Bills of Exchange Act

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 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 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 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 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...

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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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...

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 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 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 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 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 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 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 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 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 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...

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 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 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 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...

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 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 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 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 communi...

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 fict...

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 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...

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 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 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 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.