ARRANGEMENT OF SECTIONS
1 Short title
Bills of Exchange Form and Interpretation
3 Bill of exchange defined
4 Inland and foreign bills
5 Effect where different parties to bill are the same person
6 Address of drawee
7 Certainty required as to payee
8 What bills are negotiable
9 Sum payable
10 Bill payable on demand
11 Bill payable at a future time
12 Omission of date in bill payable after date
13 Ante-dating and post-dating
14 Computation of time of payment
15 Case of need
16 Optional stipulations by drawer or indorser
17 Definition and requisites of acceptance
18 Time for acceptance
19 General and qualified acceptances
20 Inchoate instruments
Capacity and Authority of Parties
22 Capacity of parties
23 Signature essential to liability
24 Forged or unauthorised signature
25 Procuration signatures
26 Person signing as agent or in representative capacity
The Consideration for a Bill
27 Value and holder for value
28 Accommodation bill or party
29 Holder in due course
30 Presumption of value and good faith
Negotiation of Bills
31 Negotiation of bills
32 Requisites of a valid indorsement
33 Conditional indorsement
34 Indorsement in blank and special indorsement
35 Restrictive indorsement
36 Negotiation of overdue or dishonoured bill
37 Negotiation of bill to party already liable thereon
38 Rights of the holder
General Duties of the Holder
39 When presentment for acceptance is necessary
40 Time for presenting bill payable after sight
41 Rules as to presentment for acceptance, and excuses for non-presentment
43 Dishonour by non-acceptance and its consequences
44 Duties as to qualified acceptances
45 Rules as to presentment for payment
46 Excuses for delay or non-presentment for payment
47 Dishonour by non-payment
48 Notice of dishonour and effect of non-notice
49 Rules as to notice of dishonour
50 Excuses for non-notice and delay
51 Noting or protest of bill
52 Duties of holder as regards drawee or acceptor
Liabilities of Parties
53 Funds in hands of drawee
54 Liability of acceptor
55 Liability of drawer or indorser
56 Stranger signing bill liable as indorser
57 Measure of damages against parties to dishonoured bill
58 Transferor by delivery and transferee
Discharge of Bill
59 Payment in due course
60 Banker paying demand draft whereon indorsement is forged
61 Acceptor the holder at maturity
62 Express waiver
64 Alteration of bill
Acceptance and Payment for Honour
65 Acceptance for honour supra protest
66 Liability of acceptor for honour
67 Payment to acceptor for honour
68 Payment for honour supra protest
69 Holder's right to duplicate of lost bill
70 Action on lost bill
Bill in a Set
71 Rules as to sets
Conflict of Laws
72 Rules where laws conflict
Cheques on a Banker
73 Cheque defined
74 Presentment of cheque for payment
75 Revocation of banker's authority
76 General and special crossings defined
77 Crossing by drawer or after issue
78 Crossing a material part of cheque
79 Duties of banker as to crossed cheques
80 Protection to banker and drawer where cheque is crossed
81 Effect of crossing on holder
82 Protection to collecting banker
83 Promissory note defined
84 Delivery necessary
85 Joint and several notes
86 Note payable on demand
87 Presentment of note for payment
88 Liability of maker
89 Application of Part II to notes
90 Good faith
92 Computation of time
94 When noting equivalent to protest
95 Protest when Notary not accessible
96 Dividend warrants may be crossed
THE BILLS OF EXCHANGE ACT
[Date of Commencement: 1893]
Act 25 of 1968.
This Act may be cited as the Bills of Exchange Act.
In this Act-
"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 and "note" means promissory note;
"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;
"holiday" means any day appointed by law, to be kept as a 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;
"person" includes a body of persons, whether incorporated or not;
"value" means valuable consideration;
"written" includes printed, and "writing" includes print.
Bills of Exchange Form and Interpretation
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 certain sum in money to or to the order of a specified person, or to bearer.
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.
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 himself, or a particular account to be debited with the amount; or
(b) a statement of the transaction which gives rise to the bill-
A bill is not invalid by reason-
(c) that it is not dated;
(d) that it does not specify the value given, or that any value has been given therefor;
(e) that it does not specify the place where it is drawn, or the place where it is payable.
An inland bill is a bill which is, or on the face of it foreign bills purports to be-
(a) both drawn and payable within this Island; or
(b) drawn within this Island upon some person resident therein.
Any other bill is a foreign bill.
Unless the contrary appear on the face of the bill, the holder may treat it as an inland bill.
A bill may be drawn payable to or to the order of the drawer; or it may be drawn payable to or to the order of the drawee.
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.
The drawee must be named or otherwise indicated in a bill with reasonable certainty.
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.
Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty.
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.
Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer.
When 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.
A negotiable bill may be payable either to order or to bearer.
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.
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.
Where a bill, either originally or by indorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.
The sum payable by a bill is a sum certain within the meaning of this Act, 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.
Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the same denoted by the words is the amount payable.
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 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.
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.
A bill is payable at a determinable future time within the meaning of this Act 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.
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