the-ordinances-of-the-legislative-counci-1890v4 — Page 59

1876 ORDINANCE No. 9 OF 1885 .


Bills of Exchange.

Transferor by
delivery and 58. ( 1. ) Where the holder of a bill payable to bearer negotiates it
transferee.
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 .

Discharge of bill.

Payment in 59. ( 1. ) A bill is discharged by payment in due course by or on
due course.
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 re- issue 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 .

Banker pay
60. When a bill payable to order on demand is drawn on a banker ,
ing demand
draft whereon and the banker on whom it is drawn pays the bill in good faith and in
indorsement
is forged. the ordinary course of business , it is not incumbent on the banker to
show that the indorsement of the payee or any subsequent indorsement
was made by or under the authority of the person whose indorsement it
purports to be, and the banker is deemed to have paid the bill in due

course, although such indorsement has been forged or made without
authority.