Bills of Exchange - Legal Affairsrgd.legalaffairs.gov.tt/laws2/alphabetical_list/lawspdfs/82.31.pdf · Bills of Exchange Chap. 82:31 9 (2) A bill may be addressed to two or more drawees

BILLS OF EXCHANGE ACT

CHAPTER 82:31

LAWS OF TRINIDAD AND TOBAGO

Current Authorised PagesPages Authorised

(inclusive) by L.R.O.1–49 ..

L.R.O.

Act14 of 1884

Amended by31 of 190733 of 192018 of 19264 of 19338 of 1934

36 of 194245 of 1979

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UPDATED TO DECEMBER 31ST 2015

MINISTRY OF THE ATTORNEY GENERAL AND LEGAL AFFAIRS www.legalaffairs.gov.tt


2 Chap. 82:31 Bills of Exchange

Note on Subsidiary Legislation

This Chapter contains no subsidiary legislation.

Note on AdaptationUnder paragraph 6 of the Second Schedule to the Law Revision Act (Ch. 3:03) the Commissionamended certain references to public officers in this Chapter. The Minister’s approval of theamendments was signified by LN 52/1980, but no marginal reference is made to this Noticewhere any such amendment is made in the text.

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Bills of Exchange Chap. 82:31 3

CHAPTER 82:31


ARRANGEMENT OF SECTIONS

SECTION

1. Short title.2. Interpretation.

PART I

BILLS OF EXCHANGEFORM AND INTERPRETATION

3. Bill of exchange defined.4. Inland and foreign bills.5. Effect where different parties to bill are the same person.6. Address to drawee.7. Certainty required as to payee.8. What bills are negotiable.9. Sum payable.

10. Bill payable on demand.11. Bill payable at a future time.12. Omission of date in bill payable after date.13. Antedating and post-dating.14. Computation of time of payment.15. Case of need.16. Optional stipulations by drawer or indorser.17. Definition and requisites of acceptance.18. Time of acceptance.19. General and qualified acceptances.20. Inchoate instruments.21. Delivery.

CAPACITY AND AUTHORITY OF PARTIES

22. Capacity of parties.23. Signature essential to liability.24. Forged or unauthorised signature.

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25. Procuration signatures.26. Person signing as agent or in representative capacity.

THE CONSIDERATION FOR A BILL

27. Value and holder for value.28. Accommodation bill or party.29. Holder in due course.30. Presumption of value and good faith.

NEGOTIATION OF BILLS

31. Negotiation of bill.32. Requisites of a valid indorsement.33. Conditional indorsement.34. Indorsement in blank and special indorsement.35. Restrictive indorsement.36. Negotiation of overdue or dishonoured bill.37. Negotiation of bill to party already liable thereon.38. Rights of the holder.

GENERAL DUTIES OF THE HOLDER

39. When presentment for acceptance is necessary.40. Time for presenting bill payable after sight.41. Rules as to presentment for acceptance, and excuses for

non-presentment.42. Non-acceptance.43. Dishonour by non-acceptance and its consequences.44. Duties as to qualified acceptances.45. Rules as to presentment for payment.46. Excuses for delay or non-presentment for payment.47. Dishonour by non-payment.48. Notice of dishonour and effect of non-notice.49. Rules as to notice of dishonour.50. Excuses for non-notice and delay.51. Noting or protest of bill.52. Duties of holder as regards drawee or acceptor.

ARRANGEMENT OF SECTIONS—ContinuedSECTION

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LIABILITIES OF PARTIES

53. Bill not assignment of funds in hands of drawee.54. Liability of acceptor.55. Liability of drawer or indorser.56. Stranger signing bill liable as indorser.57. Measure of damages against parties to dishonoured bill.58. Transferor by delivery and transferee.

DISCHARGE OF BILL

59. Payment in due course.60. Banker paying demand draft whereon indorsement is forged.61. Acceptor the holder at maturity.62. Express waiver.63. Cancellation.64. Alteration of bill.

ACCEPTANCE AND PAYMENT FOR HONOUR

65. Acceptance for honour supra protest.66. Liability of acceptor for honour.67. Presentment to acceptor for honour.68. Payment for honour supra protest.

LOST INSTRUMENTS

69. Holder’s right to duplicate of lost bill.70. Action on lost bill.

BILL IN A SET

71. Rules as to sets.

CONFLICT OF LAWS

72. Rules where laws conflict.

PART II

CHEQUES ON A BANKER73. Cheque defined.74. Presentment of cheque for payment.75. Revocation of banker’s authority.

SECTION

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ARRANGEMENT OF SECTIONS—ContinuedSECTION

CROSSED CHEQUES76. General and special crossings defined.77. Crossing by drawer or after issue.78. Crossing, a material part of cheque.79. Duties of banker as to crossed cheques.

Protection to banker and drawer where cheque is crossed.80. Protection to collecting banker.81. Effect of words “not negotiable”.82. Cheques drawn on a bank by itself.

PART III

PROMISSORY NOTES83. Promissory note defined.84. Delivery necessary.85. Joint and several notes.86. Note payable on demand.87. Presentment of note for payment.88. Liability of maker.89. Application of Part I to notes.

PART IV

SUPPLEMENTARY90. Good faith.91. Signature.92. Computation of time for act due to be done on non-business days.93. When noting equivalent to protest.94. Protest when Notary not accessible.95. What signatures to be attested.96. Savings.

SCHEDULE.

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CHAPTER 82:31


An Act relating to Bills of Exchange, Cheques, andPromissory Notes.

[13TH SEPTEMBER 1884]

1. This Act may be cited as the Bills of Exchange Act.

2. In this Act—“acceptance” means an acceptance completed by delivery

or notification;“action” includes counter-claim and set-off;“banker” includes a body of persons whether incorporated or not

who carry on the business of banking;“bankrupt” includes any person whose estate is vested in a trustee

or assignee under the law for the time being in force relatingto bankruptcy;

“bearer” means the person in possession of a bill or note whichis payable to bearer;

“bill” means bill of exchange;“delivery” means transfer of possession, actual or constructive,

from one person to another;“holder” means the payee or indorsee of a bill or note who is in

possession of it, or the bearer thereof;“indorsement” means an indorsement completed by delivery;“issue” means the first delivery of a bill or note complete in form

to a person who takes it as a holder;“note” means promissory note;“value” means valuable consideration.

PART I

BILLS OF EXCHANGEFORM AND INTERPRETATION

3. (1) A bill of exchange is an unconditional order in writing,addressed by one person to another, signed by the person giving it,

1950 Ed.Ch. 31 No. 5.14 of 1884.

Commencement.

Short title.

Interpretation.

Bill of exchangedefined.

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requiring the person to whom it is addressed to pay on demand, orat a fixed or determinable future time, a sum certain in money to,or to the order of, a specified person, or to bearer.

(2) An instrument which does not comply with theseconditions, or which orders any act to be done in addition to thepayment of money, is not a bill of exchange.

(3) An order to pay out of a particular fund is notunconditional within the meaning of this section; but an unqualifiedorder to pay, coupled with (a) an indication of a particular fundout of which the drawee is to reimburse himself or a particularaccount to be debited with the amount, or (b) a statement of thetransaction which gives rise to the bill, is unconditional.

(4) A bill is not invalid by reason—(a) that it is not dated;(b) that it does not specify the value given, or that

any value has been given therefor;(c) that it does not specify the place where it is drawn

or the place where it is payable.

4. (1) An inland bill is a bill which is or on the face of itpurports to be (a) both drawn and payable within Trinidad andTobago, or (b) drawn within Trinidad and Tobago upon some personresident therein. Any other bill is a foreign bill.

(2) Unless the contrary appear on the face of the bill theholder may treat it as an inland bill.

5. (1) A bill may be drawn payable to, or to the order of, thedrawer, or it may be drawn payable to, or to the order of, the drawee.

(2) Where in a bill drawer and drawee are the same person,or where the drawee is a fictitious person or a person not havingcapacity to contract, the holder may treat the instrument, at hisoption, either as a bill of exchange or as a promissory note.

6. (1) The drawee must be named or otherwise indicated ina bill with reasonable certainty.

Inland andforeign bills.

Effect wheredifferent partiesto bill are thesame person.

Address todrawee.

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(2) A bill may be addressed to two or more draweeswhether they are partners or not, but an order addressed to twodrawees in the alternative or to two or more drawees in successionis not a bill of exchange.

7. (1) Where a bill is not payable to bearer, the payee mustbe named or otherwise indicated therein with reasonable certainty.

