<span class="Apple-style-span" style="border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;"><span class="Apple-style-span" style=""><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">As amended by</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">&nbsp;ARRANGEMENT OF SECTIONS</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Section</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART I—BILLS OF EXCHANGE</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Form and Interpretation</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">1. Bill of Exchange Defined.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">2. Inland and Foreign Bills.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">3. Effect where Different Parties to Bill are the Same Person.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">4. Address to Drawee.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">5. Certainty Required as to Payee</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">6. What Bills are Negotiable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">7. Sum Payable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">8. Bill Payable on Demand.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">9. Bill Payable at a Future Time.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">10. Omission of Date in bill Payable After Date.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">11. Ante-dating and Post-dating.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">12. Computation of Time of Payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">13. Case of Need.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">14. Optional Stipulations by Drawer or Indorser.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">15. Definition and Requisites of Acceptance.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">16. Time for Acceptance.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">17. General and Qualified Acceptances.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">18. Inchoate Instruments.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">19. Delivery.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Capacity and Authority of Parties</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">20. Capacity of Parties.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">21. Signature Essential to Liability.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">22. Forged or Unauthorised Signature.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">23. Procuration Signatures.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">24. Person Signing as Agent or in Representative Capacity.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The Consideration for a Bill</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">25. Value and Holder for Value.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">26. Accommodation Bill or Party.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">27. Holder in Due Course.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">28. Presumption of Value and Good Faith.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Negotiation of Bills</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">29. Negotiation of Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">30. Requisites of a Valid Indorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">31. Conditional Indorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">32. Indorsement in Blank and Special Indorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">33. Restrictive Indorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">34. Negotiation of Overdue or Dishonoured Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">35. Negotiation of Bill to Party Already Liable Thereon.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">36. Rights of the Holder.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">General Duties of the Holder</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">37. When Presentment for Acceptance is Necessary.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">38. Time for Presenting Bill Payable After Sight.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">39. Rules as to Presentment for Acceptance, and Excuses for Non-presentment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">40. Non-acceptance.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">41. Dishonour by Non-acceptance and its Consequences.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">42. Duties as to Qualified Acceptances.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">43. Rules as to Presentment for Payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">44. Excuses for Delay or Non-presentment for Payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">45. Dishonour by Non-payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">46. Notice of Dishonour and Effect of Non-notice.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">47. Rules as to Notice of Dishonour.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">48. Excuses for Non-notice and Delay.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">49. Noting or Protest of Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">50. Duties of Holder as Regards Drawee or Acceptor.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Liabilities of Parties</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">51. Funds in Hands of Drawee.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">52. Liability of Acceptor.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">53. Liability of Drawer or Indorser.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">54. Stranger Signing Bill Liable as Indorser.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">55. Measure of Damages Against Parties to Dishonoured Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">56. Transferor by Delivery and Transferee.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Discharge of Bill</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">57. Payment in Due Course.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">58. Banker Paying Demand Draft Whereon Indorsement is Forged.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">59. Sufficient Authority to pay Draft on Bankers without Proof of Indorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">60. Acceptor the Dolder at Maturity.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">61. Express Waiver.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">62. Cancellation.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">63. Alteration of Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Acceptance and Payment for Honour</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">64. Acceptance for Honour Supra Protest.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">65. Liability of Acceptor for Honour.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">66. Presentment to Acceptor for Honour.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">67. Payment for Honour Supra Protest.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Lost Instruments</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">68. Holder's Right to Duplicate of Lost Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">69. Action on Lost Bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Bill in a Set</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">70. Rules as to Sets.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Conflict of Laws</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">71. Rules Where Laws Conflict.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART II—CHEQUES AND SIMILAR INSTRUMENTS</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Cheques on a Banker</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">72. Cheque Defined.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">73. Presentment of Cheque for Payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">74. Revocation of Banker's Authority.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Crossed Cheques</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">75. General and Special Crossings Defined.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">76. Crossing by Drawer or After Issue.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">77. Crossing a Material Part of Cheque.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">78. Duties of Banker as to Crossed Cheques.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">79. Protection to Banker and Drawer Where Cheque is Crossed.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">80. Effect of Crossing on Holder.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">81. Protection to Collecting Banker.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Other Instruments</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">82. Application of Sections 75 to 81 to Other Instruments.