JurisAssist JurisAssist Statutes
Ask AI Sign in

Uganda Act or statute

Parliament of Uganda

Bills of Exchange Act

Defines specific terms used in the Act such as “acceptance”, “action”, “banker”, “bearer”, “bill”, “delivery”, “endorsement”, “holder”, “issue”, “person”, “value”, and “written”. A bill is payable…

Jurisdiction
Uganda
Structure
95 provisions
Citation
Chapter 68
Dates
Undated source snapshot
More statute details
Dates
Undated source snapshot

Source attribution: Source: Uganda Legal Information Institute

On this page

Professional statute overview

Enactment structure, operative effect and source provenance

01

Purpose and legislative effect

“Defines specific terms used in the Act such as “acceptance”, “action”, “banker”, “bearer”, “bill”, “delivery”, “endorsement”, “holder”, “issue”, “person”, “value”, and “written”.”

Defines specific terms used in the Act such as “acceptance”, “action”, “banker”, “bearer”, “bill”, “delivery”, “endorsement”, “holder”, “issue”, “person”, “value”, and “written”. A bill is payable at a determinable future time when it states it is payable at a fixed period after date or sight, or on/at a fixed period after a specified event that is certain to happen (but timing may be uncertain). If a bill payable after a fixed period is undated (or its acceptance payable after sight is undated), any holder may insert the true date of issue or acceptance, and the bill will be payable accordingly. When a bill (or an acceptance or endorsement on a bill) bears a date, that date is presumed to be the true date of drawing, acceptance or endorsement unless the contrary is proved; and a bill is not invalid merely because it is antedated or postdated or dated on a Sunday. Specifies how to compute the time of payment for bills, including adding three ‘days of grace’, rules when the last day of grace falls on Sundays or holidays, how to count periods after date or after sight, and defines “month” as calendar month.

02

How the instrument operates

  1. 01

    Start with the recorded version

    Undated source snapshot. The date shown identifies this source expression and should not be treated as proof that no later change exists.

  2. 02

    Locate the controlling provision

    Use the provision map, part headings and full-text filter to move from the broad subject to the exact legal language.

  3. 03

    Read conditions and exceptions together

    Keep subsections, definitions, provisos and cross-references in context before drawing a legal conclusion.

  4. 04

    Verify currency and official wording

    Confirm later legislation, commencement notices and corrections with the official publisher before advice, filing or reliance.

03

Research entry points

Selected provisions across the instrument. Open any row to continue with the exact stored text.

Interpretation - Interpretation

Defines specific terms used in the Act such as “acceptance”, “action”, “banker”, “bearer”, “bill”, “delivery”, “endorsement”, “holder”, “issue”, “person”, “value”, and “written”.

Section 1

Bills of exchange - Requisites of a valid endorsement

For an endorsement to operate as a negotiation it must be written on the bill and signed by the endorser; a simple signature is sufficient; endorsements may be in blank or special and may contain restrictive terms.

Section 31

Supplementary - Savings

Existing rules concerning bankruptcy as they apply to bills of exchange, promissory notes and cheques, the rules of common law (including the law merchant) to those instruments where consistent with this Act, provisions of the Stamps Act and Companies Act, and…

Section 95

04

Source and current-law status

Source record view

Stored legal source record · Undated source snapshot

Verify current force

The source record does not state a definitive current-law status. Check the official publisher and later amendments before relying on this text.

For advice, pleadings, or compliance decisions, retain the official source and confirm the current consolidated provision.

Source-indexed provision map

Sections and provisions

Search by section, heading, part or exact legal wording. Every result remains linked to the stored source record.

Showing 95 of 95 provisions

Provision 92Interpretation 3

Part I

Interpretation

§ 1Interpretation - InterpretationInterpretation

Defines specific terms used in the Act such as “acceptance”, “action”, “banker”, “bearer”, “bill”, “delivery”, “endorsement”, “holder”, “issue”, “person”, “value”, and “written”.

Section Interpretation Section In this Act, unless the context otherwise requires— “ acceptance ” means an acceptance completed by delivery or notification; “ action ” includes counterclaim and setoff; “ 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; “ endorsement ” means an endorsement completed by delivery ; “ holder ” means the payee or endorsee of a bill or note who is in possession of it, or the bearer of a bill or note; “ 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.
Section 1

Part II

Bills of exchange

§ 10Bills of exchange - Bill payable at a future timeProvision

A bill is payable at a determinable future time when it states it is payable at a fixed period after date or sight, or on/at a fixed period after a specified event that is certain to happen (but timing may be uncertain).

Section Bill payable at a future time Section A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable— at a fixed period after date or sight; 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. An instrument expressed to be payable on a contingency is not a bill , and the happening of the event does not cure the defect.
Section 10
§ 11Bills of exchange - Omission of date in bill payable after dateProvision

If a bill payable after a fixed period is undated (or its acceptance payable after sight is undated), any holder may insert the true date of issue or acceptance, and the bill will be payable accordingly.

Section Omission of date in bill payable after date Section Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert in the bill the true date of issue or acceptance , and the bill shall be payable accordingly; but— where the holder in good faith and by mistake inserts a wrong date; and 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.
Section 11
§ 12Bills of exchange - Antedating and postdatingProvision

When a bill (or an acceptance or endorsement on a bill) bears a date, that date is presumed to be the true date of drawing, acceptance or endorsement unless the contrary is proved; and a bill is not invalid merely because it is antedated or postdated or dated on a Sunday.

Section Antedating and postdating Section Where a bill or an acceptance or any endorsement on a bill is dated, the date shall, unless the contrary is proved, be deemed to be the true date of the drawing, acceptance or endorsement . A bill is not invalid by reason only that it is antedated or postdated, or that it bears a date on a Sunday.
Section 12
§ 13Bills of exchange - Computation of time of paymentProvision

Specifies how to compute the time of payment for bills, including adding three ‘days of grace’, rules when the last day of grace falls on Sundays or holidays, how to count periods after date or after sight, and defines “month” as calendar month.

Section Computation of time of payment Section Where a bill is not payable on demand, the date on which it falls due is determined as follows— 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; but— when the last day of grace falls on a Sunday, Christmas Day or Good Friday, the bill is, except in the case hereafter provided for, due and payable on the preceding business day; when the last day of grace is a public holiday, other than Christmas Day or Good Friday, or when the last day of grace is a Sunday and the second day of grace is a public holiday, the bill is due and payable on the succeeding business day; 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; 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 nonacceptance, or for nondelivery; the term “month” in a bill means calendar month.
Section 13
§ 14Bills of exchange - Case of needProvision

The drawer of a bill and any endorser may insert the name of a person (the “referee in case of need”) whom the holder may choose to resort to if the bill is dishonoured by non-acceptance or non-payment; the holder may decide whether to resort to that referee.

Section Case of need Section The drawer of a bill and any endorser may insert in it the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by nonacceptance or nonpayment. Such person is called the “referee in case of need”. It is in the option of the holder to resort to the referee in case of need or not as he or she may think fit.
Section 14
§ 15Bills of exchange - Optional stipulations by drawer or endorserProvision

The drawer of a bill and any endorser may insert an express stipulation in the bill that limits or negatives their liability to the holder or waives some or all of the holder’s duties.

Section Optional stipulations by drawer or endorser Section The drawer of a bill and any endorser may insert in the bill an express stipulation— negativing or limiting his or her own liability to the holder ; waiving as regards himself or herself some or all of the holder ’s duties.
Section 15
§ 16Bills of exchange - Definition and requisites of acceptanceInterpretation

An acceptance of a bill must be written on the bill and signed by the drawee; it must not state performance by means other than payment of money.

Section Definition and requisites of acceptance Section An acceptance is invalid unless it complies with the following conditions— The acceptance of a bill is the signification by the drawee of his or her assent to the order of the drawer. it must be written on the bill and be signed by the drawee. The mere signature of the drawee without additional words is sufficient; it must not express that the drawee will perform his or her promise by any other means than the payment of money.
Section 16
§ 17Bills of exchange - Time for acceptanceProvision

The holder is entitled, absent a different agreement, to have a dishonoured bill accepted as of the date of first presentment when the drawee later accepts it.

