Kenya Act or statute

Parliament of Kenya

Bills of Exchange Act

This Act may be cited as the Bills of Exchange Act. This section provides definitions of terms used in the Act. A bill accepted or endorsed when overdue is deemed a bill payable on demand. A bill…

Jurisdiction: Kenya
Structure: 101 provisions
Citation: Cap. 27
Dates: As at 31 Dec 2022

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Dates: As at 31 Dec 2022

Source attribution: Source: Kenya Law

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Purpose and legislative effect

“This Act may be cited as the Bills of Exchange Act.”

This Act may be cited as the Bills of Exchange Act. This section provides definitions of terms used in the Act. A bill accepted or endorsed when overdue is deemed a bill payable on demand. A bill payable at a future time may be payable at a fixed period after date or sight, or after the occurrence of a specified event certain to happen; an instrument payable on contingency is not a bill and that defect is not cured by the event happening. Addresses a situation where the holder, acting in good faith and by mistake, inserts a wrong date in a bill payable after date.

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PRELIMINARY - 1. Short title

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

Section 1

BILLS OF EXCHANGE - 32. Requisites of a valid endorsement

An endorser must write an endorsement on the bill itself and sign it; a simple signature on the bill is sufficient.

Section 32

BILLS OF EXCHANGE - 55. Liability of drawer or endorser

Section 55

CHEQUES ON A BANKER - 74B. Procedure where cheque is dishonoured

If an image return document is lost before its presentment period expires, the holder may apply to the cheque's drawer to provide another cheque of the same amount.

Section 74B

SUPPLEMENTARY - 97. Savings

Rules relating to bills of exchange, promissory notes, and cheques continue to apply despite this Act.

Section 97

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Showing 101 of 101 provisions

Provision 97Interpretation 2Short titleRepeal

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

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

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

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

This section provides definitions of terms used in the Act.

Section 2. Interpretation Section In this Act, except where the context otherwise requires— "acceptance" means an acceptance completed by delivery or notification; "action" includes counterclaim and set-off; "bank" has the meaning assigned in section 2 of the Banking Act ( Cap. 488 ); "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 relating to bankruptcy; "bearer" means the person in possession of a bill or note which is payable to bearer; "bill" means bill of exchange; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance; "Central Bank" means the Central Bank of Kenya established under section 3 of the Central Bank of Kenya Act (Cap. 491); "cheque truncation" means a system of cheque clearing and settlement between banks based on electronic data or images or both electronic data and images, without the conventional physical exchange of instruments; "delivery" means transfer of possession, actual or constructive from one person to another; "endorsement" means an endorsement completed by delivery; "holder" means the payee or endorsee of a bill or note who is in possession of it, or the bearer thereof; "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. [Act No. 8 of 2009 , s. 31.]

Section 2Verify source

Part II

BILLS OF EXCHANGE

§ 10BILLS OF EXCHANGE - 10. Bill payable on demandProvision

A bill accepted or endorsed when overdue is deemed a bill payable on demand.

Section 10. Bill payable on demand Section 10(1)(a) which is expressed to be payable on demand, or at sight, or on presentation; or Section 10(1)(b) in which no time for payment is expressed. Section 10(2) Where a bill is accepted or endorsed when it is overdue, it shall, as regards the acceptor who so accepts, or any endorser who so endorses it, be deemed a bill payable on demand.

Section 10Verify source

§ 11BILLS OF EXCHANGE - 11. Bill payable at a future timeProvision

A bill payable at a future time may be payable at a fixed period after date or sight, or after the occurrence of a specified event certain to happen; an instrument payable on contingency is not a bill and that defect is not cured by the event happening.

Section 11. Bill payable at a future time Section 11(1)(a) at a fixed period after date or sight; Section 11(1)(b) on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain. Section 11(2) An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.

Section 11Verify source

§ 12BILLS OF EXCHANGE - 12. Omission of date in bill payable after dateProvision

Addresses a situation where the holder, acting in good faith and by mistake, inserts a wrong date in a bill payable after date.

Section 12. Omission of date in bill payable after date Section where the holder in good faith and by mistake inserts a wrong date; and

Section 12Verify source

§ 13BILLS OF EXCHANGE - 13. Ante-dating and post-datingProvision

If a bill or acceptance of an endorsement on a bill carries a date, that date is taken as the true date of drawing, acceptance or endorsement unless proven otherwise; and a bill is not invalid solely because it is ante-dated, post-dated, or dated on a Sunday.

Section 13. Ante-dating and post-dating Section 13(1) Where a bill or an acceptance of any endorsement on a bill is dated, the date shall, unless the contrary be proved, be deemed to be the true date of the drawing, acceptance or endorsement, as the case may be. Section 13(2) A bill is not invalid by reason only that it is ante-dated or post-dated, or that it bears date on a Sunday.

Section 13Verify source

§ 14BILLS OF EXCHANGE - 14. Computation of time of paymentProvision

Add three days (called days of grace) to the time of payment fixed by a bill unless the bill provides otherwise; the bill is payable on the last day of grace, but if that day is a non-business day payment is due on the next succeeding business day.

Section 14. Computation of time of payment Section three days, called days of grace, are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace: Provided that where the last day of grace is a non-business day the bill is due and payable on the next succeeding business day;

Section 14Verify source

§ 15BILLS OF EXCHANGE - 15. Case of needProvision

Drawers and endorsers may insert a 'referee in case of need' to whom the holder may resort if the bill is dishonoured; the holder may choose whether to resort to that referee.

Section 15. Case of need Section 15(1) The drawer of a bill and any endorser may insert therein the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment; and that person is called the referee in case of need. Section 15(2) It is in the option of the holder to resort to the referee in case of need or not as he may think fit.

Section 15Verify source

§ 16BILLS OF EXCHANGE - 16. Optional stipulations by drawer or endorserProvision

Drawers or endorsers may include stipulations negating or limiting their own liability to the holder.

Section 16. Optional stipulations by drawer or endorser Section negativing or limiting his own liability to the holder;

Section 16Verify source

§ 17BILLS OF EXCHANGE - 17. Definition and requisites of acceptanceInterpretation

Acceptance of a bill is the drawee signifying assent to the drawer's order; acceptance must be written on the bill and signed by the drawee (mere signature without additional words is sufficient).

Section 17. Definition and requisites of acceptance Section 17(1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. Section 17(2)(a) it must be written on the bill and be signed by the drawee; the mere signature of the drawee without additional words is sufficient; Section 17(2)(b) it must not express that the drawee will perform his promise by any other means than the payment of money.

Section 17Verify source

§ 18BILLS OF EXCHANGE - 18. Time for acceptanceProvision

If a bill payable after sight is initially dishonoured by non-acceptance but later accepted by the drawee, the holder is entitled, unless there is a different agreement, to have the bill accepted as of the date of first presentment for acceptance.

Section 18. Time for acceptance Section 18(1)(a) before it has been signed by the drawer, or while otherwise incomplete; Section 18(1)(b) when it is overdue, or after it has been dishonoured by a previous refusal to accept, or by non-payment. Section 18(2) When a bill payable after sight is dishonoured by non-acceptance, and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.

Section 18Verify source

§ 19BILLS OF EXCHANGE - 19. General and qualified acceptancesProvision

Defines 'general' and 'qualified' acceptances and lists types of qualified acceptances: conditional, partial, local, qualified as to time, and acceptance by some but not all drawees.

Section 19. General and qualified acceptances Section 19(1)(a) general; or Section 19(1)(b) qualified. Section 19(2) A general acceptance assents without qualification to the order of the drawer; a qualified acceptance in express terms varies the effect of the bill as drawn. Section 19(3)(a) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated; Section 19(3)(b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn; Section 19(3)(c) local, that is to say, an acceptance to pay only at a particular specified place: Section 19(3)(d) qualified as to time; Section 19(3)(e) the acceptance of some one or more of the drawees, but not of all.

