PART IIBills of Exchange (continued)
Notice of Dishonour
Marginal note:Notice of dishonour
95 (1) Subject to this Act, when a bill has been dishonoured by non-acceptance or by non-payment, 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.
Marginal note:Subsequent holder
(2) Where a bill is dishonoured by non-acceptance and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission are not prejudiced by the omission.
Marginal note:Notice of subsequent dishonour
(3) Where a bill is dishonoured by non-acceptance and due notice of dishonour is given, it is not necessary to give notice of a subsequent dishonour by non-payment, unless the bill is accepted in the meantime.
Marginal note:Notice to acceptor
(4) In order to render the acceptor of a bill liable, it is not necessary that notice of dishonour be given to him.
- R.S., c. B-5, s. 96
Marginal note:Conditions for validity of notice
96 Notice of dishonour in order to be valid and effectual must be given
(a) not later than the juridical or business day next following the dishonouring of the bill;
(b) by or on behalf of the holder, or by or on behalf of an endorser, who at the time of giving notice is himself liable on the bill;
(c) in the case of the death, if known to the party giving notice, of the drawer or endorser, to a personal representative if there is one and with the exercise of reasonable diligence he can be found; and
(d) in case of two or more drawers or endorsers who are not partners, to each of them, unless one of them has authority to receive notice for the others.
- R.S., c. B-5, s. 97
Marginal note:How notice given
97 (1) Notice of dishonour may be given
(a) as soon as the bill is dishonoured;
(b) to the party to whom notice is required to be given or to his agent in that behalf;
(c) by an agent either in his own name or in the name of any party entitled to give notice, whether that party is his principal or not; or
(d) in writing or by personal communication and in any terms that identify the bill and intimate that the bill has been dishonoured by non-acceptance or non-payment.
(2) A misdescription of the bill does not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.
- R.S., c. B-5, s. 98
Marginal note:Form of notice
98 (1) In point of form, the return of a dishonoured bill to the drawer or endorser is a sufficient notice of dishonour, and a written notice need not be signed.
Marginal note:Verbal supplement
(2) An insufficient written notice may be supplemented and validated by verbal communication.
- R.S., c. B-5, s. 99
Marginal note:Notice by agent
99 (1) Where a bill when dishonoured is in the hands of an agent, he may himself give notice to the parties liable on the bill, or he may give notice to his principal, in which case the principal on receipt of the notice has the same time for giving notice as if the agent had been an independent holder.
Marginal note:Time for notice
(2) Where the agent gives notice to his principal, he must do so within the same time as if he were an independent holder.
- R.S., c. B-5, s. 100
Marginal note:Notice to antecedent parties
100 Where a party to a bill receives due notice of dishonour, he has, after the receipt of the notice, the same period of time for giving notice to antecedent parties that a holder has after dishonour.
- R.S., c. B-5, s. 101
Marginal note:Benefit of notice
101 A notice of dishonour enures for the benefit
(a) of all subsequent holders and of all prior endorsers who have a right of recourse against the party to whom the notice is given, where given on behalf of the holder; and
(b) of the holder and all endorsers subsequent to the party to whom the notice is given, where given, by or on behalf of an endorser entitled under this Part to give notice.
- R.S., c. B-5, s. 102
Marginal note:How notice addressed
102 (1) Notwithstanding anything in this Act, notice of dishonour of any bill payable in Canada is sufficiently given if it is addressed in due time to any party to the bill entitled to the notice, at his customary address or place of residence or at the place at which the bill is dated, unless any such party has, under his signature, designated another place, in which case the notice shall be sufficiently given if addressed to him in due time at that other place.
Marginal note:Sufficiency of notice
(2) A notice referred to in subsection (1) shall be sufficient, although the place of residence of such party is other than either of the places mentioned in that subsection, and shall be deemed to have been duly served and given for all purposes if it is deposited in any post office, with the postage paid thereon, at any time during the day on which presentment has been made or on the next following juridical or business day.
Marginal note:Death of party
(3) The notice referred to in subsection (1) is not invalid by reason only of the fact that the party to whom it is addressed is dead.
- R.S., c. B-5, s. 103
Marginal note:Miscarriage in post service
103 Where a notice of dishonour is duly addressed and posted, as provided in section 102, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.
- R.S., c. B-5, s. 104
Marginal note:Excuse for delay
104 (1) 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 default, misconduct or negligence.
(2) Where the cause of delay in giving notice of dishonour ceases to operate, the notice must be given with reasonable diligence.
- R.S., c. B-5, s. 105
Marginal note:Notice dispensed with
105 (1) Notice of dishonour is dispensed with
(a) 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; or
(b) by waiver, express or implied.
Marginal note:Time of waiver
(2) Notice of dishonour may be waived before the time of giving notice has arrived or after the omission to give due notice.