Section Time for acceptance Section A bill may be accepted— before it has been signed by the drawer, or while otherwise incomplete; when it is overdue, or after it has been dishonoured by a previous refusal to accept, or by nonpayment. When a bill payable after sight is dishonoured by nonacceptance, and the drawee subsequently accepts it, the holder , in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance .
Section 17
§ 18Bills of exchange - General and qualified acceptancesProvision

Defines 'general' and 'qualified' acceptances and lists types of qualified acceptance (conditional, partial, local, qualified as to time, and acceptance by some drawees).

Section General and qualified acceptances Section An acceptance is either— A qualified acceptance in express terms varies the effect of the bill as drawn and, in particular, an acceptance is qualified which is— general; or qualified. A general acceptance assents without qualification to the order of the drawer. conditional, that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition stated in it; partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn; local, that is to say, an acceptance to pay only at a particular specified place; but 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; qualified as to time; the acceptance of some one or more of the drawees, but not of all.
Section 18
§ 19Bills of exchange - Inchoate instruments.Provision

A person in possession of an incomplete bill has prima facie authority to fill it up; a holder in due course may enforce a completed instrument as valid.

Section Inchoate instruments. Section Where a simple signature on a blank stamped paper is delivered by the signer in 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, or the acceptor, or an endorser; 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 he or she thinks fit. In order that any such instrument when completed may be enforceable against any person who became a party to it 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; but if any such instrument after completion is negotiated to a holder in due course, it shall be valid and effectual for all purposes in his or her hands, and he or she may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.
Section 19
§ 2Bills of exchange - Bill of exchange definedProvision

Defines "bill of exchange" as an unconditional written order, signed by the giver, requiring payment on demand or at a fixed or determinable future time of a sum certain in money to a specified person, order or bearer.

Section Bill of exchange defined Section 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 bill is not invalid by reason— A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer . 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 indication of a particular fund out of which the drawee is to reimburse himself or herself or a particular account to be debited with the amount; or a statement of the transaction which gives rise to the bill , is unconditional. that it is not dated; that it does not specify the value given or that any value has been given therefor; that it does not specify the place where it is drawn or the place where it is payable.
Section 2
§ 20Bills of exchange - DeliveryProvision

Delivery is required to complete and make effective a contract on a bill between immediate parties and (subject to holder in due course exception) remote parties, but an acceptance notified according to directions becomes complete and irrevocable; delivery must be by or under the authority of the signer and may be conditional; where a signer no longer possesses the bill, valid unconditional delivery is presumed until disproved.

Section Delivery Section As between immediate parties, and as regards a remote party other than a holder in due course, the delivery— Every contract on a bill, whether it is the drawer’s, the acceptor’s, or an endorser’s, is incomplete and revocable, until delivery of the instrument in order to give effect to it; except 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 he or she has accepted it, the acceptance then becomes complete and irrevocable. in order to be effectual must be made either by or under the authority of the party drawing, accepting or endorsing; 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, Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or endorser, a valid and unconditional delivery by him or her is presumed until the contrary is proved.
Section 20
§ 21Bills of exchange - Capacity of partiesProvision

Parties have the same capacity to incur liability on a bill as they have to contract; corporations cannot make themselves liable as drawer, acceptor or endorser unless competent under corporate law, and if a bill is drawn or endorsed by someone without capacity the holder may receive payment and enforce the bill against other parties.

Section Capacity of parties Section Capacity to incur liability as a party to a bill is coextensive with capacity to contract; but nothing in this section shall enable a corporation to make itself liable as drawer, acceptor or endorser of a bill unless it is competent to it so to do under the law for the time being relating to corporations. Where a bill is drawn or endorsed by an infant, minor or corporation having no capacity or power to incur liability on a bill , the drawing or endorsement entitles the holder to receive payment of the bill and to enforce it against any other party thereto.
Section 21
§ 22Bills of exchange - Signature essential to liabilityProvision

A person is not liable as drawer, endorser or acceptor of a bill if they have not signed it as such, with specified exceptions for trade names and firm signatures.

Section Signature essential to liability Section No person is liable as drawer, endorser or acceptor of a bill who has not signed it as such; except that— where a person signs a bill in a trade or assumed name, he or she is liable on the bill as if he or she had signed it in his or her own name; 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.
Section 22
§ 23Bills of exchange - Forged or unauthorised signatureProvision

A forged or unauthorised signature on a bill is wholly inoperative and no right to retain, discharge, or enforce payment of the bill can be acquired through that signature, unless the party is precluded from relying on the forgery or want of authority.

Section Forged or unauthorised signature Section Subject to this Act, where a signature on a bill is forged or placed on the bill without the 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 or to give a discharge for it or to enforce payment of it against any party to it 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; but nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.
Section 23
§ 24Bills of exchange - Procuration signaturesProvision

A procuration signature signals the agent has limited signing authority; the principal is bound by the signature only if the agent acted within the actual limits of that authority.

Section Procuration signatures Section A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his or her authority.
Section 24
§ 25Bills of exchange - Person signing as agent or in representative capacityProvision

If a person signs a bill and adds words showing they sign on behalf of a principal or in a representative capacity, that person is not personally liable on the bill; however, merely adding words describing oneself as an agent does not itself exempt personal liability.

Section Person signing as agent or in representative capacity Section Where a person signs a bill as drawer, endorser or acceptor, and adds words to his or her signature, indicating that he or she signs for or on behalf of a principal, or in a representative character, he or she is not personally liable thereon; but the mere addition to his or her signature of words describing him or her as an agent, or as filling a representative character, does not exempt him or her from personal liability. 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.
Section 25
§ 26Bills of exchange - Value and holder for valueProvision

Valuable consideration for a bill may be either consideration sufficient to support a simple contract or an antecedent debt or liability; a holder who has obtained value (or a lien to the extent of the lien) is deemed a holder for value in relation to earlier parties and the acceptor.

Section Value and holder for value Section Valuable consideration for a bill may be constituted by— any consideration sufficient to support a simple contract; an antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time. 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 that time. Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he or she is deemed to be a holder for value to the extent of the sum for which he or she has a lien.
Section 26
§ 27Bills of exchange - Accommodation bill or partyProvision

Defines an accommodation party as someone who signs a bill without receiving value to lend their name, and states that such a party is liable on the bill to a holder for value.

Section Accommodation bill or party Section An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or endorser, without receiving value for it, and for the purpose of lending his or her name to some other person . An accommodation party is liable on the bill to a holder for value ; and it is immaterial whether, when the holder took the bill , he or she knew that party to be an accommodation party or not.
Section 27
§ 28Bills of exchange - Holder in due courseProvision

Defines who is a holder in due course and grants rights to persons who derive title through such a holder if not party to fraud or illegality.

Section Holder in due course Section A holder in due course is a holder who has taken a bill , complete and regular on the face of it, under the following conditions— that he or she became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if that was the fact; that he or she took the bill in good faith and for value , and that at the time the bill was negotiated to him or her he or she had no notice of any defect in the title of the person who negotiated it. The title of a person who negotiates a bill is defective within the meaning of this Act when he or she obtained the bill , or the acceptance of it, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he or she negotiates it in breach of faith, or under such circumstances as amount to a fraud. A holder (whether for value or not) who derives his or her title to a bill through a holder in due course, and who is not himself or herself 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 .
Section 28
§ 29Bills of exchange - Presumption of value and good faithProvision

Signatories on a bill are presumed parties for value; holders are presumed holders in due course unless fraud, duress, force and fear, or illegality is admitted or proved, in which case the burden shifts and the holder must show subsequent good-faith value.

Section Presumption of value and good faith Section Every party whose signature appears on a bill is prima facie deemed to have become a party to it for value . Every holder of a bill is prima facie deemed to be a holder in due course; but if in an action on a bill it is admitted or proved that the acceptance , issue or subsequent negotiation of the bill is affected with fraud, duress, or force and fear or illegality, the burden of proof is shifted, until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill .
Section 29
§ 3Bills of exchange - Inland and foreign billsProvision

The holder may treat a bill as an inland bill unless the contrary appears on the face of the bill.