(2) A bill may be made payable to two or more payeesjointly, 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 payableto the holder of an office for the time being.

(3) Where the payee is a fictitious or non-existing personthe bill may be treated as payable to bearer.

8. (1) When a bill contains words prohibiting transfer, orindicating an intention that it should not be transferable, it is validas between the parties thereto, but is not negotiable.

(2) A negotiable bill may be payable either to order orto bearer.

(3) A bill is payable to bearer which is expressed to be sopayable, or on which the only or last indorsement is an indorsementin blank.

(4) A bill is payable to order which is expressed to be sopayable, or which is expressed to be payable to a particular person,and does not contain words prohibiting transfer or indicating anintention that it should not be transferable.

(5) Where a bill, either originally or by indorsement, isexpressed to be payable to the order of a specified person, and notto him or his order, it is nevertheless payable to him or his order athis option.

9. (1) The sum payable by a bill is a sum certain within themeaning of this Act, although it is required to be paid—

(a) with interest;(b) by stated instalments;

Certaintyrequired asto payee.

What bills arenegotiable.

Sum payable.

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(c) by stated instalments, with a provision that upondefault in payment of any instalment the wholeshall become due;

(d) according to an indicated rate of exchange oraccording to a rate of exchange to be ascertainedas directed by the bill.

(2) Where the sum payable is expressed in words and alsoin figures, and there is a discrepancy between the two, the sumdenoted by the words is the amount payable.

(3) Where a bill is expressed to be payable with interest,unless the instrument otherwise provides, interest runs from thedate of the bill, and if the bill is undated from the issue thereof.

10. (1) A bill is payable on demand—(a) which is expressed to be payable on demand, or

at sight, or on presentation; or(b) in which no time for payment is expressed.

(2) Where a bill is accepted or indorsed when it is overdue,it shall, as regards the acceptor who so accepts, or any indorserwho so indorses it, be deemed a bill payable on demand.

11. A bill is payable at a determinable future time within themeaning of this Act which is expressed to be payable—

(a) at a fixed period after date or sight;(b) on or at a fixed period after the occurrence of a

specified event which is certain to happen, thoughthe time of happening may be uncertain.

An instrument expressed to be payable on a contingency is nota bill, and the happening of the event does not cure the defect.

12. Where a bill expressed to be payable at a fixed period afterdate is issued undated, or where the acceptance of a bill payable ata fixed period after sight is undated, any holder may insert thereinthe true date of issue or acceptance and the bill shall be payableaccordingly; but (a) where the holder in good faith and by mistake

Bill payableon demand.

Bill payable at afuture time.

Omission ofdate in billpayable afterdate.

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inserts a wrong date, and (b) in every case where a wrong date isinserted, if the bill subsequently comes into the hands of a holderin due course, the bill shall not be avoided thereby, but shall operateand be payable as if the date so inserted had been the true date.

13. (1) Where a bill or an acceptance or any indorsement ona bill is dated, the date shall, unless the contrary be proved, bedeemed to be the true date of the drawing, acceptance, orindorsement, as the case may be.

(2) A bill is not invalid by reason only that it is antedatedor post-dated, or that it bears date on a Sunday.

14. (1) Where a bill is not payable on demand, the bill ispayable on the last day of the time of payment as fixed by the billor, if that is a non-business day, on the succeeding business day.

(2) Subsection (1) shall apply only to bills and notes madeafter the date on which that subsection comes into force and thetime of payment of bills and notes made before that date shallcontinue to be determined by the provisions of this Act in forceimmediately before that date.

(3) If the President so declares by Order, subsection (2)shall cease to have effect as from such date as may be specified inthe Order.

(4) Where a bill is payable at a fixed period after date,after sight or after the happening of a specified event, the time ofpayment is determined by excluding the day from which the timeis to begin to run and by including the day of payment.

(5) Where a bill is payable at a fixed period after sight,the time begins to run from the date of the acceptance if the bill beaccepted, and from the date of noting or protest if the bill be notedor protested for non-acceptance, or for non-delivery.

(6) The term “month” in a bill means calendar month.

15. The drawer of a bill and any indorser may insert thereinthe name of a person to whom the holder may resort in case of

Antedating andpost-dating.

Computationof time ofpayment.[45 of 1979].

Case of need.

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need, that is to say, in case the bill is dishonoured by non-acceptanceor 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 ofneed or not as he may think fit.

16. The drawer of a bill, and any indorser, may insert thereinan express stipulation—

(a) negativing or limiting his own liability tothe holder;

(b) waiving as regards himself some or all of theholder’s duties.

17. (1) The acceptance of a bill is the signification by thedrawee of his assent to the order of the drawer.

(2) An acceptance is invalid unless it complies with thefollowing conditions:

(a) it must be written on the bill and be signed by thedrawee; the mere signature of the drawee withoutadditional words is sufficient;

(b) it must not express that the drawee will performhis promise by any other means than the paymentof money.

18. A bill may be accepted—(a) before it has been signed by the drawer, or while

otherwise incomplete;(b) when it is overdue, or after it has been

dishonoured by a previous refusal to accept, orby non-payment;

(c) when a bill payable after sight is dishonoured bynon-acceptance, and the drawee subsequentlyaccepts it, the holder, in the absence of anydifferent agreement, is entitled to have the billaccepted as of the date of first presentment to thedrawee for acceptance.

19. (1) An acceptance is either (a) general or (b) qualified.

Optionalstipulations bydrawer orindorser.

Definition andrequisites ofacceptance.

Time ofacceptance.

General andqualifiedacceptances.

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(2) A general acceptance assents without qualification tothe order of the drawer. A qualified acceptance in express termsvaries the effect of the bill as drawn.

In particular an acceptance is qualified which is—(a) conditional, that is to say, which makes payment

by the acceptor dependent on the fulfilment of acondition therein stated;

(b) partial, that is to say, an acceptance to pay partonly of the amount for which the bill is drawn;

(c) local, that is to say, an acceptance to pay only at aparticular specified place; an acceptance to payat a particular place is a general acceptance, unlessit expressly states that the bill is to be paid thereonly and not elsewhere;

(d) qualified as to time;(e) the acceptance of some one or more of the

drawees, but not of all.

20. (1) Where a simple signature on a blank paper definingan amount not to be exceeded is delivered by the signer in orderthat it may be converted into a bill, it operates as a prima facieauthority to fill it up as a complete bill for any amount not exceedingthe defined limit, using the signature for that of the drawer, or theacceptor, or an indorser; and, in like manner, when a bill is wantingin any material particular, the person in possession of it has a primafacie authority to fill up the omission in any way he thinks fit.

(2) In order that any such instrument when completed maybe enforceable against any person who became a party thereto priorto its completion, it must be filled up within a reasonable time,and strictly in accordance with the authority given. Reasonabletime for this purpose is a question of fact. However, if any suchinstrument after completion is negotiated to a holder in due courseit shall be valid and effectual for all purposes in his hands, and hemay enforce it as if it had been filled up within a reasonable timeand strictly in accordance with the authority given.

Inchoateinstruments.

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21. (1) Every contract on a bill, whether it be the drawer’s,the acceptor’s, or an indorser’s, is incomplete and revocable, untildelivery of the instrument in order to give effect thereto; butwhere an acceptance is written on a bill, and the drawee givesnotice to or according to the directions of the persons entitled tothe bill that he has accepted it, the acceptance then becomescomplete and irrevocable.

(2) As between immediate parties, and as regards a remoteparty other than a holder in due course, the delivery—

(a) in order to be effectual must be made either by orunder the authority of the party drawing, acceptingor indorsing, as the case may be;

(b) may be shown to have been conditional or for aspecial purpose only, and not for the purpose oftransferring the property in the bill.

But if the bill be in the hands of a holder in due course, a validdelivery of the bill by all parties prior to him so as to make themliable to him is conclusively presumed.

(3) Where a bill is no longer in the possession of a partywho has signed it as drawer, acceptor, or indorser, a valid andunconditional delivery by him is presumed until the contraryis proved.

CAPACITY AND AUTHORITY OF PARTIES

22. (1) Capacity to incur liability as a party to a bill is co-extensive with capacity to contract.

However, nothing in this section shall enable a corporation tomake itself liable as drawer, acceptor or indorser of a bill unless itis competent to do so under the law for the time being in forcerelating to corporations.

(2) Where a bill is drawn or indorsed by an infant, minoror corporation having no capacity or power to incur liability on abill, the drawing or indorsement entitles the holder to receivepayment of the bill, and to enforce it against any other party thereto.

