Bills of Exchange.
it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.
[CAP. 19
by delivery
58. (1) Where the holder of a bill payable to bearer negotiates it by delivery without indorsing it, he is called a "transferor by delivery".
(2) A transferor by delivery is not liable on the instrument.
(3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that, at the time of transfer, he is not aware of any fact which renders it valueless.
transferee.
Discharge of bill.
due course.
59. (1) A bill is discharged by payment in due course by or on behalf of the drawee or acceptor. "Payment in due course" means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective.
(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but
(a) where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not reissue the bill;
(b) where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent indorsements, and again negotiate the bill.
(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.
381
Bills of Exchange.
it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.
[CAP. 19
by delivery
58. (1) Where the holder of a bill payable to bearer Transferor negotiates it by delivery without indorsing it, he is called and a "transferor by delivery".
(2) A transferor by delivery is not liable on the instru-
ment.
(3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that, at the time of transfer, he is not aware of any fact which renders it value- less.
transferee.
Discharge of bill.
due course.
59. (1) A bill is discharged by payment in due course Payment in by or on behalf of the drawee or acceptor. "Payment in due course" means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective.
(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but...---
(a) where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not reissue the bill;
(b) where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent indorsements, and again negotiate the bill.
(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.
381
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