Section Inland and foreign bills Section An inland bill is a bill which is or on the face of it purports to be— both drawn and payable within East Africa; or drawn within East Africa upon some person resident in East Africa, and any other bill is a foreign bill . Unless the contrary appears on the face of the bill , the holder may treat it as an inland bill .
Section 3
§ 30Bills of exchange - Negotiation of billProvision

Defines when a bill is negotiated; explains negotiation methods for bearer and order bills; states effects of transfer without endorsement and permits representative endorsements that negate personal liability.

Section Negotiation of bill Section A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill . A bill payable to bearer is negotiated by delivery . A bill payable to order is negotiated by the endorsement of the holder completed by delivery . Where the holder of a bill payable to his or her order transfers it for value without endorsing 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 endorsement of the transferor. Where any person is under obligation to endorse a bill in a representative capacity, he or she may endorse the bill in such terms as to negative personal liability.
Section 30
§ 31Bills of exchange - Requisites of a valid endorsementProvision

For an endorsement to operate as a negotiation it must be written on the bill and signed by the endorser; a simple signature is sufficient; endorsements may be in blank or special and may contain restrictive terms.

Section Requisites of a valid endorsement Section An endorsement in order to operate as a negotiation must comply with the following conditions— it must be written on the bill itself and be signed by the endorser. The simple signature of the endorser on the bill , without additional words, is sufficient. An endorsement 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; it must be an endorsement of the entire bill . A partial endorsement , that is to say, an endorsement which purports to transfer to the endorsee a part only of the amount payable, or which purports to transfer the bill to two or more endorsees severally, does not operate as a negotiation of the bill ; where a bill is payable to the order of two or more payees or endorsees who are not partners, all must endorse, unless the one endorsing has authority to endorse for the others; where, in a bill payable to order, the payee or endorsee is wrongly designated, or his or her name is misspelt, he or she may endorse the bill as described in it, adding, if he or she thinks fit, his or her proper signature; where there are two or more endorsements on a bill , each endorsement is deemed to have been made in the order in which it appears on the bill , until the contrary is proved; an endorsement may be made in blank or special; it may also contain terms making it restrictive.
Section 31
§ 32Bills of exchange - Conditional endorsementProvision

The payer may disregard a conditional endorsement; payment to the endorsee is valid whether the condition has been fulfilled or not.

Section Conditional endorsement Section Where a bill purports to be endorsed conditionally, the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.
Section 32
§ 33Bills of exchange - Endorsement in blank and special endorsementProvision

A bill endorsed in blank becomes payable to bearer; a special endorsement makes the bill payable to the named person or their order; any holder of a blank-endorsed bill may convert it into a special endorsement by writing, above the endorser’s signature, a direction naming the payee or order.

Section Endorsement in blank and special endorsement Section An endorsement in blank specifies no endorsee, and a bill so endorsed becomes payable to bearer . A special endorsement specifies the person to whom, or to whose order, the bill is to be payable. The provisions of this Act relating to a payee apply with the necessary modifications to an endorsee under a special endorsement . When a bill has been endorsed in blank, any holder may convert the blank endorsement into a special endorsement by writing above the endorser’s signature a direction to pay the bill to or to the order of himself or herself or some other person .
Section 33
§ 34Bills of exchange - Restrictive endorsementProvision

A restrictive endorsement prevents further negotiation of the bill and gives the endorsee the right to receive payment and to sue parties the endorser could have sued, but the endorsee cannot transfer those rights unless the endorsement expressly authorises transfer.

Section Restrictive endorsement Section An endorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership of the bill , as, for example, if a bill be endorsed “Pay D only”, or “Pay D for the account of X”, or “pay D or order for collection”. A restrictive endorsement gives the endorsee the right to receive payment of the bill and to sue any party to it that his or her endorser could have sued, but gives him or her no power to transfer his or her rights as endorsee unless it expressly authorises him or her to do so. Where a restrictive endorsement authorises further transfer, all subsequent endorsees take the bill with the same rights and subject to the same liabilities as the first endorsee under the restrictive endorsement .
Section 34
§ 35Bills of exchange - Negotiation of overdue or dishonoured billProvision

Bills negotiable in origin remain negotiable until restrictively endorsed or discharged; an overdue bill negotiated carries the defects of title from maturity so takers cannot obtain a better title; a bill payable on demand is 'overdue' if it has been in circulation for an unreasonable time; negotiations are presumed before overdue unless endorsement dated after maturity; takers of dishonoured non-overdue bills who have notice take subject to defects without affecting holder-in-due-course rights.

Section Negotiation of overdue or dishonoured bill Section Where a bill is negotiable in its origin, it continues to be negotiable until it has been— restrictively endorsed; or discharged by payment or otherwise. 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 he or she took it had. A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact. Except where an endorsement bears date after the maturity of the bill , every negotiation is prima facie deemed to have been effected before the bill was overdue. Where a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this subsection shall affect the rights of a holder in due course.
Section 35
§ 36Bills of exchange - Negotiation of bill to party already liable on the billProvision

If a bill is negotiated back to the drawer, a prior endorser, or the acceptor, that party may reissue and further negotiate the bill (subject to the Act), but that party may not enforce payment of the bill against any intervening party to whom they were previously liable.

Section Negotiation of bill to party already liable on the bill Section Where a bill is negotiated back to the drawer, or to a prior endorser, or to the acceptor, such party may, subject to the provisions of this Act, reissue and further negotiate the bill , but he or she is not entitled to enforce payment of the bill against any intervening party to whom he or she was previously liable.
Section 36
§ 37Bills of exchange - Rights of the holderProvision

The holder of a bill has specific rights: may sue in own name; a holder in due course holds the bill free of prior title defects and may enforce payment; defective title can be cured when negotiated to a holder in due course; a payer in due course gets a valid discharge when payment is made.

Section Rights of the holder Section The rights and powers of the holder of a bill are as follows— (a) he or she may sue on the bill in his or her own name; (b) where he or she is a holder in due course, he or she holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill ; (c) where his or her title is defective— (i) if he or she negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill ; and (ii) if he or she obtains payment of the bill , the person who pays him or her in due course gets a valid discharge for the bill .
Section 37
§ 38Bills of exchange - When presentment for acceptance is necessaryProvision

Presentment for acceptance is necessary to fix a bill's maturity when it is payable after sight, when the bill expressly stipulates presentment for acceptance, or when payable somewhere other than the drawee's residence or place of business; in other cases presentment for acceptance is not necessary to render parties liable.

Section When presentment for acceptance is necessary Section Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument. 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. In no other case is presentment for acceptance necessary in order to render liable any party to the bill . 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 endorsers.
Section 38
§ 39Bills of exchange - Time for presenting bill payable after sightProvision

When a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time.

Section Time for presenting bill payable after sight Section Subject to this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time. If he or she does not do so, the drawer and all endorsers prior to that holder are discharged. 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.
Section 39
§ 4Bills of exchange - Effect where different parties to bill are the same personProvision

If the drawer and drawee are the same person, or the drawee is fictitious or lacks capacity, the holder may choose to treat the instrument as either a bill of exchange or a promissory note.

Section Effect where different parties to bill are the same person Section 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 or her option, either as a bill of exchange or as a promissory note.
Section 4
§ 40Bills of exchange - Rules as to presentment for acceptance and excuses for nonpresentmentProvision

The holder must present the bill to the drawee (or authorised person) at a reasonable hour on a business day and before it is overdue; presentment is excused in specified circumstances and postal presentment is sufficient when authorised.

