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cheque is or was crossed, or to his agent for collection being a banker, as the case may be.

80. Where the banker, on whom a crossed cheque is drawn, in Protection to good faith and without negligence pays it, if crossed generally, drawer where to a banker, and if crossed specially, to the banker to whom it cheque is is crossed, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer shall 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.

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

82. Where a banker in good faith and without negligence Protection to receives payment for a customer of a cheque crossed generally or

collecting specially to himself, 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.

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

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

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

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

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

85.-1.) A promissory note may be made by two or more Joint and makers, and they may be liable thereon jointly, or jointly and several notes. 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.

86.4(1.) Where a note payable on demand has been indorsed, Note payable on it must be presented for payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged.


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Presentment of note for pay. ment.

Liability of maker.

(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 elsewhere, if sufficient in other respects, shall also suffice.

88. The maker of a promissory note by making it,
(1.) Engages that he will pay it according to its tenor;
(2.) Is precluded from denying to a holder in due course the

existence of the payee and his then capacity to indorse. 89.—(1.) Subject to the provisions in this part and, except as by this section provided, the provisions of this 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 ;
(6.) Acceptance;
(c.) Acceptance supra protest;
(d.) Bills in a set.

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

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

Application of Part II. to notes.


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Good faith.

91.-(1.) Where, by this Act, any instrument or writing is Signature. 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 Act, any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal.

But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.

92. Where, by this Act, the time limited for doing any act or Computation thing is less than three days, in reckoning the time, non-business of time. days are excluded.

“Non-business days” for the purposes of this Act mean-
(a.) Sunday, Good Friday, Christmas Day :
(6.) A bank holiday under the Bank Holidays Act 1871 (a), or

Acts amending it:
(c.) A day appointed by Royal proclamation as a public fast or

thanksgiving day. Any other day is a business day.

93. For the purposes of this Act, where a bill or note is when noting required to be protested within a specified time or before some

equivalent to

protest. further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting.

94. Where a dishonoured bill or note is authorised or required Protest when to be protested, and the services of a notary cannot be obtained notary not 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.

The form given in Schedule 1 to this Act may be used with necessary modifications, and if used shall be sufficient.

95. The provisions of this Act as to crossed cheques shall Dividend apply to a warrant for a payment of dividend.

97.-(1.) The rules in bankruptcy relating to bills of exchange Savings_33 & 34 promissory notes, and cheques, shall continue to apply thereto 25 & 26Vict.c.89. notwithstanding anything in this Act contained.

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

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(a) See p. 3.


(3.) Nothing in this Act or in any repeal effected thereby shall affect(a.) The provisions of the Stamp Act, 1870, or Acts amending

it, or any law or enactment for the time being in force

relating to the revenue. (6.) The provisions of the Companies Act, 1862, or Acts

amending it, or any Act relating to joint-stock banks or

companies : (c.) The provisions of any Act relating to or confirming the

privileges of the Bank of England or the Bank of

Ireland respectively: (d.) The validity of any usage relating to dividend warrants,

or the indorsement thereof.
99. Where any Act or document refers to any enactment
repealed by this Act, the Act or document shall be construed,
and shall operate as if it referred to the corresponding provisions
of this Act.

Form of protest which may be used when the services of a notary cannot
be obtained.
Know all men that I, A. B. [householder], of in the county of

in the United Kingdom, at the request of C. D., there being no notary public available, did on the

188 demand payment (or acceptance] of the bill of exchange hereunder written, from E. F., to which demand he made answer [state answer, if any] wherefore I now, in the presence of G. H. and J. K., do protest the said bill of exchange.

(Signed) A.B.

Construction with other Acts, &c.

day of



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G. H. Witnesses.

K.) N. B.—The bill itself should be annexed, or a copy of the bill and all that is written thereon should be underwritten.

An Act to Amend the Law relating to Bills of Lading.

18 & 19 Vict. c. 111. Rights of con- 1. Every consignee of goods named in a bill of lading, and siguee or indorsee.

every indorsee of a bill of lading to whom the property in the goods therein mentioned shall pass upon, or by reason of such consignment or indorsement, shall have transferred to and vested in him all rights of suit, and be subject to the same liabilities in respect of such goods as if the contract contained in the bill of

lading had been made with himself. Not to affect 2. Nothing herein contained shall prejudice or affect any right right of stoppage of stoppage in transitu, or any right to claim freight against the in or claim or original shipper or owner, or any liability of the consignee or freight

indorsee by reason of his being such consignee or indorsee, or of his receipt of the goods by reason of such consignment or indorsement.

3. Every bill of lading in the hands of a consignee or indorsee Evidence of for valuable consideration representing goods to have been

shipment. shipped on board a vessel shall be conclusive evidence of such shipment as against the master or other person signing the same, notwithstanding such goods or some part thereof may not have been so shipped, unless such holder of the bill of lading shall have had actual notice at the time of receiving the same that the goods had not been in fact laden on board.(a)

Proviso: The master or other person so signing may exonerate himself in respect of such misrepresentation by showing that it was caused without any default on his part, and wholly by the fraud of the shipper or holder, or some person under whom the holder claims.

The Stamp Act, 1870.

33 & 34 Vior. C. 97. 56.-(1.) A bill of lading is not to be stamped after the execu- Stamp duty. tion thereof.

(2.) Every person who makes or executes any bill of lading not duly stamped shall forfeit the sum of 501.

The Stamp Act, 1870.

33 & 34 Vict. c. 97. 57. A copy of a bill of sale is not to be filed in any court, Stamp duty. unless the original, duly stamped, is produced to the proper officer.

The Bills of Sale Act, 1878.

41 & 42 Vict. c. 31. 2. This Act shall come into operation on the 1st day of CommenceJanuary, 1879, which day is in this Act referred to as the commencement of this Act.

3. This Act shall apply to every bill of sale executed on or Application of



(a) The owner is not estopped by the signature of the master from showing that the goods or some of them were never put on board : (Brown v. Powell, Duffryn, gc., Company, 32 L. T. 621.)

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