Section 19Verify source

§ 20BILLS OF EXCHANGE - 20. Inchoate instrumentsProvision

If a bill is completed and negotiated to a holder in due course, that holder may enforce it as if it had been properly filled within a reasonable time and authority.

Section 20. Inchoate instruments Section 20(1) Where a simple signature on a blank stamped paper is delivered by the signer in order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, or the acceptor, or an endorser; and, in like manner, when a bill is wanting in any material particular, the person in possession of it has a prima facie authority to fill up the omission in any way he thinks fit. Section 20(2) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given. Section 20(3) Reasonable time for this purpose is a question of fact: Provided that if any such instrument after completion is negotiated to a holder in due course it shall be valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.

Section 20Verify source

§ 21BILLS OF EXCHANGE - 21. DeliveryProvision

Contracts on a bill remain incomplete and revocable until the instrument is delivered; certain acceptances become complete and irrevocable on notice; delivery by prior parties is presumed for a holder in due course; delivery by a signer is presumed absent contrary proof.

Section 21. Delivery Section 21(1) Every contract on a bill, whether it be the drawer’s, the acceptor’s or an endorser’s, is incomplete and revocable, until delivery of the instrument in order to give effect thereto: Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable. Section 21(2)(a) in order to be effectual must be made either by or under the authority of the party drawing, accepting or endorsing, as the case may be; Section 21(2)(b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill. Section 21(3) If the bill be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed. Section 21(4) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or endorser, a valid and unconditional delivery by him is presumed until the contrary is proved.

Section 21Verify source

§ 22BILLS OF EXCHANGE - 22. Capacity of partiesProvision

Corporations cannot make themselves liable as drawer, acceptor or endorser of a bill unless they are competent under corporate law; if a bill is drawn or endorsed by someone lacking capacity, the holder is entitled to payment and to enforce it against others.

Section 22. Capacity of parties Section 22(1) Capacity to incur liability as a party to a bill is co-extensive with capacity to contract: Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor or endorser of a bill unless it is competent so to do under the law for the time being in force relating to corporations. Section 22(2) Where a bill is drawn or endorsed by an infant, minor or corporation having no capacity or power to incur liability on a bill, the drawing or endorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.

Section 22Verify source

§ 23BILLS OF EXCHANGE - 23. Signature essential to liabilityProvision

If a person signs a bill in a trade or assumed name, they are liable on it as if they had signed in their own name.

Section 23. Signature essential to liability Section where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name;

Section 23Verify source

§ 24BILLS OF EXCHANGE - 24. Forged or unauthorized signatureProvision

A forged or unauthorized signature on a bill is inoperative and no party can acquire rights (to retain, discharge, or enforce payment) through that signature, except where the opponent is precluded from raising the forgery or where an unauthorized but not forged signature is ratified.

Section 24. Forged or unauthorized signature Section Subject to the provisions of this Act, where a signature on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorized signature is wholly inoperative, and no right to retain the bill or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority: Provided that nothing in this section shall affect the ratification of an unauthorized signature not amounting to a forgery.

Section 24Verify source

§ 25BILLS OF EXCHANGE - 25. Procuration signaturesProvision

A procuration signature notifies that the agent has limited signing authority; the principal is bound by the signature only if the agent acted within the agent's actual authority.

Section 25. Procuration signatures Section A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.

Section 25Verify source

§ 26BILLS OF EXCHANGE - 26. Persons signing as agent or in representative capacityProvision

A person who signs a bill as drawer, endorser or acceptor and adds words showing they sign for a principal or in a representative capacity is not personally liable on the bill, but merely adding words that describe them as an agent does not by itself exempt them from personal liability.

Section 26. Persons signing as agent or in representative capacity Section 26(1) Where a person signs a bill as drawer, endorser or acceptor, and adds words to his signature, indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon; but the mere addition to his signature of words describing him as an agent, or as filling a representative character, does not exempt him from personal liability. Section 26(2) In determining whether a signature on a bill is that of the principal or that of the agent by whose hand it is written, the construction most favourable to the validity of the instrument shall be adopted.

Section 26Verify source

§ 27BILLS OF EXCHANGE - 27. Value and holder for valueProvision

Section 27 defines what counts as 'value' for a bill of exchange and when a holder is deemed to be a holder for value.

Section 27. Value and holder for value Section 27(1)(a) any consideration sufficient to support a simple contract; Section 27(1)(b) an antecedent debt or liability, which is deemed valuable consideration whether the bill is payable on demand or at a future time. Section 27(2) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to that time. Section 27(3) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.

Section 27Verify source

§ 28BILLS OF EXCHANGE - 28. Accommodation bill or partyProvision

Defines "accommodation party" and states that an accommodation party is liable on the bill to a holder for value regardless of the holder's knowledge.

Section 28. Accommodation bill or party Section 28(1) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or endorser, without receiving value therefor, and for the purpose of lending his name to some other person. Section 28(2) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when the holder took the bill, he knew that party to be an accommodation party or not.

Section 28Verify source

§ 29BILLS OF EXCHANGE - 29. Holder in due courseProvision

Section 29 explains when a negotiator's title is defective and states that a holder who derives title through a holder in due course (and is not party to fraud or illegality) has all the rights of that holder in due course.

Section 29. Holder in due course Section 29(1)(a) that he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if that was the fact; Section 29(1)(b) that he took the bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it. Section 29(2) In particular the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud. Section 29(3) A holder (whether for value or not) who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.

Section 29Verify source

§ 3BILLS OF EXCHANGE - 3. Bill of exchange definedProvision

Defines a bill of exchange as an unconditional written order, signed and addressed by one person to another, requiring payment of a sum certain in money on demand or at a fixed or determinable future time to a specified person, order, or bearer.

Section 3. Bill of exchange defined Section 3(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer. Section 3(2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange. Section 3(3)(a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount; or Section 3(3)(b) a statement of the transaction which gives rise to the bill, is unconditional. Section 3(4)(a) that it is not dated; Section 3(4)(b) that it does not specify the value given or that any value has been given therefor; Section 3(4)(c) that it does not specify the place where it is drawn or the place where it is payable.

Section 3Verify source

§ 30BILLS OF EXCHANGE - 30. Presumption of value and good faithProvision

Section 30 creates two legal presumptions: (1) a person who signs a bill is presumed to have become a party to it for value; (2) a holder of a bill is presumed to be a holder in due course, subject to conditions shifting the burden of proof if fraud, duress, force, fear or illegality is shown unless the holder proves subsequent good-faith value.

Section 30. Presumption of value and good faith Section 30(1) Every party whose signature appears on a bill is prima facie deemed to have become a party thereto for value. Section 30(2) Every holder of a bill is prima facie deemed to be a holder in due course; but if in an action on a bill it is admitted or proved that the acceptance, issue or subsequent negotiation of the bill is affected with fraud, duress or force and fear, or illegality, the burden of proof is shifted, unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.

Section 30Verify source

§ 31BILLS OF EXCHANGE - 31. Negotiation of billProvision

Defines when a bill is negotiated and how different types of bills are negotiated; states effects of a transfer without endorsement and permits representative endorsers to avoid personal liability.

Section 31. Negotiation of bill Section 31(1) A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill. Section 31(2) A bill payable to bearer is negotiated by delivery. Section 31(3) A bill payable to order is negotiated by the endorsement of the holder completed by delivery. Section 31(4) Where the holder of a bill payable to his order transfers it for value without endorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the endorsement of the transferor. Section 31(5) Where any person is under obligation to endorse a bill in a representative capacity, he may endorse the bill in such terms as to negative personal liability.

Section 31Verify source

§ 32BILLS OF EXCHANGE - 32. Requisites of a valid endorsementProvision

An endorser must write an endorsement on the bill itself and sign it; a simple signature on the bill is sufficient.

