1964_BILLS_OF_EXCHANGE_ORDINANCE — Page 26

1964 Ed.]

Bills of Exchange.

55. (1) The drawer of a bill, by drawing it-

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(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 proceed- ings 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 dis- honoured he will compensate the holder or a subsequent 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 genuineness and regularity in all respects of the drawer's signature and all previous indorsements;

(c) is precluded from denying to his immediate or a sub- sequent indorsee that the bill was, at the time of his indorsement, a valid and subsisting bill, and that he had then a good title thereto.

56. Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an indorser to a holder in due course.

57. Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows

(a) the holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor, or from the drawer, or from a prior indorser--

(i) the amount of the bill;

(ii) interest thereon from the time of presentment for payment, if the bill is payable on demand, and from the maturity of the bill in any other case;

(iii) the expenses of noting, or when protest is neces- sary and the protest has been extended, the expenses of protest;

(b) in the case of a bill which has been dishonoured abroad, in lieu of the above damages, the holder may recover from the drawer or an indorser, and the drawer or an indorser who has been compelled to pay the bill may

Liability of drawer or indorser.

45 & 46 Vict.

c. 61, s. 55.

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Stranger signing bill liable as indorser.

43 & 46 Vict. c. 61, s. 56.

Measure of damages against parties to dishonoured bill.

45 & 46 Vict. c. 61. s. 57.