- R.S., c. B-5, s. 106
Marginal note:Dispensing with notice re drawer
106 Notice of dishonour is dispensed with as regards the drawer where
(a) the drawer and drawee are the same person;
(b) the drawee is a fictitious person or a person not having capacity to contract;
(c) the drawer is the person to whom the bill is presented for payment;
(d) the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill; or
(e) the drawer has countermanded payment.
- R.S., c. B-5, s. 107
Marginal note:Dispensing with notice re endorser
107 Notice of dishonour is dispensed with as regards the endorser where
(a) the drawee is a fictitious person or a person not having capacity to contract, and the endorser was aware of the fact at the time he endorsed the bill;
(b) the endorser is the person to whom the bill is presented for payment; or
(c) the bill was accepted or made for his accommodation.
- R.S., c. B-5, s. 108
Marginal note:Necessity of protest
108 In order to render the acceptor of a bill liable, it is not necessary to protest it.
- R.S., c. B-5, s. 109
Marginal note:Protest dispensed with
109 Protest is dispensed with by any circumstances that would dispense with notice of dishonour.
- R.S., c. B-5, s. 110
Marginal note:Delay excused
110 (1) Delay in noting or protesting is excused where the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.
(2) Where the cause of delay in noting or protesting ceases to operate, the bill must be noted or protested with reasonable diligence.
- R.S., c. B-5, s. 111
Marginal note:Foreign bill, non-acceptance
111 (1) Where a foreign bill appearing on the face of it to be such has been dishonoured by non-acceptance, it must be duly protested for non-acceptance.
(2) Where a foreign bill that has not been previously dishonoured by non-acceptance is dishonoured by non-payment, it must be duly protested for non-payment.
(3) Where a foreign bill has been accepted only as to part, it must be protested as to the balance.
(4) Where a foreign bill is not protested as required by this section, the drawer and endorsers are discharged.
- R.S., c. B-5, s. 112
Marginal note:Protest of inland bill
112 Where an inland bill has been dishonoured, it may, if the holder thinks fit, be noted and protested for non-acceptance or non-payment, as the case may be, but it is not necessary to note or protest an inland bill in order to have recourse against the drawer or endorsers.
- R.S., c. B-5, s. 113
Marginal note:Protest unnecessary
113 Where a bill does not on the face of it appear to be a foreign bill, protest thereof in case of dishonour is unnecessary.
- R.S., c. B-5, s. 114
Marginal note:Subsequent protest for non-payment
114 A bill that has been protested for non-acceptance, or a bill of which protest for non-acceptance has been waived, may be subsequently protested for non-payment.
- R.S., c. B-5, s. 115
Marginal note:Protest for better security
115 Where the acceptor of a bill suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and endorsers.
- R.S., c. B-5, s. 116
Marginal note:Acceptance for honour
116 (1) Where a dishonoured bill has been accepted for honour under protest or contains a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honour, or referee in case of need.
Marginal note:Protest for non-payment
(2) When a bill is dishonoured by the acceptor for honour, it must be protested for non-payment by him.
- R.S., c. B-5, s. 117
Marginal note:Noting equivalent to protest
117 For the purposes of this Act, where a bill is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding.
- R.S., c. B-5, s. 118
Marginal note:Protest on day of dishonour
118 (1) Subject to this Act, when a bill is protested, the protest must be made or noted on the day of its dishonour.
Marginal note:Extending protest
(2) When a bill has been duly noted, the formal protest may be extended thereafter at any time as of the date of the noting.
- R.S., c. B-5, s. 119
Marginal note:Protest on copy or particulars
119 Where a bill is lost or destroyed, or is wrongly or accidentally detained from the person entitled to hold it, or is accidentally retained in a place other than where payable, protest may be made on a copy or written particulars thereof.
- R.S., c. B-5, s. 120
Marginal note:Place of protest
120 (1) A bill must be protested at the place where it is dishonoured, or at some other place in Canada situated within five miles of the place of presentment and dishonour of the bill.
Marginal note:Where bill returned by post
(2) When a bill is presented through the post office and returned by post dishonoured, it may be protested at the place to which it is returned, not later than on the day of its return or the next juridical day.
Marginal note:Time of protest
(3) Every protest for dishonour, either for non-acceptance or non-payment, may be made on the day of the dishonour, and in case of non-acceptance at any time after non-acceptance, and in case of non-payment at any time after three o’clock in the afternoon, local time.
- R.S., c. B-5, s. 121
Marginal note:Contents of protest
121 A protest must contain a copy of the bill, or the original bill may be annexed thereto, must be signed by the notary making it and must specify
(a) the person at whose request the bill is protested;
(b) the place and date of protest;
(c) the cause or reason for protest; and
(d) the demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found.
- R.S., c. B-5, s. 122
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