Section 32. Requisites of a valid endorsement Section it must be written on the bill itself and be signed by the endorser; the simple signature of the endorser on the bill, without additional words, is sufficient; while an endorsement written on an allonge, or on a "copy" of a bill issued or negotiated in a country where "copies" are recognized, is deemed to be written on the bill itself;

Section 32Verify source

§ 33BILLS OF EXCHANGE - 33. Conditional endorsementProvision

The payer may disregard a conditional endorsement; payment to the endorsee is valid whether the condition has been fulfilled or not.

Section 33. Conditional endorsement Section Where a bill purports to be endorsed conditionally, the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.

Section 33Verify source

§ 34BILLS OF EXCHANGE - 34. Endorsement in blank and special endorsementProvision

Defines 'endorsement in blank' (no endorsee; bill payable to bearer) and 'special endorsement' (names the person or their order to be paid). States that rules about a payee apply, with modifications, to an endorsee under a special endorsement, and that any holder of a bill endorsed in blank may convert it into a special endorsement by writing a direction above the endorsee’s signature.

Section 34. Endorsement in blank and special endorsement Section 34(1) An endorsement in blank specifies no endorsee, and a bill so endorsed becomes payable to bearer. Section 34(2) A special endorsement specifies the person to whom, or to whose order, the bill is to be payable. Section 34(3) The provisions of this Act relating to a payee apply with the necessary modifications to an endorsee under a special endorsement. Section 34(4) When a bill has been endorsed in blank, any holder may convert the blank endorsement into a special endorsement by writing above the endorsee’s signature a direction to pay the bill to or to the order of himself or some other person.

Section 34Verify source

§ 35BILLS OF EXCHANGE - 35. Restrictive endorsementProvision

A 'restrictive endorsement' is an endorsement that prohibits further negotiation or limits transfer; it gives the endorsee the right to payment and to sue but not to transfer rights unless expressly authorized; if further transfer is authorized, subsequent endorsees take the same rights and liabilities.

Section 35. Restrictive endorsement Section 35(1) An endorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as, for example, if a bill be endorsed "Pay D only" , or "Pay D for the account of X" or "Pay D or order for collection" . Section 35(2) A restrictive endorsement gives the endorsee the right to receive payment of the bill and to sue any party thereto that his endorser could have sued, but gives him no power to transfer his rights as endorsee unless it expressly authorizes him to do so. Section 35(3) Where a restrictive endorsement authorizes further transfer, all subsequent endorsees take the bill with the same rights and subject to the same liabilities as the first endorsee under the restrictive endorsement.

Section 35Verify source

§ 36BILLS OF EXCHANGE - 36. Negotiation of overdue or dishonoured billProvision

An overdue bill negotiated remains subject to any defect of title at maturity, and a person who later takes it cannot acquire a better title than the person from whom they took it.

Section 36. Negotiation of overdue or dishonoured bill Section 36(1)(a) restrictively endorsed; or Section 36(1)(b) discharged by payment or otherwise. Section 36(2) Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had. Section 36(3) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section when it appears on the face of it to have been in circulation for an unreasonable length of time; and what is an unreasonable length of time for this purpose is a question of fact. Section 36(4) Except where an endorsement bears date after the maturity of the bill, every negotiation is prima facie deemed to have been effected before the bill was overdue. Section 36(5) Where a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this subsection shall affect the rights of a holder in due course.

Section 36Verify source

§ 37BILLS OF EXCHANGE - 37. Negotiation of bill to party already liable thereonProvision

If a bill is negotiated back to the drawer, a prior endorser, or the acceptor, that party may reissue and further negotiate the bill but may not enforce payment against an intervening party to whom they were previously liable.

Section 37. Negotiation of bill to party already liable thereon Section Where a bill is negotiated back to the drawer, or to a prior endorser, or to the acceptor, that party may, subject to the provisions of this Act, reissue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.

Section 37Verify source

§ 38BILLS OF EXCHANGE - 38. Rights of the holderProvision

Section 38: Rights of the holder

Section 38. Rights of the holder

Section 38Verify source

§ 39BILLS OF EXCHANGE - 39. When presentment for acceptance is necessaryProvision

Presentment for acceptance is necessary to fix the maturity of a bill payable after sight.

Section 39. When presentment for acceptance is necessary Section 39(1) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument. Section 39(2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment. Section 39(3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill. Section 39(4) Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and endorsers.

Section 39Verify source

§ 4BILLS OF EXCHANGE - 4. Inland and foreign billsProvision

Defines inland and foreign bills; allows the holder to treat a bill as inland unless the contrary appears; defines "East Africa" as Kenya, Uganda, Tanzania and other Community members under Article 3.

Section 4. Inland and foreign bills Section 4(1)(a) both drawn and payable within East Africa; or Section 4(1)(b) drawn within East Africa upon some person resident therein, and any other bill is a foreign bill. Section 4(2) Unless the contrary appears on the face of the bill the holder may treat it as an inland bill. Section 4(3) For the purposes of this section, "East Africa" means Kenya, Uganda and Tanzania and any other country granted membership to the Community under Article 3 of the Treaty for the East African Community. [Act No. 11 of 2017 , Sch.]

Section 4Verify source

§ 40BILLS OF EXCHANGE - 40. Time for presenting bill payable after sightProvision

When a bill payable after sight is negotiated, the holder must present it for acceptance or negotiate it within a reasonable time, subject to the Act.

Section 40. Time for presenting bill payable after sight Section 40(1) Subject to the provisions of this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time. Section 40(2) If he does not do so, the drawer and all endorsers prior to that holder are discharged. Section 40(3) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case.

Section 40Verify source

§ 41BILLS OF EXCHANGE - 41. Rules as to presentment for acceptance, and excuses for non-presentmentProvision

Holders must present bills for acceptance to the drawee (or an authorized person) at a reasonable hour on a business day before the bill is overdue; limited exceptions and specific alternative presentments are provided.

Section 41. Rules as to presentment for acceptance, and excuses for non-presentment Section 41(1)(a) the presentment must be made by or on behalf of the holder to the drawee or to some person authorized to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue; Section 41(1)(b) where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only; Section 41(1)(c) where the drawee is dead, presentment may be made to his personal representative; Section 41(1)(d) where the drawee is bankrupt, presentment may be made to him or to his trustee; Section 41(1)(e) where authorized by agreement or usage, a presentment through the Post Office is sufficient. Section 41(2)(a) where the drawee is dead or bankrupt, or is a fictitious person or a person not having capacity to contract by bill; Section 41(2)(b) where, after the exercise of reasonable diligence, such presentment cannot be effected; Section 41(2)(c) where, although the presentment has been irregular, acceptance has been refused on some other ground. Section 41(3) The fact that the holder has reason to believe that the bill, on presentment, will be dishonoured, does not excuse presentment.

Section 41Verify source

§ 42BILLS OF EXCHANGE - 42. Non-acceptanceProvision

If a bill presented for acceptance is not accepted within the customary time, the person presenting it must treat it as dishonoured; if they do not, the holder loses the right of recourse against the drawer and endorsers.

Section 42. Non-acceptance Section When a bill is duly presented for acceptance, and is not accepted within the customary time, the person presenting it must treat it as dishonoured by non- acceptance; and if he does not, the holder shall lose his right of recourse against the drawer and endorsers.

Section 42Verify source

§ 43BILLS OF EXCHANGE - 43. Dishonour by non-acceptance and its consequencesProvision

If a bill is dishonoured by non-acceptance the holder immediately has recourse against the drawer and endorsers and need not make presentment for payment.

Section 43. Dishonour by non-acceptance and its consequences Section 43(1)(a) when it is duly presented for acceptance, and an acceptance as is prescribed by this Act is refused or cannot be obtained; or Section 43(1)(b) when presentment for acceptance is excused and the bill is not accepted. Section 43(2) Subject to the provisions of this Act, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.

Section 43Verify source

§ 44BILLS OF EXCHANGE - 44. Duties as to qualified acceptancesProvision

Holders of bills may refuse qualified acceptances and may treat bills as dishonoured if they do not obtain an unqualified acceptance; if a qualified acceptance is taken without authorization or subsequent assent by the drawer or endorser, that drawer or endorser is discharged from liability (with exceptions for partial acceptances and foreign bills); and a drawer or endorser who receives notice of a qualified acceptance and does not timely dissent is deemed to have assented.

