Published: 1964-11-19
Key Benefits:
ARRANGEMENT OF SECTIONS
SECTION
PART I
Preliminary
1. Short title
2. Interpretation
PART II
Bills of Exchange
Form and Interpretation
3. Bill of exchange defined
4. Effect where different parties to a bill are the same person
5. Address to drawee
6. Certainty required as to payee
7. What bills are negotiable
8. Sum payable
9. Bill payable on demand
10. Bill payable at future time
11. Omission of date in bill payable after date
12. Antedating and postdating
13. Computation of time of payment
14. Referee in case of need
15. Optional stipulations by drawer or indorser
16. Definition and requisites of acceptance
17. Time for acceptance
18. General and qualified acceptances
19. Inchoate instruments
20. Delivery as requirement for contract on a bill
Capacity and Authority of Parties
21. Capacity of parties
22. Signature as requirement for liability
23. Forged and unauthorized signatures
24. Procuration signature
25. Signature as agent or in representative capacity
Consideration for a Bill
26. Value and holder for value
27. Accommodation bill of party
28. Holder in due course
29. Presumption as to value and good faith
Negotiation of Bills
30. Negotiation of bill
31. Manner of indorsing
32. Indorsement in blank and special indorsement
33. Restrictive indorsement
34. Conditional indorsement
35. Continuance of negotiability and negotiation of overdue or dishonoured bill
36. Negotiation of bill to party already liable thereon
37. Rights and powers of the holder
General Duties of the Holder
38. When presentment for acceptance is necessary, and delay in such presentment
39. Time for presenting the acceptance bill payable after sight
40. Rules as to presentment for acceptance, and excuses for non-presentment
41. Failure to accept within customary time
42. When bill is dishonoured by non-acceptance, and consequences thereof
43. Duties as to and consequences of qualified acceptance
44. Rules as to presentment for payment
45. When presentment for payment may be delayed or dispensed with
46. When bill is dishonoured by non-payment and consequences thereof
47. Notice of dishonour and effect of failure to give such notice
48. Rules as to notice of dishonour
49. When notice of dishonour may be delayed or dispensed with
50. Protest of bill and consequences of failure to protest
51. Duties of holder as regards acceptor
Liabilities of Parties
52. Liability of drawee
53. Liability of acceptor
54. Liability of drawer and of indorser
55. Liability of stranger signing a bill
56. Damages recoverable from parties to dishonoured bill
57. Liability of transferor by delivery
Discharge of Bill
58. Discharge by payment in due course
59. Banker paying demand draft where indorsement is forged
60. Discharge by acceptor becoming holder
61. Discharge by waiver
62. Discharge by cancellation of bill and discharge of party by cancellation of his signature
63. Effect of alteration of bill or acceptance
Acceptance and Payment for Honour, and Payment by Referee in case of
need
64. Acceptance for honour supra protest, and maturity of certain bills so accepted
65. Liability of acceptor for honour
66. Presentment to acceptor for honour and referee in case of need
67. Payment for honour supra protest
Lost Instruments
68. Holder's rights if bill is lost
69. Action upon lost bill
Bill in a Set
70. Rules as to a bill in a set
Conflict of Laws
71. Rules if laws conflict
PART III
Cheques
General Provisions
72. Application of Act to cheques
73. Presentment of cheque for payment
74. Revocation of bankers' authority
75. Consequences of failure to protest
Crossed Cheques
76. General and special crossings on cheques
77. Crossing by drawer, or after issue
78. Crossing a material part of cheque
79. Duties of bankers as to crossed cheques
80. Protection to banker and drawer where cheque is crossed
81. Effect of crossing on holder
82. True owner of stolen or lost crossed cheque marked "Not Negotiable" entitled to compensation from certain subsequent possessors
83. Application of sections 76 to 82 to certain documents other than cheques
Unindorsed or Irregularly Indorsed Instruments
84. Effect of payment to or crediting of accounts by bankers of amounts of unindorsed or irregularly indorsed cheques and certain other documents
85. Rights of bankers regarding irregularly indorsed cheques
86. Effect of payment of irregularly indorsed cheques, etc.
87. Negotiability of documents referred to in sections 84, 85 and 86.
PART IV
Promissory Notes
88. Promissory note defined
89. Delivery necessary
90. Joint or joint and several liability on notes
91. Time of presentment for payment of note payable on demand and indorsed
92. Presentment of note for payment
93. Liability of maker
94. Application to notes of provisions relating to bills
PART V
Supplementary
95. Good faith
96. Signature
97. Computation of time
98. When noting equivalent to protest
99. Protest when notary not accessible
100. Application of Act to dividend warrants, etc.
101. Laws that are not affected by this Act
Schedule - Form of Protest which may in terms of Section 99 be Used when the Services of a Notary Cannot be Obtained
Law 30, 1964,
L.N. 84, 1966,
Act 30, 1983,
S.I. 83, 1984
An Act to consolidate and amend the law relating to bills of exchange, cheques and promissory notes.
[Date of Commencement: 19th November, 1964]
95. Good faith
A thing is deemed to be done in good faith within the meaning of this Act, if it is in fact done honestly, whether it is done negligently or not.
96. Signature
Where by this Act, any instrument or writing is required to be signed by any person it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person, by or under his authority, and the authorized sealing with a seal of a corporation shall be sufficient and be deemed to be equivalent to the signing or indorsement of any such instrument or writing.
97. Computation of time
Where by this Act the time limited for doing any act or thing is less than four days, non-business days are excluded in reckoning such time.
98. When noting equivalent to protest
Where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient, for the purposes of this Act, that the bill or note has been noted for protest before the expiration of the specified time or the taking of the proceeding, and the formal protest may be extended at any time thereafter as of the date of the noting.
99. Protest when notary not accessible
(1) Where a dishonoured bill or note is authorized or required to be protested, and the services of a notary cannot be obtained at the place where the bill or note is dishonoured, any landowner or householder of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the dishonour of the bill, and the certificate shall in all respects operate as if it were a formal protest of the bill.
(2) The form set out in the Schedule may be used with the necessary modifications for such certificate, and if so used, shall be sufficient.
100. Application of Act to dividend warrants, etc.
The provisions of this Act as to crossed cheques shall apply also to warrants for the payment of dividends, to coupons for payment of interest and to postal and money orders.
101. Laws that are not affected by this law
Nothing in this Act shall affect or in any way restrict-
(a) any law relating to stamp duty or revenue;
(b) any law relating to banks;
(c) any law relating to companies;
(d) the procedure and practice in regard to the granting of provisional sentence in judicial proceedings.
SCHEDULE
FORM OF PROTEST WHICH MAY IN TERMS OF SECTION 99 BE USED
WHEN THE SERVICES OF A NOTARY CANNOT BE OBTAINED
Know all men that I, A.B., landowner or householder of .....................................................
in the district of at the request of C.D., there being no notary available, did on the ........... day of ..................................... 20 ............ at ...........................................................................
demand payment or acceptance from E.F., of the bill of exchange which or a copy of which is hereto annexed, to which demand he answered (state answer, if any) wherefore I now in the presence of G.H., and J.K., do protest the said bill of exchange.
A.B. .........................................................
Witnesses:
G.H. ..........................................
J.K. ..........................................
N.B. The bill itself or a copy of the bill and of everything appearing thereon should be annexed.