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not be obtained, or (b) when presentment is excused and the bill is overdue and unpaid:

such case.

2. Subject to the provisions of this Act, when a bill is Recourse in dishonored by non-payment, an immediate right of recourse against the drawer, acceptor and indorsers accrues to the holder.

dishonor

and effect

48. Subject to the provisions of this Act, when a bill Notice of has been dishonored by non-acceptance or by non-pay-of nonment, notice of dishonor must be given to the drawer and notice. each indorser, and any drawer or indorser to whom such notice is not given is discharged; Provided that

(a) Where a bill is dishonored by non-acceptance, and notice of dishonor is not given, the rights of a holder in due course subsequent to the omission shall not be prejudiced by the omission;

(b) Where a bill is dishonored by non-acceptance and due notice of dishonor is given, it shall not be necessary to give notice of a subsequent dishonor by non-payment, unless the bill shall in the meantime have been accepted.

notice of

49. Notice of dishonor, in order to be valid and effec- Rules as to tual, must be given in accordance with the following dishonor. rules :

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

(b) Notice of dishonor may be given by an agent either in his own name, or in the name of any party entitled to give notice whether that party is his principal or not;

(c) Where the notice is given by or on behalf of the holder, it enures for the benefit of all subsequent holders

and all prior indorsers who have a right of recourse against the party to whom it is given;

(d) Where notice is given by or on behalf of an indorser entitled to give notice as herein before provided, it enures for the benefit of the holder and all indorsers subsequent to the party to whom notice is given;

(e) The notice may be given in writing or by personal communication, and may be given in any terms which sufficiently identify the bill and intimate that the bill has been dishonored by non-acceptance or non-payment;

(f) The return of a dishonored bill to the drawer or an indorser is, in point of form, deemed a sufficient notice of dishonor;

(g) A written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication. A misdescription of the bill shall not vitiate the notice, unless the party to whom the notice is given is in fact misled thereby ;

(h) Where notice of dishonor is required to be given to any person, it may be given either to the party himself, or to his agent in that behalf;

(i) Where the drawer or indorser is dead, and the party giving notice knows it, the notice must be given to a personal representative, if such there is and, with the exercise of reasonable diligence, he can be found;

(j) Where there are two or more drawers and indorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for the others;

(k) The notice may be given as soon as the bill is dishonored, and must be given not later than the next following juridical or business day:

ored bill is

an agent.

2. Where a bill, when dishonored, is in the hands of an If dishonagent, he may either himself give notice to the parties in hands of liable on the bill, or he may give notice to his principal. If he gives notice to his principal, he must do so within the same time as if he were the holder, and the principal, upon receipt of such notice, has himself the same time for giving notice as if the agent had been an independent holder:

antecedent

3. Where a party to a bill receives due notice of dis- Notice to honor, he has, after the receipt of such notice, the same parties. period of time for giving notice to antecedent parties that the holder has after the dishonor.

notice shal

4. Notice of the protest or dishonor of any bill payable When in Canada shall, notwithstanding anything in this section be given. contained, be sufficiently given if it is addressed in due time to any party to such bill entitled to such notice, at his customary address or place of residence or at the place at which such bill is dated, unless any such party has, under his signature, designated another place; and in such latter case such notice shall be sufficiently given if addressed to him in due time at such other place; and such notice so addressed shall be sufficient, although the place of residence of such party is other than either of such abovementioned places; and such notice shall be deemed to have been duly served and given for all purposes if it is deposited in any post office, with the postage paid thereon, at any time during the day on which such protest or presentment has been made, or on the next following juridical or busi ness day; such notice shall not be invalid by reason of the fact that the party to whom it is addressed is dead:

riage in

5. Where a notice of dishonor is duly addressed and Miscarposted, as above provided, the sender is deemed to have post ser

vice.

non-notice

given due notice of dishonor, notwithstanding any miscarriage by the post office.

Excuses for 50. Delay in giving notice of dishonor is excused where and delay. the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his default, misconduct, or negligence: when the cause of delay ceases to operate the notice must be given with reasonable diligence;

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2. Notice of dishonor is dispensed with—

(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 indorser sought to be charged;

(b) By waiver express or implied: notice of dishonor may be waived before the time of giving notice has arrived, or after the omission to give due notice;

(c) As regards the drawer, in the following cases, namely, (1) where drawer and drawee are the same person, (2) where the drawee is a fictitious person or a person not having capacity to contract, (3) where the drawer is the person to whom the bill is presented for payment, (4) where the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill, (5) where the drawer has countermanded payment;

(d) As regards the indorser, in the following cases, namely, (1) where the drawee is a fictitious person or a person not having capacity to contract, and the indorser was aware of the fact at the time he indorsed the bill, (2) where the indorser is the person to whom the bill is presented for payment, (3) where the bill was accepted or made for his accommodation.

protest of

51. Where an inland bill has been dishonored it may, if Noting or the holder thinks fit, be noted and protested for non- bill. acceptance or non-payment, as the case may be; but,' subject to the provisions of this Act with respect to notice of dishonor, it shall not, except in the Province of Quebec, be necessary to note or protest any such bill in order to preserve the recourse against the drawer or indorser; but in the case of a bill drawn upon any person in the Province of Quebec, or payable or accepted at any place therein, in default of protest for non-acceptance or non-payment, as the case may be, and of notice thereof the parties liable on the bill other than the acceptor are discharged, subject, nevertheless, to the exceptions in this section hereinafter contained.

2. Where a foreign bill, appearing on the face of it to be Protest of foreign bill. such, has been dishonored by non-acceptance, it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonored by non-acceptance, is dishonored by non-payment, it must be duly protested for non-payment. If it is not so protested, the drawer and indorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonor, except as in this section provided, is unnecessary:

quent pro

3. A bill which has been protested for non-acceptance, Subseor a bill of which protest for non-acceptance has been test. waived, may be subsequently protested for non-payment:

noting

4. Subject to the provisions of this Act, when a bill is Time for protested the protest must be made or noted on the day of its dishonor. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting:

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