Section 44. Duties as to qualified acceptances Section 44(1) The holder of a bill may refuse to take a qualified acceptance, and, if he does not obtain an unqualified acceptance, may treat the bill as dishonoured by non-acceptance. Section 44(2) Where a qualified acceptance is taken, and the drawer or an endorser has not expressly or impliedly authorized the holder to take a qualified acceptance, or does not subsequently assent thereto, the drawer or endorser is discharged from his liability on the bill: Provided that the provisions of this subsection shall not apply to a partial acceptance, whereof due notice has been given; and where a foreign bill has been accepted as to part, it must be protested as to the balance. Section 44(3) When the drawer or endorser of a bill receives notice of a qualified acceptance, and does not, within a reasonable time, express his dissent to the holder, he shall be deemed to have assented thereto.

Section 44Verify source

§ 45BILLS OF EXCHANGE - 45. Rules as to presentment for paymentProvision

Bills must be duly presented for payment by the holder (or authorized person) within specified times and at proper places; failure to present discharges the drawer and endorsers; bankers may present at clearing houses and electronically where permitted.

Section 45. Rules as to presentment for payment Section 45(1) Subject to the provisions of this Act, a bill must be duly presented for payment; and if it be not so presented, the drawer and endorsers shall be discharged. Section 45(2)(a) where the bill is not payable on demand, presentment must be made on the day it falls due; Section 45(2)(b) where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue in order to render the drawer liable, and within a reasonable time after its endorsement, in order to render the endorser liable; and in determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case; Section 45(2)(c) presentment must be made by the holder or by some person authorized to receive payment on his behalf at a reasonable hour on a business day at the proper place, as hereinafter defined, either to the person designated by the bill as payer, or to some person authorized to pay or refuse payment on his behalf, if with the exercise of reasonable diligence such person can there be found; Section 45(2)(d) where a place of payment is specified in the bill and the bill is there presented; Section 45(2)(d)(i) where a place of payment is specified in the bill and the bill is there presented; Section 45(2)(d)(ii) where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented; Section 45(2)(d)(iii) where no place of payment is specified, and no address given, and the bill is presented at the drawee’s or acceptor’s place of business, if known, and if not, at his ordinary residence, if known; Section 45(2)(d)(iv) in any other case, if presented to the drawee or acceptor wherever he can be found, or if presented at his last-known place of business or residence; Section 45(2)(e) where a bill is presented at the proper place, and, after the exercise of reasonable diligence, no person authorized to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required; Section 45(2)(f) where a bill is drawn upon or accepted by two or more persons who are not partners, and no place of payment is specified, presentment must be made to them all; Section 45(2)(g) where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if there be one and he can be found with the exercise of reasonable diligence; Section 45(2)(h) where authorized by agreement or usage, a presentment through the Post Office is sufficient. Section 45(3) Notwithstanding the foregoing provisions of this section, a bill may be presented by the holder’s banker at the clearing house for settlement and where the rules governing the clearing house permit, presentation may be by electronic means. [Act No. 4 of 1999 , s. 43.]

Section 45Verify source

§ 46BILLS OF EXCHANGE - 46. Excuses for delay or non-presentment for paymentProvision

Section 46. Excuses for delay or non-presentment for payment

Section 46. Excuses for delay or non-presentment for payment Section 46(1) Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence; but when the cause of delay ceases to operate, presentment must be made with reasonable diligence. Section 46(2)(a) where, after the exercise of reasonable diligence, presentment, as required by this Act, cannot be effected; but the fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment; Section 46(2)(b) where the drawee is a fictitious person; Section 46(2)(c) as regards the drawer, where the drawee or acceptor is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if presented; Section 46(2)(d) as regards an endorser, where the bill was accepted or made for the accommodation of that endorser, and he has no reason to expect that the bill would be paid if presented; Section 46(2)(e) by waiver of presentment, expressed or implied.

Section 46Verify source

§ 47BILLS OF EXCHANGE - 47. Dishonour by non-paymentProvision

When a bill is dishonoured by non-payment, the holder immediately has a right of recourse against the drawer and endorsers.

Section 47. Dishonour by non-payment Section 47(1)(a) when it is duly presented for payment and payment is refused or cannot be obtained; or Section 47(1)(b) when presentment is excused and the bill is overdue and unpaid. Section 47(2) Subject to the provisions of this Act, when a bill is dishonoured by non- payment, an immediate right of recourse against the drawer and endorsers accrues to the holder.

Section 47Verify source

§ 48BILLS OF EXCHANGE - 48. Notice of dishonour and effect of non-noticeProvision

If notice of dishonour is not given after a bill is dishonoured by non-acceptance, the rights of a holder in due course are not prejudiced by that omission.

Section 48. Notice of dishonour and effect of non-notice Section where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course, subsequent to the omission, shall not be prejudiced by the omission;

Section 48Verify source

§ 49BILLS OF EXCHANGE - 49. Rules as to notice of dishonourProvision

Notice of dishonour must be given by or on behalf of the holder, or by or on behalf of an endorser who is liable on the bill.

Section 49. Rules as to notice of dishonour Section the notice must be given by or on behalf of the holder, or by or on behalf of an endorser who, at the time of giving it, is himself liable on the bill;

Section 49Verify source

§ 5BILLS OF EXCHANGE - 5. Effect where different parties to bill are the same personProvision

If the drawer and drawee are the same person, or the drawee is fictitious or lacks capacity, the holder may treat the instrument either as a bill of exchange or as a promissory note.

Section 5. Effect where different parties to bill are the same person Section 5(1) A bill may be drawn payable to, or to the order of, the drawer, or it may be drawn payable to, or to the order of, the drawee. Section 5(2) Where a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.

Section 5Verify source

§ 50BILLS OF EXCHANGE - 50. Excuses for non-notice and delayProvision

If delay in giving notice of dishonour is caused by circumstances beyond the control of the party giving notice and not due to their default, misconduct or negligence, the party must give notice with reasonable diligence once the cause of delay ends.

Section 50. Excuses for non-notice and delay Section 50(1) Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his default, misconduct or negligence; but when the cause of delay ceases to operate, the notice must be given with reasonable diligence. Section 50(2)(a) when, after the exercise of reasonable diligence, notice as required by this Act cannot be given to or does not reach the drawer or endorser sought to be charged; Section 50(2)(b) by waiver express or implied; and notice of dishonour may be waived before the time of giving notice has arrived or after the omission to give due notice; Section 50(2)(c) where drawer and drawee are the same person; Section 50(2)(c)(i) where drawer and drawee are the same person; Section 50(2)(c)(ii) where the drawee is a fictitious person or a person not having capacity to contract; Section 50(2)(c)(iii) where the drawer is the person to whom the bill is presented for payment; Section 50(2)(c)(iv) where the drawee or acceptor is as between himself and the drawer under no obligation to accept or pay the bill; Section 50(2)(c)(v) where the drawer has countermanded payment; Section 50(2)(d) where the drawee is a fictitious person or a person not having capacity to contract and the endorser was aware of the fact at the time he endorsed the bill; Section 50(2)(d)(i) where the drawee is a fictitious person or a person not having capacity to contract and the endorser was aware of the fact at the time he endorsed the bill; Section 50(2)(d)(ii) where the endorser is the person to whom the bill is presented for payment; Section 50(2)(d)(iii) where the bill was accepted or made for his accommodation.

Section 50Verify source

§ 51BILLS OF EXCHANGE - 51. Noting or protest of billProvision

Holders may note or protest dishonoured inland bills if they think fit; holders may cause protest for security when the acceptor becomes bankrupt, insolvent or suspends payment.

