CHAPTER 119. An Act relating to Bills of Exchange, Cheques and SHORT TITLE. 1. This Act may be cited as the Bills of Exchange Act. Short title. 53 V., c. 33, s. 1. INTERPRETATION 2. In this Act, unless the context otherwise requires,- Definitions. (a) 'acceptance' means an acceptance completed by delivery 'Acceptance.' or notification; (b) 'action' includes counter-claim and set off; 'Action.' (c) 'bank' means an incorporated bank or savings bank Bank.' carrying on business in Canada; (d) 'bearer' means the person in possession of a bill or note 'Bearer.' which is payable to bearer; (e) 'bill' means bill of exchange, and 'note' means promissory note; (f) 'delivery' means transfer of possession, actual or con structive, from one person to another; (g) 'holder' means the payee or endorsee of a bill or note who is in possession of it, or the bearer thereof; 6 Bill,', note.' Delivery.' Holder.' (h) endorsement' means an endorsement completed by Endorsedelivery; ment.' (i) issue' means the first delivery of a bill or note, com- Issue.' plete in form, to a person who takes it as a holder; (j) 'value' means valuable consideration; (k) defence' includes counter-claim; (1) 'non-business days' means days directed by this to be observed as legal holidays or non-juridical days. 'Value.' Act 'Non-busi ness days.' 2. Any day other than as aforesaid is a business day. 53 V., Business c. 33, ss. 2 and 91. days. PART I. GENERAL. 3. A thing is deemed to be done in good faith, within the Thing done meaning of this Act, where it is in fact done honestly whether in good faith, it is done negligently or not. 53 V., c. 33, s. 89. 2143 4. 4. Where by this Act, any instrument or writing is required to be signed by any person, it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority. 53 V., c. 33, s. 90. 5. 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 duly sealed with the corporate seal; but nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal. 53 V., c. 33, s. 90. 6. Where, by this Act, the time limited for doing any act or thing is less than three days, in reckoning time, non-business days are excluded. 53 V., c. 33, s. 91. 7. The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend. 53 V., c. 33, s. 94. 8. Nothing in this Act shall affect the provisions of the Bank Act. 53 V., c. 33, s. 95. 9. The Act of the Parliament of Great Britain passed in the fifteenth year of the reign of His late Majesty George III., intituled An Act to restrain the negotiation of Promissory Notes and Inland Bills of Exchange under a limited sum within that part of Great Britain called England, and the Act of the said Parliament passed in the seventeenth year of His said Majesty's reign, intituled An Act for further restraining the negotiation of Promissory Notes and Inland Bills of Exchange under a limited sum within that part of Great Britain called England, shall not extend to or be in force in any province of Canada, nor shall the said Acts make void any bills, notes, drafts or orders made or uttered therein. 53 V., c. 33, s. 95. 10. The rules of the common law of England, including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall apply to bills of exchange, promissory notes and cheques. 54-55 V., c. 17, s. 8. 11. A protest of any bill or note within Canada, and any copy thereof as copied by the notary or justice of the peace, shall, in any action be prima facie evidence of presentation and dishonour, and also of service of notice of such presentation and dishonour as stated in such protest or copy. 53 V., c. 33, s. 93. test, prima 12. If a bill or note, presented for acceptance, or payable Copy of proout of Canada, is protested for non-acceptance or non-payment, facie evia notarial copy of the protest and of the notice of dishonour, dence. and a notarial certificate of the service of such notice, shall be received in all courts, as prima facie evidence of such protest, notice and service. 53 V., c. 33, s. 71. act as 13. No clerk, teller or agent of any bank shall act as a Officer of notary in the protesting of any bill or note payable at the bank bank not to or at any of the branches of the bank in which he is employed. notary. 53 V., c. 33, s. 51. ation, pur 14. Every bill or note the consideration of which consists, Considerin whole or in part, of the purchase money of a patent right, or chase money of a partial interest, limited geographically or otherwise, in a of patent. patent right, shall have written or printed prominently and legibly across the face thereof, before the same is issued, the words Given for a patent right. words. 2. Without such words thereon, such instrument and any Absence of renewal thereof shall be void, except in the hands of a holder necessary in due course without notice of such consideration. 53 V., c. 33. s. 30. 15. The endorsee or other transferee of any such instrument Transferee to take with having the words aforesaid so printed or written thereon, shall equities. take the same subject to any defence or set-off in respect of the whole or any part thereof which would have existed between the original parties. 