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART III—PROMISSORY NOTES</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">83. Promissory Note Defined.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">84. Delivery Necessary.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">85. Joint and Several Notes.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">86. Note Payable on Demand.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">87. Presentment of Note for Payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">88. Liability of Maker.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">89. Application of Part I to Notes.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART IV—SUPPLEMENTARY</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">90. Good Faith.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">91. Signature.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">92. Computation of Time.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">93. Business and non-business Days.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">94. When Noting Equivalent to Protest.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">95. Protest When Notary not Accessible.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">96. Savings.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">97. Interpretation.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">98. Statutes Ceasing to Apply.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">99. Repeal.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">SCHEDULES</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">First Schedule—Form of Protest</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Second Schedule—Statutes Ceasing to Apply</span></p><p class="MsoNormal" style="text-align: center;"><span style="font-family: Arial;">&nbsp;THE FIFTY-FIFTH</span></p><p class="MsoNormal" style="text-align: center;"><img src="coatofarms_small.jpg" border="0" width="108" height="89"></p><p class="MsoNormal" style="text-align: center;">&nbsp;</p><p class="MsoNormal" style="text-align: center;"><span style="font-family: Arial;">ACT OF THE PARLIAMENT OF THE REPUBLIC OF GHANA</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">ENTITLED</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">THE BILLS OF EXCHANGE ACT, 1961</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">AN ACT to re-enact, with minor modifications, the Bills of Exchange Ordinance (Cap. 195), and to extend its provisions to the whole of Ghana.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">DATE OF ASSENT: 24th May, 1961</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">BE IT ENACTED by the President and the National Assembly in this present Parliament assembled as follows:-</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART I—BILLS OF EXCHANGE</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Form and Interpretation</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 1—Bill of Exchange Defined.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring&nbsp; the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to reimburse himself, or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) A bill is not invalid by reason-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) that it is not dated;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) that it does not specify the value given, or that any value has been given therefor;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) that it does not specify the place where it is drawn or the place where it is payable.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 2—Inland and Foreign Bills.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) An inland bill is a bill which is or on the face of it purports to be (a) both drawn and payable within Ghana, or (b) drawn within Ghana upon some person resident therein. Any other bill is a foreign bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 3- Effect where Different Parties to a Bill are the Same Person.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill may be drawn payable to, or to the order of, the drawer, or it may be drawn payable to, or to the&nbsp; order of, the drawee.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where in a bill the drawer and the drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 4- Address to Drawee.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The drawee must be named or otherwise indicated in a bill with reasonable certainty.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill may be addressed to two or more drawees, whether they are partners or not, but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill of exchange.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 5- Certainty Required as to Payee.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill is not payable to bearer the payee must be named or otherwise indicated therein with reasonable certainty.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 6- What Bills are Negotiable.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) When a bill contains words prohibiting transfer or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A negotiable bill may be payable either to order or to bearer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) A bill is payable to bearer which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) A bill is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where a bill either originally or by endorsement is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 7- Sum Payable.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) with interest;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) by stated instalments;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) by stated instalments, with a provision, that upon default in payment of any instalment the whole shall become due;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) according to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where the sum payable is expressed in words and also in figures, and there is a discrepancy&nbsp; between the two, the sum denoted by the words is the amount payable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 8- Bill Payable on Demand.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is payable on demand-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) which is expressed to be payable on demand or at sight or on presentation; or</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) in which no time for payment is expressed.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a bill is accepted or endorsed when it is overdue it shall, as regards the acceptor who so accepts or any endorser who so endorses it, be deemed a bill payable on demand.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 9- Bill Payable at a Future Time.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable- <br></span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) at a fixed period after date or sight;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 10- Omission of Date in Bill Payable After Date.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the bill shall be payable accordingly:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) where the holder in good faith and by mistake inserts a wrong date, and</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) in every case where a wrong date is inserted, if the bill subsequently comes into the hands of a holder in due course,</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">the bill shall not be avoided thereby, but shall operate and be payable as if the date so inserted had been the true date.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 11- Ante-dating and Post-dating.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill or an acceptance or any endorsement on a bill is dated the date shall, unless the contrary be proved, be deemed to be the true date of the drawing, acceptance, or endorsement, as the case may be.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill is not invalid by reason only that it is ante-dated or post-dated, or that it bears date on a Sunday.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 12- Computation of Time of Payment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill is not payable on demand, the day on which it falls due is determined as follows-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) Three days called days of grace are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace:</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provided that-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) when the last day of grace falls on Sunday, Christmas Day, or Good Friday, the bill is, except in the case hereinafter provided for, due and payable on the preceding business day;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) when the last day of grace falls on any other non-business day, or when the last day of grace is a Sunday and the second day of grace is also a non-business day, the bill is due and payable on the succeeding business day.