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Protection to banker and



cheque is crossed.

Effect of crossing on holder.

Protection to collecting banker.

otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be.

80. Where the banker, on whom a crossed cheque is drawn, in good faith and without negligence pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.


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

82. Where a banker in good faith and without negligence receives payment for a customer of a cheque crossed generally or specially to himself, and the customer has no title or a defective title thereto, the banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment.

See section 76 for definitions of general and special crossings. This section has been extended by the Bills of Exchange (Crossed Cheques) Act, 1906. See Appendix B.

Promissory note defined,

Delivery necessary.

Joint and several notes,

Note payable on demand.


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

(2.) An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unless and until it is indorsed by the maker.

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

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

Refer to section 4, and also to sub-section 89 (4).

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

See sections 2 and 21 for the meaning of delivery.

85(1.) A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally according to its tenour.

(2.) Where a note runs "I promise to pay " and is signed by two or more persons it is deemed to be their joint and several note.

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

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

(3.) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

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

Refer to section 52.

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

Compare sections 45 and 46.

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

88. The maker of a promissory note by making it—

(1.) Engages that he will pay it according to its tenour;

(2.) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.

Compare sections 52 and 57.

Liability of maker.

89.-(1.) Subject to the provisions in this part and, except as by this Application section provided, the provisions of this Act relating to bills of exchange of Part II. to apply, with the necessary modifications, to promissory notes.

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

(3.) The following provisions as to bills do not apply to notes; 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 thereof is un





90. A thing is deemed to be done in good faith, within the meaning Good faith. of this Act, where it is in fact done honestly, whether it is done negligently

or not.

91.-(1.) Where, by this Act, any instrument or writing is required Signature. 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.

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

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

Refer to sections 23 to 26.

Computation of time.

When noting equivalent to protest.]

Protest when notary not accessible.

Dividened warrants may be crossed.



33 & 34 Vict. c. 97.

25 & 26 Vict. c. 89,

Saving of


diligence in Scotland.

92. Where, by this Act, the time limited for doing any act or thing is less than three days, in reckoning time, non-business days are excluded. "Non-business days for the purposes of this Act mean(a.) Sunday, Good Friday, Christmas Day:

(b.) A bank holiday under the Bank Holidays Act, 1871, or Acts amending it:

(c.) A day appointed by Royal proclamation as a public fast or thanksgiving day.

Any other day is a business day.

93. For the purposes of this Act, where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill 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.

Refer to sections 65 to 68.

94. Where a dishonoured bill or note is authorised or required to be protested, and the services of a notary cannot be obtained at the place where the bill is dishonoured, any householder or substantial resident 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.

The form given in Schedule 1 to this Act may be used with necessary modifications, and if used shall be sufficient.

For Schedule 1 see next page.

95. The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.

96. The enactments mentioned in the second schedule to this Act are hereby repealed as from the commencement of this Act to the extent in that schedule mentioned.

Provided that such repeal shall not affect anything done or suffered, or any right, title, or interest acquired or accrued before the commencement of this Act, or any legal proceeding or remedy in respect of any such thing, right, title, or interest.

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

(2.) The rules of common law including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques.

(3.) Nothing in this Act or in any-repeal effected thereby shall affect— (a.) The provisions of the Stamp Act, 1870, or Acts amending it, or any law or enactment for the time being in force relating to the


(b.) The provisions of the Companies Act, 1862, or Acts amending it,
or any Act relating to joint stock banks or companies :
See ante, page 103.

(c.) The provisions of any Act relating to or confirming the privileges
of the Bank of England or the Bank of Ireland respectively:
(d.) The validity of any usage relating to dividend warrants, or the
indorsements thereof.

This preserves the usage of paying a dividend warrant on the endorsement of one of two or more payees.

98. Nothing in this Act or in any repeal effected thereby shall extend or restrict, or in any way alter or affect the law and practice in Scotland in regard to summary diligence.

with other

99. Where any Act or document refers to any enactment repealed Construction by this Act, the Act or document shall be construed, and shall operate, as if it referred to the corresponding provisions of this Act.

Acts, &c.


evidence allowed in


100. In any judicial proceeding in Scotland, any fact relating to a bill of exchange, bank cheque, or promissory note, which is relevant to any question of liability thereon, may be proved by parole evidence: certain Provided that this enactment shall not in any way affect the existing judicial prolaw and practice whereby the party who is, according to the tenour of ceedings in any bill of exchange, bank cheque, or promissory note, debtor to the holder in the amount thereof, may be required, as a condition of obtaining a sist of diligence, or suspension of a charge, or threatened charge, to make such consignation, or to find such caution as the court or judge before whom the cause is depending may require.

This section shall not apply to any case where the bill of exchange, bank cheque, or promissory note has undergone the sesennial prescription.



Form of protest which may be used when the services of a notary Section 94. cannot be obtained. in the

Know all men that I, A. B. [householder], of

county of
in the United Kingdom, at the request of
C. D., there being no notary public available, did on the
day of



demand payment [or acceptance] of the bill of exchange hereunder written, from E. F., to which demand he made answer [state answer, if any] wherefore I now, in the presence of G. H. and J. K., do protest the said bill of exchange.

(Signed) A. B.

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


Session and Chapter.

Title of Act and extent of Repeal.

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An Act for the better payment of Inland Bills
of Exchange.

An Act for giving like remedy upon Promissory
Notes as is now used upon Bills of Ex-
change, and for the better payment of
Inland Bills of Exchange.

An Act for further restraining the negotia-
tion of promissory notes and inland bills
of exchange under a limited sum within
that part of Great Britain called England.
An Act for the better observance of Good
Friday in certain cases therein mentioned.
An Act to restrain the Negotiation of Pro-
missory Notes and Inland Bills of Exchange
under a Limited sum in England.

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Title of Act and extent of Repeal.

An Act to regulate Acceptances of Bills of

An Act for declaring the law in relation to
Bills of Exchange and Promissory Notes
becoming payable on Good Friday or
Christmas Day.

An Act to repeal certain Acts, and to consoli-
date and amend the laws relating to bills
of exchange and promissory notes in

in part; that is to say,

Section two, four, seven, eight, nine,

ten, eleven.

An Act for regulating the protesting for nonpayment of Bills of Exchange drawn payable at a place not being the place of the residence of the drawee or drawees of the


An Act for declaring the law as to the day on which it is requisite to present for payment to Acceptor, or Acceptors suprà protest for honour, or to the Referee or Referees, in case of need, Bills of Exchange which have been dishonoured.

An Act to regulate the issue of bank notes in
Ireland, and to regulate the repayment of
certain sums advanced by the .Governor
and Company of the Bank of Ireland for
the public service,

in part; that is to say,
Section twenty-four.

The Mercantile Law Amendment Act, 1856,
in part; that is to say,

Sections six and seven.

An Act for granting to Her Majesty certain
duties of stamps, and to amend the laws
relating to the stamp duties,

in part; that is to say,
Section nineteen.

An Act to abolish days of grace in the case
of bills of exchange and promissory notes
payable at sight or on presentation.
The Crossed Cheques Act, 1876.
The Bills of Exchange Act, 1878.

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