Delivery.

Capacity ofparties.

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23. No person is liable as drawer, indorser or acceptor of abill who has not signed it as such.

However—(a) where a person signs a bill in a trade or assumed

name, he is liable thereon as if he had signed it inhis own name;

(b) the signature of the name of a firm is equivalentto the signature by the person so signing of thenames of all persons liable as partners in that firm.

24. Subject to this Act, where a signature on a bill is forged orplaced thereon without the authority of the person whose signatureit purports to be, the forged or unauthorised signature is whollyinoperative, and no right to retain the bill or to give a dischargetherefor or to enforce payment thereof against any party theretocan be acquired through or under that signature, unless the partyagainst whom it is sought to retain or enforce payment of the billis precluded from setting up the forgery or want of authority.

Nothing in this section shall affect the ratification of anunauthorised signature not amounting to a forgery.

25. A signature by procuration operates as notice that the agenthas but a limited authority to sign, and the principal is only boundby such signature if the agent in so signing was acting within theactual limits of his authority.

26. (1) Where a person signs a bill as drawer, indorser oracceptor, and adds words to his signature, indicating that hesigns for or on behalf of a principal, or in a representativecharacter, he is not personally liable thereon; but the mereaddition to his signature of words describing him as an agent, or asfilling a representative character, does not exempt him frompersonal liability.

(2) In determining whether a signature on a bill is thatof the principal or that of the agent by whose hand it is written, theconstruction most favourable to the validity of the instrumentshall be adopted.

Signatureessential toliability.

Forged orunauthorisedsignature.

Procurationsignatures.

Person signingas agent or inrepresentativecapacity.

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THE CONSIDERATION FOR A BILL

27. (1) Valuable consideration for a bill may be constituted by—(a) any consideration sufficient to support a

simple contract;(b) an antecedent debt or liability. Such a debt or

liability is deemed valuable consideration whetherthe bill is payable on demand or at a future time.

(2) Where value has at any time been given for a bill, theholder is deemed to be a holder for value as regards the acceptorand all parties to the bill who became parties prior to such time.

(3) Where the holder of a bill has a lien on it, arising eitherfrom contract or by implication of law, he is deemed to be a holderfor value to the extent of the sum for which he has a lien.

28. (1) An accommodation party to a bill is a person who hassigned a bill as a drawer, acceptor or indorser, without receivingvalue therefor, and for the purpose of lending his name to someother person.

(2) An accommodation party is liable on the bill to aholder for value; and it is immaterial whether, when such holdertook the bill, he knew such party to be an accommodationparty or not.

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

(a) that he became the holder of it before it wasoverdue, and without notice that it had beenpreviously dishonoured, if such was the fact;

(b) that he took the bill in good faith and for value,and that at the time the bill was negotiated to himhe had no notice of any defect in the title of theperson who negotiated it.

(2) In particular the title of a person who negotiates a billis defective within the meaning of this Act when he obtained the

Value andholder for value.

Accommodationbill or party.

Holder indue course.

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bill, or the acceptance thereof, by fraud, duress, or force and fear,or other unlawful means, or for an illegal consideration, or whenhe negotiates it in breach of faith, or under such circumstances asamount to a fraud.

(3) A holder (whether for value or not) who derives histitle to a bill through a holder in due course, and who is not himselfa party to any fraud or illegality affecting it, has all the rights ofthat holder in due course as regards the acceptor and all parties tothe bill prior to that holder.

30. (1) Every party whose signature appears on a bill isprima facie deemed to have become a party thereto for value.

(2) Every holder of a bill is prima facie deemed to be aholder in due course; but if in an action on a bill it is admitted orproved that the acceptance, issue, or subsequent negotiation of thebill is affected with fraud, duress, or force and fear, or illegality,the burden of proof is shifted, unless and until the holder provesthat, subsequent to the alleged fraud or illegality, value has in goodfaith been given for the bill.

NEGOTIATION OF BILLS

31. (1) A bill is negotiated when it is transferred from oneperson to another in such a manner as to constitute the transfereethe holder of the bill.

(2) A bill payable to bearer is negotiated by delivery.

(3) A bill payable to order is negotiated by the indorsementof the holder completed by delivery.

(4) Where the holder of a bill payable to his order transfersit for value without indorsing it, the transfer gives the transfereesuch title as the transferor had in the bill, and the transferee inaddition acquires the right to have the indorsement of the transferor.

(5) Where any person is under obligation to indorse a billin a representative capacity, he may indorse the bill in such termsas to negative personal liability.

Presumptionof value andgood faith.

Negotiationof bill.

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32. An indorsement in order to operate as a negotiation mustcomply with the following conditions:

(a) it must be written on the bill itself and be signedby the indorser; the simple signature of theindorser on the bill, without additional words, issufficient; an indorsement written on an allonge,or on a “copy” of a bill issued or negotiated in acountry where “copies” are recognised, is deemedto be written on the bill itself;

(b) it must be an indorsement of the entire bill; apartial indorsement, that is to say, an indorsementthat purports to transfer to the indorsee a part onlyof the amount payable, or that purports to transferthe bill to two or more indorsees severally, doesnot operate as a negotiation of the bill;

(c) where a bill is payable to the order of two or morepayees or indorsees who are not partners, all mustindorse, unless the one indorsing has authority toindorse for the others;

(d) where, in a bill payable to order, the payee orindorsee is wrongly designated, or his name ismisspelt, he may indorse the bill as thereindescribed, adding, if he thinks fit, his propersignature;

(e) where there are two or more indorsements on abill, each indorsement is deemed to have beenmade in the order in which it appears on the bill,until the contrary is proved;

(f) an indorsement may be made in blank or special;it may also contain terms making it restrictive.

33. Where a bill purports to be indorsed conditionally, thecondition may be disregarded by the payer, and payment to theindorsee is valid whether the condition has been fulfilled or not.

34. (1) An indorsement in blank specifies no indorsee, and abill so indorsed becomes payable to bearer.

Requisites ofa validindorsement.

Conditionalindorsement.

Indorsement inblank andspecialindorsement.

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(2) A special indorsement specifies the person to whom,or to whose order, the bill is to be payable.

(3) The provisions of this Act relating to a payee applywith the necessary modifications to an indorsee under a specialindorsement.

(4) When a bill has been indorsed in blank, any holdermay convert the blank indorsement into a special indorsement bywriting above the indorser’ s signature a direction to pay the bill toor to the order of himself or some other person.

35. (1) An indorsement is restrictive which prohibits thefurther negotiation of the bill or which expresses that it is a mereauthority to deal with the bill as thereby directed and not a transferof the ownership thereof, as, for example, if a bill be indorsed“Pay D. only,” or “Pay D. for the account of X.,” or “Pay D. ororder for collection.”

(2) A restrictive indorsement gives the indorsee the rightto receive payment of the bill and to sue any party thereto that hisindorser could have sued, but gives him no power to transfer hisrights as indorsee unless it expressly authorises him to do so.

(3) Where a restrictive indorsement authorises furthertransfer, all subsequent indorsees take the bill with the same rightsand subject to the same liabilities as the first indorsee under therestrictive indorsement.

36. (1) Where a bill is negotiable in its origin, it continuesto be negotiable until it has been (a) restrictively indorsed or(b) discharged by payment or otherwise.

(2) Where an overdue bill is negotiated, it can only benegotiated subject to any defect of title affecting it at its maturity,and thenceforward no person who takes it can acquire or give abetter title than that which the person from whom he took it had.

(3) A bill payable on demand is deemed to be overduewithin the meaning and for the purposes of this section, when itappears on the face of it to have been in circulation for an

Restrictiveindorsement.

Negotiation ofoverdue ordishonouredbill.

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unreasonable length of time. What is an unreasonable length oftime for this purpose is a question of fact.

(4) Except where an indorsement bears date after thematurity of the bill, every negotiation is prima facie deemed tohave been effected before the bill was overdue.

(5) Where a bill which is not overdue has beendishonoured, any person who takes it with notice of the dishonourtakes it subject to any defect of title attaching thereto at the time ofdishonour, but nothing in this subsection shall affect the rights of aholder in due course.

37. Where a bill is negotiated back to the drawer, or to a priorindorser, or to the acceptor, such party may, subject to this Act, re-issue and further negotiate the bill, but he is not entitled to enforcepayment of the bill against any intervening party to whom he waspreviously liable.

38. The rights and powers of the holder of a bill are as follows:(a) he may sue on the bill in his own name;(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 defencesavailable to prior parties among themselves, andmay enforce payment against all parties liableon the bill;

(c) where his title is defective (i) if he negotiates thebill to a holder in due course, that holder obtainsa good and complete title to the bill, and (ii) if heobtains payment of the bill, the person who payshim in due course gets a valid discharge forthe bill.

GENERAL DUTIES OF THE HOLDER

39. (1) Where a bill is payable after sight, presentmentfor acceptance is necessary in order to fix the maturity ofthe instrument.

Negotiation ofbill to partyalready liablethereon.

Rights ofthe holder.

Whenpresentment foracceptance isnecessary.

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(2) Where a bill expressly stipulates that it shall bepresented for acceptance, or where a bill is drawn payable elsewherethan at the residence or place of business of the drawee, it must bepresented for acceptance before it can be presented for payment.

(3) In no other case is presentment for acceptancenecessary in order to render liable any party to the bill.

(4) Where the holder of a bill, drawn payable elsewherethan at the place of business or residence of the drawee, has nottime, with the exercise of reasonable diligence, to present the billfor acceptance before presenting it for payment on the day that itfalls due, the delay caused by presenting the bill for acceptancebefore presenting it for payment is excused, and does not dischargethe drawer and indorsers.

40. (1) Subject to this Act, when a bill payable after sight isnegotiated, the holder must either present it for acceptance ornegotiate it within a reasonable time.

(2) If he does not do so, the drawer and all indorsers priorto that holder are discharged.

(3) In determining what is a reasonable time within themeaning of this section, regard shall be had to the nature of thebill, the usage of trade with respect to similar bills, and the facts ofthe particular case.

41. (1) A bill is duly presented for acceptance which ispresented in accordance with the following rules:

(a) the presentment must be made by or on behalf ofthe holder to the drawee or to some personauthorised to accept or refuse acceptance on hisbehalf at a reasonable hour on a business day andbefore the bill is overdue;

(b) where a bill is addressed to two or more drawees,who are not partners, presentment must be madeto them all, unless one has authority to accept forall, then presentment may be made to him only;

Time forpresenting billpayableafter sight.

Rules as topresentment foracceptance, andexcuses for non-presentment.

UNOFFICIAL VERSION





(c) where the drawee is dead, presentment may bemade to his personal representative;

(d) where the drawee is bankrupt, presentment maybe made to him or to his trustee;

(e) where authorised by agreement or usage, apresentment through the Post Office is sufficient.

(2) Presentment in accordance with these rules is excused,and a bill may be treated as dishonoured by non-acceptance—

(a) where the drawee is dead, or bankrupt, or is afictitious person or a person not having capacityto contract by bill;

(b) where, after the exercise of reasonable diligence,such presentment cannot be effected;

(c) where, although the presentment has beenirregular, acceptance has been refused on someother ground.

(3) The fact that the holder has reason to believe thatthe bill, on presentment, will be dishonoured does notexcuse presentment.

42. When a bill is duly presented for acceptance, and is notaccepted within the customary time, the person presenting it musttreat it as dishonoured by non-acceptance. If he does not, the holdershall lose his right of recourse against the drawer and indorsers.

43. (1) A bill is dishonoured by non-acceptance—(a) when it is duly presented for acceptance, and such

an acceptance as is prescribed by this Act isrefused or cannot be obtained; or

(b) when presentment for acceptance is excused andthe bill is not accepted.

(2) Subject to this Act, when a bill is dishonoured bynon-acceptance, an immediate right of recourse against the drawerand indorsers accrues to the holder, and no presentment for paymentis necessary.

Non-acceptance.

Dishonour bynon-acceptanceand itsconsequences.

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44. (1) The holder of a bill may refuse to take a qualifiedacceptance, and, if he does not obtain an unqualified acceptance,may treat the bill as dishonoured by non-acceptance.

(2) Where a qualified acceptance is taken, and the draweror an indorser has not expressly or impliedly authorised the holderto take a qualified acceptance or does not subsequently assentthereto, such drawer or indorser is discharged from his liabilityon the bill.

This subsection does not apply to a partial acceptance, whereofdue notice has been given. Where a foreign bill has been acceptedas to part, it must be protested as to the balance.

(3) When the drawer or indorser of a bill receives noticeof a qualified acceptance, and does not, within a reasonable time,express his dissent to the holder, he shall be deemed to haveassented thereto.

45. Subject to this Act, a bill must be duly presented forpayment. If it is not so presented, the drawer and indorsers shallbe discharged.

A bill is duly presented for payment which is presented inaccordance with the following rules:

(a) where the bill is not payable on demand,presentment must be made on the day it falls due;

(b) where the bill is payable on demand, then, subjectto this Act, presentment must be made within areasonable time after its issue in order to renderthe drawer liable, and within a reasonable timeafter its indorsement, in order to render theindorser liable; in determining what is areasonable time, regard shall be had to the natureof the bill, the usage of trade with regard to similarbills, and the facts of the particular case;

(c) presentment must be made by the holder or bysome person authorised to receive payment onhis behalf at a reasonable hour on a business day,

Duties as toqualifiedacceptances.

Rules as topresentment forpayment.

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at the proper place as defined below, either to theperson designated by the bill as payer, or to someperson authorised to pay or refuse payment onhis behalf, if with the exercise of reasonablediligence such person can there be found;

(d) a bill is presented at the proper place—(i) where a place of payment is specified in

the bill and the bill is there presented;(ii) where no place of payment is specified,

but the address of the drawee oracceptor is given in the bill, and the bill isthere presented;

(iii) where no place of payment is specified, andno address given, and the bill is presentedat the drawee’s or acceptor’s place ofbusiness if known, and if not, at hisordinary residence if known;

(iv) in any other case, if presented to the draweeor acceptor wherever he can be found, or ifpresented at his last known place ofbusiness or residence;

(e) where a bill is presented at the proper place, and,after the exercise of reasonable diligence, noperson authorised to pay or refuse payment canbe found there, no further presentment to thedrawee or acceptor is required;

(f) where a bill is drawn upon, or accepted by twoor more persons who are not partners, and no placeof payment is specified, presentment must bemade to them all;

(g) where the drawee or acceptor of a bill is dead,and no place of payment is specified, presentmentmust be made to a personal representative, if suchthere be, and, with the exercise of reasonablediligence he can be found;

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Excuses fordelay or non-presentment forpayment.

Dishonour bynon-payment.

Notice ofdishonour andeffect ofnon-notice.

(h) where authorised by agreement or usage, apresentment through the Post Office is sufficient.

46. (1) Delay in making presentment for payment is excusedwhen the delay is caused by circumstances beyond the control ofthe holder, and not imputable to his default, misconduct ornegligence. When the cause of delay ceases to operate, presentmentmust be made with reasonable diligence.

(2) Presentment for payment is dispensed with—(a) where, after the exercise of reasonable diligence,

presentment, as required by this Act, cannot beeffected; the fact that the holder has reason tobelieve that the bill will, on presentment, bedishonoured, does not dispense with the necessityfor presentment;

(b) where the drawee is a fictitious person;(c) as regards the drawer, where the drawee or

acceptor is not bound, as between himself andthe drawer, to accept or pay the bill, and thedrawer has no reason to believe that the bill wouldbe paid if presented;

(d) as regards an indorser, where the bill was acceptedor made for the accommodation of that indorser,and he has no reason to expect that the bill wouldbe paid if presented;

(e) by waiver of presentment, expressed or implied.

47. (1) A bill is dishonoured by non-payment (a) when it isduly presented for payment and payment is refused or cannot beobtained, or (b) when presentment is excused and the bill is overdueand unpaid.

(2) Subject to this Act, when a bill is dishonoured bynon-payment, an immediate right of recourse against the drawerand indorsers accrues to the holder.

48. Subject to this Act, when a bill has been dishonoured bynon-acceptance or by non-payment, notice of dishonour must be

UNOFFICIAL VERSION





given to the drawer and each indorser, and any drawer or indorserto whom such notice is not given is discharged.

However—(a) where a bill is dishonoured by non-acceptance,

and notice of dishonour is not given, the rights ofa holder in due course, subsequent to the omission,shall not be prejudiced by the omission;

(b) where a bill is dishonoured by non-acceptance,and due notice of dishonour is given, it shall notbe necessary to give notice of a subsequentdishonour by non-payment unless the bill shallin the meantime have been accepted.