Section Rules as to presentment for acceptance and excuses for nonpresentment Section A bill is duly presented for acceptance which is presented in accordance with the following rules— Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by nonacceptance— 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 his or her behalf at a reasonable hour on a business day and before the bill is overdue; where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all; then presentment may be made to him or her only; where the drawee is dead, presentment may be made to his or her personal representative; where the drawee is bankrupt , presentment may be made to him or her or to his or her trustee; where authorised by agreement or usage, a presentment through the post office is sufficient. where the drawee is dead or bankrupt , or is a fictitious person or a person not having capacity to contract by bill ; where, after the exercise of reasonable diligence, such presentment cannot be effected; where, although the presentment has been irregular, acceptance has been refused on some other ground. The fact that the holder has reason to believe that the bill , on presentment, will be dishonoured, does not excuse presentment.
Section 40
§ 41Bills of exchange - NonacceptanceProvision

When a bill presented for acceptance is not accepted within the customary time, the person presenting it must treat the bill as dishonoured by nonacceptance.

Section Nonacceptance Section When a bill is duly presented for acceptance , and is not accepted within the customary time, the person presenting it must treat it as dishonoured by nonacceptance. If he or she does not, the holder shall lose his or her right of recourse against the drawer and endorsers.
Section 41
§ 42Bills of exchange - Dishonour by nonacceptance and its consequencesProvision

When a bill is dishonoured by nonacceptance, the holder immediately gets a right of recourse against the drawer and endorsers; presentment for payment is not necessary.

Section Dishonour by nonacceptance and its consequences Section A bill is dishonoured by nonacceptance— when it is duly presented for acceptance , and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or when presentment for acceptance is excused and the bill is not accepted. Subject to this Act, when a bill is dishonoured by nonacceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder , and no presentment for payment is necessary.
Section 42
§ 43Bills of exchange - Duties as to qualified acceptancesProvision

If a qualified acceptance is taken without the drawer's or endorser's authority or later assent, the drawer or endorser is discharged; the holder may refuse a qualified acceptance and may treat the bill as dishonoured if no unqualified acceptance is obtained; partial acceptances with due notice are excepted; failure to dissent in reasonable time is deemed assent.

Section Duties as to qualified acceptances Section Where a qualified acceptance is taken, and the drawer or an endorser has not expressly or impliedly authorised the holder to take a qualified acceptance , or does not subsequently assent to it, the drawer or endorser is discharged from his or her liability on the bill ; but— The holder of a bill may refuse to take a qualified acceptance , and, if he or she does not obtain an unqualified acceptance , may treat the bill as dishonoured by nonacceptance. this subsection shall not apply to a partial acceptance , of which due notice has been given; where a foreign bill has been accepted as to part, it must be protested as to the balance. When the drawer or endorser of a bill receives notice of a qualified acceptance and does not, within a reasonable time, express his or her dissent to the holder , he or she shall be deemed to have assented to it.
Section 43
§ 44Bills of exchange - Rules as to presentment for paymentProvision

A bill must be presented for payment by the holder or someone authorised to receive payment; timing and place rules determine when and where presentment must occur.

Section Rules as to presentment for payment Section A bill is duly presented for payment which is presented in accordance with the following rules— a bill is presented at the proper place— Subject to this Act, a bill must be duly presented for payment. If it be not so presented, the drawer and endorsers shall be discharged. where the bill is not payable on demand, presentment must be on the day it falls due; where the bill is payable on demand, then, subject to the provisions of 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 endorsement , in order to render the endorser liable. 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; presentment must be made by the holder , or by some person authorised to receive payment on his or her behalf, at a reasonable hour on a business day at the proper place, as defined in paragraph (d) of this subsection, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his or her behalf, if with the exercise of reasonable diligence that person can there be found; where a place of payment is specified in the bill and the bill is there presented; 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; where no place of payment is specified, and no address is given, and the bill is presented at the drawee’s or acceptor’s place of business, if known, and if not, at his or her ordinary residence if known; in any other case, if presented to the drawee or acceptor wherever he or she can be found, or if presented at his or her last-known place of business or residence; 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; 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; 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 he or she can be found; where authorised by agreement or usage, a presentment through the post office is sufficient.
Section 44
§ 45Bills of exchange - Excuses for delay or nonpresentment for paymentProvision

Presentment for payment may be dispensed with or delay excused in specified circumstances (e.g., delay beyond the holder's control, drawee fictitious, incapacity to effect presentment despite reasonable diligence, drawer or endorser situations, or waiver).

Section Excuses for delay or nonpresentment for payment Section Presentment for payment is dispensed with— Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder , and not imputable to his or her default, misconduct or negligence. When the cause of delay ceases to operate, presentment must be made with reasonable diligence. 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; where the drawee is a fictitious person ; as regards the drawer, where the drawee or acceptor is not bound, as between himself or herself 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; as regards an endorser, where the bill was accepted or made for the accommodation of that endorser, and he or she has no reason to expect that the bill would be paid if presented; by waiver of presentment, expressed or implied.
Section 45
§ 46Bills of exchange - Dishonour by nonpaymentProvision

If a bill is dishonoured by nonpayment (either refused on presentment or overdue when presentment is excused), the holder immediately has a right of recourse against the drawer and endorsers.

Section Dishonour by nonpayment Section A bill is dishonoured by nonpayment— when it is duly presented for payment and payment is refused or cannot be obtained; or when presentment is excused and the bill is overdue and unpaid. Subject to this Act, when a bill is dishonoured by nonpayment, an immediate right of recourse against the drawer and endorsers accrues to the holder .
Section 46
§ 47Bills of exchange - Notice of dishonour and effect of nonnoticeProvision

When a bill is dishonoured by nonacceptance or nonpayment notice of dishonour must be given to the drawer and each endorser; a drawer or endorser who does not receive notice is discharged.

Section Notice of dishonour and effect of nonnotice Section Subject to this Act, when a bill has been dishonoured by nonacceptance or by nonpayment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom the notice is not given is discharged; except that— where a bill is dishonoured by nonacceptance, 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; where a bill is dishonoured by nonacceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by nonpayment unless the bill shall in the meantime have been accepted.
Section 47
§ 48Bills of exchange - Rules as to notice of dishonourProvision

Notice of dishonour must be given by or on behalf of the holder or a liable endorser within a reasonable time after dishonour; notices may be given immediately and may be given by agents in specified ways; certain recipients (e.g. subsequent holders, prior endorsers) benefit from such notice.

Section Rules as to notice of dishonour Section Notice of dishonour in order to be valid and effectual must be given in accordance with the following rules— the notice may be given as soon as the bill is dishonoured, and must be given within a reasonable time thereafter. In the absence of special circumstances, notice is not deemed to have been given within a reasonable time unless— the notice must be given by or on behalf of the holder , or by or on behalf of an endorser who, at the time of giving it, is himself or herself liable on the bill ; notice of dishonour may be given by an agent either in his or her own name, or in the name of any party entitled to give notice, whether that party is his or her principal or not; where the notice is given by or on behalf of the holder , it enures for the benefit of all subsequent holders and all prior endorsers who have a right of recourse against the party to whom it is given; where notice is given by or on behalf of an endorser entitled to give notice as hereinbefore provided, it enures for the benefit of the holder and all endorsers subsequent to the party to whom notice is given; 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 nonacceptance or nonpayment; the return of a dishonoured bill to the drawer or an endorser is, in point of form, deemed a sufficient notice of dishonour; 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; where notice of dishonour is required to be given to any person , it may be given either to the party himself or herself or to his or her agent for that purpose; where the drawer or endorser 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 or she can be found; where the drawer or endorser is bankrupt , notice may be given either to the party himself or herself or to the trustee; where there are two or more drawers or endorsers 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; where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dishonour of the bill ; 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 is a post at a convenient hour on that day, and if there is no such post on that day then by the next post thereafter; where a bill when dishonoured is in the hands of an agent, he or she may either himself or herself give notice to the parties liable on the bill or he or she may give notice to his or her principal. If he or she gives notice to his or her principal, he or she must do so within the same time as if he or she were the holder , and the principal upon receipt of such notice has himself or herself the same time for giving notice as if the agent had been an independent holder ; where a party to a bill receives due notice of dishonour he or she 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; 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.
Section 48
§ 49Bills of exchange - Excuses for nonnotice and delayProvision

Provides excuses and waivers for notice or delay in giving notice of dishonour of bills of exchange; lists specific cases where notice is dispensed with or may be waived and requires that when a cause of delay ceases the notice be given with reasonable diligence.

