Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada


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

Full Document:  

Act current to 2020-01-27 and last amended on 2007-04-20. Previous Versions

PART IIBills of Exchange (continued)

Protest (continued)

Marginal note:Foreign bill, non-acceptance

  •  (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.

  • Marginal note:Non-payment

    (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.

  • Marginal note:Balance

    (3) Where a foreign bill has been accepted only as to part, it must be protested as to the balance.

  • Marginal note:Discharge

    (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

 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

 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

 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

 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

  •  (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

 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

  •  (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

 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

  •  (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

 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

Marginal note:When notary not accessible

 Where a dishonoured bill is authorized or required to be protested and the services of a notary cannot be obtained at the place where the bill is dishonoured, any justice of the peace resident in the place may present and protest the bill and give all necessary notices and has all the necessary powers of a notary with respect thereto.

  • R.S., c. B-5, s. 123

Marginal note:Expense

  •  (1) The expense of noting and protesting any bill and the postages thereby incurred shall be allowed and paid to the holder in addition to any interest thereon.

  • Marginal note:Notaries’ fees

    (2) Notaries may charge the fees in each province allowed them.

  • R.S., c. B-5, s. 124

Marginal note:Forms

  •  (1) The Forms in the schedule may be used in noting or protesting any bill and in giving notice thereof.

  • Marginal note:Annexing copy or original of bill

    (2) A copy of the bill and endorsement may be included in the Forms, or the original bill may be annexed and the necessary changes in that behalf made in the Forms.

  • R.S., c. B-5, s. 125

Marginal note:How notice of protest given

 Notice of the protest of any bill payable in Canada is sufficiently given and is sufficient and deemed to have been duly given and served, if given during the day on which protest has been made or on the next following juridical or business day, to the same parties and in the same manner and addressed in the same way as is provided by this Part for notice of dishonour.

  • R.S., c. B-5, s. 126

Liabilities of Parties

Marginal note:Equitable assignment

 A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.

  • R.S., c. B-5, s. 127

Marginal note:Engagement by acceptance

 The acceptor of a bill by accepting it engages that he will pay it according to the tenor of his acceptance.

  • R.S., c. B-5, s. 128

Marginal note:Estoppel

 The acceptor of a bill by accepting it is precluded from denying to a holder in due course

  • (a) the existence of the drawer, the genuineness of his signature and his capacity and authority to draw the bill;

  • (b) in the case of a bill payable to drawer’s order, the then capacity of the drawer to endorse, but not the genuineness or validity of his endorsement; or

  • (c) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to endorse, but not the genuineness or validity of his endorsement.

  • R.S., c. B-5, s. 129

Marginal note:Drawer

 The drawer of a bill by drawing it

  • (a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he will compensate the holder or any endorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken; and

  • (b) is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse.

  • R.S., c. B-5, s. 130
Date modified: