Bills of Exchange Act 1958

Link to law: https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/1958/1958-0001/BillsofExchangeAct1958_1.pdf
Published: 2012-09-01

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Bills of Exchange Act 1958

c i e
AT 1 of 1958

BILLS OF EXCHANGE ACT 1958

Bills of Exchange Act 1958 Index


c AT 1 of 1958 Page 3

c i e
BILLS OF EXCHANGE ACT 1958

Index Section Page

1 Protection of bankers paying unindorsed or irregularly indorsed cheques,
etc ...................................................................................................................................... 5
2 Rights of bankers collecting cheques not indorsed by holders ................................ 5
3 Unindorsed cheques as evidence of payment ............................................................ 6
4 Protection of bankers collecting payment of cheques, etc ........................................ 6
5 Application of certain provisions of Bills of Exchange Act, 1883, to
instruments not being bills of exchange ...................................................................... 7
6 Saving ............................................................................................................................... 7
7 [Amends section 51 of the Bills of Exchange Act 1883.] ............................................... 7
8 Short title and citation .................................................................................................... 7
9 Commencement .............................................................................................................. 7
SCHEDULE 9

ENDNOTES 11

TABLE OF LEGISLATION HISTORY 11
TABLE OF RENUMBERED PROVISIONS 11
TABLE OF ENDNOTE REFERENCES 11

Bills of Exchange Act 1958 Section 1


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c i e
BILLS OF EXCHANGE ACT 1958

Received Royal Assent: 7 January 1958
Passed: 18 February 1958
Commenced: 17 October 19571

AN ACT
to amend the law relating to cheques and certain other instruments
and to amend section 51(4) of the Bills of Exchange Act, 1883.
1 Protection of bankers paying unindorsed or irregularly indorsed

cheques, etc

[1957/1]
(1) Where a banker in good faith and in the ordinary course of business pays
a cheque drawn on him which is not indorsed or is irregularly indorsed,
he does not, in doing so, incur any liability by reason only of the absence
of, or irregularity in, indorsement, and he is deemed to have paid it in
due course.
(2) Where a banker in good faith and in the ordinary course of business pays
any such instrument as the following, namely: —
(a) a document issued by a customer of his which, though not a bill of
exchange, is intended to enable a person to obtain payment from
him of the sum mentioned in the document;
(b) a draft payable on demand drawn by him upon himself, whether
payable at the head office or some other office of his bank;
he does not, in doing so, incur any liability by reason only of the absence
of, or irregularity in, endorsement, and the payment discharges the
instrument.
2 Rights of bankers collecting cheques not indorsed by holders

[1957/2]
(1) A banker who gives value for, or has a lien on, a cheque payable to order
which the holder delivers to him for collection without indorsing it, has
such (if any) rights as he would have had if, upon delivery, the holder
had indorsed it in blank.
Section 3 Bills of Exchange Act 1958


Page 6 AT 1 of 1958 c

(2) For the purposes of subsection (1) above, a copy of a cheque to which
that subsection applies is evidence of the cheque if —
(a) the copy is made by the banker in whose possession the cheque is
after presentment; and
(b) it is certified by him to be a true copy of the original.2

3 Unindorsed cheques as evidence of payment

[1957/3]
An unindorsed cheque which appears to have been paid by the banker on
whom it is drawn is evidence of the receipt by the payee of the sum payable by
the cheque.
4 Protection of bankers collecting payment of cheques, etc

[1957/4]
(1) Where a banker, in good faith and without negligence —
(a) receives payment for a customer of an instrument to which this
section applies; or
(b) having credited a customer’s account with the amount of such an
instrument, receives payment thereof for himself;
and the customer has no title, or a defective title, to the instrument, the
banker does not incur any liability to the true owner of the instrument by
reason only of having received payment thereof.
(2) This section applies to the following instruments, namely: —
(a) cheques (including cheques which under section 81A of the Bills of
Exchange Act 1883 or otherwise are not transferable);3

(b) any document issued by a customer of a banker which, though
not a bill of exchange, is intended to enable a person to obtain
payment from that banker of the sum mentioned in the document;
(c) any document issued by a public officer which is intended to
enable a person to obtain payment from the Paymaster General or
the Queen’s and Lord Treasurer’s Remembrancer or the Treasury
of the sum mentioned in the document but is not a bill of
exchange;4

(d) any draft payable on demand drawn by a banker upon himself,
whether payable at the head office or some other office of his
bank.
(3) A banker is not to be treated for the purposes of this section as having
been negligent by reason only of his failure to concern himself with
absence of, or irregularity in, indorsement of an instrument.
Bills of Exchange Act 1958 Section 5


c AT 1 of 1958 Page 7

5 Application of certain provisions of Bills of Exchange Act, 1883, to

instruments not being bills of exchange

[1957/5]
The provisions of the Bills of Exchange Act, 1883, relating to crossed cheques
shall, so far as applicable, have effect in relation to instruments (other than
cheques) to which the last foregoing section applies as they have effect in
relation to cheques.
6 Saving

[1957/6]
(1) The foregoing provisions of this Act do not make negotiable any
instrument which, apart from them, is not negotiable.
(2) [Repealed]5

7 [Amends section 51 of the Bills of Exchange Act 1883.]

8 Short title and citation

This Act may be cited as the Bills of Exchange Act, 1958, and this Act and the
Bills of Exchange Act, 1883, may be together cited as the Bills of Exchange Acts,
1883 and 1958.
9 Commencement

This Act shall come into operation when the Royal Assent thereto has been by
the Governor announced to Tynwald and a certificate thereof has been signed
by the Governor and the Speaker of the House of Keys, but shall be deemed to
have come into operation on the 17th day of October, 1957.
Bills of Exchange Act 1958 Schedule



c AT 1 of 1958 Page 9

Schedule
6

Bills of Exchange Act 1958 Endnotes


c AT 1 of 1958 Page 11

ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
See section 9. 2
Subs (2) added by Banking Act 1998 Sch 1. 3
Para (a) amended by Bills of Exchange (Amendment) Act 1993 s 3. 4
Para (c) amended by Treasury Act 1985 Sch 2. 5
Subs (2) repealed by Statute Law Revision Act 1983 Sch 2. 6
Sch repealed by Statute Law Revision Act 1983 Sch 2.