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

Marginal note:Consumer bill

• 189 (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.