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Where a bill is payable at a fixed period after date, after sight, or after the happening of a specified event;, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Where&nbsp; a bill is payable at a fixed period after sight the time begins to run from the date of the acceptance if the bill be accepted and from the date of noting or protest if the bill be noted or protested for non-acceptance or for non-delivery.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) The term "month" in a bill means calendar month.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 13- Case of Need.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The drawer of a bill and any endorser may insert therein the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may think fit.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 14- Optional Stipulations by Drawer or Endorser.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The drawer of a bill and any endorser may insert therein an express stipulation—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) negativing or limiting own liability to the holder;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) waiving as regards himself some or all of the holder's duties.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 15- Definition and Requisites of Acceptance.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) An acceptance is invalid unless it complies with the following conditions, namely</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) It must be written on the bill and be signed by the drawee. The mere signature of the drawee without additional words is sufficient.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) It must not express that the drawee will perform his promise by any other means than the payment of money.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 16- Time for Acceptance.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill may be accepted-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) before it has been signed by the drawer or while otherwise incomplete;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) when it is overdue or after it has been dishonoured by a previous refusal to accept or by non-payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) When a bill payable after sight is dishonoured by non-acceptance and the drawee subsequently accepts it the holder in the absence of any different agreement is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 17- General and Qualified Acceptance.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) An acceptance is either (a) general or (b) qualified.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">In particular an acceptance is qualified which is-</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) local, that is to say, an acceptance to pay only at a particular specified place: an acceptance to pay at a particular place is a general acceptance unless it expressly states that the bill is to be paid there only and not elsewhere;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) qualified as to time;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) the acceptance of some one or more of the drawees, but not of all.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 18- Inchoate Instrument.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a simple signature on a blank stamped paper is delivered by the signer in order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, or the acceptor, or an endorser; and, in like manner, when a bill is wanting in any material particular, the person in possession of it has a prima facie authority to fill up the omission in any way he thinks fit.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must&nbsp; be filled up within a reasonable time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that if any such instrument after completion is negotiated to a holder in due course it shall be valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 19—Delivery.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Every contract on a bill, whether it be the drawer's, the acceptor's, or an endorser's, is incomplete and revocable, until delivery of the instrument in order to give effect thereto:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) in order to be effectual must be made either by or under the authority of the party drawing, accepting, or endorsing, as the case may be;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill. But if the bill be in the hands of a holder in due course a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or endorser, a valid and unconditional delivery by him is presumed until the contrary is proved.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Capacity and Authority of Parties</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 20—Capacity of Parties.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Capacity to incur liability as a party to a bill is co-extensive with capacity to contract:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that nothing in this section shall enable a corporation to make itself liable as a drawer, acceptor, or endorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a bill is drawn or endorsed by an infant, or corporation having no capacity or power to incur liability on a bill, the drawing or endorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 21—Signature Essential to Liability.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">No person is liable as drawer, endorser, or acceptor of a bill who has not signed it as such:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(a) where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(b) the signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 22—Forged or Unauthorised Signature.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Subject to the provisions of this Act, where a signature on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and no right to retain the bill or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 23—Procuration Signatures.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 24—Person Signing as Agent or in Representative Capacity.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a person signs a bill as drawer, endorser, or acceptor, and adds words to his signature, indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon; but the mere addition to his signature of words describing him as an agent, or as filling a representative character, does not exempt him from personal liability.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) In determining whether a signature on a bill is that of the principal or that of the agent by whose hands it is written, the construction most favourable to the validity of the instrument shall be adopted.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">The Consideration for a Bill</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 25—Value and Holder for Value.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Valuable consideration for a bill may be constituted by—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) any consideration sufficient to support a simple contract;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) an antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where value has at any time been given for a bill the holder is deemed to be&nbsp; a holder for value as regards the acceptor and all parties to the bill who become parties prior to such time.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where the holder of a bill has a lien on it arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 26—Accommodation Bill or Party.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor, or endorser, without receiving value therefor, and for the purpose of lending his name to some other person.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 27—Holder in Due Course.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(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; [As amended by Bills of Exchange (Amendment) Decree, 1966 (NLCD 120)].</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(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.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) In particular the title of a person who negotiates a bill is defective within the meaning of this Act when he obtains 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.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(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.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 28—Presumption of Value and Good Faith.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Every party whose signature appears on a bill is prima facie deemed to have become a party thereto for value.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(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.