Bills of Exchange Act (R.S.C., 1985, c. B-4)

Act current to 2017-06-05 and last amended on 2007-04-20. Previous Versions

Marginal note:Effect of being maker

 The maker of a note, by making it,

  • (a) engages that he will pay it according to its tenor; and

  • (b) is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse.

  • R.S., c. B-5, s. 185.
Marginal note:Application of Act to notes
  •  (1) Subject to this Part, and except as provided by this section, the provisions of this Act relating to bills apply, with such modifications as the circumstances require, to notes.

  • Marginal note:Terms corresponding

    (2) In the application of the provisions of this Act relating to bills, 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.

  • Marginal note:Provisions inapplicable

    (3) The provisions of this Act with respect to bills and relating to

    • (a) presentment for acceptance,

    • (b) acceptance,

    • (c) acceptance under protest, and

    • (d) bills in a set,

    do not apply to notes.

  • R.S., c. B-5, s. 186.
Marginal note:Protest of foreign notes

 Where a foreign note is dishonoured, protest thereof is unnecessary, except for the preservation of the liabilities of endorsers.

  • R.S., c. B-5, s. 187.

PART VConsumer Bills and Notes

Marginal note:Definitions

 In this Part,

consumer purchase

achat de consommation

consumer purchase means a purchase, other than a cash purchase, of goods or services or an agreement to purchase goods or services

  • (a) by an individual other than for resale or for use in the course of his business, profession or calling, and

  • (b) from a person who is engaged in the business of selling or providing those goods or services; (achat de consommation)

goods

marchandises

goods means any article that is or may be the subject of trade or commerce, but does not include land or any interest therein; (marchandises)

purchaser

acheteur

purchaser means the individual by whom a consumer purchase is made; (acheteur)

seller

vendeur

seller means the person from whom a consumer purchase is made; (vendeur)

services

services

services includes repairs and improvements. (services)

  • R.S., c. 4(1st Supp.), s. 1.
Marginal note:Consumer bill
  •  (1) A consumer bill is a bill of exchange issued in respect of a consumer purchase and on which the purchaser or any person signing to accommodate the purchaser is liable as a party, but does not include

    • (a) a cheque that is dated the date of its issue or prior thereto, or at the time it is issued is post-dated not more than thirty days; or

    • (b) a bill of exchange that

      • (i) would be a cheque within the meaning of section 165 but for the fact that the party on which it is drawn is a financial institution, other than a bank, that as part of its business accepts money on deposit from members of the public and honours any such bill directed to be paid out of any such deposit to the extent of the amount of the deposit, and

      • (ii) is dated the date of its issue or prior thereto, or at the time it is issued is post-dated not more than thirty days.

  • Marginal note:Consumer note

    (2) A consumer note is a promissory note

    • (a) issued in respect of a consumer purchase; and

    • (b) on which the purchaser or any one signing to accommodate him is liable as a party.

  • Marginal note:Presumption as to issue

    (3) Without limiting or restricting the circumstances in which, for the purposes of this Part, a bill of exchange or a promissory note shall be considered to be issued in respect of a consumer purchase, a bill of exchange or a promissory note shall be conclusively presumed to be so issued if

    • (a) the consideration for its issue was the lending or advancing of money or other valuable security by a person other than the seller, in order to enable the purchaser to make the consumer purchase; and

    • (b) the seller and the person who lent or advanced the money or other valuable security were, at the time the bill or note was issued, not dealing with each other at arm’s length within the meaning of the Income Tax Act.

  • Marginal note:Application of Act to consumer bills and notes

    (4) Except as otherwise provided in this Part, the provisions of this Act applicable to bills of exchange and cheques apply, with such modifications as the circumstances require, to consumer bills, and those applicable to promissory notes apply to consumer notes, with such modifications as the circumstances require.

  • R.S., c. 4(1st Supp.), s. 1.
Marginal note:Consumer bill or note to be marked
  •  (1) Every consumer bill or consumer note shall be prominently and legibly marked on its face with the words “Consumer Purchase” before or at the time when the instrument is signed by the purchaser or by any person signing to accommodate the purchaser.

  • Marginal note:Effect where not marked

    (2) A consumer bill or consumer note that is not marked as required by this section is void, except in the hands of a holder in due course without notice that the bill or note is a consumer bill or consumer note or except as against a drawee without that notice.

  • R.S., c. 4(1st Supp.), s. 1.
Marginal note:Rights of holder of consumer bill or note

 Notwithstanding any agreement to the contrary, the right of a holder of a consumer bill or consumer note that is marked as required by section 190 to have the whole or any part thereof paid by the purchaser or any party signing to accommodate the purchaser is subject to any defence or right of set-off, other than counter-claim, that the purchaser would have had in an action by the seller on the consumer bill or consumer note.

  • R.S., c. 4(1st Supp.), s. 1.
Marginal note:Obtaining signature to unmarked instrument
  •  (1) Every person who, knowing that an instrument, other than an instrument described in paragraph 189(1)(a) or (b), has been, is being or is to be issued in respect of a consumer purchase, obtains the signature of the purchaser or of any person signing to accommodate the purchaser to that instrument without its being or having been marked as required by section 190 is guilty of

    • (a) an offence and liable on summary conviction to a fine not exceeding one thousand dollars; or

    • (b) an indictable offence and liable to a fine not exceeding five thousand dollars.

  • Marginal note:Transfer of unmarked consumer bill or note

    (2) Every person who, knowing that a consumer bill or consumer note not marked as required by section 190 is a consumer bill or consumer note, transfers it is, unless he is the purchaser or any person signing to accommodate the purchaser, guilty of

    • (a) an offence and liable on summary conviction to a fine not exceeding one thousand dollars; or

    • (b) an indictable offence and liable to a fine not exceeding five thousand dollars.

  • R.S., c. 4(1st Supp.), s. 1.
 
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