159. (1) Subject to subsections (2) and (3), where a bill drawn in one country is negotiated, accepted or payable in another, the validity of the bill with respect to requisites in form is determined by the law of the place of issue, and the validity with respect to requisites in form of the supervening contracts, such as endorsement, acceptance or acceptance under protest, is determined by the law of the place where the contract was made.

(2) Where a bill is issued outside Canada, it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue.

(3) Where a bill, issued outside Canada, conforms, with respect to requisites in form, to the law of Canada, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold or become parties to it in Canada.

R.S., c. B-5, s. 160.

160. Subject to this Act, the interpretation of the drawing, endorsement, acceptance or acceptance under protest of a bill, drawn in one country and negotiated, accepted or payable in another, is determined by the law of the place where the contract is made, but where an inland bill is endorsed in a foreign country, the endorsement shall, with respect to the payer, be interpreted according to the law of Canada.

R.S., c. B-5, s. 161.

161. The duties of the holder with respect to presentment of a bill for acceptance or payment and the necessity for or sufficiency of a protest or notice of dishonour are determined by the law of the place where the act is done or the bill is dishonoured.

R.S., c. B-5, s. 162.

162. Where a bill is drawn out of but payable in Canada and the sum payable is not expressed in the currency of Canada, the amount shall, in the absence of an express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable.

R.S., c. B-5, s. 163.

163. Where a bill is drawn in one country and is payable in another country, the due date thereof is determined according to the law of the place where it is payable.

R.S., c. B-5, s. 164.

164. In this Part, “bank” includes every member of the Canadian Payments Association established under the Canadian Payments Act and every local cooperative credit society, as defined in that Act, that is a member of a central, as defined in that Act, that is a member of the Canadian Payments Association.

R.S., 1985, c. B-4, s. 164; 2001, c. 9, s. 586.

165. (1) A cheque is a bill drawn on a bank, payable on demand.

(2) Except as otherwise provided in this Part, the provisions of this Act applicable to a bill payable on demand apply to a cheque.

(3) Where a cheque is delivered to a bank for deposit to the credit of a person and the bank credits him with the amount of the cheque, the bank acquires all the rights and powers of a holder in due course of the cheque.

R.S., c. B-5, s. 165.

166. (1) Subject to this Act,

(a) where a cheque is not presented for payment within a reasonable time of its issue and the drawer or the person on whose account it is drawn had the right at the time of presentment, as between him and the bank, to have the cheque paid, and suffers actual damage through the delay, he is discharged to the extent of the damage, that is to say, to the extent to which the drawer or person is a creditor of the bank to a larger amount than he would have been had the cheque been paid; and

(b) the holder of the cheque, with respect to which the drawer or person is discharged, shall be a creditor, in lieu of the drawer or person, of the bank to the extent of the discharge, and entitled to recover the amount from it.

(2) In determining what is a reasonable time, within this section, regard shall be had to the nature of the instrument, the usage of trade and of banks and the facts of the particular case.

R.S., c. B-5, s. 166.

167. The duty and authority of a bank to pay a cheque drawn on it by its customer are determined by

(a) countermand of payment; or

(b) notice of the customer’s death.

R.S., c. B-5, s. 167.

168. (1) Where a cheque bears across its face an addition of

(a) the word “bank” between two parallel transverse lines, either with or without the words “not negotiable”, or

(b) two parallel transverse lines simply, either with or without the words “not negotiable”,

that addition constitutes a crossing, and the cheque is crossed generally.

(2) Where a cheque bears across its face an addition of the name of a bank, either with or without the words “not negotiable”, that addition constitutes a crossing, and the cheque is crossed specially and to that bank.

R.S., c. B-5, s. 168.

169. (1) A cheque may be crossed generally or specially by the drawer.

(2) Where a cheque is uncrossed, the holder may cross it generally or specially.

(3) Where a cheque is crossed generally, the holder may cross it specially.

(4) Where a cheque is crossed generally or specially, the holder may add the words “not negotiable”.