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Negotiation of Bills</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 29—Negotiation of Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill payable to bearer is negotiated by delivery.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) A bill payable to order is negotiated by the endorsement of the holder completed by delivery.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Where the holder of a bill payable to his order transfers it for value without endorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the endorsement of the transferor.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where any person is under obligation to endorse a bill in a representative capacity, he may endorse the bill in such terms&nbsp; as to negative personal liability.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 30—Requisites of a Valid Endorsement.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">An endorsement in order to operate as a negotiation must comply with the following conditions, namely—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) It must be written on the bill itself and be signed by the endorser. The simple signature of the endorser on the bill, without additional words, is sufficient.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">An endorsement written on an allonge, or on a "copy" of a bill issued or negotiated in a country where "copies" are recognised, is deemed to be written on the bill itself.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) It must be an endorsement of the entire bill. A partial endorsement, that is to say, an endorsement which purports to transfer to the endorsee a part only of the amount payable, or which purports to transfer the bill to two or more endorsees severally does not operate as a negotiation of the bill.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Where a bill is payable to the order of two or more payees or endorsees who are not partners, all must endorse, unless the one endorsing has authority to endorse for the others.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) Where, in a bill payable to order, the payee or endorsee is wrongly designated or his name is mis-spelt, he may endorse the bill as therein&nbsp; described, adding, if he thinks fit, his proper signature.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) Where there are two or more endorsements on a bill each endorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(f) An endorsement may be made in blank or special.&nbsp; It may also contain terms making it restrictive.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 31—Conditional Endorsement.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill purports to be endorsed conditionally the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 32—Endorsement in Blank and Special Endorsement.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) An endorsement in blank specifies no endorsee, and a bill so endorsed becomes payable to bearer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A special endorsement specifies the person to whom, or to whose order, the bill is to be payable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) The provisions of this Act relating to a payee apply with the necessary modifications to an endorsee under a special endorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) When a bill has been endorsed in blank, any holder may convert the blank endorsement into a special endorsement by writing above the endorser's signature a direction to pay the bill to or to the order of himself or some other person.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 33—Restrictive Endorsement.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) An endorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed, and not a transfer of the ownership thereof, as, for example, if a bill be endorsed "Pay D. only," or Pay D. for the account of X.," or "Pay D. or order for collection."</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A restrictive endorsement gives the endorsee the right to receive payment of the bill and to sue any party thereto that his endorser could have sued, but gives him no power to transfer his rights as endorsee unless it expressly authorises him to do so.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where a restrictive endorsement authorises further transfer, all subsequent endorsees take the bill with the same rights and subject to the same liabilities as the first endorsee under the restrictive endorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 34—Negotiation of Overdue or Dishonoured Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill is negotiable in its origin it continues to be negotiable until it has been (a) restrictively endorsed, or (b) discharged by payment or otherwise.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Except where an endorsement bears date after the maturity of the bill, every negotiation is prima facie deemed to have been effected before the bill was overdue.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where a bill which is not overdue has been dishonoured any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this subsection shall affect the rights of a holder in due course.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 35—Negotiation of Bill to Party Already Liable Thereon.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill is negotiated back to the drawer, or to a prior endorser, or to the acceptor, such party may, subject to the provisions of this Act, re-issue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 36—Rights of the Holder.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The rights and powers of the holder of a bill are as follows—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) He may sue on the bill in his own name.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Where his title is defective (i) if he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill, and&nbsp; (ii) if he obtains payment of the bill the person who pays him in due course gets a valid discharge for the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">General Duties of the Holder</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 37—When Presentments Acceptance is Necessary</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and the endorsers.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 38—Time for Presenting Bill Payable After Sight.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Subject to the provisions of this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) If he does not do so, the drawer and all endorsers prior to the holder are discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 39—Rules as to Presentment for Acceptance, and Excuses for Non-presentment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is duly presented for acceptance which is presented in accordance with the following rules—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) the presentment must be made by or on behalf of the holder to the drawee or to some person authorised to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) where the drawee is dead presentment may be made to his personal representative;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) where the drawee is insolvent presentment may be made to him or to his trustee;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) where authorised by agreement or usage, a presentment through the post office is sufficient.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) where the drawee is dead, or insolvent, or is a fictitious person, or a person not having capacity to contract by bill;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) where, after the exercise of reasonable diligence, such presentment cannot be effected;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) where, although the presentment has been irregular, acceptance has been refused on some other grounds.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) The fact that the holder has reason to believe that the bill on presentment will be dishonoured does not excuse presentment.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 40—Non-acceptance.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">When a bill is duly presented for acceptance and is not accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he does not the holder shall lose his right of recourse against the drawer and endorsers.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 41—Dishonour by Non-acceptance and Its Consequence.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is dishonoured by non-acceptance—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) when it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) when presentment for acceptance is excused and the bill is not accepted.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Subject to the provisions of this Act, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 42—Duties as to Qualified Acceptances.