49. Notice of dishonour in order to be valid and effectual mustbe given in accordance with the following rules:

(a) the notice must be given by or on behalf of theholder, or by or on behalf of an indorser who, atthe time of giving it, is himself liable on the bill;

(b) notice of dishonour may be given by an agenteither in his own name, or in the name of anyparty entitled to give notice whether that party behis principal or not;

(c) when the notice is given by or on behalf of theholder, it enures for the benefit of all subsequentholders and all prior indorsers who have a rightof recourse against the party to whom it is given;

(d) where notice is given by or on behalf of anindorser entitled to give notice as provided above,it enures for the benefit of the holder and allindorsers subsequent to the party to whom noticeis given;

(e) the notice may be given in writing or by personalcommunication, and may be given in any termswhich sufficiently identify the bill, and intimatethat the bill has been dishonoured by non-acceptance or non-payment;

Rules as tonotice ofdishonour.

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(f) the return of a dishonoured bill to the drawer oran indorser is, in point of form, deemed asufficient notice of dishonour;

(g) a written notice need not be signed, and aninsufficient written notice may be supplementedand validated by verbal communication. Amis-description of the bill shall not vitiate thenotice unless the party to whom the notice is givenis in fact misled thereby;

(h) where notice of dishonour is required to be givento any person, it may be given either to the partyhimself, or to his agent in that behalf;

(i) where the drawer or indorser is dead, and the partygiving notice knows it, the notice must be givento a personal representative, if such there be, andwith the exercise of reasonable diligence he canbe found;

(j) where the drawer or indorser is bankrupt, noticemay be given either to the party himself or tothe trustee;

(k) where there are two or more drawers or indorserswho are not partners, notice must be given to eachof them, unless one of them has authority toreceive such notice for the others;

(l) the notice may be given as soon as the bill isdishonoured, and must be given within areasonable time thereafter.

In the absence of special circumstances, noticeis not deemed to have been given within areasonable time, unless—

(i) where the person giving and the person toreceive notice reside in the same place, thenotice is given or sent off in time to reachthe latter on the day after the dishonour ofthe bill;

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(ii) where the person giving and the person toreceive notice reside in different places,the notice is sent off on the day after thedishonour of the bill, if there be a post at aconvenient hour on that day, and if therebe no such post on that day, then by thenext post thereafter;

(m) where a bill when dishonoured is in the hands ofan agent, he may either himself give notice to theparties liable on the bill, or he may give notice tohis principal. If he gives notice to his principal,he must do so within the same time as if he werethe holder, and the principal upon receipt of suchnotice has himself the same time for giving noticeas if the agent had been an independent holder;

(n) where a party to a bill receives due notice ofdishonour, he has, after the receipt of such notice,the same period of time for giving notice toantecedent parties that the holder has afterthe dishonour;

(o) where a notice of dishonour is duly addressed andposted, the sender is deemed to have given duenotice of dishonour, notwithstanding anymiscarriage by the Post Office.

50. (1) Delay in giving notice of dishonour is excused wherethe delay is caused by circumstances beyond the control of theparty giving notice, and not imputable to his default, misconduct,or negligence. When the cause of delay ceases to operate, the noticemust be given with reasonable diligence.

(2) Notice of dishonour is dispensed with—(a) when, after the exercise of reasonable diligence,

notice as required by this Act cannot be given toor does not reach the drawer or indorser soughtto be charged;

(b) by waiver, express or implied; notice ofdishonour may be waived before the time of

Excuses fornon-notice anddelay.

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giving notice has arrived, or after the omission togive due notice;

(c) as regards the drawer in the following cases,namely, (i) where drawer and drawee are thesame person; (ii) where the drawee is a fictitiousperson, or a person not having capacity tocontract; (iii) where the drawer is the person towhom the bill is presented for payment; (iv) wherethe drawee or acceptor is as between himselfand the drawer under no obligation to acceptor pay the bill; (v) where the drawer hascountermanded payment;

(d) as regards the indorser in the following cases,namely, (i) where the drawee is a fictitious person,or a person not having capacity to contract, andthe indorser was aware of the fact at the time heindorsed the bill; (ii) where the indorser is theperson to whom the bill is presented forpayment; (iii) where the bill was accepted ormade for his accommodation.

51. (1) Where an inland bill has been dishonoured, it may, ifthe holder thinks fit, be noted for non-acceptance or non-payment,as the case may be; but it is not necessary to note or protest anysuch bill in order to preserve the recourse against the draweror indorser.

(2) Where a foreign bill, appearing on the face of it to besuch, has been dishonoured by non-acceptance, it must be dulyprotested for non-acceptance, and where such a bill that has notbeen previously dishonoured by non-acceptance, is dishonouredby non-payment, it must be duly protested for non-payment. If itis not so protested, the drawer and indorsers are discharged. Wherea bill does not appear on the face of it to be a foreign bill, protestthereof in case of dishonour is unnecessary.

(3) A bill that has been protested for non-acceptance maybe subsequently protested for non-payment.

Noting orprotest of bill.

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(4) Subject to this Act, when a bill is noted or protested,it may be noted on the day of its dishonour, and must be noted notlater than the next succeeding business day. When a bill has beenduly noted, the protest may be subsequently extended as of thedate of the noting.

(5) Where the acceptor of a bill becomes bankrupt orinsolvent or suspends payment before it matures, the holder maycause the bill to be protested for better security against the drawerand indorsers.

(6) A bill must be protested at the place where itis dishonoured.

However—(a) when a bill is presented through the Post Office,

and returned by post dishonoured, it may beprotested at the place to which it is returned andon the day of its return if received during businesshours, and if not received during business hours,then not later than the next business day;

(b) when a bill drawn payable at the place of businessor residence of some person other than the draweehas been dishonoured by non-acceptance, it mustbe protested for non-payment at the place whereit is expressed to be payable, and no furtherpresentment for payment to, or demand on, thedrawee is necessary.

(7) A protest must contain a copy of the bill, and must besigned by the Notary making it, and must specify—

(a) the person at whose request the bill is protested;(b) the place and date of protest, the cause or reason

for protesting the bill, the demand made, and theanswer given, if any, or the fact that the draweeor acceptor could not be found.

(8) Where a bill is lost or destroyed, or is wrongly detainedfrom the person entitled to hold it, protest may be made on a copyor written particulars thereof.

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(9) Protest is dispensed with by any circumstancewhich would dispense with notice of dishonour. Delay in notingor protesting is excused when the delay is caused bycircumstances beyond the control of the holder, and notimputable to his default, misconduct or negligence. When the causeof delay ceases to operate, the bill must be noted or protested withreasonable diligence.

52. (1) When a bill is accepted generally, presentment forpayment is not necessary in order to render the acceptor liable.

(2) When, by the terms of a qualified acceptance,presentment for payment is required, the acceptor, in the absenceof an express stipulation to that effect, is not discharged by theomission to present the bill for payment on the day that it matures.

(3) In order to render the acceptor of a bill liable, it is notnecessary to protest it, or that notice of dishonour should be givento him.

(4) Where the holder of a bill presents it for payment, heshall exhibit the bill to the person from whom he demands payment,and when a bill is paid the holder shall forthwith deliver it up tothe party paying it.

LIABILITIES OF PARTIES

53. A bill, of itself, does not operate as an assignment of fundsin the hands of the drawee available for the payment thereof, andthe drawee of a bill who does not accept as required by this Act isnot liable on the instrument.

54. The acceptor of a bill by accepting it—(a) engages that he will pay it according to the tenor

of his acceptance;(b) is precluded from denying to a holder in

due course—(i) the existence of the drawer, the genuineness

of his signature, and his capacity andauthority to draw the bill;

Duties of holderas regardsdrawee oracceptor.

Bill notassignment offunds in handsof drawee.

Liability ofacceptor.

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(ii) in the case of a bill payable to drawer’sorder, the then capacity of the drawer toindorse, but not the genuineness or validityof his indorsement;

(iii) in the case of a bill payable to the order ofa third person, the existence of the payeeand his then capacity to indorse, but notthe genuineness or validity of hisindorsement.

55. (1) The drawer of a bill by drawing it—(a) engages that on due presentment it shall be

accepted and paid according to its tenor, and thatif it be dishonoured he will compensate the holderor any indorser who is compelled to pay it,provided that the requisite proceedings ondishonour be duly taken;

(b) is precluded from denying to a holder in duecourse the existence of the payee and his thencapacity to indorse.

(2) The indorser of a bill by indorsing it—(a) engages that on due presentment it shall be

accepted and paid according to its tenor, and thatif it be dishonoured he will compensate the holderor a subsequent indorser who is compelled to payit, provided that the requisite proceedings ondishonour be duly taken;

(b) is precluded from denying to a holder in duecourse the genuineness and regularity in allrespects of the drawer’s signature and all previousindorsements;

(c) is precluded from denying to his immediate or asubsequent indorsee that the bill was at the timeof his indorsement a valid and subsisting bill, andthat he had then a good title thereto.