(5) Where a cheque is crossed specially, the bank to which it is crossed may again cross it specially to another bank for collection.

(6) Where an uncrossed cheque, or a cheque crossed generally, is sent to a bank for collection, it may cross it specially to itself.

(7) A crossed cheque may be reopened or uncrossed by the drawer writing between the transverse lines the words “pay cash”, and initialling the same.

R.S., c. B-5, s. 169.

170. (1) A crossing authorized by this Act is a material part of the cheque.

(2) It is not lawful for any person to obliterate or, except as authorized by this Act, to add to or alter the crossing.

R.S., c. B-5, s. 170.

171. Where a cheque is crossed specially to more than one bank, except when crossed to another bank as agent for collection, the bank on which it is drawn shall refuse payment thereof.

R.S., c. B-5, s. 171.

172. (1) Subject to subsection (2), where the bank on which a cheque crossed as described in section 171 is drawn nevertheless pays the cheque, or pays a cheque crossed generally otherwise than to a bank, or, if crossed specially, otherwise than to the bank to which it is crossed or to the bank acting as its agent for collection, it is liable to the true owner of the cheque for any loss he sustains owing to the cheque having been so paid.

(2) Where a cheque is presented for payment that does not at the time of presentment appear to be crossed, or to have had a crossing that has been obliterated, or to have been added to or altered otherwise than as authorized by this Act, the bank paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorized by this Act, and of payment having been made otherwise than to a bank or to the bank to which the cheque is or was crossed, or to the bank acting as its agent for collection, as the case may be.

R.S., c. B-5, s. 172.

173. Where the bank on which a crossed cheque is drawn in good faith and without negligence pays it, if crossed generally, to a bank, or, if crossed specially, to the bank to which it is crossed or to a bank acting as its agent for collection, the bank paying the cheque and, if the cheque has come into the hands of the payee, the drawer shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.

R.S., c. B-5, s. 173.

174. Where a person takes a crossed cheque that bears on it the words “not negotiable”, he does not have and is not capable of giving a better title to the cheque than the person from whom he took it had.

R.S., c. B-5, s. 174.

175. Where a bank, in good faith and without negligence, receives for a customer payment of a cheque crossed generally or specially to itself and the customer has no title or a defective title thereto, the bank does not incur any liability to the true owner of the cheque by reason only of having received that payment.

R.S., c. B-5, s. 175.

176. (1) A promissory note is an unconditional promise in writing made by one person to another person, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money to, or to the order of, a specified person or to bearer.

(2) An instrument in the form of a note payable to the maker’s order is not a note within the meaning of this section, unless it is endorsed by the maker.

(3) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.

R.S., c. B-5, s. 176.

177. (1) A note that is, or on the face of it purports to be, both made and payable within Canada is an inland note.

(2) Any other note is a foreign note.

R.S., c. B-5, s. 177.

178. A note is inchoate and incomplete until delivery thereof to the payee or bearer.

R.S., c. B-5, s. 178.

179. (1) A note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally, according to its tenor.

(2) Where a note bears the words “I promise to pay” and is signed by two or more persons, it is deemed to be their joint and several note.

R.S., c. B-5, s. 179.

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

(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.

R.S., c. B-5, s. 180.

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.

R.S., c. B-5, s. 181.

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.

R.S., c. B-5, s. 182.

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.

(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.

(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.

R.S., c. B-5, s. 183.

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

(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.

(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.

R.S., c. B-5, s. 184.

185. 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.

186. (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.

(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.

(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.

187. 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.

188. In this Part,

“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;

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

“purchaser” means the individual by whom a consumer purchase is made;

“seller” means the person from whom a consumer purchase is made;

“services” includes repairs and improvements.

R.S., c. 4(1st Supp.), s. 1.

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.

(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.

(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.

(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.

190. (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.

(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.

191. 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.

192. (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.

(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.

