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Holder derir. 53. A holder of a negotiable instrument who derives title from a ing title from holder in due course has the rights thereon of that holder in due course. course. Eng. Act, s. 29

54. Subject to the provisions hereinafter contained as to crossed (3).

cheques, a negotiable instrument indorsed in blank is payable to the Instrument

bearers thereof even although originally payable to order. indorsed in blank.

55. If a negotiable instrument, after having been indorsed in blank, s. 8 (3). Conversion of is indorsed in full, the amount of it cannot be claimed from the indorser indorsement in in full, except by the person to whom it has been indorsed in full, or by blank into in one who derives title through such person. dorsement in full. s. 32 note (*)

56. No writing on a negotiable instrument is valid for the purpose of s. 34 (4). negotiation if such writing purports to transfer only a part of the amount Indorsement for part of sum appearing to be due on the instrument; but where such amount has due.

been partly paid, a note to that effect may be indorsed on the instrus. 32 (2) ment, which may then be negotiated for the balance. Legal representatire can

57. The legal representative of a deceased person cannot negotiate by only negotiate delivery only

a promissory note, bill of exchange or cheque payable to instrument order and indorsed by the deceased but not delivered. indorsed by deceased.

58. When a negotiable instrument has been lost, or has been Instrument ob- obtained from any maker, acceptor or holder thereof by means of an tained by unlawful means

offence or fraud, or for an unlawful consideration, no possessor or or for unlawful indorsee who claims through the person who found or so obtained the consideration. ss. 29, 38.

instrument is entitled to receive the amount due thereon from such maker, acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some person through whom he claims was, a holder thereof in due course.

Instrument 59. The holder of a negotiable instrument, who has acquired it after acquired after dishonour, whether by non-acceptance or non-payment, with notice when

overdue. thereof, or after maturity, has only, as against the other parties, the s. 36 (2) (5). rights thereon of his transferor : Accommoda

Provided that any person who, in good faith and for consideration, tion note or bill.

becomes the holder, after maturity, of a promissory note or bill of ex5. 36, note (x). change made, drawn or accepted without consideration, for the purpose

of enabling some party thereto to raise money thereon, may recover the amount of the note or bill from any prior party.

Illustration. The acceptor of a bill of exchange, when he accepted it, deposited with the drawer certain goods as a collateral security for the payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if it were not paid at maturity. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds, but indorsed the bill to A. A's title is subject to the same objection as the drawer's title.

60. A negotiable instrument may be negotiated (except by the Instrument maker, drawee or acceptor after maturity) until payment or satisfaction negotiable till thereof by the maker, drawee or acceptor at or after maturity, but not satisfaction.

payment or after such payment or satisfaction.

Eng. Act, s. 36 (1).

CHAPTER V.

OF PRESENTMENT.

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61. A bill of exchange payable after sight must, if no time or place Presentment is specified therein for presentment, be presented to the drawee thereof for acceptance.

ss. 39 (1), 40, for acceptance, if he can, after reasonable search, be found, by a person 41 (ia). entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

If the drawee cannot, after reasonable search, be found, the bill is s. 41 (26). dishonoured.

If a bill is directed to the drawee at a particular place, it must be ss. 39 (2), 41 presented at that place; and if at the due date for presentment he can

(26). not, after reasonable search, be found there, the bill is dishonoured.

62. A promissory note, payable at a certain period after sight, must Presentment of be presented to the maker thereof for sight (if he can after reasonable promissory search be found) by a person entitled to demand payment, within a

note for sight. reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

63. The holder must, if so required by the drawee of a bill of Drawee's time exchange presented to him for acceptance, allow the drawee twenty- for deliberafour hours (exclusive of public holidays) to consider whether he will

tion.

s. 42, note. accept it.

S. 45.

64. Promissory notes, bills of exchange and cheques must be pre- Presentment sented for payment to the maker, acceptor or drawee thereof

for payment.

respectively, by or on behalf of the holder as hereinafter provided. In default of such presentment, the other parties thereto are not liable thereon to such holder. Exception.

Where a promissory note is payable on demand and is ss. 86, note (a), not payable at a specified place, no presentment is necessary in order to 87 (1). charge the maker thereof.

Hours for

85. Presentinent for payment must be made during the usual hours presentment. Eng. Act, s. 45 of business, and, if at a banker's, within banking hours. (3), Dotes. Presentment 66. A promissory note or bill of exchange, made payable at a for payment of specified period after date or sight thereof, must be presented for payinstrument payable after ment at maturity. date or sight. 8. 45 (1) 67. A promissory note payable by instalments must be presented Presentment for payment on the third day after the date fixed for payment of each for payment of instalment; and non-payment on such presentment has the same effect protnissory note payable

as non-payment of a note at maturity. by instalments. ss. 83, note c,

68. A promissory note, bill of exchange or cheque made, drawn or 86, note a. accepted payable at a specified place and not elsewhere must, in order Presentment for payment of to charge any party thereto, be presented for payment at that place. instruments payable at specified place and not elsewhere. B. 45(4a), note. Instrument

69. A promissory note or bill of exchange made, drawn or accepted payable at specified place. payable at a specified place must, in order to charge the maker or ss. 45 (4a), 87 drawer thereof, be presented for payment at that place. (1), 52 (1). Presentment 70. A promissory note or bill of exchange, not made payable as where no exclusive place

mentioned in sections sixty-eight and sixty-nine, must be presented for specified.

payment at the place of business (if any), or at the usual residence, of s. 45 (4c).

the maker, drawee or acceptor thereof, as the case may be. Presentment when maker,