Liability ofdrawer orindorser.

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56. Where a person signs a bill otherwise than as drawer oracceptor, he thereby incurs the liabilities of an indorser to a holderin due course.

57. Where a bill is dishonoured, the measure of damages,which are deemed to be liquidated damages, shall be as follows:

(a) the holder may recover from any party liable onthe bill, and the drawer who has been compelledto pay the bill may recover from the acceptor,and an indorser who has been compelled to paythe bill may recover from the acceptor or fromthe drawer, or from a prior indorser—

(i) the amount of the bill;(ii) interest thereon from the time of

presentment for payment, if the bill ispayable on demand, and from the maturityof the bill in any other case;

(iii) the expenses of noting, or when protest isnecessary, and the protest has beenextended, the expenses of protest;

(b) in the case of a bill which has been dishonouredabroad, in lieu of the above damages, the holdermay recover from the drawer or an indorser, andthe drawer or an indorser who has been compelledto pay the bill may recover from any party liableto him, the amount of the re-exchange withinterest thereon until the time of payment;

(c) where, by this Act, interest may be recovered asdamages, such interest may, if justice requires it,be withheld wholly or in part, and where a bill isexpressed to be payable with interest at a givenrate, interest as damages may or may not be givenat the same rate as interest proper.

58. (1) Where the holder of a bill payable to bearer negotiatesit by delivery without indorsing it, he is called a “transferorby delivery”.

Stranger signingbill liable asindorser.

Measure ofdamages againstparties todishonouredbill.

Transferor bydelivery andtransferee.

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(2) A transferor by delivery is not liable on the instrument.(3) A transferor by delivery who negotiates a bill thereby

warrants to his immediate transferee, being a holder for value, thatthe 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 whichrenders it valueless.

DISCHARGE OF BILL

59. (1) A bill is discharged by payment in due course by oron behalf of the drawee or acceptor.

“Payment in due course” means payment made at or after thematurity of the bill to the holder thereof in good faith and withoutnotice that his title to the bill is defective.

(2) Subject to the provisions contained below when a billis paid by the drawer or an indorser it is not discharged; but—

(a) where a bill payable to, or to the order of, a thirdparty is paid by the drawer, the drawer mayenforce payment thereof against the acceptor, butmay not re-issue the bill;

(b) where a bill is paid by an indorser, or where a billpayable to drawer’s order is paid by the drawer,the party paying it is remitted to his former rightsas regards the acceptor or antecedent parties, andhe may, if he thinks fit, strike out his own andsubsequent indorsements, and again negotiatethe bill.

(3) Where an accommodation bill is paid in due courseby the party accommodated, the bill is discharged.

60. When a bill payable to order on demand is drawn on abanker, and the banker on whom it is drawn pays the bill in goodfaith and in the ordinary course of business, it is not incumbent onthe banker to show that the indorsement of the payee or anysubsequent indorsement was made by or under the authority of theperson whose indorsement it purports to be, and the banker isdeemed to have paid the bill in due course although suchindorsement has been forged or made without authority.

Payment indue course.

Banker payingdemand draftwhereonindorsementis forged.

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A draft or order drawn by a banker on the head office or abranch of his bank in Trinidad and Tobago for a sum of moneypayable to order on demand shall be deemed to be a bill for thepurposes of this section.

61. When the acceptor of a bill is or becomes the holder of itat or after its maturity, in his own right, the bill is discharged.

62. (1) When the holder of a bill at or after its maturityabsolutely and unconditionally renounces his rights against theacceptor the bill is discharged.

The renunciation must be in writing, unless the bill is deliveredup to the acceptor.

(2) The liabilities of any party to a bill may in like mannerbe renounced by the holder before, at, or after its maturity; butnothing in this section shall affect the rights of a holder in duecourse without notice of the renunciation.

63. (1) Where a bill is intentionally cancelled by the holderor his agent, and the cancellation is apparent thereon, the billis discharged.

(2) In like manner any party liable on a bill may bedischarged by the intentional cancellation of his signature by theholder or his agent. In such case any indorser who would have hada right of recourse against the party whose signature is cancelled,is also discharged.

(3) A cancellation made unintentionally, or under amistake, or without the authority of the holder, is inoperative; butwhere a bill or any signature thereon appears to have been cancelled,the burden of proof lies on the party who alleges that thecancellation was made unintentionally, or under a mistake, orwithout authority.

64. (1) Where a bill or acceptance is materially altered withoutthe assent of all parties liable on the bill, the bill is avoided exceptas against a party who has himself made, authorised or assented tothe alteration, and subsequent indorsers; but where a bill has been

Acceptor theholder atmaturity.

Express waiver.

Cancellation.

Alteration ofbill.

UNOFFICIAL VERSION





materially altered but the alteration is not apparent, and the bill isin the hands of a holder in due course, such holder may avail himselfof the bill as if it had not been altered, and may enforce paymentof it according to its original tenor.

(2) In particular the following alterations are material,namely, any alteration of the date, the sum payable, the time ofpayment, the place of payment, and, where a bill has beenaccepted generally, the addition of a place of payment without theacceptor’s assent.

ACCEPTANCE AND PAYMENT FOR HONOUR

65. (1) Where a bill of exchange has been protested fordishonour by non-acceptance, or protested for better security, andis not overdue, any person, not being a party already liable thereon,may, with the consent of the holder, intervene and accept the billsuprà protest, for the honour of any party liable thereon, or for thehonour of the person for whose account the bill is drawn.

(2) A bill may be accepted for honour for part only of thesum for which it is drawn.

(3) An acceptance for honour suprà protest in order to bevalid must—

(a) be written on the bill, and indicate that it is anacceptance for honour;

(b) be signed by the acceptor for honour.(4) Where an acceptance for honour does not expressly

state for whose honour it is made, it is deemed to be an acceptancefor the honour of the drawer.

(5) Where a bill payable after sight is accepted forhonour, its maturity is calculated from the date of the noting fornon-acceptance and not from the date of the acceptance for honour.

66. (1) The acceptor for honour of a bill by accepting itengages that he will, on due presentment, pay the bill according tothe tenor of his acceptance, if it is not paid by the drawee, providedit has been duly presented for payment, and protested fornon-payment and that he receives notice of these facts.

Acceptancefor honoursuprà protest.

Liability ofacceptor forhonour.

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(2) The acceptor for honour is liable to the holder and toall parties to the bill subsequent to the party for whose honour hehas accepted.

67. (1) Where a dishonoured bill has been accepted for honoursuprà protest, or contains a reference in case of need, it must beprotested for non-payment before it is presented for payment tothe acceptor for honour or referee in case of need.

(2) Where the address of the acceptor for honour is inthe same place where the bill is protested for non-payment, thebill must be presented to him not later than the day following itsmaturity; and where the address of the acceptor for honour is insome place other than the place where it was protested fornon-payment, the bill must be forwarded not later than the dayfollowing its maturity for presentment to him.

(3) Delay in presentment or non-presentment is excusedby any circumstance which would excuse delay in presentmentfor payment or non-presentment for payment.

(4) When a bill of exchange is dishonoured by theacceptor for honour, it must be protested for non-payment by him.

68. (1) Where a bill has been protested for non-payment, anyperson may intervene and pay it suprà protest for the honour ofany party liable thereon, or for the honour of the person for whoseaccount the bill is drawn.

(2) Where two or more persons offer to pay a bill for thehonour of different parties, the person whose payment willdischarge most parties to the bill shall have the preference.

(3) Payment for honour suprà protest, in order to operateas such and not as a mere voluntary payment, must be attested bya notarial act and honour which may be appended to the protest orform an extension of it.

(4) The notarial act of honour must be founded on adeclaration made by the payer for honour, or his agent in that behalf,declaring his intention to pay the bill for honour, and for whosehonour he pays.

Presentment toacceptor forhonour.

Payment forhonour supràprotest.

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(5) Where a bill has been paid for honour, all partiessubsequent to the party for whose honour it is paid are discharged,but the payer for honour is subrogated for, and succeeds to boththe rights and duties of, the holder as regards the party for whosehonour he pays, and all parties liable to that party.

(6) The payer for honour on paying to the holder theamount of the bill and the notarial expenses incidental to itsdishonour is entitled to receive both the bill itself and the protest.If the holder does not on demand deliver them up, he shall beliable to the payer for honour in damages.