Section Excuses for nonnotice and delay Section Notice of dishonour is dispensed with— as regards the drawer in the following cases— as regards the endorser in the following cases— Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his or her default, misconduct or negligence. When the cause of delay ceases to operate, the notice must be given with reasonable diligence. when, after the exercise of reasonable diligence, notice as required by this Act cannot be given to or does not reach the drawer or endorser sought to be charged; 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; where the drawer and drawee are the same person ; where the drawee is a fictitious person or a person not having capacity to contract; where the drawer is the person to whom the bill is presented for payment; where the drawee or acceptor is, as between himself or herself and the drawer, under no obligation to accept or pay the bill ; where the drawer has countermanded payment; where the drawee is a fictitious person or a person not having capacity to contract and the endorser was aware of the fact at the time he or she endorsed the bill ; where the endorser is the person to whom the bill is presented for payment; where the bill was accepted or made for his or her accommodation.
Section 49
§ 5Bills of exchange - Address to draweeProvision

The drawee must be named or otherwise indicated in a bill with reasonable certainty.

Section Address to drawee Section 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 two or more drawees in succession is not a bill of exchange.
Section 5
§ 50Bills of exchange - Noting or protest of billProvision

Sets requirements and effects around noting or protesting bills: what a protest must contain and be signed by, when a holder may cause protest (e.g. on acceptor insolvency), that drawer and endorsers are discharged if a foreign bill is not duly protested, and that delay caused by circumstances beyond the holder's control is excused and the bill must be noted or protested with reasonable diligence when the cause ceases.

Section Noting or protest of bill Section A bill must be protested at the place where it is dishonoured; except that— A protest must contain a copy of the bill , and must be signed by the notary making it and must specify— Where an inland bill has been dishonoured, it may, if the holder thinks fit, be noted for nonacceptance or nonpayment; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or endorser. Where a foreign bill , appearing on the face of it to be such, has been dishonoured by nonacceptance, it must be duly protested for nonacceptance, and where such a bill , which has not been previously dishonoured by nonacceptance, is dishonoured by nonpayment, it must be duly protested for nonpayment. If it is not so protested, the drawer and endorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill , protest of the bill in case of dishonour is unnecessary. A bill which has been protested for nonacceptance may be subsequently protested for nonpayment. Subject to the provisions of 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. 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 endorsers. 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; when a bill drawn payable at the place of business or residence of some person other than the drawee has been dishonoured by nonacceptance, it must be protested for nonpayment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary. the person at whose request the bill is protested; 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 drawer acceptor could not be found. 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. Protest is dispensed with by any circumstances 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 his or her default, misconduct or negligence. When the cause of delay ceases to operate, the bill must be noted or protested with reasonable diligence.
Section 50
§ 51Bills of exchange - Duties of holder as regards drawee or acceptorProvision

If the holder presents a bill for payment, the holder must show the bill to the person from whom payment is demanded, and when the bill is paid the holder must immediately give the bill to the party paying it.

Section Duties of holder as regards drawee or acceptor Section When a bill is accepted generally, presentment for payment is not necessary in order to render the acceptor liable. When by the 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 it matures. 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 him or her. Where the holder of a bill presents it for payment, he or she shall exhibit the bill to the person from whom he or she demands payment; and when a bill is paid, the holder shall immediately deliver it up to the party paying it.
Section 51
§ 52Bills of exchange - Bill not assignment of funds in hands of draweeProvision

A drawee of a bill who does not accept as required by this Act is not liable on the instrument.

Section Bill not assignment of funds in hands of drawee Section A bill of itself does not operate as an assignment of funds in the hands of the drawee available for the payment of it, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.
Section 52
§ 53Bills of exchange - Liability of acceptorProvision

The acceptor of a bill, by accepting it, is precluded from denying certain matters to a holder in due course and undertakes to pay the bill according to the tenor of the acceptance.

Section Liability of acceptor Section The acceptor of a bill , by accepting it— is precluded from denying to a holder in due course— engages that he or she will pay it according to the tenor of his or her acceptance ; the existence of the drawer, the genuineness of his or her signature, and his or her capacity and authority to draw the bill ; in the case of a bill payable to a drawer’s order, the then capacity of the drawer to endorse, but not the genuineness or validity of his or her endorsement ; in the case of a bill payable to the order of a third person , the existence of the payee and his or her then capacity to endorse, but not the genuineness or validity of his or her endorsement .
Section 53
§ 54Bills of exchange - Liability of drawer or endorserProvision

Drawers and endorsers of a bill guarantee payment on due presentment and must compensate holders or endorsers if the bill is dishonoured; they are precluded from denying various matters to holders in due course or endorsees.

Section Liability of drawer or endorser Section The drawer of a bill by drawing it— The endorser of a bill by endorsing it— engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he or she will compensate the holder or any endorser who is compelled to pay it, provided that the requisite proceedings on dishonour is duly taken; is precluded from denying to a holder in due course the existence of the payee and his or her then capacity to endorse. engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he or she will compensate the holder or a subsequent endorser who is compelled to pay it, provided that the requisite proceedings on dishonour are duly taken; 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 endorsements; is precluded from denying to his or her immediate or a subsequent endorsee that the bill was at the time of his or her endorsement a valid and subsisting bill and that he or she had then a good title to it.
Section 54
§ 55Bills of exchange - Stranger signing bill liable as endorserProvision

If a person signs a bill not as drawer or acceptor, they become liable like an endorser to a holder in due course.

Section Stranger signing bill liable as endorser Section Where a person signs a bill otherwise than as drawer or acceptor, he or she thereby incurs the liabilities of an endorser to a holder in due course.
Section 55
§ 56Bills of exchange - Measure of damages against parties to dishonoured billProvision

If a bill is dishonoured, the holder and other parties who paid may recover liquidated damages including the amount of the bill, interest, and noting or protest expenses.

Section Measure of damages against parties to dishonoured bill Section Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows— 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 endorser who has been compelled to pay the bill may recover from the acceptor or from the drawer or from a prior endorser— the amount of the bill ; interest on it 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; the expenses of noting, or when protest is necessary, and the protest has been extended, the expenses of protest; 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 endorser, and the drawer or an endorser who has been compelled to pay the bill may recover from any party liable to him or her, the amount of the reexchange with interest on it until the time of payment; where by this Act interest may be recovered as damages, such interest may, if justice require 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.
Section 56
§ 57Bills of exchange - Transferor by delivery and transfereeProvision

If a holder of a bearer bill negotiates it by delivery without endorsing it, they are a "transferor by delivery"; such a transferor is not liable on the instrument and must warrant to their immediate transferee (a holder for value) that the bill is genuine, that they have the right to transfer it, and that they are not aware of facts making it valueless.

Section Transferor by delivery and transferee Section Where the holder of a bill payable to bearer negotiates it by delivery without endorsing it, he or she is called a “transferor by delivery ”. A transferor by delivery is not liable on the instrument. A transferor by delivery who negotiates a bill thereby warrants to his or her immediate transferee, being a holder for value , that the bill is what it purports to be, that he or she has a right to transfer it and that at the time of transfer he or she is not aware of any fact which renders it valueless.
Section 57
§ 58Bills of exchange - Payment in due courseProvision

Payment in due course is payment made at or after the bill's maturity to the holder in good faith and without notice that the holder's title is defective; a bill is discharged by such payment by or on behalf of the drawee or acceptor.

Section Payment in due course Section Subject to the provisions hereafter contained, when a bill is paid by the drawer or an endorser, it is not discharged, but— A bill is discharged by payment in due course by or on behalf of the drawee or acceptor. “Payment in due course” means payment made at or after the maturity of the bill to the holder of it in good faith and without notice that his or her title to the bill is defective. where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment of it against the acceptor, but may not reissue the bill ; where a bill is paid by an endorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his or her former rights as regards the acceptor or antecedent parties, and he or she may, if he or she thinks fit, strike out his or her own and subsequent endorsements and again negotiate the bill . Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.
Section 58
§ 59Bills of exchange - Banker paying demand draft on which endorsement is forgedProvision

A banker who in good faith and in the ordinary course of business pays a bill or similar draft payable to order on demand may do so without proving the endorsement was made by the purported endorser, and is deemed to have paid in due course even if the endorsement was forged or unauthorized.