71. If the maker, drawee or acceptor of a negotiable instrument has &c., has no no known place of business or fixed residence, and no place is specified known place of business or

in the instrument for presentment for acceptance or payment, such residence.

presentment may be made to him in person wherever he can be found. B. 45 (40). Presentment

72. A cheque must, in order to charge the drawer, be presented at of cheque to the bank upon which it is drawn before the relation between the charge drawer. drawer and his banker has been altered to the prejudice of the drawer. Presentment

73. A cheque must, in order to charge any person except the drawer, of cheque to charge any

be presented within a reasonable time after delivery thereof by such other person.

person. 9. 45 (2). Presentment 74. Subject to the provisions of section thirty-one, a negotiable of instrument instrument payable on demand must be presented for payment within payable on demand.

a reasonable time after it is rectived by the holder. 8. 45 (2). Presentment

75. Presentment for acceptance or payment may be made to the by or to agent, duly authorized agent of the drawee, maker or acceptor, as the case may representative be, or, where the drawee, maker or acceptor has died, to his legal repreof deceased, or assignee of

sentative, or, where he has been declared an insolvent, to his assignee. insolvent. 88. 41 (1a,c, d),

76. No presentment for payment is necessary, and the instrument 45 (3, 7). is dishonoured at the due date for presentment, in any of the following When presentment unneces

(a) if the maker, drawee or acceptor intentionally prevents the presary.

8. 74.

cases :

sentment of the instrument, or,

6. 47.

45 (5).

if the instrument being payable at his place of business, he closes Eng. Act, ss. such place on a business day during the usual business hours, or, 46(2), note (y). if the instrument being payable at some other specified place,

8. 45 (5). neither he nor any person authorized to pay it attends at such place during the usual business hours, or,

if the instrument not being payable at any specified place, he can- s. 45 (4d) note. not after due search be found;

(b) as against any party sought to be charged therewith, if he has s. 46 (2e). engaged to pay notwithstanding non-presentment;

(c) as against any party if, after maturity, with knowledge that the s. (2e). instrument has not been presented

he makes a part payment on account of the amount due on the instrument,

or promises to pay the amount due thereon in whole or in part,

or otherwise waives his right to take advantage of any default in presentment for payment;

(d) as against the drawer, if the drawer could not suffer damage 8. 46 (2c). from the want of such presentment.

77. When a bill of exchange, accepted payable at a specified bank, Liability of has been duly presented there for payment and dishonoured, if the banker for banker so negligently or improperly keeps, deals with or delivers back dealing with such bill as to cause loss to the holder, he must compensate the holder bill presented for such loss.

for payment.

CHAPTER VI.

OF PAYMENT AND INTEREST.

78. Subject to the provisions of section eighty-two, clause (c), pay- To whom payment of the amount due on a promissory note, bill of exchange or cheque ment should

be made. must, in order to discharge the maker or acceptor, be made to the

Eng. Act, s. 59 holder of the instrument.

(1).

79. When interest at a specified rate is expressly made payable on Interest when a promissory note or bill of exchange, interest shall be calculated at rate specified. the rate specified, on the amount of the principal money due thereon,

s. 57, note (8). from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs.

80. When no rate of interest is specified in the instrument, interest Interest when on the amount due thereon shall, except in cases provided for by the no rate

specified. Code of Civil Procedure, section 532, be calculated at the rate of six s. 57 (16). per centum per annum, from the date at which the same ought to have been paid by the party charged, until tender or realization of the

amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs.

Explanation. When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only

from the time that he receives notice of the dishonour. Delivery of 81. Any person liable to pay, and called upon by the holder thereof instrument on to pay, the amount due on a promissory note, bill of exchange or payment, or indemnity in cheque is before payment entitled to have it shown, and is on payment case of loss.

entitled to have it delivered up, to him, or, if the instrument is lost or Eng. Act, ss. 52 (4), 70.

cannot be produced, to be indemnified against any further claim thereon against him.

s. 59.

CHAPTER VII. OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES. Discharge from 82. The maker, acceptor or indorser respectively of a negotiable liability, instrument is discharged from liability thereonby cancella- (a) to a holder thereof who cancels such acceptor's or indorser's tion;

name with intent to discharge him, and to all parties claiming under s. 63.

such holder; by release ; (b) to a holder thereof who otherwise discharges such maker, 8. 62.

acceptor or indorser, and to all parties deriving title under such holder

after notice of such discharge ; by payment; (c) to all parties thereto, if the instrument is payable to bearer, or

has been indorsed in blank, and such maker, acceptor or indorser

makes payment in due course of the amount due thereon. Discharge by 83. If the holder of a bill of exchange allows the drawee more than allowing drawee more

twenty-four hours, exclusive of public holidays, to consider whether he than twenty

will accept the same, all previous parties not consenting to such allowfour hours to ance are thereby discharged from liability to such holder. accept. 8. 42.

84. When the holder of a cheque fails to present it for payment When cheque not duly pre

within a reasonable time, and the drawer thereof sustains loss or sented and damage from such failure, he is discharged from liability to the drawer

holder. damaged thereby.

85. Where a cheque payable to order purports to be indorsed by or Cheque pay.

on behalf of the payee, the drawee is discharged by payment in due able to order. S. 60. Parties not 86. If the holder of a bill of exchange acquiesces in a qualified consenting

acceptance, or one limited to part of the sum mentioned in the bill, or discharged by which substitutes a different place or time for payment, or which, limited accept- where the drawees are not partners, is not sigued by all the drawees, all

previous parties whose consent is not obtained to such acceptance are

8. 74.

course.

ance.

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