(7) Where the holder of a bill refuses to receive paymentsuprà protest he shall lose his right of recourse against any partywho would have been discharged by such payment.

LOST INSTRUMENTS

69. Where a bill has been lost before it is overdue, the personwho was the holder of it may apply to the drawer to give himanother bill of the same tenor, giving security to the drawer, ifrequired, to indemnify him against all persons whatever in casethe bill alleged to have been lost is found again.

If the drawer on request as mentioned above refuses to givesuch duplicate bill, he may be compelled to do so.

70. In any action or proceeding upon a bill, the Court or aJudge may order that the loss of the instrument shall not be set up,provided indemnity is given to the satisfaction of the Court orJudge against the claims of any other person upon the instrumentin question.

BILL IN A SET

71. (1) Where a bill is drawn in a set, each part of the setbeing numbered, and containing a reference to the other parts, thewhole of the parts constitute one bill.

(2) Where the holder of a set indorses two or more partsto different persons, he is liable on every such part, and everyindorser subsequent to him is liable on the part he has himselfindorsed as if the said parts were separate bills.

Holder’s rightto duplicate oflost bill.

Action onlost bill.

Rules as to sets.

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(3) Where two or more parts of a set are negotiated todifferent holders in due course, the holder whose title first accruesis as between such holders deemed the true owner of the bill; butnothing in this subsection shall affect the rights of a person who indue course accepts or pays the part first presented to him.

(4) The acceptance may be written on any part; and itmust be written on one part only.

If the drawee accepts more than one part, and such acceptedparts get into the hands of different holders in due course, he isliable on every such part as if it were a separate bill.

(5) When the acceptor of a bill drawn in a set pays itwithout requiring the part bearing his acceptance to be deliveredup to him, and that part at maturity is outstanding in the hands of aholder in due course, he is liable to the holder thereof.

(6) Subject to the preceding rules, where any one part ofa bill drawn in a set is discharged by payment or otherwise, thewhole bill is discharged.

CONFLICT OF LAWS

72. Where a bill drawn in one country is negotiated, accepted,or payable in another, the rights, duties and liabilities of the partiesthereto are determined as follows:

(a) the validity of a bill as regards requisites in formis determined by the law of the place of issue,and the validity as regards requisites in form ofthe supervening contract, such as acceptance, orindorsement, or acceptance suprà protest, isdetermined by the law of the place where eachsuch contract was made; however—

(i) where a bill is issued out of Trinidad andTobago, it is not invalid by reason only thatit is not stamped in accordance with the lawof the place of issue;

(ii) where a bill issued out of Trinidad andTobago conforms, as regards requisites in

Rules wherelaws conflict.

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form, to the law of Trinidad and Tobago, itmay, for the purpose of enforcing paymentthereof, be treated as valid as between allpersons who negotiate, hold, or becomeparties to it in Trinidad and Tobago;

(b) subject to this Act, the interpretation of thedrawing, indorsement, acceptance, or acceptancesuprà protest of a bill, is determined by the lawof the place where such contract is made; butwhere an inland bill is indorsed in a foreigncountry, the indorsement shall, as regards thepayer, be interpreted according to the law ofTrinidad and Tobago;

(c) the duties of the holder with respect topresentment for acceptance or payment, and thenecessity for or sufficiency of a protest or noticeof dishonour, or otherwise, are determined by thelaw of the place where the act is done or the billis dishonoured;

(d) where a bill is drawn out of but payable inTrinidad and Tobago, and the sum payable is notexpressed in the currency of Trinidad and Tobago,the amount shall, in the absence of someexpressed stipulation, be calculated according tothe rate of exchange for sight drafts at the placeof payment on the day the bill is payable;

(e) where a bill is drawn in one country and ispayable in another, the due date thereof isdetermined according to the law of the placewhere it is payable.

PART II

CHEQUES ON A BANKER

73. A cheque is a bill of exchange drawn on a banker payableon demand.

Except as otherwise provided in this Part, the provisions ofthis Act applicable to a bill of exchange payable on demand applyto a cheque.

Cheque defined.

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74. Subject to this Act—(a) where a cheque is not presented for payment

within a reasonable time of its issue, and thedrawer or the person on whose account it is drawnhad the right at the time of such presentment asbetween him and the banker to have the chequepaid 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 draweror person is a creditor of such banker to a largeramount than he would have been had such chequebeen paid;

(b) in determining what is a reasonable time, regardshall be had to the nature of the instrument, theusage of trade and of bankers, and the facts of theparticular case;

(c) the holder of such cheque as to which such draweror person is discharged shall be a creditor, in lieuof such drawer or person, of such banker to theextent of such discharge, and entitled to recoverthe amount from him.

75. The duty and authority of a banker to pay a cheque drawnon him by his customer are determined by—

(a) countermand of payment;(b) notice of the customer’s death.

CROSSED CHEQUES

76. (1) Where a cheque bears across its face an addition of—(a) the words “and company” or any abbreviation

thereof between two parallel transverse lines,either with or without the words “notnegotiable”; or

(b) two parallel transverse lines simply, either withor without the words “not negotiable”,

that addition constitutes a crossing, and the cheque iscrossed generally.

Presentment ofcheque forpayment.

Revocation ofbanker’sauthority.

General andspecial crossingsdefined.

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(2) Where a cheque bears across its face an addition ofthe name of a banker, either with or without the words “notnegotiable”, that addition constitutes a crossing, and the cheque iscrossed specially and to that banker.

77. (1) A cheque may be crossed generally or specially bythe drawer.

(2) Where a cheque is uncrossed, the holder may cross itgenerally or specially.

(3) Where a cheque is crossed generally, the holder maycross it specially.

(4) Where a cheque is crossed generally or specially, theholder may add the words “not negotiable”.

(5) Where a cheque is crossed specially, the banker towhom it is crossed may again cross it specially to another bankerfor collection.

(6) Where an uncrossed cheque, or a cheque crossedgenerally, is sent to a banker for collection, he may cross it speciallyto himself.

78. A crossing authorised by this Act is a material part of thecheque; and no person shall obliterate or, except as authorised bythis Act, add to or alter the crossing.

79. (1) Where a cheque is crossed specially to more thanone banker, except when crossed to an agent for collection beinga banker, the banker on whom it is drawn shall refusepayment thereof.

(2) Where the banker on whom a cheque is drawn whichis so crossed nevertheless pays the same, or pays a cheque crossedgenerally otherwise than to a banker, or if crossed speciallyotherwise than to the banker to whom it is crossed, or his agent forcollection being a banker, he is liable to the true owner of thecheque for any loss he may sustain owing to the cheque havingbeen so paid.

Crossing bydrawer orafter issue.

Crossing, amaterial partof cheque.

Duties of bankeras to crossedcheques.

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(3) Where a cheque is presented for payment which doesnot at the time of presentment appear to be crossed, or to have hada crossing which has been obliterated, or to have been added to oraltered otherwise than as authorised by this Act, the banker payingthe cheque in good faith and without negligence shall not beresponsible or incur any liability, nor shall the payment bequestioned by reason of the cheque having been crossed, or of thecrossing having been obliterated or having been added to or alteredotherwise than as authorised by this Act, and of payment havingbeen made otherwise than to a banker or to the banker to whomthe cheque is or was crossed, or to his agent for collection being abanker, as the case may be.

(4) Where the banker, on whom a crossed cheque isdrawn, in good faith and without negligence pays it, if crossedgenerally, to a banker and if crossed specially, to the banker towhom it is crossed, or his agent for collection being a banker, thebanker paying the cheque and, if the cheque has come into thehands of the payee, the drawer shall respectively be entitled to thesame rights and be placed in the same position as if payment of thecheque had been made to the true owner thereof.

80. (1) Where a banker in good faith and without negligencereceives payment for a customer of a cheque crossed generallyor specially to himself, and the customer has no title or a defectivetitle thereto, the banker shall not incur any liability to the trueowner of the cheque by reason only of having receivedsuch payment.

(2) A banker receives payment of a crossed cheque for acustomer within the meaning of this section, notwithstanding thathe credits his customer’s account with the amount of the chequebefore receiving payment thereof.

81. Where a person takes a crossed cheque which bears on itthe words “not negotiable”, he shall not have, and shall not becapable of giving, a better title to the cheque than that which theperson from whom he took it had.

Protection tobanker anddrawer wherecheque iscrossed.

Protection tocollectingbanker.

Effect of words“notnegotiable”.