53 V., c. 33, s. 30. note. 16. Every one who issues, sells or transfers, by endorsement Transferring or delivery, any such instrument not having the words Given defective for a patent right printed or written in manner aforesaid across the face thereof, knowing the consideration of such instrument to have consisted, in whole or in part, of the purchase money Indictable of a patent right, or of a partial interest, limited geographically offence. or otherwise, in a patent right, is guilty of an indictable offence and liable to imprisonment for any term not exceeding one Penalty. year, or to such fine, not exceeding two hundred dollars, as the court thinks fit. 53 V., c. 33, s. 30. PART II. BILLS OF EXCHANGE. Form of Bill and Interpretation. 17. A bill of exchange is an unconditional order in writing, Bill of addressed by one person to another, signed by the person giving exchange it, requiring the person to whom it is addressed to pay, on 135 2145 defined. demand Non-compliance with requisites. Uncondi demand or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer. 2. An instrument which does not comply with the requisites aforesaid, or which orders any act to be done in addition to the payment of money, is not, except as hereinafter provided, a bill of exchange. 3. An order to pay out of a particular fund is not unconditional order. tional within the meaning of this section: Provided that an unqualified order to pay, coupled with, Instrument payable on (a) an indication of a particular fund out of which the drawee is to reimburse himself, or a particular account to be debited with the amount; or, (b) a statement of the transaction which gives rise to the bill; is unconditional. 53 V., c. 33, s. 3. 18. An instrument expressed to be payable on a contingency contingency. is not a bill, and the happening of the event does not cure the defect. Addressed to two or more drawees. Payee, drawer or drawee. Two or more payees. Holder of 2. A bill may be addressed to two or more drawees, whether they are partners or not; but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill of exchange. 53 V., c. 33, ss. 6 and 11. 19. 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. 2. A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. 3. A bill may be made payable to the holder of an office for office payee. the time being. 53 V., c. 33, ss. 5 and 7. Drawee to be named. Transfer words. Negotiable bill. When payable to bearer. Certainty of payee. Fictitious payee. 20. The drawee must be named or otherwise indicated in a bill with reasonable certainty. 53 V., c. 33, s. 6. 21. 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 it is not negotiable. 2. A negotiable bill may be payable either to order or to bearer. 3. 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. 4. Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty. 5. Where the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer. 53 V., c.. 33, ss. 7 and 8. to order 22. A bill is payable to order which is expressed to be Bill payable. so payable, or which is expressed to be payable to a particular when. person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable. son or order. 2. Where a bill, either originally or by endorsement, is ex- When paypressed to be payable to the order of a specified person, and able to pernot to him or his order, it is nevertheless payable to him or his order, at his option. 53 V., c. 33, s. 8. 23. A bill is payable on demand.— Payable on demand (a) which is expressed to be payable on demand, or on pre- when. sentation; or, (b) in which no time for payment is expressed. due. 2. Where a bill is accepted or endorsed when it is overdue, Endorsed it shall, as regards the acceptor who so accepts, or any endorser when overwho so endorses it, be deemed a bill payable on demand. 53 V., c. 33, s. 10. able future 24. A bill is payable at a determinable future time, within Determinthe meaning of this Act, which is expressed to be payable,- time. (a) at sight or at a fixed period after date or sight; (b) on or at a fixed period after the occurrence of a specified Sight. event which is certain to happen, though the time of hap- Specified pening is uncertain. 53 V., c. 33, s. 11; 54-55 V., c. 17, s. 1. event. 25. An inland bill is a bill which is, or on the face of it Inland bill purports to be, (a) both drawn and payable within Canada; or, (b) drawn within Canada upon some person resident therein. 2. Any other bill is a foreign bill. defined. Other bills. 3. Unless the contrary appears on the face of the bill, the Presumption. holder may treat it as an inland bill. 53 V., c. 33, s. 4. 26. Where in a bill drawer and drawee are the same person, Bill or note. or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, Option. at his option, either as a bill of exchange or as a promissory note. 53 V., c. 33, s. 5. 27. A bill is not invalid by reason only, (a) that it is not dated; Valid bill. Not dated. (b) that it does not specify the value given, or that any Statement of value has been given therefor; value. (c) that it does not specify the place where it is drawn or Statement of the place where it is payable; place. (d) that it is antedated or postdated, or that it bears date on Irregular a Sunday or other non-juridical day. 53 V., c. 33, ss. 3 date. and 13. 135 2147 28. |