84. (1) Subject to this Act, a bill must be duly presented for payment.

(2) If a bill is not duly presented for payment, the drawer and endorsers are discharged.

(3) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment.

R.S., c. B-5, s. 85.

85. (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.

(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.

86. (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.

(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.

(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.

87. 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.

88. 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.

89. (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.

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

R.S., c. B-5, s. 90.

90. (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.

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

R.S., c. B-5, s. 91.

91. (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.

(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.

92. (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.

(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.

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

R.S., c. B-5, s. 93.

93. (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.

(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.

(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.

94. (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.

(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.

95. (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.

(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.

(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.

(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.

96. Notice of dishonour in order to be valid and effectual must be given

(a) not later than the juridical or business day next following the dishonouring of the bill;

(b) by or on behalf of the holder, or by or on behalf of an endorser, who at the time of giving notice is himself liable on the bill;

(c) in the case of the death, if known to the party giving notice, of the drawer or endorser, to a personal representative if there is one and with the exercise of reasonable diligence he can be found; and

(d) in case of two or more drawers or endorsers who are not partners, to each of them, unless one of them has authority to receive notice for the others.

R.S., c. B-5, s. 97.

97. (1) Notice of dishonour may be given

(a) as soon as the bill is dishonoured;

(b) to the party to whom notice is required to be given or to his agent in that behalf;

(c) 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; or

(d) in writing or by personal communication and in any terms that identify the bill and intimate that the bill has been dishonoured by non-acceptance or non-payment.

(2) A misdescription of the bill does not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.

R.S., c. B-5, s. 98.

98. (1) In point of form, the return of a dishonoured bill to the drawer or endorser is a sufficient notice of dishonour, and a written notice need not be signed.

(2) An insufficient written notice may be supplemented and validated by verbal communication.

R.S., c. B-5, s. 99.

99. (1) Where a bill when dishonoured is in the hands of an agent, he may himself give notice to the parties liable on the bill, or he may give notice to his principal, in which case the principal on receipt of the notice has the same time for giving notice as if the agent had been an independent holder.

(2) Where the agent gives notice to his principal, he must do so within the same time as if he were an independent holder.

R.S., c. B-5, s. 100.

100. Where a party to a bill receives due notice of dishonour, he has, after the receipt of the notice, the same period of time for giving notice to antecedent parties that a holder has after dishonour.

R.S., c. B-5, s. 101.

101. A notice of dishonour enures for the benefit

(a) of all subsequent holders and of all prior endorsers who have a right of recourse against the party to whom the notice is given, where given on behalf of the holder; and

(b) of the holder and all endorsers subsequent to the party to whom the notice is given, where given, by or on behalf of an endorser entitled under this Part to give notice.

R.S., c. B-5, s. 102.

102. (1) Notwithstanding anything in this Act, notice of dishonour of any bill payable in Canada is sufficiently given if it is addressed in due time to any party to the bill entitled to the notice, at his customary address or place of residence or at the place at which the bill is dated, unless any such party has, under his signature, designated another place, in which case the notice shall be sufficiently given if addressed to him in due time at that other place.

(2) A notice referred to in subsection (1) shall be sufficient, although the place of residence of such party is other than either of the places mentioned in that subsection, and 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 presentment has been made or on the next following juridical or business day.

(3) The notice referred to in subsection (1) is not invalid by reason only of the fact that the party to whom it is addressed is dead.

R.S., c. B-5, s. 103.

103. Where a notice of dishonour is duly addressed and posted, as provided in section 102, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.

R.S., c. B-5, s. 104.

104. (1) Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice and not imputable to his default, misconduct or negligence.

(2) Where the cause of delay in giving notice of dishonour ceases to operate, the notice must be given with reasonable diligence.

R.S., c. B-5, s. 105.

105. (1) Notice of dishonour 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 endorser sought to be charged; or

(b) by waiver, express or implied.

(2) Notice of dishonour may be waived before the time of giving notice has arrived or after the omission to give due notice.

R.S., c. B-5, s. 106.

106. Notice of dishonour is dispensed with as regards the drawer where

(a) the drawer and drawee are the same person;

(b) the drawee is a fictitious person or a person not having capacity to contract;

(c) the drawer is the person to whom the bill is presented for payment;

(d) the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill; or

(e) the drawer has countermanded payment.