Section 51. Noting or protest of bill Section 51(1) Where an inland bill has been dishonoured, it may, if the holder thinks fit, be noted for non-acceptance or non-payment, as the case may be; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or endorser. Section 51(2) Where a foreign bill, appearing on the face of it to be such, has been dishonoured by non-acceptance, it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non-acceptance, is dishonoured by non-payment, it must be duly protested for non-payment; and if it be not so protested the drawer and endorsers are discharged; and where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary. Section 51(3) A bill which has been protested for non-acceptance may be subsequently protested for non-payment. Section 51(4) Subject to the provisions of this Act, when a bill is noted or protested, it may be noted on the day of its dishonour and must be noted not later than the next succeeding business day; and when a bill has been duly noted, the protest may be subsequently extended as of the date of the noting. Section 51(5) Where the acceptor of a bill becomes bankrupt or insolvent or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and endorsers. Section 51(6)(i) when a bill is presented through the Post Office, and returned by post dishonoured, it may be protested at the place to which it is returned and on the day of its return if received during business hours, and if not received during business hours, then not later than the next business day; Section 51(6)(ii) when a bill drawn payable at the place of business or residence of some person other than the drawee has been dishonoured by non- acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary. Section 51(7)(a) the person at whose request the bill is protested; Section 51(7)(b) the place and date of protest, the cause or reason for protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee or acceptor could not be found. Section 51(8) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof. Section 51(9) Protest is dispensed with by any circumstances which would dispense with notice of dishonour; and delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence; and when the cause of delay ceases to operate, the bill must be noted or protested with reasonable diligence.

Section 51Verify source

§ 52BILLS OF EXCHANGE - 52. Duties of holder as regards drawee or acceptorProvision

Holders who present a bill must show it to the person they demand payment from, and when the bill is paid they must immediately give the bill to the payer; presentment is not required to make an acceptor liable and protest or notice of dishonour is not necessary to render the acceptor liable.

Section 52. Duties of holder as regards drawee or acceptor Section 52(1) When a bill is accepted generally, presentment for payment is not necessary in order to render the acceptor liable. Section 52(2) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day that it matures. Section 52(3) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him. Section 52(4) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it. Section 52(5)(a) presenting a cheque for payment under section 74A ; or Section 52(5)(b) a cheque which is paid following presentment under section 74A .

Section 52Verify source

§ 53BILLS OF EXCHANGE - 53. Bill not assignment of funds in hands of draweeProvision

A bill does not by itself assign funds in the drawee's hands, and a drawee who does not accept as required by this Act is not liable on the instrument.

Section 53. Bill not assignment of funds in hands of drawee Section A bill of itself does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.

Section 53Verify source

§ 54BILLS OF EXCHANGE - 54. Liability of acceptorProvision

The acceptor must pay the bill according to the tenor of his acceptance.

Section 54. Liability of acceptor Section engages that he will pay it according to the tenor of his acceptance;

Section 54Verify source

§ 55BILLS OF EXCHANGE - 55. Liability of drawer or endorserProvision

Drawers or endorsers must accept and pay bills on due presentment and must compensate holders or endorsers compelled to pay when the bill is dishonoured, provided the requisite dishonour proceedings are taken; they are precluded from denying payee existence, endorsement capacity, signature genuineness, prior endorsements, validity of the bill at endorsement, and good title.

Section 55. Liability of drawer or endorser Section 55(1)(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or any endorser who is compelled to pay it, so long as the requisite proceedings on dishonour be duly taken; Section 55(1)(b) is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse. Section 55(2)(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or a subsequent endorser who is compelled to pay it, so long as the requisite proceedings on dishonour be duly taken; Section 55(2)(b) is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer’s signature and all previous endorsements; Section 55(2)(c) is precluded from denying to his immediate or a subsequent endorsee that the bill was at the time of his endorsement a valid and subsisting bill, and that he had then a good title thereto.

Section 55Verify source

§ 56BILLS OF EXCHANGE - 56. Stranger signing bill liable as endorserProvision

A person who signs a bill other than as drawer or acceptor incurs the liabilities of an endorser to a holder in due course.

Section 56. Stranger signing bill liable as endorser Section Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an endorser to a holder in due course.

Section 56Verify source

§ 57BILLS OF EXCHANGE - 57. Measure of damages against parties to dishonoured billProvision

Measure of damages against parties to a dishonoured bill: the amount of the bill.

Section 57. Measure of damages against parties to dishonoured bill Section the amount of the bill;

Section 57Verify source

§ 58BILLS OF EXCHANGE - 58. Transferor by delivery and transfereeProvision

Defines 'transferor by delivery'; such a transferor is not liable on the instrument; where such a transferor negotiates a bill he warrants to his immediate transferee (a holder for value) three matters about the bill.

Section 58. Transferor by delivery and transferee Section 58(1) Where the holder of a bill payable to bearer negotiates it by delivery without endorsing it, he is called a transferor by delivery. Section 58(2) A transferor by delivery is not liable on the instrument. Section 58(3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless.

Section 58Verify source

§ 59BILLS OF EXCHANGE - 59. Payment in due courseProvision

A bill is discharged when it is paid in due course; "payment in due course" is payment made at or after maturity to the holder in good faith without notice that the holder's title is defective.

Section 59. Payment in due course Section 59(1) A bill is discharged by payment in due course by or on behalf of the drawee or acceptor. Section 59(2) "Payment in due course" means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective. Section 59(3)(a) where a bill payable to, or to the order of, a third party is paid by the drawer the drawer may enforce payment thereof against the acceptor, but may not reissue the bill; Section 59(3)(b) where a bill is paid by an endorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent endorsements, and again negotiate the bill. Section 59(4) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.

Section 59Verify source

§ 6BILLS OF EXCHANGE - 6. Address to draweeProvision

The drawee must be named or otherwise indicated in a bill with reasonable certainty; a bill may be addressed to two or more drawees, but certain orders addressed to multiple drawees are not bills of exchange.

Section 6. Address to drawee Section 6(1) The drawee must be named or otherwise indicated in a bill with reasonable certainty. Section 6(2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange.

Section 6Verify source

§ 60BILLS OF EXCHANGE - 60. Banker paying demand draft whereon endorsement is forgedProvision

A banker who pays a demand bill in good faith and in the ordinary course of business is not required to prove the genuineness of endorsements and is treated as having paid in due course even if an endorsement is forged; certain drafts or orders purporting to be endorsed authorize the banker to pay the bearer and similarly relieve the banker of the burden of proving endorsement authenticity.

Section 60. Banker paying demand draft whereon endorsement is forged Section 60(1) When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the endorsement of the payee or any subsequent endorsement was made by or under the authority of the person whose endorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such endorsement has been forged or made without authority; and in this subsection "bill payable to order on demand" includes a prescribed instrument within the meaning of the Cheques Act ( Cap. 35 ), which is payable to order. Section 60(2) Any draft or order (other than a bill or a cheque) drawn upon a banker for a sum of money payable to order on demand which shall, when presented for payment, purport to be endorsed by the person to whom it shall be drawn payable, shall be a sufficient authority to the banker to pay the amount of the draft or order to the bearer thereof; and it shall not be incumbent upon the banker to prove that the endorsement, or any subsequent endorsement, was made by or under the direction or authority of the person to whom the draft or order was or is made payable either by the drawer or endorser thereof. [Act No. 41 of 1968 , s. 6.]

Section 60Verify source

§ 61BILLS OF EXCHANGE - 61. Acceptor the holder at maturityProvision

If the acceptor of a bill is or becomes the holder of it at or after its maturity in his own right, the bill is discharged.

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

Section 61Verify source

§ 62BILLS OF EXCHANGE - 62. Express waiverProvision

If the holder of a bill absolutely and unconditionally renounces his rights against the acceptor at or after maturity, the bill is discharged; the renunciation must be in writing unless the bill is delivered up to the acceptor; the holder may renounce liabilities of any party before, at, or after maturity, but this does not affect the rights of a holder in due course without notice of the renunciation.