Section Banker paying demand draft on which endorsement is forged Section When a bill payable to order on demand is drawn on a banker , and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the endorsement of the payee or any subsequent endorsement was made by or under the authority of the person whose endorsement it purports to be; and the banker is deemed to have paid the bill in due course, although the endorsement has been forged or made without authority. Any draft or order (other than a bill or a cheque) drawn upon a banker for a sum of money payable to order on demand which shall, when presented for payment, purport to be endorsed by the person to whom the draft or order shall be drawn payable, shall be a sufficient authority to that banker to pay the amount of the draft or order to the bearer of it; and it shall not be incumbent on the banker to prove that the endorsement , or any subsequent endorsement , was made by or under the direction or authority of the person to whom the draft or order was or is made payable either by the drawer or endorser of the draft or order.
Section 59
§ 6Bills of exchange - Certainty required as to payeeProvision

When a bill is not payable to bearer, the payee must be named or otherwise indicated with reasonable certainty; a bill may be payable to multiple payees (jointly or alternatively), to some of several payees, or to the holder of an office for the time being; if the payee is fictitious or non‑existing the bill may be treated as payable to bearer.

Section Certainty required as to payee Section Where a bill is not payable to bearer , the payee must be named or otherwise indicated in it 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 nonexisting person , the bill may be treated as payable to bearer .
Section 6
§ 60Bills of exchange - Acceptor the holder at maturityProvision

If the acceptor of a bill is or becomes the holder of it at or after its maturity, the bill is discharged.

Section Acceptor the holder at maturity Section When the acceptor of a bill is or becomes the holder of it at or after its maturity, in his or her own right, the bill is discharged.
Section 60
§ 61Bills of exchange - Express waiverProvision

If the holder of a bill renounces rights against the acceptor absolutely and unconditionally at or after maturity, the bill is discharged; the renunciation must be in writing unless the bill is delivered up to the acceptor; the holder may similarly renounce parties' liabilities before, at or after maturity; this does not affect rights of a holder in due course without notice of the renunciation.

Section Express waiver Section When the holder of a bill at or after its maturity absolutely and unconditionally renounces his or her rights against the acceptor, the bill is discharged. The renunciation must be in writing, unless the bill is delivered up to the acceptor. 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.
Section 61
§ 62Bills of exchange - CancellationProvision

If the holder or the holder's agent intentionally cancels a bill and the cancellation is apparent on the bill, the bill is discharged; intentional cancellation of a signature by the holder or agent may discharge a party liable on the bill; unintentional or unauthorised cancellations are inoperative and the burden of proof lies on the party alleging such defect.

Section Cancellation Section Where a bill is intentionally cancelled by the holder or his or her agent, and the cancellation is apparent on the bill , the bill is discharged. In like manner, any party liable on a bill may be discharged by the intentional cancellation of his or her signature by the holder or his or her agent. In such case, any endorser who would have had a right of recourse against the party whose signature is cancelled is also discharged. A cancellation made unintentionally, or under a mistake, or without the authority of the holder , is inoperative, but where a bill or any signature on it appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake or without authority.
Section 62
§ 63Bills of exchange - Alteration of billProvision

If a bill has been materially altered but the alteration is not apparent and the bill is held by a holder in due course, that holder may treat and enforce the bill according to its original tenor.

Section Alteration of bill Section Where a bill or acceptance is materially altered without the assent of all parties liable on the bill , the bill is avoided, except as against a party who has himself or herself made, authorised or assented to the alteration, and subsequent endorsers; except 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, the holder may avail himself or herself of the bill as if it had not been altered and may enforce payment of it according to its original tenor. 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 consent.
Section 63
§ 64Bills of exchange - Acceptance for honour supra protestProvision

If a bill has been protested for dishonour or for better security and is not overdue, any person not already liable may, with the holder's consent, intervene and accept the bill supra protest for the honour of a liable party or the drawee; a bill may be accepted for part of the sum; an acceptance for honour must be written on the bill and signed.

Section Acceptance for honour supra protest Section An acceptance for honour supra protest in order to be valid must— Where a bill of exchange has been protested for dishonour by nonacceptance, or protested for better security, and is not overdue, any person , not being a party already liable on it, may, with the consent of the holder , intervene and accept the bill supra protest, for the honour of any party liable on it, or for the honour of the person for whose account the bill is drawn. A bill may be accepted for honour for part only of the sum for which it is drawn. be written on the bill and indicate that it is an acceptance for honour; be signed by the acceptor for honour. 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. Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for nonacceptance, and not from the date of the acceptance for honour.
Section 64
§ 65Bills of exchange - Liability of acceptor for honourProvision

An acceptor for honour promises to pay the bill on due presentment if the drawee does not pay, provided the bill was presented and protested for nonpayment and the acceptor receives notice; the acceptor is liable to the holder and to subsequent parties.

Section Liability of acceptor for honour Section The acceptor for honour of a bill by accepting it engages that he or she will, on due presentment, pay the bill according to the tenor of his or her acceptance , if it is not paid by the drawee, provided it has been duly presented for payment, and protested for nonpayment, and that he or she receives notice of these facts. The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he or she has accepted.
Section 65
§ 66Bills of exchange - Presentment to acceptor for honourProvision

If a bill of exchange is dishonoured by the acceptor for honour, the acceptor for honour must protest it for nonpayment.

Section Presentment to acceptor for honour Section Where a dishonoured bill has been accepted for honour supra protest, or contains a reference in case of need, it must be protested for nonpayment before it is presented for payment to the acceptor for honour or referee in case of need. Where the address of the acceptor for honour is in the same place where the bill is protested for nonpayment, the bill must be presented to him or her 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 nonpayment, the bill must be forwarded not later than the day following its maturity for presentment to him or her. Delay in presentment or nonpresentment is excused by any circumstance which would excuse delay in presentment for payment or nonpresentment for payment. When a bill of exchange is dishonoured by the acceptor for honour, it must be protested for nonpayment by him or her.
Section 66
§ 67Bills of exchange - Payment for honour supra protestProvision

When a bill has been protested for nonpayment, any person may pay it supra protest for the honour of a liable party; such payment must be attested by a notarial act of honour, founded on a declaration by the payer or the payer's agent; the payer for honour is entitled to the bill and protest and is subrogated to the holder's rights and duties; if the holder fails to deliver the bill and protest on demand the holder is liable in damages.

Section Payment for honour supra protest Section Where a bill has been protested for nonpayment, any person may intervene and pay it supra protest for the honour of any party liable on it, or for the honour of the person for whose account the bill is drawn. 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. 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. The notarial act of honour must be founded on a declaration made by the payer for honour, or his or her agent in that behalf, declaring his or her intention to pay the bill for honour, and for whose honour he or she pays. 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 he or she pays, and all parties liable to that party. 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, he or she shall be liable to the payer for honour in damages. Where the holder of a bill refuses to receive payment supra protest, he or she shall lose his or her right of recourse against any party who would have been discharged by such payment.
Section 67
§ 68Bills of exchange - Holder’s right to duplicate of lost billProvision

If a bill is lost before it is overdue, the person who was the holder may apply to the drawer for a duplicate bill (giving security if required); if the drawer refuses, the drawer may be compelled to give a duplicate.

Section Holder’s right to duplicate of lost bill Section Where a bill has been lost before it is overdue, the person who was the holder of it may apply to the drawer to give him or her another bill of the same tenor, giving security to the drawer, if required, to indemnify him or her against all persons in case the bill alleged to have been lost shall be found again. If the drawer on request as aforesaid refuses to give such duplicate bill , he or she may be compelled to do so.
Section 68
§ 69Bills of exchange - Action on lost billProvision

In proceedings on a bill, the court or a judge may order that loss of the bill not be raised as a defence if an indemnity satisfactory to the court or judge is provided.

