of a bill payable to the order of a third person, the existence of the payee and the payee’s then capacity to indorse, but not the genuineness or validity of the payee’s endorsement.

(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured the drawer will compensate the holder, or any indorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken; and (b) is precluded from denying to a holder in due course the existence of a payee, and the payee’s 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 be dishonoured the indorser will compensate the holder, or a subsequent indorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken;

(b) is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer’s signature, and all previous indorsements; and (c) is precluded from denying to the indorser’s immediate or a subsequent indorsee that the bill was, at the time of the indorser’s indorsement, a valid and subsisting bill, and that the indorser had then a good title thereto.

incurs the liabilities of an indorser to a holder in due course.

Bills of Exchange Act (2021 Revision) Section 57

liquidated damages, shall be as follows — (a) the holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior indorser — (i) the amount of the bill;

(ii) interest thereon from the time of presentment for payment if the bill is payable on demand and from the maturity of the bill in any other case; and (iii) the expenses of noting, or, when protest is necessary and the protest has been extended, the expenses of protest;

(b) in the case of a bill which has been dishonoured abroad, in lieu of the above damages, the holder may recover from the drawer or an indorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to the drawer or an indorser, the amount of the reexchange, with interest thereon until the time of payment; and (c) where, by this Act, 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.

Where the holder of a bill payable to bearer negotiates it by delivery without indorsing it, the holder 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 the transferor’s immediate transferee, being a holder for value, that the bill is what it purports to be, that the transferor has a right to transfer it and that at the time of transfer the transferor is not aware of any fact which renders it valueless.

Discharge of bill

acceptor.

(2) In subsection (1) —

Section 60 Bills of Exchange Act (2021 Revision)

“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 the holder’s title to the bill is defective.

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

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

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.

acceptor’s own right, the bill is discharged.

renounces the holder’s rights against the acceptor the bill is discharged.

(2) The renunciation must be in writing, unless the bill is delivered up to the acceptor.

(3) 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.

the cancellation is apparent thereon, the bill is discharged.

Bills of Exchange Act (2021 Revision) Section 64

(2) In like manner, any party liable on a bill may be discharged by the intentional cancellation of the party’s signature by the holder or the holder’s 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, 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, under a mistake or without authority.

liable on the bill, the bill is avoided except as against a party who has themselves made, authorised or assented to, the alteration, and subsequent indorsers:

Provided that where a bill has been materially altered but the alteration is not apparent, and the bill is in the hands of a holder in due course, such holder may avail themselves of the bill as if it had not been altered, and may enforce payment of it according to its original tenor.

(2) In particular, the following alterations are material, namely, any alteration of the date, the sum payable, the time of payment, the place of payment and, where a bill has been accepted generally, the addition of a place of payment without the acceptor’s assent.

Acceptance and payment for honour

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; and (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.

Section 66 Bills of Exchange Act (2021 Revision)

on due presentment, pay the bill according to the tenor of the acceptor’s acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that the acceptor 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 the acceptor has accepted.

a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honour, or referee in case of need.

(2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to the acceptor for honour 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 it was protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to the acceptor.

(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 of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by the acceptor.

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 the payer for honour’s agent in that behalf, declaring the payer for honour’s intention to pay the bill for honour, and for whose honour that payer for honour pays.

Bills of Exchange Act (2021 Revision) Section 69

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

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

Lost instrument

of it may apply to the drawer to give that holder another bill of the same tenor, giving security to the drawer, if required, to indemnify the drawer against all persons whatever 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, the drawer may be compelled to do so.

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

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, the holder is liable on every such part, and every indorser subsequent to the holder is liable on the part that holder has themselves indorsed as if the said parts were separate bills.

(3) Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is, as between such holders, deemed

Section 72 Bills of Exchange Act (2021 Revision)

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 that person.

(4) The acceptance may be written on any part, and it must be written on one part only.

(5) If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course the drawee is liable on every such part as if it were a separate bill.

(6) When the acceptor of a bill drawn in a set pays it without requiring the part bearing the acceptor’s acceptance to be delivered up to the acceptor, and that part at maturity is outstanding in the hands of a holder in due course, the acceptor is liable to the holder thereof.

(7) Subject to subsections (1) to (6), 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

rights, duties and liabilities of the parties thereto are determined as follows — (a) the validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity, as regards requisites in form of the supervening contract, such as acceptance, indorsement or acceptance supra protest, is determined by the law of the place where such contract was made:

Provided that — (i) where a bill is issued out of the Islands it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue;

and (ii) where a bill issued out of the Islands conforms, as regards requisites in form, to the law of the Islands, 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 the Islands;

(b) subject to this Act, 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 indorsed in a foreign country, the indorsement shall, as regards the payer, be interpreted according to the law of the Islands;

Bills of Exchange Act (2021 Revision) Section 73

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

(d) where a bill is drawn out of, but payable in the Islands, and the sum payable is not expressed in the currency of the Islands, 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 (e) where a bill is drawn in one country and payable in another, the due date thereof is determined according to the law of the place where it is payable.