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82. Sections 76 to 81 shall apply to a banker’s draft as if thedraft were a cheque.

For the purposes of this section, the expression “banker’s draft”means a draft payable on demand drawn by or on behalf of a bankupon itself, whether payable at the head office or some other officeof the bank.

PART III

PROMISSORY NOTES

83. (1) A promissory note is an unconditional promise inwriting made by one person to another signed by the maker,engaging to pay, on demand or at a fixed or determinable futuretime, a sum certain in money to, or to the order of, a specifiedperson or to bearer.

(2) An instrument in the form of a note payable to maker’sorder is not a note within the meaning of this section unless anduntil it is indorsed by the maker.

(3) A note is not invalid by reason only that it containsalso a pledge of collateral security with authority to sellor dispose thereof.

(4) A note which is, or on the face of it purports to be,both made and payable within Trinidad and Tobago is an inlandnote. Any other note is a foreign note.

84. A promissory note is inchoate and incomplete until deliverythereof to the payee or bearer.

85. (1) A promissory note may be made by two or moremakers, and they may be liable thereon jointly, or jointly andseverally, according to its tenor.

(2) Where a note runs “I promise to pay” and is signedby two or more persons, it is deemed to be their joint andseveral note.

86. (1) Where a note payable on demand has been indorsed,it must be presented for payment within a reasonable time of theindorsement. If it be not so presented, the indorser is discharged.

Cheques drawnon a bankby itself.

Promissory notedefined.

Deliverynecessary.

Joint andseveral notes.

Note payableon demand.

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(2) In determining what is a reasonable time, regard shallbe had to the nature of the instrument, the usage of trade and thefacts of the particular case.

(3) Where a note payable on demand is negotiated, it isnot deemed to be overdue, for the purpose of affecting the holderwith defects of title of which he had no notice, by reason that itappears that a reasonable time for presenting it for payment haselapsed since its issue.

87. (1) Where a promissory note is in the body of it madepayable at a particular place, it must be presented for payment atthat place in order to render the maker liable. In any other case,presentment for payment is not necessary in order to render themaker liable.

(2) Presentment for payment is necessary in order torender the indorser of a note liable.

(3) Where a note is in the body of it made payable at aparticular place, presentment at that place is necessary in order torender an indorser liable; but when a place of payment is indicatedby way of memorandum only, presentment at that place is sufficientto render the indorser liable, but a presentment to the makerelsewhere, if sufficient in other respects, shall also suffice.

88. The maker of a promissory note by making it—(a) engages that he will pay it according to its tenor;(b) is precluded from denying to a holder in due

course the existence of the payee and his thencapacity to indorse.

89. (1) Subject to this Part, and except as by this sectionprovided, the provisions of this Act relating to bills of exchangeapply, with the necessary modifications to promissory notes.

(2) In applying those provisions, the maker of a note shallbe deemed to correspond with the acceptor of a bill, and the firstindorser of a note shall be deemed to correspond with the drawerof an accepted bill payable to drawer’s order.

Presentment ofnote forpayment.

Liability ofmaker.

Application ofPart I to notes.

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(3) The following provisions as to bills do not apply tonotes, namely, provisions relating to—

(a) presentment for acceptance;(b) acceptance;(c) acceptance suprà protest;(d) bills in a set.

(4) Where a foreign note is dishonoured, protest thereofis unnecessary.

PART IV

SUPPLEMENTARY

90. A thing is deemed to be done in good faith, within themeaning of this Act, where it is in fact done honestly, whether it isdone negligently or not.

91. (1) Where, by this Act, any instrument or writing isrequired to be signed by any person, it is not necessary that heshould sign it with his own hand, but it is sufficient if his signatureis written thereon by some other person by or under his authority.

(2) In the case of a corporation, where, by this Act, anyinstrument or writing is required to be signed, it is sufficient if theinstrument or writing be sealed with the corporate seal.

But nothing in this section shall be construed as requiring thebill or note of a corporation to be under seal.

92. (1) Where, by this Act, the time limited for doing any actor thing is less than three days, in reckoning time, non-businessdays are excluded.

“Non-business day” for the purposes of this Act means—(a) a Sunday or public holiday;(b) a day appointed by Order of the President to be a

non-business day.Any other day is a business day.

(2) All bills which are due and payable on a non-businessday shall be payable, and in the case of non-payment may be noted

Good faith.

Signature.

Computation oftime for act dueto be done onnon-businessdays.[45 of 1979].

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and protested, on the next following business day and not on suchnon-business day and any such noting or protest shall be as validas if made on the day on which the bill was made due and payable.

(3) When the day on which notice of dishonour of anunpaid bill should be given, or when the day on which a bill shouldbe presented or received for acceptance, or accepted or forwardedto a referee, is a non-business day, such notice of dishonour shallbe given, and such bill shall be presented or forwarded, on thenext following business day.

93. For the purposes of this Act, where a bill or note is requiredto be protested within a specified time, or before some furtherproceeding is taken, it is sufficient that the bill has been noted forprotest before the expiration of the specified time or the taking ofthe proceeding; and the formal protest may be extended at anytime thereafter as of the date of the noting.

94. Where a dishonoured bill or note is authorised or requiredto be protested, and the services of a Notary cannot be obtained atthe place where the bill is dishonoured, any householder orsubstantial resident of the place may, in the presence of twowitnesses, give a certificate, signed by them, attesting the dishonourof the bill, and the certificate shall in all respects operate as if itwere a formal protest of the bill.

The form in the Schedule may be used with necessarymodifications, and if used shall be sufficient.

95. (1) Where a person signs a bill of exchange as drawer,acceptor or indorser, or signs a promissory note as maker orindorser, his signature, if it be by mark or in characters otherthan Roman, shall have no effect unless it is made in thepresence of and attested by a Justice, Clerk of the Peace, Ministerof Religion, medical practitioner or police officer of or above therank of corporal.

(2) An attestation shall be in the form following or to thelike effect:

Signed in my presence this ........................................... day of........................... 20......, by ......................, a person known to me.

Signature.

When notingequivalent toprotest.

Protest whenNotary notaccessible.

What signaturesto be attested.

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(3) A person who attests a signature under this sectionshall satisfy himself as to the identity of the party signing and thathe understands the nature and effect of the instrument.

(4) A person shall not be capable of attesting a signatureunder this section if he has any personal interest in the bill or noteor the proceeds thereof, or in any transaction connected therewith.

(5) Any person who has signed, by mark or in charactersother than Roman, a promissory note as maker or indorser, mayaffix an inked impression of the external filament of his right thumb(or if he has no right thumb, then of his left thumb) thereto in thepresence of a police officer of or above the rank of corporal incharge of a Police Station; and every such officer shall writethereunder his rank and usual signature, and the date on which,and the station where, the said impression was affixed, and, if theimpression is of the left thumb, shall so specify. When theprovisions of this subsection have been duly complied with inrelation to the signing as maker or indorser of a promissory note,subsections (1) to (4) shall not apply in relation to such signing.

96. (1) The rules in bankruptcy relating to bills of exchange,promissory notes and cheques shall continue to apply theretonotwithstanding anything contained in this Act.

(2) The rules of Common Law, including the lawmerchant, save in so far as they are inconsistent with the expressprovisions of this Act, shall apply to bills of exchange, promissorynotes, and cheques.

(3) Nothing in this Act shall affect—(a) any law for the time being in force relating to

the revenue;(b) the provisions of any written law relating to banks

or companies.

Savings.

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SCHEDULE

FORM OF PROTEST WHICH MAY BE USED WHENTHE SERVICES OF A NOTARY CANNOT BE OBTAINED

REPUBLIC OF TRINIDAD AND TOBAGO.

KNOW ALL MEN that I, A.B. [householder], of .......................... in theCounty of ................................ in Trinidad and Tobago at the request of C.D.,there being no Notary Public available, did on the ................................... day of..................................., 20......, at ............................................ demand payment[or acceptance] of the bill of exchange hereunder written, from E.F., to whichdemand he made answer [state answer if any] wherefore I now, in the presenceof G.H. and J.K. do protest the said bill of exchange.

(Signed) A.B.G.H.J.K.

N.B.—The bill itself should be annexed, or a copy of the bill, and all that iswritten thereon shall be underwritten.

} Witnesses.

Section 94.

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Documents

Bills of Exchange - Legal Affairsrgd.legalaffairs.gov.tt/laws2/alphabetical_list/lawspdfs/82.31.pdf · Bills of Exchange Chap. 82:31 9 (2) A bill may be addressed to two or more drawees