Section Action on lost bill Section In any action or proceeding upon a bill , the court or a judge may order that the loss of the instrument shall not be set up, provided an indemnity is given to the satisfaction of the court or judge against the claims of any other person upon the instrument in question.
Section 69
§ 7Bills of exchange - What bills are negotiableProvision

Rules on when a bill is negotiable and how negotiable bills may be payable (to order or to bearer), and when bills payable to bearer or to order are so expressed.

Section What bills are negotiable Section 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 endorsement is an endorsement 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 endorsement , is expressed to be payable to the order of a specified person , and not to him or her or his or her order, it is, nevertheless, payable to him or her or his or her order at his or her option.
Section 7
§ 70Bills of exchange - Rules as to setsProvision

When a bill is drawn in numbered parts (a set), each part together forms one bill; holders and endorsers of parts are separately liable on those parts, certain holders are deemed the true owner between competing holders, and an acceptor or drawee who accepts or pays multiple parts can be liable on each part.

Section Rules as to sets Section Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill . Where the holder of a set endorses two or more parts to different persons, he or she is liable on every such part, and every endorser subsequent to him or her is liable on the part he or she has himself or herself endorsed as if the parts were separate bills. 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 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 parts first presented to him or her. The acceptance may be written on any part, and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he or she is liable on every such part as if it were a separate bill . When the acceptor of a bill drawn in a set pays it without requiring the part bearing his or her acceptance to be delivered up to him or her, and that part at maturity is outstanding in the hands of a holder in due course, he or she is liable to the holder of it. Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.
Section 70
§ 71Bills of exchange - Rules where laws conflictInterpretation

Determines which country's law governs various aspects of bills of exchange (e.g., form, contracts, holder duties, currency conversion and due date) and includes exceptions for bills issued out of Uganda.

Section Rules where laws conflict Section Where a bill drawn in one country is negotiated, accepted or payable in another, the rights, duties and liabilities of the parties to the bill are determined as follows— 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 contracts, such as acceptance , or endorsement or acceptance supra protest, is determined by the law of the place where the contract was made; except that— where a bill is issued out of Uganda, it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue ; where a bill issued out of Uganda conforms, as regards requisites in form, to the law of Uganda, it may, for the purpose of enforcing payment of it, be treated as valid as between all persons who negotiate, hold or become parties to it in Uganda; subject to this Act, the interpretation of the drawing, endorsement , acceptance or acceptance supra protest of a bill is determined by the law of the place where such contract is made; except that where an inland bill is endorsed in a foreign country, the endorsement shall, as regards the payer, be interpreted according to the law of Uganda; 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; where a bill is drawn out of but payable in Uganda and the sum payable is not expressed in the currency of Uganda, 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; where a bill is drawn in one country and is payable in another, its due date is determined according to the law of the place where it is payable.
Section 71
§ 8Bills of exchange - Sum payableProvision

The sum payable by a bill is a 'sum certain' and may be payable with interest, by stated installments (with a clause making the whole amount due on default of any installment), or according to a stated or directed rate of exchange.

Section Sum payable Section The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid— with interest; by stated installments; by stated installments, with a provision that upon default in payment of any installment the whole shall become due; 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 sum 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 of the bill .
Section 8
§ 9Bills of exchange - Bill payable on demandProvision

A bill is payable on demand if it is expressed to be so, at sight, on presentation, or has no time for payment; if an overdue bill is accepted or endorsed, it is deemed payable on demand as regards that acceptor or endorser.

Section Bill payable on demand Section A bill is payable on demand— which is expressed to be payable on demand, or at sight, or on presentation; or in which no time for payment is expressed. Where a bill is accepted or endorsed when it is overdue, it shall, as regards the acceptor who so accepts, or any endorser who so endorses it, be deemed a bill payable on demand.
Section 9

Part III

Cheques on a banker

§ 72Cheques on a banker - Cheque definedProvision

Defines a cheque as a bill of exchange drawn on a banker payable on demand.

Section Cheque defined Section A cheque is a bill of exchange drawn on a banker payable on demand. Except as otherwise provided in this Part of this Act, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque.
Section 72
§ 73Cheques on a banker - Presentment of cheque for paymentProvision

If a cheque is not presented within a reasonable time and the drawer (or account-holder) who had the right to have it paid suffers actual damage from the delay, that drawer is discharged for the amount of the damage; the cheque holder becomes the creditor to that extent and may recover the amount from the banker.

Section Presentment of cheque for payment Section Subject to this Act— 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 the presentment as between him and her and the banker to have the cheque paid and suffers actual damage through the delay, he or she is discharged to the extent of the damage, that is to say, to the extent to which such drawer or person is a creditor of the banker to a larger amount than he or she would have been had the cheque been paid; 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; the holder of the cheque as to which the drawer or person is discharged shall be a creditor, in lieu of the drawer or person , of the banker to the extent of such discharge, and entitled to recover the amount from him or her.
Section 73
§ 74Cheques on a banker - Revocation of banker’s authorityProvision

The duty and authority of a banker to pay a cheque drawn by a customer are determined by either a countermand of payment or notice of the customer's death.

Section Revocation of banker’s authority Section The duty and authority of a banker to pay a cheque drawn on him or her by his or her customer are determined by— (a) countermand of payment; (b) notice of the customer’s death.
Section 74
§ 75Cheques on a banker - General and special crossings definedProvision

A crossing is created when a cheque bears certain additions across its face: the words "and company" (or abbreviation) between two parallel transverse lines, with or without "not negotiable", or two parallel transverse lines simply, with or without "not negotiable" — these constitute a general crossing; and where a cheque bears the name of a banker, with or without "not negotiable", that constitutes a special crossing to that banker.

Section General and special crossings defined Section Where a cheque bears across its face an addition of— the words “and company” or any abbreviation of it between two parallel transverse lines, either with or without the words “not negotiable”; or two parallel transverse lines simply, either with or without the words “not negotiable”, that addition constitutes a crossing, and the cheque is crossed generally. 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 .
Section 75
§ 76Cheques on a banker - Crossing by drawer or after issueProvision

Specifies when and who may cross a cheque (drawer, holder, banker) and permits adding 'not negotiable'.

Section Crossing by drawer or after issue Section A cheque may be crossed generally or specially by the drawer. Where a cheque is uncrossed, the holder may cross it generally or specially. Where a cheque is crossed generally, the holder may cross it specially. Where a cheque is crossed generally or specially, the holder may add the words “not negotiable”. Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker for collection. Where an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection, he or she may cross it specially to himself or herself.
Section 76
§ 77Cheques on a banker - Crossing a material part of chequeProvision

A crossing authorised by the Act is part of a cheque, and no person may obliterate, add to, or alter that crossing except as authorised by the Act.

Section Crossing a material part of cheque Section A crossing authorised by this Act is a material part of the cheque; it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.
Section 77
§ 78Cheques on a banker - Duties of banker as to crossed chequesProvision

A banker must refuse payment of a cheque crossed specially to more than one banker (except where crossed to an agent who is a banker); if a banker pays such a cheque contrary to that rule they are liable to the true owner for any loss, but a banker who pays in good faith and without negligence when the crossing is not apparent or has been altered is not liable.

Section Duties of banker as to crossed cheques Section Where a cheque is crossed specially to more than one banker , except when crossed to an agent for collection being a banker , the banker on whom it is drawn shall refuse payment of it. When the banker on whom a cheque is drawn which is so crossed, nevertheless, pays it, or pays a cheque crossed generally otherwise than to a banker , or if crossed specially otherwise than to a banker to whom it is crossed, or his or her agent for collection being a banker , he or she is liable to the true owner of the cheque for any loss he or she may sustain owing to the cheque having been so paid; but 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 his or her agent for collection being a banker , as the case may be.
Section 78
§ 79Cheques on a banker - Protection to banker and drawer where cheque is crossedProvision

A banker who, in good faith and without negligence, pays a crossed cheque (to the appropriate banker depending on how it is crossed) is entitled to the same rights as if payment had been made to the true owner; if the cheque has come into the hands of the payee, the drawer is likewise entitled.

