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

Presentment for Acceptance

Marginal note:When presentment for acceptance necessary

• 74 (1) Where a bill is payable at sight or after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument.

• Marginal note:Express stipulation

  (2) 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.

• Marginal note:Other cases

  (3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill.

Marginal note:Presentment excused

75 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.

Marginal note:Sight bill

• 76 (1) Subject to this Act, when a bill payable at sight or after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time.

• Marginal note:If not presented

  (2) If the holder does not comply with the requirement of subsection (1), the drawer and all endorsers prior to that holder are discharged.

• Marginal note:Reasonable time

  (3) 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.

Marginal note:Rules for presenting for acceptance

77 A bill is duly presented for acceptance that is presented in accordance with the following rules:

• (a) the presentment must be made by or on behalf of the holder to the drawee or to a person authorized to accept or refuse acceptance on his behalf, at a reasonable hour on a business day and before the bill is overdue;

• (b) where a bill is addressed to two or more drawees who are not partners, presentment must be made to all of them, unless one has authority to accept for all, in which case presentment may be made to him only;

• (c) where the drawee is dead, presentment may be made to his personal representative; and

• (d) where authorized by agreement or usage, a presentment through the post office is sufficient.

Marginal note:Excuses

• 78 (1) Presentment in accordance with the rules set out in section 77 is excused, and a bill may be treated as dishonoured by non-acceptance where

  • (a) the drawee is dead, or is a fictitious person or a person not having capacity to contract by bill;

  • (b) after the exercise of reasonable diligence, the presentment cannot be effected; or

  • (c) although the presentment has been irregular, acceptance has been refused on some other ground.

• Marginal note:No excuse

  (2) The fact that the holder has reason to believe that the bill, on presentment, will be dishonoured does not excuse presentment.

Marginal note:Time for acceptance

• 79 (1) The drawee may accept a bill on the day of its due presentment to him for acceptance or at any time within two days thereafter.

• Marginal note:Dishonour

  (2) When a bill is duly presented for acceptance and is not accepted within the time mentioned in subsection (1), the person presenting it must treat it as dishonoured by non-acceptance.

• Marginal note:Loss of rights

  (3) If the person does not treat the bill as dishonoured, the holder loses his right of recourse against the drawer and endorsers.

• Marginal note:Date of acceptance

  (4) In the case of a bill payable at sight or after sight, the acceptor may date his acceptance thereon as of any of the days mentioned in subsection (1) but not later than the day of his actual acceptance of the bill.

• Marginal note:Refusing acceptance

  (5) If the acceptance is not dated as described in subsection (4), the holder may refuse to take the acceptance and may treat the bill as dishonoured by non-acceptance.

Marginal note:Dishonour by non-acceptance

80 A bill is dishonoured by non-acceptance when

• (a) it is duly presented for acceptance and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or

• (b) presentment for acceptance is excused and the bill is not accepted.

Marginal note:Recourse

81 Subject to this Act, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.

Marginal note:Qualified acceptance

• 82 (1) The holder of a bill may refuse to take a qualified acceptance and, if he does not obtain an unqualified acceptance, may treat the bill as dishonoured by non-acceptance.

• Marginal note:Presumption of assent

  (2) When the drawer or endorser of a bill receives notice of a qualified acceptance and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto.

Marginal note:Qualified acceptance without authority

• 83 (1) Where a qualified acceptance is taken and the drawer or endorser has not expressedly or impliedly authorized the holder to take a qualified acceptance, or does not subsequently assent thereto, the drawer or endorser is discharged from his liability on the bill.

• Marginal note:Partial acceptance

  (2) This section does not apply to a partial acceptance of which due notice has been given.

Presentment for Payment

Marginal note:Necessity for presentment

• 84 (1) Subject to this Act, a bill must be duly presented for payment.

• Marginal note:If not presented

  (2) If a bill is not duly presented for payment, the drawer and endorsers are discharged.

• Marginal note:Manner of presentment

  (3) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment.

Marginal note:Time for presentment

• 85 (1) A bill is duly presented for payment that is presented when the bill is

  • (a) not payable on demand, on the day it falls due; or

  • (b) payable on demand, 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.