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The holder of a bill may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance may treat the bill as dishonoured by non-acceptance.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a qualified acceptance is taken, and the drawer or an endorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or endorser is discharged from his liability on the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The provisions of this subsection do not apply to a partial acceptance, whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) When the drawer or endorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder he shall be deemed to have assented thereto.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 43—Rules as to Presentment for Payment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Subject to the provisions of this Act, a bill must be duly presented for payment. If it be not so presented the drawer and the endorsers shall be discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill is duly presented for payment which is presented in accordance with the following rules</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) Where the bill is not payable on demand, presentment&nbsp; must be made on the day it falls due.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue in order to render the drawer liable, and within a reasonable time after its endorsement, in order to render the endorser liable.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">In determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Presentment must be made by the holder or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf if with the exercise of reasonable diligence such person can there be found.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) A bill is presented at the proper place -</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) Where a place of payment is specified in the bill and the bill is there presented.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) Where no place of payment is specified, but the address of drawee or acceptor is given in the bill, and the bill is there presented.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iii) Where no place of payment is specified and no address given, and the bill is presented at the drawee's or acceptor's place of business if known, and, if not, at his ordinary residence if known.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iv) In any other case if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business or residence.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) Where a bill is presented at the proper place, and after the exercise of reasonable diligence no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(f) Where a bill is drawn upon, or accepted by two or more persons who are not partners, and no place of payment is specified, presentment must be made to them all.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(g) Where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(h) Where authorised by agreement or usage a presentment through the post office is sufficient.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 44—Excuses for Delay or Non-presentment for Payment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate presentment must be made with reasonable diligence.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Presentment for payment is dispensed with—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) Where after the exercise of reasonable diligence presentment, as required by this Act, cannot be effected. The fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Where the drawee is a fictitious person.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) As regards the drawer where the drawee or acceptor is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if presented.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) As regards an endorser, where the bill was accepted or made for the accommodation of that endorser, and he has no reason to expect that the bill would be paid if presented.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) By waiver of presentment, express or implied.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 45—Dishonour by Non-payment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is dishonoured by non-payment (a) when it is duly presented for payment and payment is refused or cannot be obtained, or (b) when presentment is excused and the bill is overdue and unpaid.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Subject to the provisions of this Act, when a bill is dishonoured by non-payment, an immediate right or recourse against the drawer and endorsers accrues to the holder.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 46—Notice of Dishonour and Effect of Non-notice.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Subject to the provisions of this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom such notice is not given is discharged:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(a) Where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission, shall not be prejudiced by the omission.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(b) Where a bill is dishonoured by non-acceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non-payment unless the bill shall in the meantime have been accepted.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 47—Rules as to Notice of Dishonour.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Notice of dishonour in order to be valid and effectual must be given in accordance with the following rules—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) The notice must be given by or on behalf of the holder, or by or on behalf of an endorser who, at the time of giving it, is himself liable on the bill.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Notice of dishonour may be given by an agent either in his own name or in the name of any party entitled to give notice whether that party be his principal or not.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Where the notice is given by or on behalf of the holder, it enures for the benefit of all subsequent holders and all prior endorsers who have a right of recourse against the party to whom it is given.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) Where notice is given by or on behalf of an endorser entitled to give notice as hereinbefore provided, it enures for the benefit of the holder and all endorsers subsequent to the party to whom notice is given.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) The notice may be given in writing or by personal communication, and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non-payment.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(f) The return of a dishonoured bill to the drawer or an endorser is, in point of form, deemed a sufficient notice of dishonour.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(g) A written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication. A mis-description of the bill shall not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(h) Where notice of dishonour is required to be given to any person, it may be given either to the party himself, or to his agent in that behalf.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(i) Where the drawer or endorser is dead, and the party giving notice knows it, the notice must be given to a personal representative if such there be, and with the exercise of reasonable diligence he can be found.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(j) Where the drawer or endorser is insolvent, notice may be given either to the party himself or to the trustee.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(k) Where there are two or more drawers or endorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for the others.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(l) The notice may be given as soon as the bill is dishonoured and must be given within a reasonable time thereafter.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">In the absence of special circumstances notice is not deemed to have been given within a reasonable time unless—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) Where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter&nbsp; on the day after the dishonour of the bill.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) Where the person giving and the person to receive notice reside in different places, the notice is sent off on the day after the dishonour of the bill, if there be a post at a convenient hour on the day, and if there be no such post on that day then by the next post thereafter.