Section Protection to banker and drawer where cheque is crossed Section Where the banker on whom a crossed cheque is drawn, in good faith and without negligence, pays it, if crossed generally, to a banker , and if crossed specially, to the banker to whom it is crossed, or is 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 of the cheque.
Section 79
§ 80Cheques on a banker - Effect of words “not negotiable”Provision

If a person takes a crossed cheque bearing the words “not negotiable”, that person does not obtain, and cannot give, a better title to the cheque than the person they received it from.

Section Effect of words “not negotiable” Section Where a person takes a crossed cheque which bears on it the words “not negotiable”, he or she shall not have, and shall not be capable of giving, a better title to the cheque than that which the person from whom he or she took it had.
Section 80
§ 81Cheques on a banker - Protection to collecting bankerProvision

A banker acting in good faith and without negligence who receives payment of a crossed cheque for a customer shall not incur liability to the true owner even if the customer has no or a defective title.

Section Protection to collecting banker Section Where a banker in good faith and without negligence receives payment for a customer of a cheque crossed generally or specially to himself or herself, and the customer has no title or a defective title to it, the banker shall not incur any liability to the true owner of the cheque by reason only of having received that payment. A banker receives payment of a crossed cheque for a customer within the meaning of this section, notwithstanding that he or she credits his or her customer’s account with the amount of the cheque before receiving payment of it. Sections 75 to 81 shall apply to a banker’s draft as if the draft were a cheque. For the purposes of this subsection, “banker’s draft” means a draft payable on demand drawn by or on behalf of a bank upon itself, whether payable at the head office or some other office of the bank.
Section 81

Part IV

Promissory notes

§ 82Promissory notes - Promissory note definedProvision

Defines a promissory note as an unconditional written promise signed by the maker to pay a definite sum to a specified person or bearer, and distinguishes inland and foreign notes.

Section Promissory note defined Section A promissory note is an unconditional promise in writing made by one person 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 . An instrument in the form of a note payable to maker’s order is not a note within the meaning of this section unless it is endorsed by the maker. A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose of it. A note which is, or on the face of it purports to be, both made and payable within Uganda is an inland note. Any other note is a foreign note.
Section 82
§ 83Promissory notes - Delivery necessaryProvision

A promissory note is incomplete until it is delivered to the payee or bearer.

Section Delivery necessary Section A promissory note is inchoate and incomplete until delivery of it to the payee or bearer .
Section 83
§ 84Promissory notes - Joint and several notesProvision

A promissory note may be made by two or more makers; those makers may be liable jointly or jointly and severally; if a note states “I promise to pay” and is signed by two or more persons it is deemed to be a joint and several note.

Section Joint and several notes Section A promissory note may be made by two or more makers, and they may be liable on it jointly, or jointly and severally, according to its tenor. 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.
Section 84
§ 85Promissory notes - Note payable on demandProvision

If a demand note endorsed is not presented for payment within a reasonable time of endorsement, the endorser is discharged.

Section Note payable on demand Section Where a note payable on demand has been endorsed, it must be presented for payment within a reasonable time of the endorsement . If it is not so presented, the endorser is discharged. 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. 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 or she had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue .
Section 85
§ 86Promissory notes - Presentment of note for paymentProvision

When a promissory note states a particular place of payment, it must be presented at that place to make the maker liable; otherwise presentment is not required for the maker. Presentment is necessary to render an endorser liable; if place of payment is stated in the body, presentment at that place is necessary, but if the place is only in a memorandum, presentment there is sufficient and a presentment to the maker elsewhere may also suffice if otherwise sufficient.

Section Presentment of note for payment Section 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. Presentment for payment is necessary in order to render the endorser of a note liable. 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 endorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the endorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.
Section 86
§ 87Promissory notes - Liability of makerProvision

The maker of a promissory note must pay the note according to its tenor and must not deny to a holder in due course the existence of the payee or the payee's capacity to endorse.

Section Liability of maker Section The maker of a promissory note by making it— engages that he or she will pay it according to its tenor; is precluded from denying to a holder in due course the existence of the payee and his or her then capacity to endorse.
Section 87
§ 88Promissory notes - Application of Part II to notesProvision

Most provisions about bills of exchange apply to promissory notes with necessary modifications; the maker of a note is deemed to correspond to an acceptor of a bill, and the first endorser of a note is deemed to correspond to the drawer of an accepted bill payable to drawer’s order.

Section Application of Part II to notes Section The following provisions as to bills do not apply to notes, namely, provisions relating to— 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. In applying those provisions, the maker of a note shall be deemed to correspond with the acceptor of a bill , and the first endorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order. presentment for acceptance ; acceptance ; acceptance supra protest; bills in a set. Where a foreign note is dishonoured, protest of it is unnecessary.
Section 88

Part V

Supplementary

§ 89Supplementary - Good faithProvision

An act is in "good faith" if it was done honestly, even if it was negligent.

Section Good faith Section 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.
Section 89
§ 90Supplementary - SignatureProvision

If an instrument or writing must be signed, the required signature need not be handwritten by the signer; another person may write the signature under the signer's authority. For corporations, sealing with the corporate seal is sufficient.

Section Signature Section Where, by this Act, any instrument or writing is required to be signed by any person , it is not necessary that he or she should sign it with his or her own hand, but it is sufficient if his or her signature is written on it by some other person by or under his or her authority. 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 is sealed with the corporate seal. Nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.
Section 90
§ 91Supplementary - Computation of timeProvision

If the Act sets a time limit of less than three days to do an act or thing, exclude nonbusiness days (Sundays and public holidays) when counting that time.

Section Computation of time Section Where, by this Act, the time limited for doing any act or thing is less than three days, in reckoning time, nonbusiness days are excluded. “Nonbusiness days” for the purposes of this Act means Sundays and public holidays, and any other day is a business day.
Section 91
§ 92Supplementary - When noting equivalent to protestProvision

If a bill or note must be protested within a specified time or before a further proceeding, it is enough that the bill was noted for protest before that time or proceeding; the formal protest can later be extended so it is dated as of the noting.

Section When noting equivalent to protest Section For the purposes of this Act, where a bill or note is required to be protested within a 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.
Section 92
§ 93Supplementary - Protest when notary not accessibleProvision

If a dishonoured bill must be protested but a notary is not available at the place, any householder or substantial resident may, in the presence of two witnesses, sign a certificate attesting the dishonour that will operate as a formal protest; the Schedule form may be used with necessary modifications.

Section Protest when notary not accessible Section Where a dishonoured bill or note is authorised or required to be protested, and the services of a notary cannot be obtained at the place where the bill is dishonoured, any householder or substantial resident 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 the Schedule to this Act may be used with necessary modifications, and if used shall be sufficient.
Section 93
§ 94Supplementary - Dividend warrants may be crossedProvision

Provisions applicable to crossed cheques also apply to warrants for payment of dividend; dividend warrants may be crossed.

Section Dividend warrants may be crossed Section The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.
Section 94
§ 95Supplementary - SavingsProvision

Existing rules concerning bankruptcy as they apply to bills of exchange, promissory notes and cheques, the rules of common law (including the law merchant) to those instruments where consistent with this Act, provisions of the Stamps Act and Companies Act, and usages relating to dividend warrants and endorsements continue to apply despite this Act.

Section Savings Section Nothing in this Act shall affect— The rules in bankruptcy relating to bills of exchange, promissory notes and cheques shall continue to apply thereto notwithstanding anything in this Act. The rules of common law, including the law merchant, except insofar as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes and cheques. the provisions of the Stamps Act or any law or enactment relating to the revenue; the provisions of the Companies Act or any Act relating to joint stock banks or companies; the validity of any usage relating to dividend warrants, or the endorsements thereof.
Section 95

Legislative relationships

1 referenced instrument

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

N–S

1 instrument

  • Stamps Act

    Section 95

Recorded versions and source checkpoint

1 version available in this collection

Current-law checkpoint
  • Undated version · currentEnglish

This relationship view does not by itself establish whether another instrument remains in force.

Source-linked research

Ask AI about this statute

The overview, provisions, and source records above are public. Continue in a separate conversation with this statute’s jurisdiction and source version attached.

About this JurisAssist collection

Statute information is organised from identified legislative sources for professional research. Corrections can be reported to hello@esheria.ai.