(Copy of Bill and Endorsements)

On the .................... day of .................... 19......, the above bill was, by me, at the request of .................... presented for acceptance to E.F., the drawee, personally (or, at his residence, office or usual place of business), in the city (town or village) of .................... and I received for answer: “....................”. The said bill is therefore noted for non-acceptance.

A.B.,
Notary Public

(Date and place)

Due notice of the above was by me served on (A.B. or C.D.), the (drawer or endorser), personally, on the ...... day of ...................., 19........ (or, at his residence, office or usual place of business) in ...................., on the .................... day of ...................., 19........ (or, by depositing such notice, directed to him at .................... in Her Majesty’s post office in the city, (town or village) of ...................., on the .................... day of ...................., 19........, and prepaying the postage thereon).

A.B.,
Notary Public

(Date and place)

(Copy of Bill and Endorsements)

On this .............. day of .............., in the year ......, I, A.B., notary public for the Province of ..............., dwelling at ..........., in the Province of ..............., at the request of ..............., did exhibit the original bill of exchange, whereof a true copy is above written, unto E.F., the (drawee or acceptor) thereof personally (or, at E.F.'s residence, office or usual place of business) in ..............., and, speaking to E.F. (or ...............), did demand (acceptance or payment) thereof; unto which demand (he or she) answered: “ ............... ”.

Wherefore I, the said notary, at the request aforesaid, have protested, and by these presents do protest against the acceptor, drawer and endorsers (or drawer and endorsers) of the said bill, and other parties thereto or therein concerned, for all exchange, re-exchange, and all costs, damages and interest, present and to come, for want of (acceptance or payment) of the said bill.

All of which I attest by my signature.

A.B.,
Notary Public

(Copy of Bill and Endorsements)

On this .................... day of .................... in the year 19......, I, A.B., notary public for the Province of ...................., dwelling at ...................., in the Province of ...................., at the request of ...................., did exhibit the original bill of exchange whereof a true copy is above written, unto E.F., the (drawee or acceptor) thereof, at ...................., being the stated place where the said bill is payable, and there speaking to .................... did demand (acceptance or payment) of the said bill; unto which demand he answered: “....................”.

Wherefore I, the said notary, at the request aforesaid, have protested, and by these presents do protest against the acceptor, drawer and endorsers (or drawer and endorsers) of the said bill and all other parties thereto or therein concerned, for all exchange, re-exchange, costs, damages and interest, present and to come for want of (acceptance or payment) of the said bill.

All of which I attest by my signature.

A.B.,
Notary Public

If the protest is made by the same notary who noted the bill, it should immediately follow the act of noting and memorandum of service thereof, and begin with the words “and afterwards on, etc.,” continuing as in the last preceding Form, but introducing between the words “did” and “exhibit” the word “again,” and in a parenthesis, between the words “written” and “unto,” the words: “and which bill was by me duly noted for non-acceptance on the .................... day of ...................., 19........”.

But if the protest is not made by the same notary, then it should follow a copy of the original bill and endorsements and noting marked on the bill — and then in the protest introduce, in a parenthesis, between the words “written” and “unto,” the words: “and which bill was on the .................... day of ...................., 19........, by ...................., notary public for the Province of .................... noted for non-acceptance, as appears by his note thereof marked on the said bill”.

(Copy of Note and Endorsements)

On this .............. day of .............., in the year ......, I, A.B., notary public for the Province of ..............., dwelling at ..........., in the Province of ..............., at the request of ..............., did exhibit the original promissory note, whereof a true copy is above written, unto ............... the promisor, personally (or, at the promisor’s residence, office or usual place of business), in .........., and speaking to the promisor (or ............), did demand payment thereof; unto which demand (he or she) answered: “ ............. ”.

Wherefore I, the said notary, at the request aforesaid, have protested, and by these presents do protest against the promisor and endorsers of the said note, and all other parties thereto or therein concerned, for all costs, damages and interest, present and to come, for want of payment of the said note.

All of which I attest by my signature.

