the-ordinances-of-the-legislative-counci-1890v4 — Page 44

ORDINANCE No. 9 OF 1885 . 1861


Bills of Exchange.


29. ( 1. ) A holder in due course is a holder who has taken a bill , Holder in due
course.
complete and regular on the face of it, under the following 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 :


(b. ) 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 fraud , 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 primâ Presumption
of value and
facie deemed to have become a party thereto for value. good faith.

(2. ) Every holder of a bill is prima 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 ofbills.

31. ( 1. ) A bill is negotiated when it is transferred from one person Negotiation
of bill.
to another in such a manner as to constitute the transferee 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.