R.S., c. B-5, s. 107.

107. Notice of dishonour is dispensed with as regards the endorser where

(a) the drawee is a fictitious person or a person not having capacity to contract, and the endorser was aware of the fact at the time he endorsed the bill;

(b) the endorser is the person to whom the bill is presented for payment; or

(c) the bill was accepted or made for his accommodation.

R.S., c. B-5, s. 108.

108. In order to render the acceptor of a bill liable, it is not necessary to protest it.

R.S., c. B-5, s. 109.

109. Protest is dispensed with by any circumstances that would dispense with notice of dishonour.

R.S., c. B-5, s. 110.

110. (1) Delay in noting or protesting is excused where the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.

(2) Where the cause of delay in noting or protesting ceases to operate, the bill must be noted or protested with reasonable diligence.

R.S., c. B-5, s. 111.

111. (1) Where a foreign bill appearing on the face of it to be such has been dishonoured by non-acceptance, it must be duly protested for non-acceptance.

(2) Where a foreign bill that has not been previously dishonoured by non-acceptance is dishonoured by non-payment, it must be duly protested for non-payment.

(3) Where a foreign bill has been accepted only as to part, it must be protested as to the balance.

(4) Where a foreign bill is not protested as required by this section, the drawer and endorsers are discharged.

R.S., c. B-5, s. 112.

112. Where an inland bill has been dishonoured, it may, if the holder thinks fit, be noted and protested for non-acceptance or non-payment, as the case may be, but it is not necessary to note or protest an inland bill in order to have recourse against the drawer or endorsers.

R.S., c. B-5, s. 113.

113. Where a bill does not on the face of it appear to be a foreign bill, protest thereof in case of dishonour is unnecessary.

R.S., c. B-5, s. 114.

114. A bill that has been protested for non-acceptance, or a bill of which protest for non-acceptance has been waived, may be subsequently protested for non-payment.

R.S., c. B-5, s. 115.

115. Where the acceptor of a bill suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and endorsers.

R.S., c. B-5, s. 116.

116. (1) Where a dishonoured bill has been accepted for honour under protest or contains a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honour, or referee in case of need.

(2) When a bill is dishonoured by the acceptor for honour, it must be protested for non-payment by him.

R.S., c. B-5, s. 117.

117. For the purposes of this Act, where a bill is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding.

R.S., c. B-5, s. 118.

118. (1) Subject to this Act, when a bill is protested, the protest must be made or noted on the day of its dishonour.

(2) When a bill has been duly noted, the formal protest may be extended thereafter at any time as of the date of the noting.

R.S., c. B-5, s. 119.

119. Where a bill is lost or destroyed, or is wrongly or accidentally detained from the person entitled to hold it, or is accidentally retained in a place other than where payable, protest may be made on a copy or written particulars thereof.

R.S., c. B-5, s. 120.

120. (1) A bill must be protested at the place where it is dishonoured, or at some other place in Canada situated within five miles of the place of presentment and dishonour of the bill.

(2) When a bill is presented through the post office and returned by post dishonoured, it may be protested at the place to which it is returned, not later than on the day of its return or the next juridical day.

(3) Every protest for dishonour, either for non-acceptance or non-payment, may be made on the day of the dishonour, and in case of non-acceptance at any time after non-acceptance, and in case of non-payment at any time after three o’clock in the afternoon, local time.

R.S., c. B-5, s. 121.

121. A protest must contain a copy of the bill, or the original bill may be annexed thereto, must be signed by the notary making it and must specify

(a) the person at whose request the bill is protested;

(b) the place and date of protest;

(c) the cause or reason for protest; and

(d) the demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found.

R.S., c. B-5, s. 122.

122. Where a dishonoured bill is authorized or required to be protested and the services of a notary cannot be obtained at the place where the bill is dishonoured, any justice of the peace resident in the place may present and protest the bill and give all necessary notices and has all the necessary powers of a notary with respect thereto.

R.S., c. B-5, s. 123.

