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accept or pay the bill, and the drawer has no reason

to believe that the bill would be paid if presented. (d.) As regards an indorser, where the bill was accepted or

made for the accommodation of that indorser, and he has no reason to expect that the bill would be paid if

presented.

(e.) By waiver of presentment, express or implied. Dishonor by 47.-(1.) A bill is dishonored by non-payment (a) when it non.payment. is duly presented for payment and payment is refused or cannot

be obtained, or (b) when presentment is excused and the bill is overdue and unpaid.

(2.) Subject to the provisions of this Act, when a bill is dishonored by non-payment, an immediate right of recourse against

the drawer and indorsers accrues to the holder. Notice of dis. 48. Subject to the provisions of this Act, when a bill has been honor and dishonored by non-acceptance or by non-payment, notice of diseffect of non

honor must be given to the drawer and each indorser, and any notice.

drawer or indorser to whom such notice is not given is discharged; Provided that

(1.) Where a bill is dishonored by non-acceptance, and notice of dishonor 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 dishonored by non-acceptance, and due notice of dishonor is given, it shall not be necessary to the give notice of a subsequent dishonor by non-payment unless

bill shall, in the meantime, have been accepted. Rules as to 49. Notice of dishonor in order to be valid and effectual notice of dis.

must be given in accordance with the following rules :honor.

(1.) The notice must be given by or on behalf of the holder,

or by or on behalf of an indorser who, at the time of

giving it, is himself liable on the bill. (2.) Notice of dishonor 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 be his principal or

not. (3.) Where the notice is given by or on behalf of the holder,

it enures for the benefit of all subsequent holders and all prior indorsers who have a right of recourse

against the party to whom it is given. (4.) Where 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.

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(5.) The notice may be given in writing or by personal

communication, and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonored by non-acceptance or non

payment. (6.) The return of a dishonored bill to the drawer or an

indorser is, in point of form, deemed a sufficient notice

of dishonor. (7.) A written notice need not be signed, and an insufficient

written notice may be supplemented and validated by verbal communication. A misdescription of the bill shall not vitiate the notice unless the party to whom

the notice is given is in fact misled thereby. (8.) Where notice of dishonor is required to be given to any

person, it may be given either to the party himself,

or to his agent in that behalf. (9.) Where the drawer or indorser is dead, and the party

giving notice knows it, the notice must be given to a personal representative if such there be, and with the

exercise of reasonable diligence he can be found. (10.) Where the drawer or indorser is bankrupt, notice may

be given either to the party himself or to the trustee. (11.) 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. (12.) The notice may be given as soon as the bill is dis

honored 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 dishonor of the bill. (6) where the person giving and the person to receive notice

reside in different places, the notice is sent off on the day after the dishonor 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. (13.) Where a bill when dishonored 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 prin. cipal. If he give notice to his principal, he must do so within the same time as if he were the holder,

and the principal upon receipt of such notice has himself the same time for giving notice as if the

agent had been an independent holder. (14.) Where a party to a bill receives due notice of dishon

or he has, after the receipt of such notice, the same period of time for giving notice to antecedent parties

that the holder has after the dishonor. (15.) Where a notice of dishonor is duly addressed and

posted, the sender is deemed to have given due notice of dishonor, notwithstanding any miscarriage

by the post office. Excuses for 50.-(1.) Delay in giving notice of dishonor is excused non-notice and where the delay is caused by circumstances beyond the control delay.

of the party giving notice, and not imputable to his default,
misconduct, or negligence. When the cause of delay ceases to
operate, the notice must be given with reasonable diligence.

(2.) Notice of dishonor 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 : (6.) By waiver express or implied. Notice of dishonor

may be waived before the time of giving notice has

arrived, or after the omission to give due notice : (c.) As regards the drawer in the following cases, namely,

(1) where drawer and drawee are the same person, (2) where the drawee is a fictitious person or a person not having capacity to contract, (3) where the drawer is the person to whom the bill is presented for payment, (4) where the drawee or acceptor is as between himself and the drawer under no obligation to accept or pay the bill, (5) where the drawer has counter

manded payment: (d.) As regards the indorser in the following cases, namely,

(1) 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 he indorsed the bill, (2) where the indorser is the person to whom the bill is presented for payment, (3) where the bill was accepted

or made for his accommodation. Noting or pro. 51.-(1.) Where an inland bill has been dishonored it

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if the holder think fit, be noted for non-acceptance or non-payment, as he 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 dishonored by non-acceptance it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonored by non-acceptance, is dishonored by non-payment, it must be duly protested for nonpayment. If it be 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 dishonor 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 Act, when a bill is noted or protested, it must be noted on the day of its dishonor. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.

(5.) Where the acceptor of a bill becomes bankrupt or insolvent or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and indorsers.

(6.) A bill must be protested at the place where it is dishonored : Provided that (a.) When a bill is presented through the post office, and

returned by post dishonored, 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 : (6.) When a bill drawn payable at the place of business or

residence of some person other than the drawee, has been dishonored by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment

for payment to, or demand on, the drawee is necessary. (7.) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify

(a.) The person at whose request the bill is protested : (6.) The place and date of protest, the cause or reason for

protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee, or acceptor

could not be found. (8.) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

(9.) Protest is dispensed with by any circumstance which would dispense with notice of dishonor. Delay in noting or protesting 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, the bill must be noted or protested with rea

sonable diligence. Duties of 52.-(1.) When a bill is accepted generally presentment for holder as re

payment is not necessary in order to render the acceptor liable. gards dra wee or asceptor. (2.) When by the terms of a qualified acceptance present

ment 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 dishonor should be given to him.

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

Liabilities of Parties. Funds in hands 53.—(1.) A bill, of itself, does not operate as an assignment of drawee.

of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument. This sub-section shall not extend to Scotland.

(2.) In Scotland, where the drawee of a bill has in his hands funds available for the payment thereof, the bill operates as an assignment of the sum for which it is drawn in favour of the

holder, from the time when the bill is presented to the drawer. Liability of 54. The acceptor of a bill, by accepting itacceptov.

(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 ; (6.) In the case of a bill payable to drawer's order, the then

capacity of the drawer to indorse, but not the

genuineness or validity of his indorsement; (c.) In the case of a bill payable to the order of a third per

son, the existence of the payee and his then capacity, to indorse, but not the genuineness or validity of his indorsement.

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