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(m) Where a bill when dishonoured is in the hands of an agent, he may either himself give notice to the parties liable on the bill, or he may give notice to his principal. If he gives notice to his principal, he must do so within the same time as if he were the holder, and the principal upon receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(n) Where a party to a bill receives due notice of dishonour, he has after the receipt of such notice the same period of time for giving notice to antecedent parties that the holder has after the dishonour.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(o) Where a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 48—Excuses for Non-notice and Delay.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the notice must be given with reasonable diligence.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Notice of dishonour is dispensed with—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) when, after the exercise of reasonable diligence, notice as required by this Act cannot be given to or does not reach the drawer or endorser sought to be charged;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) by waiver express or implied. Notice of dishonour may be waived before the time of giving notice has arrived, or after the&nbsp; omission to give due notice;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) as regards the drawer in the following cases, namely</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) where drawer and drawee are the same person;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) where the drawee is a fictitious person or a person not having capacity to contract;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iii) where the drawer is the person to whom the bill is presented for payment;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iv) where the drawee or acceptor is as between himself and the drawer under no obligation to accept or pay the bill;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(v) where the drawer has countermanded payment;</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">(d) as regards the endorser in the following cases, namely—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) where the drawee is a fictitious person or a person not having the capacity to contract and the endorser was aware of the fact at the time he endorsed the bill;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) where the endorser is the person to whom the bill is presented for payment;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iii) where the bill was accepted or made for his accommodation.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 49—Noting or Protest of Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where an inland bill has been dishonoured it may, if the holder thinks fit, be noted for non-acceptance or non-payment, as the case may be; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or endorser.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a foreign bill, appearing on the face of it to be such, has been dishonoured by non-acceptance it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non-acceptance, is dishonoured by non-payment it must be duly protested for non-payment. If it be not so protested the drawer and endorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) A bill which has been protested for non-acceptance may be subsequently protested for non-payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Subject to the provisions of this Act, when a bill is noted or protested, it may be noted on the day of its dishonour and must be noted not later than the next succeeding business day. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where the acceptor of a bill becomes insolvent or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and endorsers.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(6) A bill must be protested at the place where it is dishonoured:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(a) when a bill is presented through the post office, and returned by post dishonoured, it may be protested at the place to which it is returned and on the day of its return if received during business hours, and if not received during business hours, then not later than the next business day;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(b) when a bill drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non-acceptance it must be protested for non-payment at the place where it is expressed to be payable, and no further presentments for payment to, or demand on, the drawee is necessary.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(7) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify—</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">(a) the person at whose request the bill is protested;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) the place and date of protest, the cause or reason for protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee or acceptor could not be found.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(8) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(9) Protest is dispensed with by any circumstances which would dispense with notice of dishonour. Delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the bill must be noted or protested with reasonable diligence.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 50—Duties of Holder as Regards Acceptor.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) When a bill is accepted generally presentment for payment is not necessary in order to render the acceptor liable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day it matures.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Liabilities of Parties</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 51—Funds in Hands of Drawee.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">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.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 52—Liability of Acceptor.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The acceptor of a bill by accepting it—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) engages that he will pay it according to the tenor of his acceptance;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) is precluded from denying to a holder in due course—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) in the case of a bill payable to drawer's order the then capacity of the drawer to endorse, but not the genuineness or validity of his endorsement;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iii) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to endorse, but not the genuineness or validity of his endorsement.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 53—Liability of Drawer or Endorser.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The drawer of a bill by drawing it—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(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 endorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) is precluded from denying to a holder in due course&nbsp; the existence of the payee and his then capacity to endorse.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) The endorser of a bill by endorsing it—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(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 endorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer's signature and all previous endorsements;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) is precluded from denying to his immediate or a subsequent endorsee that the bill was at the time of his endorsement a valid and subsisting bill, and that he had then a good title thereto.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 54—Stranger Signing Bill Liable as Endorser.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an endorser to a holder in due course.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 55—Measure of Damages Against Parties to Dishonoured Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) The holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an endorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior endorser—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) the amount of the bill;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) interest thereon from the time of presentment for payment if the bill is payable on demand, and from the maturity of the bill in any other case;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(iii) the expenses of noting, or, when protest is necessary, and the protest has been extended,&nbsp; the expenses of protest.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) In the case of a bill which has been dishonoured abroad, in lieu of the above damages, the holder may recover from the drawer or an endorser, and the drawer or an endorser who has been compelled to pay the bill may recover from any party liable to him the amount of the re-exchange with interest thereon until the time of payment.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) Where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 56—Transferor by Delivery and Transferee.