A.B.,
Notary Public

(Copy of Note and Endorsements)

On this .................... day of ...................., in the year 19......, I, A.B., notary public for the Province of ...................., dwelling at ...................., in the Province of ...................., at the request of ...................., did exhibit the original promissory note, whereof a true copy is above written, unto .................... the promisor, at ...................., being the stated place where the said note is payable, and there, speaking to .................... did demand payment of the said note, unto which demand he answered: “....................”.

Wherefore I, the said notary, at the request aforesaid, have protested, and by these presents do protest against the promisor and endorsers of the said note, and all other parties thereto or therein concerned, for all costs, damages and interest, present and to come, for want of payment of the said note.

All of which I attest by my signature.

A.B.,
Notary Public

(Place and Date of Noting or of Protest)

1st.

To P.Q. (the drawer)

at

Sir,

Your bill of exchange for $............, dated at .................... the .................... day of ...................., 19........, on E.F., in favour of C.D., payable .................... days after (sight or date) was this day, at the request of .................... duly (noted or protested) by me for (non-acceptance or non-payment).

A.B.,
Notary Public

(Place and Date of Noting or of Protest)

2nd.

To C.D., (endorser)

(or F.G.)

at

Sir,

Mr. P.Q.'s bill of exchange for $............, dated at .................... the .................... day of ...................., 19........, on E.F., in your favour (or in favour of C.D.), payable .................... days after (sight or date), and by you endorsed, was this day at the request of .................... duly (noted or protested) by me for (non-acceptance or non-payment).

A.B.,
Notary Public

(Place and Date of Protest)

To ....................,

at

Sir,

Mr. P.Q.'s promissory note for $............, dated at ...................., the .................... day of ...................., 19........, payable ............ (days or months) after date (or on ....................) to (you or E.F.) or order, and endorsed by you, was this day, at the request of ...................., duly protested by me for non-payment.

A.B.,
Notary Public

(to be subjoined to the Protest)

And afterwards, I, the aforesaid protesting notary public, did serve due notice, in the form prescribed by law, of the foregoing protest for (non-acceptance or non-payment) of the (bill or note) thereby protested on (P.Q. or C.D.), the (drawer or endorser) personally, on the .................... day of ...................., 19........, (or, at his residence, office or usual place of business) in ...................., on the .................... day of ...................., 19........; (or, by depositing such notice, directed to the said (P.Q. or C.D.), at ...................., in Her Majesty’s post office in .................... on the .................... day of ...................., 19........, and prepaying the postage thereon).

In testimony whereof, I have, on the last mentioned day and year, at .................... aforesaid, signed these presents.

A.B.,
Notary Public

(Copy of Bill or Note and Endorsements)

On this .............. day of ............., in the year ......, I, N.O., one of Her Majesty’s justices of the peace for the District (or County, etc.), of ...................., in the Province of ...................., dwelling at (or near) the village of ...................., in the said District, there being no practising notary public at or near the said village (or any other legal cause), did, at the request of .................... and in the presence of .................... well known unto me, exhibit the original (bill or note) whereof a true copy is above written unto P.Q., the (drawer, acceptor or promisor) thereof, personally (or at P.Q.'s residence, office or usual place of business) in ................ and speaking to P.Q. (or ..................), did demand (payment or acceptance) thereof, unto which demand (he or she) answered: “ .................... ”.

Wherefore I, the said justice of the peace, at the request aforesaid, have protested, and by these presents do protest against the (drawer and endorsers, promisor and endorsers or acceptor, drawer and endorsers) of the said (bill or note) and all other parties thereto and therein concerned, for all exchange, re-exchange, and all costs, damages and interest, present and to come, for want of (payment or acceptance) of the said (bill or note).

All of which is by these presents attested by the signature of the said (the witness) and by my hand and seal.

........................................................
(Signature of the witness)

........................................................
(Signature and seal of the J.P.)

R.S., 1985, c. B-4, Sch.; 2000, c. 12, ss. 22 to 24.