123. (1) The expense of noting and protesting any bill and the postages thereby incurred shall be allowed and paid to the holder in addition to any interest thereon.

(2) Notaries may charge the fees in each province allowed them.

R.S., c. B-5, s. 124.

124. (1) The Forms in the schedule may be used in noting or protesting any bill and in giving notice thereof.

(2) A copy of the bill and endorsement may be included in the Forms, or the original bill may be annexed and the necessary changes in that behalf made in the Forms.

R.S., c. B-5, s. 125.

125. Notice of the protest of any bill payable in Canada is sufficiently given and is sufficient and deemed to have been duly given and served, if given during the day on which protest has been made or on the next following juridical or business day, to the same parties and in the same manner and addressed in the same way as is provided by this Part for notice of dishonour.

R.S., c. B-5, s. 126.

126. A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.

R.S., c. B-5, s. 127.

127. The acceptor of a bill by accepting it engages that he will pay it according to the tenor of his acceptance.

R.S., c. B-5, s. 128.

128. The acceptor of a bill by accepting it is precluded from denying to a holder in due course

(a) the existence of the drawer, the genuineness of his signature and his capacity and authority to draw the bill;

(b) in the case of a bill payable to drawer’s order, the then capacity of the drawer to endorse, but not the genuineness or validity of his endorsement; or

(c) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to endorse, but not the genuineness or validity of his endorsement.

R.S., c. B-5, s. 129.

129. The drawer of a bill by drawing it

(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he will compensate the holder or any endorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken; 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. 130.

130. No person is liable as drawer, endorser or acceptor of a bill who has not signed it as such, but when a person signs a bill otherwise than as a drawer or acceptor, he thereby incurs the liabilities of an endorser to a holder in due course and is subject to all the provisions of this Act respecting endorsers.

R.S., c. B-5, s. 131.

131. (1) Where a person signs a bill in a trade-name or assumed name, he is liable thereon as if he had signed it in his own name.

(2) The signature of the name of a firm is equivalent to the signature, by the person so signing, of the names of all persons liable as partners in that firm.

R.S., c. B-5, s. 132.

132. The endorser of a bill by endorsing it, subject to the effect of any express stipulation authorized by this Act,

(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he will compensate the holder or a subsequent endorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken;

(b) is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer’s signature and all previous endorsements; and

(c) is precluded from denying to his immediate or a subsequent endorsee that the bill was, at the time of his endorsement, a valid and subsisting bill, and that he had then a good title thereto.

R.S., c. B-5, s. 133.

133. Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, are

(a) the amount of the bill;

(b) interest thereon from the time of presentment for payment, if the bill is payable on demand, and from the maturity of the bill in any other case; and

(c) the expenses of noting and protesting.

R.S., c. B-5, s. 134.

134. In the case of a bill that has been dishonoured, the holder may recover from any party liable on the bill, the drawer who has been compelled to pay the bill may recover from the acceptor, and an endorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior endorser, the damages prescribed in section 133.

R.S., c. B-5, s. 135.

135. In the case of a bill that has been dishonoured abroad, in addition to the damages prescribed in section 133, the holder may recover from the drawer or any endorser, and the drawer or an endorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re-exchange with interest thereon until the time of payment.

R.S., c. B-5, s. 136.

136. (1) Where the holder of a bill payable to bearer negotiates it by delivery without endorsing it, he is called a “transferor by delivery”.

(2) A transferor by delivery is not liable on the instrument.

R.S., c. B-5, s. 137.

137. A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that

(a) the bill is what it purports to be;

(b) he has a right to transfer it; and

(c) at the time of transfer, he is not aware of any fact that renders it valueless.

R.S., c. B-5, s. 138.

138. (1) A bill is discharged by payment in due course by or on behalf of the drawee or acceptor.

(2) Payment in due course means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective.

(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.

R.S., c. B-5, s. 139.

139. Subject to the provisions of section 138 with respect to an accommodation bill, when a bill is paid by the drawer or endorser, it is not discharged, but,

(a) where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not reissue the bill; and

(b) where a bill is paid by an endorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent endorsements and again negotiate the bill.

R.S., c. B-5, s. 140.

140. When the acceptor of a bill is or becomes the holder of it, at or after its maturity, in his own right, the bill is discharged.