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where the holder of a bill payable to bearer negotiates it by delivery without endorsing it, he is called a "transferor by delivery".</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A transferor by delivery is not liable on the instrument.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(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.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Discharge of Bill</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 57—Payment in Due Course.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A bill is discharged by payment in due course by or on 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&nbsp; his title to the bill is defective.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an endorser it is not discharged; but—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(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;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) where a bill is paid by an endorser, 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 endorsements, and again negotiate the bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where an accommodation bill is paid in due course by the party accommodated the bill is discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 58—Banker Paying Demand Draft Whereon Endorsement is Forged.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the endorsement of the payee or any subsequent endorsement was made by or under the authority of the person whose endorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such endorsement has been forged or made without authority.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 59—Sufficient Authority to Pay Draft on Bankers Without Proof of Indorsement.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Any draft or order drawn whether in or out of Ghana upon a banker whether in or out of Ghana for a sum of money payable to order on demand or at some other time which shall, when presented for payment, purport to be endorsed by the person to whom the same shall be drawn payable, shall be a sufficient authority to such banker to pay the amount of such draft or order to the bearer thereof; and it shall not be incumbent on such banker to prove that such endorsement, or any subsequent endorsement, was made by or under the direction or authority of the person to whom the said draft or order was or is made payable either by the drawer or any endorser thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 60—Acceptor the Holder at Maturity.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">When the acceptor of a bill is or becomes the holder of it at or after its maturity, in his own right, the bill is discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 61—Express Waiver.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor, the bill is discharged. The renunciation must be in writing, unless the bill is delivered up to the acceptor.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity, but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 62—Cancellation.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent. In such case any endorser who would have had a right of recourse against the party whose signature is cancelled, is also discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) A cancellation made unintentionally, or under a mistake, or without the authority of the holder is inoperative; but where a bill or any signature thereon appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 63—Alteration of Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill or acceptance is materially altered without the assent of all parties liable on the bill, the bill is avoided except as against a party who has himself made, authorised, or assented to the alteration, and subsequent endorsers:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, such holder may avail himself of the bill as if it had not been altered, and may enforce payment of it according to its original tenor.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) In particular the following alterations are material, namely, any alteration of the date, the sum payable, the time of payment, the place of payment, and, where a bill has been accepted generally, the addition of a place of payment without the acceptor's assent.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Acceptance and Payment for Honour</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 64—Acceptance for Honour Supra Protest.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supra protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) A bill may be accepted for honour for part only of the sum for which it is drawn.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) An acceptance for honour supra protest in order to be valid must—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) be written on the bill, and indicate that it is an acceptance for honour;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) be signed by the acceptor for honour.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 65—Liability of Acceptor for Honour.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 66—Presentment to Acceptor for Honour.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a dishonoured bill has been accepted for honour 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 honour, or referee in case of need.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) 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.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Delay in presentment or non-presentment is excused by any circumstance which would excuse delay in presentment for payment or non-presentment for payment.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 67—Payment for Honour Supra Protest.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill has been protested for non-payment any person may intervene and pay it supra protest for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Payment for honour supra protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour which may be appended to the protest or form an extension of it.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for, and succeeds to both the rights and duties of, the holder as regards the party for whose honour he pays and all parties liable to that party.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest. If the holder does not on demand deliver them up he shall be liable to the payer for honour in damages.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(7) Where the holder of a bill refuses to receive payment supra protest he shall lose his right of recourse against any party who would have been discharged by such payment.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Lost Instruments</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 68—Holder's Right to Duplicate of Lost Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a bill has been lost before it is overdue, the person who was the holder of it may apply for the drawer to give him another bill of the same tenor, giving security to the drawer if required to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) If the drawer on request as aforesaid refuses to give such duplicate bill he may be compelled to do so.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 69—Action on Lost Bill.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">In any action or proceeding upon a bill, the Court may order that the loss of the instrument shall not be set up, provided that an indemnity be given to the satisfaction of the Court against the claims of any other person upon the instrument in question.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Bill in a Set</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 70—Rules as to Sets.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) 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.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where the holder of a set endorses two or more parts to different persons, he is liable on every such part, and every endorser subsequent to him is liable on the part he has himself endorsed as if the parts were separate bills.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) 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 deemed the true owner of the bill; but nothing in this subsection shall affect the rights of a person who in due course accepts or pays the part first presented to him.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) The acceptance may be written on any part, and it must be written on one part only.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) 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 thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(6) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Conflict of Laws</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 71—Rules where Laws Conflict.