the-ordinances-of-the-legislative-counci-1890v4 — Page 57

1874 ORDINANCE No. 9 OF 1885.


Bills of Exchange.


Liabilities of parties.

Funds in 53. A bill, of itself, does not operate as an assignment of funds in
hands of
drawee. 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.

Liability of 54. The acceptor of a bill , by accepting it—
acceptor.
( 1. ) Engages that he will pay it according to the tenor
of his acceptance :

(2. ) Is precluded from denying to a holder in due
course :


(a. ) The existence of the drawer, the genuineness of his signa
ture, and his capacity and authority to draw the bill ;

( b . ) In the case of a bill payable to drawer's order , the then
capacity of the drawer to indorse, but not the genuine
ness or validity of his indorsement ;

( c. ) 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 55. ( 1. ) The drawer of a bill by drawing it—
drawer or
indorser.
(a. ) Engages that on due presentment it shall be accepted and
paid according to its tenor, and that if it be dishonoured

he will compensate the holder or any indorser who is
compelled to pay it , provided that the requisite proceedings
on dishonour be 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 be dishonoured

he will compensate the holder or a subsequent indorser
who is compelled to pay it , provided that the requisite
proceedings on dishonour be duly taken ;