(2) Except as otherwise provided in this Part, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque.

(a) where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or the person on whose account it is drawn had the right, at the time of such presentment, as between the drawer or the person on whose account it is drawn and the banker, to have the cheque paid, and suffers actual damage through the delay, the drawer or the person on whose account it is drawn 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 the drawer or the person on whose account it is drawn would have been had such cheque been paid;

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

Section 74A Bills of Exchange Act (2021 Revision)

for payment to the banker on whom it is drawn by providing notification of the essential features of a cheque by electronic means to the banker on whom it is drawn.

(2) If the presentment of a cheque is carried out in accordance with this section, the presentment may take place in a location other than the proper place or may be carried out at a time other than at a reasonable hour on a business day as required under section 45(2).

(3) If, before the close of business on the next business day following presentment of a cheque under this section, the banker on whom the cheque is drawn requests presentment of the cheque otherwise than in accordance with this section — (a) any presentment that took place in accordance with subsections (1) and (2) shall be disregarded; and (b) the provisions in this section relating to electronic presentment shall not be applicable to the subsequent presentment of the cheque.

(4) A request under subsection (3) for the presentment of a cheque shall not constitute dishonour by non-payment of the cheque.

(5) Where presentment of a cheque is made electronically in accordance with this section, the banker who presented the cheque and the banker on whom it is drawn shall be subject to the same duties in relation to the collection and payment of the cheque as if the cheque itself had been presented in accordance with section 45 for payment.

(6) For the purposes of this section, the essential features of a cheque are — (a) the serial number of the cheque;

(b) the code which identifies the banker on whom the cheque is drawn;

(c) the account number of the drawer of the cheque;

(d) the amount of the cheque entered by the drawer of the cheque; and (e) the signature of the drawer.

banker’s customer are determined by — (a) countermand of payment; or (b) notice of the customer’s death.

Bills of Exchange Act (2021 Revision) Section 76

Crossed cheques

(a) the words “and company” or any abbreviation thereof between two parallel transverse lines, either with or without the words “not negotiable”; or (b) two parallel transverse lines simply, either with or 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.

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

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

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

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

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

for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.

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 especially otherwise than to the banker to whom it is crossed, or the banker’s agent for collection being a banker, the banker is liable to the true owner of the cheque for any loss the owner may sustain owing to the cheque having been so paid:

Section 80 Bills of Exchange Act (2021 Revision)

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 Act, the banker paying the cheque in good faith and without negligence, shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated, or having been added to or altered otherwise than as authorised by this Act, 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 that banker’s agent for collection being a banker, as the case may be.

negligence, pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or the banker’s agent for collection being a banker, the banker paying the cheque and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights, and be placed in the same position, as if payment of the cheque had been made to the true owner thereof.

the person shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom that person took it had.

customer of a cheque crossed generally, or specially to themselves, and the customer has no title or a defective title thereto, the banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment.

(2) A banker receives payment of a crossed cheque for a customer within the meaning of this section notwithstanding that the banker credits the customer’s account with the amount of the cheque before receiving payment thereof.

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.

Bills of Exchange Act (2021 Revision) Section 84

(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 endorsed 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 the Islands is an inland note. Any other note is a foreign note.

bearer.

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.

payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged.

(2) In determining what is a reasonable time, regard shall 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 the holder had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

it must be presented for payment at the 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 elsewhere, if sufficient in other respects, shall also suffice.

Section 88 Bills of Exchange Act (2021 Revision)

(a) engages that the maker will pay it according to its tenor; and (b) is precluded from denying to a holder in due course the existence of the payee and the payee’s then capacity to indorse.

Act relating to bills of exchange apply, with the necessary modifications, to promissory notes.

(2) In applying those provisions, the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order.

(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; or (d) bills in a set.

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

is in fact done honestly whether it is done negligently or not.

person, it is not necessary that that person should sign it with that person’s own hand, but it is sufficient if that person’s signature is written thereon by some other person by or under that person’s authority.

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

(3) Nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.

Bills of Exchange Act (2021 Revision) Section 92

in reckoning time non-business days are excluded.

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.

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 given in the Schedule may be used with necessary modifications, and if used shall be sufficient.

of dividend.

cheques, shall continue to apply thereto, notwithstanding anything in this Act contained.

(2) The rules of common law, including the law merchant, save insofar as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes and cheques.

(3) Nothing in this Act shall affect — (a) the Stamp Duty Act (2019 Revision) or any law or enactment for the time being in force relating to the Revenue; or (b) the Companies Act (2021Revision) or any law relating to joint stock banks or companies.

Bills of Exchange Act (2021 Revision)