Sec. 164. The acceptor for honor is liable to the holder and to all parties to the bill subsequent to the party for whose honor he has accepted.

Sec. 165. The acceptor for honor, by such acceptance engages that he will on due presentment pay the bill according to the terms of his acceptance, provided it shall not have been paid by the drawee, and provided also, that it shall have been duly presented for payment and protested for non-payment and notice of dishonor 2 given to him.

Sec. 166. Where a bill payable after sight is accepted for honor, its maturity is calculated from the date of the noting for non-acceptance and not from the date of the acceptance for

honor.

Sec. 167. Where a dishonored bill has been accepted for honor supra protest or contains a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honor or referee in case of need.

Sec. 168. Presentment for payment to the acceptor for honor must be made as follows:

1. If it is to be presented in the place where the protest for non-payment was made, it must be presented not later than the day following its maturity.

2. If it is to be presented in some other place than the place where it was protested, then it must be forwarded. within the time specified in section one hundred and four.3

Sec. 169. The provisions of section eighty-one apply where there is delay in making presentment to the acceptor for honor or referee in case of need.

Sec. 170. When the bill is dishonored by the acceptor for honor it must be protested for non-payment by him.

1 The English Act uses 'tenour" instead of "terms." B. E. A. s. 66 (1).

2 The English Act reads "notice of these facts." B. E. A. s. 66 (1).

8 "Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to him.” B. E. A. s. 67 (2).

ARTICLE VI.

PAYMENT FOR HONOR.

Sec. 171. Where a bill has been protested for non-payment, any person may intervene and pay it supra protest for the honor of any person liable thereon or for the honor of the person for whose account it was drawn.

Sec. 172. The payment for honor supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honor which may be appended to the protest or form an extension to it.

Sec. 173. The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays.

Sec. 174. Where two or more persons offer to pay a bill for the honor of different parties, the person whose payment will discharge most parties to the bill is to be given the preference.

Sec. 175. Where a bill has been paid for honor, all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor is subrogated for, and succeeds to, both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter.

Sec. 176. Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourse against any party who would have been discharged by such payment.

Sec. 177. The payer for honor, on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest.1

ARTICLE VII.

BILLS IN A SET.

Sec. 178. Where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other parts, the whole of the parts constitutes one bill.

1 The English Act adds, "If the holder do not on demand deliver them up, he shall be liable to the payer for honour for damages." B. E. A. s. 68 (6).

Sec. 179. Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders the true owner of the bill. But nothing in this section affects the rights of a person who in due course accepts or pays the part first presented to him.

Sec. 180. Where the holder of a set indorses two or more parts to different persons he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed, as if such parts were separate bills.

Sec. 181. The acceptance may be written on any part and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts are negotiated to different holders in due course,1 he is liable on every such part as if it were a separate bill.

Sec. 182. When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereon.

Sec. 183. Except as herein otherwise provided where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged.

TITLE III.

PROMISSORY NOTES AND CHECKS.

ARTICLE I.

Sec. 184. A negotiable 2 promissory note within the meaning of this act is an unconditional promise in writing made by one person to another signed by the maker engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to order or to bearer. Where a note is drawn to the maker's own order, it is not complete until indorsed by him.

Sec. 185. A check is a bill of exchange drawn on a bank payable on demand. Except as herein otherwise provided, the pro

1 The English Act reads, "get into the hands of different holders in due course." B. E. A. s. 71 (4).

24 Negotiable" is omitted in the English Act. B. E. A. s. 83 (1).

The English Act reads, "a sum certain in money to, or to the order of a specified person or to bearer." B. E. A. s. 83 (1) and see also section 8 (4), supra, p. 4, n. 3, and p. 27, n. 3.

visions of this act applicable to a bill of exchange payable on demand apply to a check.

Sec. 186. A check must be presented for payment within a reasonable time after its issue or the drawer will be discharged from liability thereon to the extent of the loss caused by the delay.1

Sec. 187. Where a check is certified by the bank on which it is drawn, the certification is equivalent to an acceptance.2

Sec. 188. Where the holder of a check procures it to be accepted or certified, the drawer and all indorsers are discharged from liability thereon.2

Sec. 189. A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer with the bank, and the bank is not liable to the holder, unless and until it accepts or certifies the check.3

TITLE IV.

GENERAL PROVISIONS.

ARTICLE I.

Sec. 190. This act shall be known as the Negotiable Instruments Law.1

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Sec. 191. In this act, unless the context otherwise requires,'Acceptance" means an acceptance completed by delivery or notification.5

1 " 'Subject to the provisions of this Act,- (1) Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or the person on whose account it is drawn, had the right at the time of such presentment, as between him and the banker, to have the cheque paid, and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid. (3) The holder of such cheque as to which such drawer or person is discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge, and entitled to recover the amount from him." B. E. A. s. 74. 2 Not in B. E. A.

...

• The English Act makes no such provision as to checks specially, but section 53 (1) provides that "A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument." And section 73 provides that "Except as otherwise provided in this part, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque."

4 "This Act may be cited as the Bills of Exchange Act 1882." B. E. A. s. 1. The English Act contains the same provision, B. E. A. s. 1, but also provides that "where an acceptance is written on a bill and the drawee gives notice to or

"Action" includes counter-claim and set-off.

"Bank" includes any person or association of persons carrying on the business of banking, whether incorporated or

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not.1

Bearer"

means the person in possession of a bill or note which is payable to bearer.

"Bill" means bill of exchange, and "note" means negotiable promissory note.2

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Delivery" means transfer of possession, actual or constructive, from one person to another.

"Holder" means the payee or indorsee of a bill or note, who is in possession of it, or the bearer thereof.

"Indorsement" means an indorsement completed by delivery.

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Instrument" means negotiable instrument.3

"Issue" means the first delivery of the instrument, complete in form, to a person who takes it as a holder.

"Person" includes a body of persons, whether incorporated

or not.

"Value" means valuable consideration.

"Written" includes printed, and "writing" includes print. Sec. 192. The person "primarily " liable on an instrument is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are secondarily "

liable.3

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Sec. 193. In determining what is a "reasonable time" or an "unreasonable time," regard is to be had to the nature of the instrument, the usage of trade or business (if any) with respect to such instruments, and the facts of the particular case.*

Sec. 194. Where the day, or the last day, for doing any act

according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable." B. E. A. ss. 2, 21 (1). Sce supra, p. 6, n. 3, and p. 28, n. I.

1 "Banker' includes a body of persons whether incorporated or not, who carry on the business of banking." B. E. A. s. 2.

2 "Bill' means bill of exchange and 'note' means promissory note." B. E. A. s. 2. The same section of the English Act also gives the following additional definition : 'Bankrupt ' includes any person whose estate is vested in a trustee or assignee under the law for the time being in force relating to bankruptcy."

8 Not in B. E. A.

4 The provision here stated generally is made in the English Act as to bills in sections 40 (3) and 45 (2), as to checks in sections 73 and 74 (2), and as to promissory notes in sections 86 (2) and 89 (1).