R.S., c. B-5, s. 141.

141. (1) When the holder of a bill, at or after its maturity, absolutely and unconditionally renounces his rights against the acceptor, the bill is discharged.

(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at or after its maturity.

(3) A renunciation must be in writing, unless the bill is delivered to the acceptor.

(4) Nothing in this section affects the rights of a holder in due course without notice of renunciation.

R.S., c. B-5, s. 142.

142. (1) Where a bill is intentionally cancelled by the holder or his agent and the cancellation is apparent thereon, the bill is discharged.

(2) In like manner, any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent.

(3) In any case described in subsection (2), any endorser who would have had a right of recourse against the party whose signature is cancelled is also discharged.

R.S., c. B-5, s. 143.

143. A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inoperative, but where a bill or any signature thereon appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority.

R.S., c. B-5, s. 144.

144. (1) Subject to subsection (2), where a bill or an acceptance is materially altered without the assent of all parties liable on the bill, the bill is voided, except as against a party who has himself made, authorized or assented to the alteration and subsequent endorsers.

(2) Where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, the holder may avail himself of the bill as if it had not been altered and may enforce payment of it according to its original tenor.

R.S., c. B-5, s. 145.

145. In particular, any alteration

(a) of the date,

(b) of the sum payable,

(c) of the time of payment,

(d) of the place of payment, or

(e) by the addition of a place of payment without the acceptor’s assent where a bill has been accepted generally,

is a material alteration.

R.S., c. B-5, s. 146.

146. Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill under protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.

R.S., c. B-5, s. 147.

147. A bill may be accepted for honour for part only of the sum for which it is drawn.

R.S., c. B-5, s. 148.

148. Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.

R.S., c. B-5, s. 149.

149. Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of protesting for non-acceptance and not from the date of the acceptance for honour.

R.S., c. B-5, s. 150.

150. An acceptance for honour under protest, in order to be valid, must be

(a) written on the bill, and indicate that it is an acceptance for honour; and

(b) signed by the acceptor for honour.

R.S., c. B-5, s. 151.

151. (1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, if it has been duly presented for payment and protested for non-payment and if he receives notice of those facts.

(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.

R.S., c. B-5, s. 152.

152. (1) Where a bill has been protested for non-payment, any person may intervene and pay it under protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.

(2) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill has the preference.

(3) Where the holder of a bill refuses to receive payment under protest, he loses his right of recourse against any party who would have been discharged by that payment.

(4) The payer for honour, on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour, is entitled to receive both the bill itself and the protest.

(5) Where the holder does not on demand in a case described in subsection (4) deliver up the bill and protest, he is liable to the payer for honour in damages.

R.S., c. B-5, s. 153.

153. (1) Payment for honour under protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour, which may be appended to the protest or form an extension of it.

(2) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays.

R.S., c. B-5, s. 154.

154. Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for and succeeds to both the rights and duties of the holder with respect to the party for whose honour he pays, and all parties liable to that party.

R.S., c. B-5, s. 155.

155. (1) Where a bill has been lost before it is overdue, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer, if required, to indemnify him against all persons whatever, in case the bill alleged to have been lost is found again.

(2) Where the drawer, on request, refuses to give a duplicate bill, he may be compelled to do so.

R.S., c. B-5, s. 156.

156. In any action or proceeding on a bill, the court or a judge may order that the loss of the instrument shall not be set up, if an indemnity is given to the satisfaction of the court or judge against the claims of any other person on the instrument in question.

R.S., c. B-5, s. 157.

157. (1) Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill.

(2) The acceptance may be written on any part, but it must be written on one part only.

R.S., c. B-5, s. 158.

158. (1) Where the holder of a set endorses two or more parts to different persons, he is liable on every such part, and every endorser subsequent to him is liable on the part he has himself endorsed as if the parts were separate bills.

(2) Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is, as between such holders, deemed the true owner of the bill, but nothing in this subsection affects the rights of a person who in due course accepts or pays the part first presented to him.

(3) Where the drawee accepts more than one part and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill.

(4) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof.

(5) Subject to this section, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.

R.S., c. B-5, s. 159.