BILLS OF EXCHANGE.
No. 3 of 1885.
319
(5) where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable.
PART III.
CHEQUES ON A BANKER.
73.-(1) A cheque is a bill of exchange drawn on a banker payable on demand.
Definition of cheque.
(2) Except as otherwise provided in this Part, the provisions of this Ordinance applicable to a bill of exchange payable on demand apply to a cheque.
74. Subject to the provisions of this Ordinance,-
Presentment of cheque for payment.
(1) where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or the person on whose account it is drawn had the right, at the time of such presentment, as between him and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid :
(2) in determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case ;
(3) the holder of such cheque as to which such drawer or person is discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge and entitled to recover the amount from him.
75. The duty and authority of a banker to pay a cheque drawn on him by his customer are determined by---
(1) countermand of payment;
(2) notice of the customer's death.
Crossed cheques.
of banker's authority.
Definition and special crossings.
76.-(1) Where a cheque bears across its face an addition of— (a) the words "and company", or any abbreviation thereof, between two parallel transverse lines, either with or without the words "not negotiable"; or
* As amended by No. 63 of 1911.
BILLS OF EXCHANGE.
No. 3 of 1885.
319
(5) where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable.
PART III.
CHEQUES ON A BANKER.
73.-(1) A cheque is a bill of exchange drawn on a banker Definition of payable on demand.
cheque.
(2) Except as otherwise provided in this Part, the provisions of this Ordinance applicable to a bill of exchange payable on demand apply to a cheque.
74. Subject to the provisions of this Ordinance,-
Presentment of cheque for
(1) where a cheque is not presented for payment within a rea- payment. sonable time of its issue, and the drawer or the person on whose account it is drawn had the right, at the time of such presentment, as between him and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid :
(2) in determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case ;
(3) the holder of such cheque as to which such drawer or person is discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge and entitled to recover the amount from him.
75. The duty and authority of a banker to pay a cheque drawn Revocation on him by his customer are determined by---
(1) countermand of payment;
(2) notice of the customer's death.
Crossed cheques.
of banker's authority.
Definition
and special
76.-(1) Where a cheque bears across its face an addition of— (a) the words "and company",
and company", or any abbreviation thereof, of general between two parallel transverse lines, either with or without the crossings. words "not negotiable"; or
* As amended by No. 63 of 1011.
No comments yet.
Private notes are available after approval.