Bills of Exchange Act (R.S.C., 1985, c. B-4)

Act current to 2017-07-03 and last amended on 2007-04-20. Previous Versions

Marginal note:Transferee to take with equities

 The endorsee or other transferee of any instrument referred to in section 13 having the words “Given for a patent right” printed or written thereon takes the instrument subject to any defence or set-off in respect of the whole or any part thereof that would have existed between the original parties.

  • R.S., c. B-5, s. 15.
Marginal note:Offence and punishment

 Every person who issues, sells or transfers, by endorsement or delivery, any instrument referred to in section 13 not having the words “Given for a patent right” printed or written across the face thereof in the manner prescribed by that section, knowing the consideration of that instrument to have consisted, in whole or in part, of the purchase money of a patent right, or of a partial interest, limited geographically or otherwise, in a patent right, is guilty of an indictable offence and liable to imprisonment for any term not exceeding one year, or to such fine, not exceeding two hundred dollars, as the court thinks fit.

  • R.S., c. B-5, s. 16.

PART IIBills of Exchange

Form and Interpretation of Bill

Marginal note:Bill of exchange
  •  (1) 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.

  • Marginal note:Non-compliance with requisites

    (2) An instrument that does not comply with the requirements of subsection (1), or that orders any act to be done in addition to the payment of money, is not, except as hereinafter provided, a bill.

  • Marginal note:Unconditional order

    (3) An order to pay out of a particular fund is not unconditional within the meaning of this section, except that an unqualified order to pay, coupled with

    • (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 that gives rise to the bill,

    is unconditional.

  • R.S., c. B-5, s. 17.
Marginal note:Instrument payable on contingency
  •  (1) An instrument expressed to be payable on a contingency is not a bill and the happening of the event does not cure the defect.

  • Marginal note:Addressed to two or more drawees

    (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.

  • R.S., c. B-5, s. 18.
Marginal note:Payee, drawer or drawee
  •  (1) 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.

  • Marginal note:Two or more payees

    (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.

  • Marginal note:Holder of office payee

    (3) A bill may be made payable to the holder of an office for the time being.

  • R.S., c. B-5, s. 19.
Marginal note:Drawee to be named

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

  • R.S., c. B-5, s. 20.
Marginal note:Transfer words
  •  (1) 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.

  • Marginal note:Negotiable bill

    (2) A negotiable bill may be payable either to order or to bearer.

  • Marginal note:When payable to bearer

    (3) A bill is payable to bearer that is expressed to be so payable, or on which the only or last endorsement is an endorsement in blank.

  • Marginal note:Certainty of payee

    (4) Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty.

  • Marginal note:Fictitious payee

    (5) Where the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer.

  • R.S., c. B-5, s. 21.
Marginal note:Bill payable to order
  •  (1) A bill is payable to order that is expressed to be so payable, or that 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.

  • Marginal note:When payable to person or order

    (2) 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 his order, it is nevertheless payable to him or his order at his option.

  • R.S., c. B-5, s. 22.
Marginal note:When payable on demand
  •  (1) A bill is payable on demand

    • (a) that is expressed to be payable on demand or on presentation; or

    • (b) in which no time for payment is expressed.

  • Marginal note:Endorsed when overdue

    (2) Where a bill is accepted or endorsed when it is overdue, it shall, with respect to the acceptor who so accepts it, or any endorser who so endorses it, be deemed a bill payable on demand.

  • R.S., c. B-5, s. 23.
Marginal note:Determinable future time

 A bill is payable at a determinable future time, within the meaning of this Act, that is expressed to be payable

  • (a) at sight or at a fixed period after date or sight; or

  • (b) on or at a fixed period after the occurrence of a specified event that is certain to happen, though the time of happening is uncertain.

  • R.S., c. B-5, s. 24.
Marginal note:Inland bill
  •  (1) An inland bill is a bill that is, or on the face of it purports to be,

    • (a) both drawn and payable within Canada; or

    • (b) drawn within Canada on a person resident in Canada.

  • Marginal note:Foreign bill

    (2) Any other bill is a foreign bill.

  • Marginal note:Presumption

    (3) Unless the contrary appears on the face of a bill, the holder may treat it as an inland bill.

  • R.S., c. B-5, s. 25.
Marginal note:Bill or note

 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 option, either as a bill or as a note.

  • R.S., c. B-5, s. 26.
Marginal note:Valid bill

 A bill is not invalid by reason only that it

  • (a) is not dated;

  • (b) does not specify the value given, or that any value has been given therefor;

  • (c) does not specify the place where it is drawn or the place where it is payable; or

  • (d) is antedated or post-dated, or bears date on a Sunday or other non-juridical day.

  • R.S., c. B-5, s. 27.
Marginal note:Sum certain
  •  (1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid

    • (a) with interest;

    • (b) by stated instalments;

    • (c) by stated instalments, with a provision that on default in payment of any instalment the whole shall become due; or

    • (d) according to an indicated rate of exchange or a rate of exchange to be ascertained as directed by the bill.

  • Marginal note:Figures and words

    (2) Where the sum payable by a bill 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.

  • Marginal note:With interest

    (3) 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 thereof.

  • R.S., c. B-5, s. 28.
 
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