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

Marginal note:Demand note presentment

• 180. (1) Where a note payable on demand has been endorsed, it must be presented for payment within a reasonable time of the endorsement.

• Marginal note:Reasonable time

  (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.

Marginal note:Endorser discharged

181. Where a note payable on demand that has been endorsed is not presented for payment within a reasonable time, the endorser is discharged but, if it has, with the assent of the endorser, been delivered as a collateral or continuing security, it need not be presented for payment so long as it is held as such security.

Marginal note:Not deemed overdue

182. 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.

Marginal note:Presentment at particular place

• 183. (1) Where a note is, in the body of it, made payable at a particular place, it must be presented for payment at that place.

• Marginal note:Liability of maker

  (2) In the case described in subsection (1), the maker is not discharged by the omission to present the note for payment on the day that it matures, but if any suit or action is instituted thereon against him before presentation, the costs thereof are in the discretion of the court.

• Marginal note:Note payable generally

  (3) When no place of payment is specified in the body of the note, presentment for payment is not necessary in order to render the maker liable.

Marginal note:Liability of endorser

• 184. (1) Presentment for payment is necessary in order to render the endorser of a note liable.

• Marginal note:Presentment at particular place

  (2) 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.

• Marginal note:Presentment elsewhere

  (3) 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.