• Marginal note:Reasonable time

  (2) 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.

Marginal note:By and to whom

• 86 (1) Presentment of a bill must be made by the holder or by a person authorized to receive payment on his behalf, at the proper place as defined in section 87, and either to the person designated by the bill as payer or to his representative or a person authorized to pay or to refuse payment on his behalf, if with the exercise of reasonable diligence such person can there be found.

• Marginal note:Two acceptors

  (2) When a bill is drawn on or accepted by two or more persons who are not partners and no place of payment is specified, presentment must be made to all of them.

• Marginal note:Personal representation

  (3) When the drawee or acceptor of a bill is dead and no place of payment is specified, presentment of the bill must be made to a personal representative if there is one and with the exercise of reasonable diligence he can be found.

Marginal note:Proper place for presentment

87 A bill is presented at the proper place

• (a) where a place of payment is specified in the bill or acceptance and the bill is there presented;

• (b) where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented;

• (c) where no place of payment is specified and no address given, and the bill is presented at the drawee’s or acceptor’s place of business, if known, and if not, at his ordinary residence, if known; or

• (d) in any other case, if presented to the drawee or acceptor wherever he can be found, or if presented at his latest known place of business or residence.

Marginal note:Sufficient presentment

88 Where a bill is presented at the proper place as defined in section 87 and after the exercise of reasonable diligence no person authorized to pay or refuse payment can there be found, no further presentment to the drawee or acceptor is required.

Marginal note:Presentment at post office

• 89 (1) Where the place of payment specified in the bill or acceptance is any city, town or village and no place therein is specified, and the bill is presented at the drawee’s or acceptor’s known place of business or known ordinary residence therein, and if there is no such place of business or residence, the bill is presented at the post office or principal post office in such city, town or village, such presentment is sufficient.

• Marginal note:Through post office

  (2) Where authorized by agreement or usage, a presentment through the post office is sufficient.

Marginal note:Delay in presentment

• 90 (1) Delay in making presentment of a bill for payment is excused where the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.

• Marginal note:Diligence

  (2) Where the cause of delay ceases to operate, presentment must be made with reasonable diligence.

Marginal note:When presentment is dispensed with

• 91 (1) Presentment of a bill for payment is dispensed with

  • (a) where, after the exercise of reasonable diligence, presentment, as required by this Act, cannot be effected;

  • (b) where the drawee is a fictitious person;

  • (c) with respect to the drawer, where the drawee or acceptor is not bound, as between himself 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; or

  • (d) with respect to an endorser, where the bill was accepted or made for the accommodation of that endorser, and he has no reason to expect that the bill would be paid if presented;

  • (e) by waiver of presentment, express or implied.

• Marginal note:Not dispensed with

  (2) 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.

Marginal note:When no place specified

• 92 (1) When no place of payment is specified in a bill or acceptance, presentment for payment is not necessary in order to render the acceptor liable.

• Marginal note:If place specified

  (2) When a place of payment is specified in a bill or acceptance, 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 that it matures, but if any suit or action is instituted thereon before presentation, the costs thereof shall be in the discretion of the court.

• Marginal note:Delivery on payment

  (3) When a bill is paid, the holder shall forthwith deliver it to the party paying it.

Marginal note:Time for presentment

• 93 (1) Where the address of the acceptor for honour of a bill is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity.

• Marginal note:Parties in different places

  (2) Where the address of the acceptor for honour is in a place other than the place where a bill is protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to him.

• Marginal note:Excuses for delay

  (3) Delay in presentment or non-presentment is excused by any circumstance that would, in case of acceptance by a drawee, excuse delay in presentment for payment or non-presentment for payment.

Marginal note:Dishonour by non-payment

• 94 (1) A bill is dishonoured by non-payment when

  • (a) it is duly presented for payment and payment is refused or cannot be obtained; or

  • (b) presentment is excused and the bill is overdue and unpaid.

• Marginal note:Recourse

  (2) Subject to this Act, when a bill is dishonoured by non-payment, an immediate right of recourse against the drawer, acceptor and endorsers accrues to the holder.