PART IIBills of Exchange (continued)
Acceptance and Payment for Honour
Marginal note:Acceptance for honour under protest
146 Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill under protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.
- R.S., c. B-5, s. 147
Marginal note:In part
147 A bill may be accepted for honour for part only of the sum for which it is drawn.
- R.S., c. B-5, s. 148
Marginal note:Deemed to be for honour of drawer
148 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.
- R.S., c. B-5, s. 149
Marginal note:Maturity of after-sight bill
149 Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of protesting for non-acceptance and not from the date of the acceptance for honour.
- R.S., c. B-5, s. 150
150 An acceptance for honour under protest, in order to be valid, must be
(a) written on the bill, and indicate that it is an acceptance for honour; and
(b) signed by the acceptor for honour.
- R.S., c. B-5, s. 151
Marginal note:Liability of acceptor for honour
151 (1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, if it has been duly presented for payment and protested for non-payment and if he receives notice of those facts.
Marginal note:Liability to holder and others
(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.
- R.S., c. B-5, s. 152
Marginal note:Payment for honour under protest
152 (1) Where a bill has been protested for non-payment, any person may intervene and pay it under protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.
Marginal note:If more than one offer
(2) 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 has the preference.
Marginal note:Refusal to receive payment
(3) Where the holder of a bill refuses to receive payment under protest, he loses his right of recourse against any party who would have been discharged by that payment.
Marginal note:Entitled to bill
(4) 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.
Marginal note:Liability for refusing
(5) Where the holder does not on demand in a case described in subsection (4) deliver up the bill and protest, he is liable to the payer for honour in damages.
- R.S., c. B-5, s. 153
Marginal note:Attestation of payment for honour
153 (1) Payment for honour under 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.
(2) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays.
- R.S., c. B-5, s. 154
Marginal note:Discharge and subrogation
154 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 with respect to the party for whose honour he pays, and all parties liable to that party.
- R.S., c. B-5, s. 155
Marginal note:Holder to have duplicate of lost bill
155 (1) 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 another bill of the same tenor, giving security to the drawer, if required, to indemnify him against all persons whatever, in case the bill alleged to have been lost is found again.
(2) Where the drawer, on request, refuses to give a duplicate bill, he may be compelled to do so.
- R.S., c. B-5, s. 156
Marginal note:Action on lost bill
156 In any action or proceeding on a bill, the court or a judge may order that the loss of the instrument shall not be set up, if an indemnity is given to the satisfaction of the court or judge against the claims of any other person on the instrument in question.
- R.S., c. B-5, s. 157
Bill in a Set
Marginal note:Bills in set
(2) The acceptance may be written on any part, but it must be written on one part only.
- R.S., c. B-5, s. 158
Marginal note:Endorsing more than one part
158 (1) Where the holder of a set endorses two or more parts to different persons, he is liable on every such part, and every endorser subsequent to him is liable on the part he has himself endorsed as if the parts were separate bills.
Marginal note:Negotiation to different holders
(2) 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 affects the rights of a person who in due course accepts or pays the part first presented to him.
Marginal note:Accepting more than one part
(3) Where the drawee accepts more than one part and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill.
Marginal note:Payments without delivery
(4) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof.
(5) Subject to this section, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.
- R.S., c. B-5, s. 159
Conflict of Laws
Marginal note:Requisites of form
159 (1) Subject to subsections (2) and (3), where a bill drawn in one country is negotiated, accepted or payable in another, the validity of the bill with respect to requisites in form is determined by the law of the place of issue, and the validity with respect to requisites in form of the supervening contracts, such as endorsement, acceptance or acceptance under protest, is determined by the law of the place where the contract was made.
Marginal note:Unstamped bills
(2) Where a bill is issued outside Canada, it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue.
Marginal note:Conforming to the law of Canada
(3) Where a bill, issued outside Canada, conforms, with respect to requisites in form, to the law of Canada, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold or become parties to it in Canada.
- R.S., c. B-5, s. 160
Marginal note:Law applicable
160 Subject to this Act, the interpretation of the drawing, endorsement, acceptance or acceptance under protest of a bill, drawn in one country and negotiated, accepted or payable in another, is determined by the law of the place where the contract is made, but where an inland bill is endorsed in a foreign country, the endorsement shall, with respect to the payer, be interpreted according to the law of Canada.
- R.S., c. B-5, s. 161
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