Section 62. Express waiver Section 62(1) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor the bill is discharged. Section 62(2) The renunciation must be in writing, unless the bill is delivered up to the acceptor. Section 62(3) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.

Section 62Verify source

§ 63BILLS OF EXCHANGE - 63. CancellationProvision

If the holder or the holder's agent intentionally cancels a bill (and the cancellation is apparent), the bill is discharged; intentional cancellation of a party's signature by the holder discharges that party and certain endorsers; unintentional or unauthorized cancellations are inoperative and the alleging party bears the burden of proof.

Section 63. Cancellation Section 63(1) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged. Section 63(2) In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent; and in such case any endorser who would have had a right of recourse against the party whose signature is cancelled is also discharged. Section 63(3) A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inoperative; but where a bill or any signature thereon appears to have been cancelled the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority.

Section 63Verify source

§ 64BILLS OF EXCHANGE - 64. Alteration of billProvision

A bill materially altered without the assent of all parties liable is avoided, except against a party who made or assented to the alteration and subsequent endorsers; but a holder in due course may treat an unapparent alteration as if not made and enforce payment.

Section 64. Alteration of bill Section 64(1) Where a bill or acceptance is materially altered without the assent of all parties liable on the bill, the bill is avoided, except as against a party who has himself made, authorized, or assented to the alteration, and subsequent endorsers: Provided that where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, that holder may avail himself of the bill as if it had not been altered, and may enforce payment of it according to its original tenor. Section 64(2) In particular the following alterations are material, namely, any alteration of the date, the sum payable, the time of payment, the place of payment, and, where a bill has been accepted generally, the addition of a place of payment without the acceptor’s consent.

Section 64Verify source

§ 65BILLS OF EXCHANGE - 65. Acceptance for honoursupraprotestProvision

Anyone not already liable may, with the holder's consent, intervene and accept a protested bill for honour; the acceptance must be written on the bill and signed by the acceptor.

Section 65. Acceptance for honoursupraprotest Section 65(1) Where a bill of exchange has been protested for dishonour by non- acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supra protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. Section 65(2) A bill may be accepted for honour for part only of the sum for which it is drawn. Section 65(3)(a) be written on the bill, and indicate that it is an acceptance for honour; Section 65(3)(b) be signed by the acceptor for honour. Section 65(4) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer. Section 65(5) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour.

Section 65Verify source

§ 66BILLS OF EXCHANGE - 66. Liability of acceptor for honourProvision

An acceptor for honour must pay the bill on due presentment if the drawee does not pay, provided the bill has been duly presented, protested for non-payment, and the acceptor receives notice of these facts.

Section 66. Liability of acceptor for honour Section 66(1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts. Section 66(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.

Section 66Verify source

§ 67BILLS OF EXCHANGE - 67. Presentment to acceptor for honourProvision

If a bill is dishonoured by the acceptor for honour, the acceptor for honour must protest it for non-payment.

Section 67. Presentment to acceptor for honour Section 67(1) Where a dishonoured bill has been accepted for honour supra protest, or contains a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honour or referee in case of need. Section 67(2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to him. Section 67(3) Delay in presentment or non-presentment is excused by any circumstance which would excuse delay in presentment for payment or non-presentment for payment. Section 67(4) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him.

Section 67Verify source

§ 68BILLS OF EXCHANGE - 68. Payment for honour supra protestProvision

Any person may intervene and pay a protested bill supra protest for the honour of a party or for whose account it is drawn; the payer for honour acquires the holder's rights and duties and is entitled to receive the bill and protest on payment.

Section 68. Payment for honour supra protest Section 68(1) Where a bill has been protested for non-payment any person may intervene and pay it supra protest for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. Section 68(2) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference. Section 68(3) Payment for honour supra protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour which may be appended to the protest or form an extension of it. Section 68(4) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays. Section 68(5) Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for, and succeeds to both the rights and duties of, the holder as regards the party for whose honour he pays, and all parties liable to that party. Section 68(6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest; and if the holder does not on demand deliver them up he shall be liable to the payer for honour in damages. Section 68(7) Where the holder of a bill refuses to receive payment supra protest he shall lose his right of recourse against any party who would have been discharged by that payment.

Section 68Verify source

§ 69BILLS OF EXCHANGE - 69. Holder’s right to duplicate of lost billProvision

A person who was the holder of a bill that has been lost may apply to the drawer for another bill of the same tenor (providing security if required); if the drawer refuses on request he may be compelled to give a duplicate.

Section 69. Holder’s right to duplicate of lost bill Section 69(1) Where a bill has been lost before it is overdue, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer, if required, to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again. Section 69(2) If the drawer on request as aforesaid refuses to give a duplicate bill he may be compelled to do so.

Section 69Verify source

§ 7BILLS OF EXCHANGE - 7. Certainty required as to payeeProvision

If a bill is not payable to bearer, the payee must be named or otherwise indicated with reasonable certainty.

Section 7. Certainty required as to payee Section 7(1) Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty. Section 7(2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one of some several payees; and a bill may also be made payable to the holder of an office for the time being. Section 7(3) Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer.

Section 7Verify source

§ 70BILLS OF EXCHANGE - 70. Action on lost billProvision

Section 70. Action on lost bill

Section 70Verify source

§ 71BILLS OF EXCHANGE - 71. Rules as to setsProvision

Rules for bills drawn in sets: parts constitute one bill; endorsers and drawee/acceptor can be liable on parts under specified conditions; priority among holders is based on first-accruing title with a qualification for those who accept or pay.

Section 71. Rules as to sets Section 71(1) Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill. Section 71(2) Where the holder of a set endorses two or more parts to different persons, he is liable on every part, and every endorser subsequent to him is liable on the part he has himself endorsed as if those parts were separate bills. Section 71(3) Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders deemed the true owner of the bill; but nothing in this subsection shall affect the rights of a person who in due course accepts or pays the part first resented to him. Section 71(4) The acceptance may be written on any part, and it must be written on one part only; but if the drawee accepts more than one part, and the accepted parts get into the hands of different holders in due course, he is liable on every part as if it were a separate bill. Section 71(5) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof. Section 71(6) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.

Section 71Verify source

§ 72BILLS OF EXCHANGE - 72. Rules where laws conflictProvision

A bill issued outside Kenya is not invalid solely because it is not stamped according to the law of the place of issue.

Section 72. Rules where laws conflict Section where a bill is issued out of Kenya it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue;

Section 72Verify source

§ 8BILLS OF EXCHANGE - 8. What bills are negotiableProvision

A bill that contains words prohibiting transfer is valid between the parties but is not negotiable; negotiable bills may be payable to order or to bearer; a bill is payable to bearer if it is expressed so or its only or last endorsement is in blank; a bill is payable to order if so expressed or payable to a particular person and contains no words prohibiting transfer; where a bill is expressed payable to the order of a specified person and not to him or his order, it is nevertheless payable to him or his order at his option.

Section 8. What bills are negotiable Section 8(1) When a bill contains words prohibiting transfer, or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable. Section 8(2) A negotiable bill may be payable either to order or to bearer. Section 8(3) A bill is payable to bearer which is expressed to be so payable, or on which the only or last endorsement is an endorsement in blank. Section 8(4) A bill is payable to order which is expressed to be so payable, or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable. Section 8(5) Where a bill, either originally or by endorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.

Section 8Verify source

§ 9BILLS OF EXCHANGE - 9. Sum payableProvision

Section 9 specifies how the sum payable on a bill of exchange is determined: (1) may be payable with interest; by stated instalments (with default causing whole to become due in one variant); or according to an indicated or directed rate of exchange; (2) where words and figures differ, the words prevail; (3) interest (if payable) runs from the date of the bill or, if undated, from issue.

Section 9. Sum payable Section 9(1)(a) with interest; Section 9(1)(b) by stated instalments; Section 9(1)(c) by stated instalments, with a provision that upon default in payment of any instalment the whole shall become due; Section 9(1)(d) according to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill. Section 9(2) Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable. Section 9(3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof.

