Bills of Exchange.
(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.
[CAP. 19
hands of
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-
(a) engages that he will pay it according to the tenor of his acceptance;
(b) is precluded from denying to a holder in due course-
(i) the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill;
(ii) 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;
(iii) 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.
Liability of acceptor.
Liability of drawer or
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
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}
Bills of Exchange.
(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.
[САР. 19
hands of
53. A bill, of itself, does not operate as an assignment Funds in of funds in the hands of the drawee available for the pay- drawee. ment thereof, and the drawee of a bill who does not accept, as required by this Ordinance, is not liable on the instru-
ment.
54. The acceptor of a bill, by accepting it-
(a) engages that he will pay it according to the tenor
of his acceptance;
(b) is precluded from denying to a holder in due
course-
(i) the existence of the drawer, the genuine- ness of his signature, and his capacity and authority to draw the bill;
(ii) 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 indorse- ment;
(iii) 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 genuine- ness or validity of his indorsement.
Liability of acceptor.
Liability of drawer or
55. (1) The drawer of a bill, by drawing it— (a) engages that, on due presentment, it shall be indorser.
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, pro- vided 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
379
Page 25Page 26
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