478
Duties of holder as regards drawee or acceptor.
Funds in hands of drawer.
Liability of acceptor.
Liability of drawer or indorser.
No. 3.] THE ORDINANCES OF HONGKONG : [A.D. 1885.
liable.
52.--(1.) When a bill is accepted generally, presentment for payment is not necessary in order to render the acceptor liable.
(2.) When by the terms of a qualified acceptance presentment for payment is required, 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.
(3.) In order to render the acceptor of a bill liable, it is not necessary to protest it or that notice of dishonour should be given to him.
(4.) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.
Liabilities of Parties.
53. 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 Ordinance, is not liable on the instrument.
54. The acceptor of a bill, by accepting it,---
(1.) engages that he will pay it according to the tenor of his acceptance:
(2.) 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 indorse, but not the genuineness or validity of his indorsement;
(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 indorse, but not the genuineness or validity of his indorsement.
55.-(1.) 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 indorser who is compelled to pay it, provided that the requisite proceedings on dishonour are duly taken:
(b.) is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.
(2.) The indorser of a bill, by indorsing 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 a subsequent indorser who is compelled to pay it.
(b) is precluded from denying to a holder in due course the genuineness and validity of the drawer's signature and all previous indorsements.
(c.) is precluded from denying to a holder in due course that the bill was at the time of his indorsement a valid bill.
56. Whoever by his signature on a bill thereby makes himself liable, is precluded from denying to a holder in due course.
57. When a bill is protested, it shall be deemed to have been dishonoured:
(1.) the protest shall be prima facie evidence of the presentment of the bill to the acceptor or drawee, and of its dishonour by non-acceptance or non-payment, and the protest may be given in evidence in any proceedings for the recovery of the amount of the bill or of damages for its non-payment.
(a.) the protest shall specify the cause assigned for such dishonour;
(b.) it shall be signed by the notary;
(c.) it shall be in the form prescribed by this Ordinance.
(2.) in the case of a bill payable on demand, the protest shall be made at the time of demand.
an indorser who is compelled to pay it shall be entitled to recover the amount paid from the prior parties.
payment.
(3.) whether the protest is made within a reasonable time after dishonour, or whether it is made at all, is immaterial, and shall not affect the liability of the parties.
58.-(1.) A bill is negotiated when it is transferred from one person to another, and the transferee becomes the holder.
(2.) A transfer by delivery is sufficient to negotiate a bill payable to bearer.
(3.) A transfer by indorsement is necessary to negotiate a bill payable to order.
478
Duties of holder as regards drawee or acceptor.
Funds in hands of drawer.
Liability of acceptor.
Liability of drawer or
indorser.
No. 3.] THE ORDINANCES OF HONGKONG : [A.D. 1885.
liable.
52.--(1.) When a bill is accepted generally, presentment for payment is not necessary in order to render the
acceptor (2.) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipula- tion to that effect, is not discharged by the omission to present the bill for payment on the day that it matures,
(3.) In order to render the acceptor of a bill fiable, it is not necessary to protest it or that notice of dishonour should be given to him.
(4.) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.
Liabilities of Parties.
53, 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 Ordinance, is not liable on the instrument.
54. The acceptor of a bill, by accepting it,---
(1.) engages that he will pay it according to the tenor of his accept-
ance:
(2.) is precluded from denying to a holder in due course
(.) the existence of the drawer, the genuineness of his signature.
and his capacity and authority to draw the bill:
(5.) in the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuineness or validity of his indorsement ;
(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 indorse, but not the genuineness or validity of his indorsement.
55.-(1.) 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 com- pensate the holder or any indorser who is compelled to pay it. provided that the requisite proceedings on dishonour are duly taken :
(b.) is precluded from denying to a holder in due course the exist-
ence of the payee and his then capacity to indorse.
(2.) The indorser of a bill, by indorsing 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 com- pensate the holder or a subsequent indorser who is compelled to
A.D. 188
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