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a bill drawn in one country is negotiated, accepted, or payable in another, the rights, duties, and liabilities of the parties thereto are determined as follows—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) The validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance, or endorsement, or acceptance supra protest, is determined by the law of the place where such contract was made:</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">Provided that—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(i) where a bill is issued out of Ghana it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 72pt;"><span style="font-family: Arial;">(ii) where a bill issued out of Ghana conforms, as regards requisites in form, to the law of Ghana, it may for the purpose of enforcing payment there, be treated as valid as between all persons who negotiate, hold, or become parties to it in Ghana.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) Subject to the provisions of this Act, the interpretation of the drawing, endorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made:</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">Provided that where an inland bill is endorsed in a foreign country the endorsement shall as regards the payer be interpreted according to the law of Ghana.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) The duties of the holder with respect to presentment for acceptance or payment and the necessity for or sufficiency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(d) Where a bill is drawn out of but payable in Ghana and the sum payable is not expressed in the currency of Ghana, the amount shall, in the absence of some expressed stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(e) Where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART II—CHEQUES AND SIMILAR INSTRUMENTS</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Cheques on a Banker</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 72—Cheque Defined.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">A cheque is a bill of exchange drawn on a banker payable on demand. 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.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 73—Presentment of Cheque for Payment.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Subject to the provisions of this Act—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) 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.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) In determining what is a reasonable time regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) 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.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 74—Revocation of Banker's Authority.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The duty and authority of a banker to pay a cheque drawn on him by his customer are determined by—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) countermand of payment;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) notice of the customer's death.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Crossed Cheques</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 75—General and Special Crossing Defined</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a cheque bears across its face an addition of—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) the words "and company" or any abbreviation thereof between two parallel transverse lines, either with or without the words "not negotiable"; or</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) two parallel transverse lines simply, either with or without the words "not negotiable,"</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">that addition constitutes a crossing, and the cheque is crossed generally.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable," that addition constitutes a crossing, and the cheque is crossed specially, and to that banker.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 76—Crossing by Drawer or After Issue.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A cheque may be crossed generally or specially by the drawer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where a cheque is uncrossed, the holder may cross it generally or specially.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(3) Where a cheque is crossed generally the holder may cross it specially.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(4) Where a cheque is crossed generally or specially, the holder may add the words "not negotiable."</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(5) Where a cheque is crossed specially the banker to whom it is crossed may again cross it specially to another banker for collection.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(6) Where an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection, he may cross it specially to himself.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 77—Crossing a Material Part of Cheque.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">A crossing authorised by this Act is a material part of the cheque; it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 78—Duties of Banker as to Crossed Cheques.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) Where a cheque is crossed specially to more than one banker, except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall refuse payment thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) Where the banker on whom a cheque is drawn which is so crossed nevertheless pays the same, or pays a cheque crossed generally otherwise than to a banker, or if crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection being a banker, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid:</span></p><p class="MsoNormal" style="text-align: justify; text-indent: 36pt;"><span style="font-family: Arial;">Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered&nbsp; otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated, or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 79—Protection to Banker and Dawer Where Cheque is Crossed.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where the banker on whom a crossed cheque is drawn in good faith and without negligence pays it, if crossed generally, to a banker and if crossed specially, to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 80—Effect of Crossing on Holder.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a person takes a crossed cheque which bears on it the words "not negotiable," he shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Protection to Collecting Banker</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 81—Protection to Collecting Banker.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">Where a banker in good faith and without negligence—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) receives payment for a customer of a cheque, whether crossed or uncrossed; or</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) having credited a customer's account with the amount of such a cheque, receives payment thereof for himself;</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">and the customer has no title or a defective title, to the cheque, the banker does not incur any liability to the true owner of the cheque by reason only of having received payment thereof.</span></p><p class="MsoNormal" style="text-align: justify;"><i><span style="font-family: Arial;">Other Instruments</span></i></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 82—Application of ss.75 to 81 to Other Instruments.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">The provisions of sections 75 to 81 of this Act shall, so far as applicable, have effect in relation to—</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(a) any document issued by a customer of a banker which, though not a cheque, is intended to enable a person to obtain payment from that banker of the sum mentioned in the document;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(b) any draft payable on demand drawn by a banker upon himself, whether payable at the head office or some other office of his bank;</span></p><p class="MsoNormal" style="text-align: justify; margin-left: 36pt;"><span style="font-family: Arial;">(c) warrants for the payment of dividends;</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">as they have effect in relation to cheques.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">PART III—PROMISSORY NOTES</span></p><p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: Arial;">Section 83—Promissory Note Defined.</span></b></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(1) A promissory note 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, or to the order of, a specified person or to bearer.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-family: Arial;">(2) An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unless and until it is endorsed by the maker.</span></p><p class="MsoNormal" style="text-align: justify;"