Section 9Verify source

Part III

CHEQUES ON A BANKER

§ 73CHEQUES ON A BANKER - 73. Cheque definedProvision

A cheque is defined as a bill of exchange drawn on a banker payable on demand.

Section 73. Cheque defined Section 73(1) A cheque is a bill of exchange drawn on a banker payable on demand. Section 73(2) Except as otherwise provided in this Part, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque.

Section 73Verify source

§ 74CHEQUES ON A BANKER - 74. Presentment of cheque for paymentProvision

If a cheque is not presented within a reasonable time and the drawer (or account holder) had the right to have it paid and suffers actual damage from the delay, that person is discharged to the extent of the damage.

Section 74. Presentment of cheque for payment Section where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or the person on whose account it is drawn had the right at the time of the presentment as between him and the banker to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of that damage, that is to say, to the extent to which the drawer or person is a creditor of the banker to a larger amount than he would have been had the cheque been paid;

Section 74Verify source

§ 74ACHEQUES ON A BANKER - 74A. Presentment of cheque by electronic meansProvision

Banks may present cheques for payment by electronically transmitting an image and payment information; where electronic presentment is used, the presenting banker and the drawee banker have the same duties as for physical presentment; the image must include front and back views and electronic payment information is as prescribed by the Central Bank.

Section 74A. Presentment of cheque by electronic means Section 74A(1) A banker to whom a cheque is first presented by the holder (hereinafter referred to as "the presenting banker") may present the cheque for payment by transmitting, through electronic means, an image and the payment information thereof to the banker on whom it is drawn. Section 74A(2)(a) the presentment under subsection (1) shall be disregarded; and Section 74A(2)(b) section 74B shall not apply. Section 74A(3) A request under subsection (2) for the physical presentment of a cheque shall not constitute dishonour of the cheque by non-payment. Section 74A(4) For the avoidance of doubt, any payment made upon presentation in accordance with this section shall not be taken to have been made outside the ordinary course of business, in bad faith or negligently, by reason only that it is made upon electronic transmission of an image and the payment information of the cheque rather than the physical presentment of the cheque. Section 74A(5) Where presentment of a cheque is made under this section, the presenting banker and the banker on whom the cheque is drawn shall be subject to the same duties in relation to the collection and payment of the cheque as if the cheque itself had been presented for payment. Section 74A(6)(a) the image of a cheque shall comprise the front view and the back view of the cheque; and Section 74A(6)(b) the electronic payment information of a cheque shall comprise such particulars as may be prescribed by the Central Bank under section 74C.

Section 74AVerify source

§ 74BCHEQUES ON A BANKER - 74B. Procedure where cheque is dishonouredProvision

If an image return document is lost before its presentment period expires, the holder may apply to the cheque's drawer to provide another cheque of the same amount.

Section 74B. Procedure where cheque is dishonoured Section 74B(1)(a) on its own motion or at the request of the holder, return the cheque to the holder; or Section 74B(1)(b) issue to the holder an image return document. Section 74B(2) Subject to subsection (3), an image return document shall be deemed to be the cheque to which it relates and may be presented for payment to the presenting banker by the holder to whom it is issued. Section 74B(3)(a) the presenting banker states in that document that it is valid for presentment; and Section 74B(3)(b) the presentment is made within the period stipulated in the document. Section 74B(4) Where an image return document is lost before the expiry of the period stipulated for its presentment, the holder of the document may apply to the drawer of the cheque to which the document relates to provide another cheque of the same amount, and the drawer may be compelled to provide such cheque, subject to his giving security to indemnify the drawer, if required to do so, against all claims arising in case the document alleged to be lost is recovered. Section 74B(5) In this section, "imager return document" means a document issued by a presenting banker in place of a cheque, containing such particulars as may be prescribed by the Central Bank under section 74C . [Act No. 6 of 2005 , s. 37, Act No. 8 of 2009 , s. 35.]

Section 74BVerify source

§ 74CCHEQUES ON A BANKER - 74C. RegulationsProvision

The Central Bank may make regulations relating to cheque truncation.

Section 74C. Regulations Section The Central Bank may make such regulations as may be necessary or expedient for giving effect to the provisions of this Act in respect of any matter or thing relating to cheque truncation. [Act No. 8 of 2009 , s. 36.]

Section 74CVerify source

§ 75CHEQUES ON A BANKER - 75. Revocation of banker’s authorityProvision

Section title: Revocation of banker’s authority.

Section 75. Revocation of banker’s authority

Section 75Verify source

§ 76CHEQUES ON A BANKER - 76. General and special crossings definedProvision

Defines 'general crossing' (parallel transverse lines, optionally with words such as "and company" or "not negotiable") and 'special crossing' (addition of a banker's name, optionally with "not negotiable").

Section 76. General and special crossings defined Section 76(1)(a) the words "and company" or any abbreviation thereof between two parallel transverse lines, either with or without the words "not negotiable"; or Section 76(1)(b) two parallel transverse lines simply, either with or without the words "not negotiable", that addition constitutes a crossing, and the cheque is crossed generally. Section 76(2) Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable", that addition constitutes a crossing, and the cheque is crossed specially and to that banker.

Section 76Verify source

§ 77CHEQUES ON A BANKER - 77. Crossing by drawer or after issueProvision

The section permits drawers, holders and bankers to cross cheques (generally or specially), allows holders to add "not negotiable", and permits bankers receiving cheques for collection to cross them specially.

Section 77. Crossing by drawer or after issue Section 77(1) A cheque may be crossed generally or specially by the drawer. Section 77(2) Where a cheque is uncrossed, the holder may cross it generally or specially. Section 77(3) Where a cheque is crossed generally, the holder may cross it specially. Section 77(4) Where a cheque is crossed generally or specially the holder may add the words "not negotiable". Section 77(5) Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker for collection. Section 77(6) Where an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection, he may cross it specially to himself.

Section 77Verify source

§ 78CHEQUES ON A BANKER - 78. Crossing a material part of chequeProvision

A crossing authorized by this Act is part of the cheque; no person shall obliterate, add to, or alter the crossing except as authorized by this Act.

Section 78. Crossing a material part of cheque Section A crossing authorized by this Act is a material part of the cheque; and no person shall obliterate or, except as authorized by this Act, add to or alter the crossing.

Section 78Verify source

§ 79CHEQUES ON A BANKER - 79. Duties of banker as to crossed chequesProvision

A banker on whom a cheque is drawn must refuse payment of a cheque crossed specially to more than one banker (except when crossed to an agent for collection who is a banker); if such a banker nonetheless pays a crossed cheque in certain ways he is liable to the true owner for loss; however, a banker who pays in good faith and without negligence where the crossing is not apparent, obliterated, or improperly altered is not liable.

Section 79. Duties of banker as to crossed cheques Section 79(1) Where a cheque is crossed specially to more than one banker, except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall refuse payment thereof. Section 79(2) Where the banker on whom a cheque is drawn which is so crossed nevertheless pays it, or pays a cheque crossed generally otherwise than to a banker, or if crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection being a banker, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid: Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorized 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 authorized 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.

Section 79Verify source

§ 80CHEQUES ON A BANKER - 80. Protection to banker and drawer where cheque is crossedProvision

If a banker in good faith and without negligence pays a crossed cheque (generally to a banker or specially to the banker to whom it is crossed or his agent who is a banker), the banker — and if the payee has it, the drawer — is entitled to the same rights as if payment had been made to the true owner.

Section 80. Protection to banker and drawer where cheque is crossed Section Where the banker, on whom a crossed cheque or a cheque which either under section 81A or otherwise is not transferable 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. [Act No. 2 of 2002 , Sch.]

Section 80Verify source

§ 81CHEQUES ON A BANKER - 81. Effect of words "not negotiable"Provision

A person who takes a crossed cheque marked "not negotiable" cannot obtain or give a better title to the cheque than the person they took it from.

Section 81. Effect of words "not negotiable" Section 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.

