the-ordinances-of-the-legislative-counci-1890v2 — Page 139

BILLS OF EXCILANGE . [ 9 of 1885. ] 7:29


29. ( 1. ) A holder in due course is a holder who has taken Holder in duc
a bill , complete and regular on the face of it, under the follow- course.,
ing conditions ; namely,
( a . ) That he became the holder of it before it was overdue,
and without notice that it had been previously
dishonoured , if such was the fact :
( 1. ) That he took the bill in good faith and for value, and
that at the time the bill was negotiated to him he
had no notice of any defect in the title of the person
who negotiated it.
( 2.) In particular the title of a person who negotiates a bill
is defective within the meaning of this ordinance when he
obtained the bill , or the acceptance thereof, by frauil, duress,
or force and fear, or other unlawful means, or for an illegal
consideration, or when he negotiates it in breach of faith , or
under such circumstances as amount to a fraud.
( 3. ) A holder (whether for value or not ), who derives his
title to a bill through a holder in due course, and who is not
himself a party to any fraud or illegality affecting it, has all
the rights of that holder in due course as regards the acceptor
and all parties to the bill prior to that holder .
30. ( 1. ) Every party whose signature appears on a bill is ofPresumption
value and
primâ facie deemed to have becomea party thereto for value. good faith .
( 2.) Every holder of a bill is primâ facie deemed to be a
holder in due course ; but if in an action on a bill it is admitted
or proved that the acceptance, issue, or subsequent negotiation
of the bill is affected with fraud, duress, or force and fear, or
illegality, the burden of proof is shifted, unless and until the
holder proves that, subsequent to the alleged fraud or illegality,
value has in good faith been given for the bill .
Negotiation of bills.
31. ( 1. ) A bill is negotiated when it is transferred from one Negotiation
person to another in such a manner as to constitute the trans- of bill..
feree the holder of the bill .
( 2. ) A bill payable to bearer is negotiated by delivery.
( 3. ) A bill payable to order is negotiated by the indorsement
of the holder completed by delivery.
( 4. ) Where the holder of a bill payable to his order transfers
it for value without indorsing it , the transfer gives the trans
feree such title as the transferor had in the bill, and the trans
feree in addition acquires the right to have the indorsement of
the transferor ,