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

Act current to 2017-09-27 and last amended on 2007-04-20. Previous Versions

Marginal note:Time for presentment
  •  (1) A bill is duly presented for payment that is presented when the bill is

    • (a) not payable on demand, on the day it falls due; or

    • (b) payable on demand, 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.

  • Marginal note:Reasonable time

    (2) 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.

  • R.S., c. B-5, s. 86.
Marginal note:By and to whom
  •  (1) Presentment of a bill must be made by the holder or by a person authorized to receive payment on his behalf, at the proper place as defined in section 87, and either to the person designated by the bill as payer or to his representative or a person authorized to pay or to refuse payment on his behalf, if with the exercise of reasonable diligence such person can there be found.

  • Marginal note:Two acceptors

    (2) When a bill is drawn on or accepted by two or more persons who are not partners and no place of payment is specified, presentment must be made to all of them.

  • Marginal note:Personal representation

    (3) When the drawee or acceptor of a bill is dead and no place of payment is specified, presentment of the bill must be made to a personal representative if there is one and with the exercise of reasonable diligence he can be found.

  • R.S., c. B-5, s. 87.
Marginal note:Proper place for presentment

 A bill is presented at the proper place

  • (a) where a place of payment is specified in the bill or acceptance and the bill is there presented;

  • (b) 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;

  • (c) 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; or

  • (d) in any other case, if presented to the drawee or acceptor wherever he can be found, or if presented at his latest known place of business or residence.

  • R.S., c. B-5, s. 88.
Marginal note:Sufficient presentment

 Where a bill is presented at the proper place as defined in section 87 and after the exercise of reasonable diligence no person authorized to pay or refuse payment can there be found, no further presentment to the drawee or acceptor is required.

  • R.S., c. B-5, s. 89.
Marginal note:Presentment at post office
  •  (1) Where the place of payment specified in the bill or acceptance is any city, town or village and no place therein is specified, and the bill is presented at the drawee’s or acceptor’s known place of business or known ordinary residence therein, and if there is no such place of business or residence, the bill is presented at the post office or principal post office in such city, town or village, such presentment is sufficient.

  • Marginal note:Through post office

    (2) Where authorized by agreement or usage, a presentment through the post office is sufficient.

  • R.S., c. B-5, s. 90.
Marginal note:Delay in presentment
  •  (1) Delay in making presentment of a bill for payment is excused where the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.

  • Marginal note:Diligence

    (2) Where the cause of delay ceases to operate, presentment must be made with reasonable diligence.

  • R.S., c. B-5, s. 91.
Marginal note:When presentment is dispensed with
  •  (1) Presentment of a bill for payment is dispensed with

    • (a) where, after the exercise of reasonable diligence, presentment, as required by this Act, cannot be effected;

    • (b) where the drawee is a fictitious person;

    • (c) with respect to 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; or

    • (d) with respect to 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;

    • (e) by waiver of presentment, express or implied.

  • Marginal note:Not dispensed with

    (2) 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.

  • R.S., c. B-5, s. 92.
Marginal note:When no place specified
  •  (1) When no place of payment is specified in a bill or acceptance, presentment for payment is not necessary in order to render the acceptor liable.

  • Marginal note:If place specified

    (2) When a place of payment is specified in a bill or acceptance, 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, but if any suit or action is instituted thereon before presentation, the costs thereof shall be in the discretion of the court.

  • Marginal note:Delivery on payment

    (3) When a bill is paid, the holder shall forthwith deliver it to the party paying it.

  • R.S., c. B-5, s. 93.
Marginal note:Time for presentment
  •  (1) Where the address of the acceptor for honour of a bill 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.

  • Marginal note:Parties in different places

    (2) Where the address of the acceptor for honour is in a place other than the place where a bill is protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to him.

  • Marginal note:Excuses for delay

    (3) Delay in presentment or non-presentment is excused by any circumstance that would, in case of acceptance by a drawee, excuse delay in presentment for payment or non-presentment for payment.

  • R.S., c. B-5, s. 94.
Marginal note:Dishonour by non-payment
  •  (1) A bill is dishonoured by non-payment when

    • (a) it is duly presented for payment and payment is refused or cannot be obtained; or

    • (b) presentment is excused and the bill is overdue and unpaid.

  • Marginal note:Recourse

    (2) Subject to this Act, when a bill is dishonoured by non-payment, an immediate right of recourse against the drawer, acceptor and endorsers accrues to the holder.

  • R.S., c. B-5, s. 95.

Notice of Dishonour

Marginal note:Notice of dishonour
  •  (1) Subject to this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom the notice is not given is discharged.

  • Marginal note:Subsequent holder

    (2) 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 are not prejudiced by the omission.

  • Marginal note:Notice of subsequent dishonour

    (3) Where a bill is dishonoured by non-acceptance and due notice of dishonour is given, it is not necessary to give notice of a subsequent dishonour by non-payment, unless the bill is accepted in the meantime.

  • Marginal note:Notice to acceptor

    (4) In order to render the acceptor of a bill liable, it is not necessary that notice of dishonour be given to him.

  • R.S., c. B-5, s. 96.
 
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