Section 81Verify source

§ 81ACHEQUES ON A BANKER - 81A. Non-transferable chequesProvision

A crossed cheque marked "account payee" or "a/c payee" (with or without the word "only") is not transferable and is valid only between the parties to the cheque.

Section 81A. Non-transferable cheques Section 81A(1) Where a cheque is crossed and bears across its face the words "account payee" or "a/c payee", with or without the word "only" the cheque is not transferable and is valid only between the parties thereto. Section 81A(2) For the purposes of section 80 , a banker is not negligent by reason only of his failure to concern himself with any purported endorsement of a cheque which either under subsection (1) or otherwise is not transferable. [Act No. 2 of 2002 , Sch.]

Section 81AVerify source

§ 82CHEQUES ON A BANKER - 82. Provisions as to crossed cheques to apply to certain other instrumentsProvision

Provisions about the crossing of cheques apply to prescribed instruments (not being cheques) in the same way as they apply to cheques.

Section 82. Provisions as to crossed cheques to apply to certain other instruments Section The foregoing provisions of this Part relating to the crossing of cheques and crossed cheques shall apply in relation to a prescribed instrument within the meaning of the Cheques Act ( Cap. 35 ) (not being a cheque) as they apply to a cheque.

Section 82Verify source

§ 83CHEQUES ON A BANKER - 83.[Repealed by ActNo. 41 of 1968, s. 7.]Repeal

Section 83 has been repealed.

Section 83.[Repealed by ActNo. 41 of 1968, s. 7.]

Section 83Verify source

Part IV

PROMISSORY NOTES

§ 84PROMISSORY NOTES - 84. Promissory note definedProvision

Defines a promissory note as an unconditional written promise signed by the maker to pay a sum certain on demand or at a fixed or determinable future time to a specified person or bearer.

Section 84. Promissory note defined Section 84(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. Section 84(2) An instrument in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is endorsed by the maker. Section 84(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. Section 84(4) A note which is, or on the face of it purports to be, both made and payable within Kenya is an inland note; and any other note is a foreign note.

Section 84Verify source

§ 85PROMISSORY NOTES - 85. Delivery necessaryProvision

A promissory note is not complete until it has been delivered to the payee or the bearer.

Section 85. Delivery necessary Section A promissory note is inchoate and incomplete until delivery thereof to the payee or bearer.

Section 85Verify source

§ 86PROMISSORY NOTES - 86. Joint and several notesProvision

A promissory note may be made by two or more makers; those makers may be liable on it jointly or jointly and severally according to its tenor; a note reading "I promise to pay" signed by two or more persons is deemed to be their joint and several note.

Section 86. Joint and several notes Section 86(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 tenor. Section 86(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.

Section 86Verify source

§ 87PROMISSORY NOTES - 87. Note payable on demandProvision

If a note payable on demand is negotiated, the holder is not treated as overdue for purposes of being affected by defects of title of which he had no notice, merely because a reasonable time for presenting it has elapsed since issue.

Section 87. Note payable on demand Section 87(1) Where a note payable on demand has been endorsed, it must be presented for payment within a reasonable time of the endorsement; and if it be not so presented the endorser is discharged. Section 87(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. Section 87(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.

Section 87Verify source

§ 88PROMISSORY NOTES - 88. Presentment of note for paymentProvision

If a promissory note names a particular place of payment, the maker must be presented with the note at that place to be liable; presentment is not otherwise required for maker liability. Presentment is necessary to render an endorser liable; where a place is named (or indicated by memorandum) presentment at that place suffices, and a presentment to the maker elsewhere may also suffice if otherwise sufficient.

Section 88. Presentment of note for payment Section 88(1) Where a promissory note is in the body of it made payable at a particular place, it must be presented for payment at that place in order to render the maker liable; but in any other case, presentment for payment is not necessary in order to render the maker liable. Section 88(2) Presentment for payment is necessary in order to render the endorser of a note liable. Section 88(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 endorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the endorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.

Section 88Verify source

§ 89PROMISSORY NOTES - 89. Liability of makerProvision

The maker is obligated to pay the note according to its tenor.

Section 89. Liability of maker Section engages that he will pay it according to its tenor;

Section 89Verify source

§ 90PROMISSORY NOTES - 90. Application of Part I to notesProvision

Provisions governing bills of exchange apply, with necessary modifications, to promissory notes.

Section 90. Application of Part I to notes Section 90(1) Subject to the provisions of this Part and except as provided by this section, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes. Section 90(2) In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first endorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order. Section 90(3)(a) presentment for acceptance; Section 90(3)(b) acceptance; Section 90(3)(c) acceptance supra protest; Section 90(3)(d) bills in a set. Section 90(4) Where a foreign note is dishonoured, protest thereof is unnecessary.

Section 90Verify source

Part V

SUPPLEMENTARY

§ 91SUPPLEMENTARY - 91. Good faithProvision

An action is treated as done in good faith if it was actually done honestly, even if it was negligent.

Section 91. Good faith Section A thing is deemed to be done in good faith within the meaning of this Act where it is in fact done honestly, whether it is done negligently or not.

Section 91Verify source

§ 92SUPPLEMENTARY - 92. SignatureProvision

Section 92 permits a person required to sign an instrument to have another person sign on his authority, allows corporations to seal instruments instead of signing, and states that corporate bills or notes need not be under seal.

Section 92. Signature Section 92(1) 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. Section 92(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. Section 92(3) Nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.

Section 92Verify source

§ 93SUPPLEMENTARY - 93. Computation of timeProvision

If the time allowed for doing something under the Act is less than three days, non-business days are excluded when counting time; non-business days listed include Sunday, a public holiday, and a bank holiday declared under section 46 of the Banking Act (Cap. 488); for a foreign bill a Saturday is excluded; other days are business days.

Section 93. Computation of time Section 93(1) 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. Section 93(2)(a) a Sunday; Section 93(2)(a)(i) a Sunday; Section 93(2)(a)(ii) a public holiday; or Section 93(2)(a)(iii) a bank holiday declared in respect of all banks under section 46 of the Banking Act ( Cap. 488 ); and also Section 93(2)(b) in the case of a foreign bill, a Saturday and any other day is a business day.

Section 93Verify source

§ 94SUPPLEMENTARY - 94. When noting equivalent to protestProvision

Noting a bill for protest before the deadline suffices; the formal protest can be extended to the date of the noting.

Section 94. When noting equivalent to protest Section 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.

Section 94Verify source

§ 95SUPPLEMENTARY - 95. Protest when notary not accessibleProvision

If a dishonoured bill must be protested but a notary is not available at that place, any householder or substantial resident may, in the presence of two witnesses, give a signed certificate attesting the dishonour; that certificate has the effect of a formal protest.

Section 95. Protest when notary not accessible Section 95(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 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. Section 95(2) The form set out in the Schedule may be used with necessary modifications, and if used shall be sufficient.

Section 95Verify source

§ 96SUPPLEMENTARY - 96. Dividend warrants may be crossedProvision

Dividend warrants may be crossed.

Section 96. Dividend warrants may be crossed Section The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.

Section 96Verify source

§ 97SUPPLEMENTARY - 97. SavingsProvision

Rules relating to bills of exchange, promissory notes, and cheques continue to apply despite this Act.

Section 97. Savings Section 97(1) The rules in bankruptcy relating to bills of exchange, promissory notes, and cheques shall continue to apply thereto notwithstanding anything contained in this Act. Section 97(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. Section 97(3)(a) the provisions of the Stamp Duty Act ( Cap. 480 ) or any law or enactment for the time being in force relating to the revenue; Section 97(3)(b) the provisions of the Companies Act (Cap. 486) or any Act relating to joint stock banks or companies; Section 97(3)(c) the validity of any usage relating to dividend warrants, or the endorsements thereof.

Section 97Verify source

Legislative relationships

4 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

3 instruments

Banking Act
Sections 2, 93
Cheques Act
Sections 60, 82
Exchange Act
Section 1

N–S

1 instrument

Stamp Duty Act
Section 97

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