GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bills of Exchange Act — B-4 20
Transfer words 20 (1) When a bill contains words prohibiting transfer, or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but it is not negotiable. Negotiable bill (2) A negotiable bill may be payable either to order or to bearer. When payable to bearer (3) A bill is payable to bearer that is expressed to be so payable, or on which the only or last endorsement is an endorsement in blank. Certainty of payee (4) Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty. Fictitious payee (5) Where the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer. R.S., c. B-5, s. 21
Bills of Exchange Act — B-4 21
Bill payable to order 21 (1) A bill is payable to order that is expressed to be so payable, or that is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable. When payable to person or order (2) Where a bill, either originally or by endorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option. R.S., c. B-5, s. 22
Bills of Exchange Act — B-4 22
When payable on demand 22 (1) A bill is payable on demand (a) that is expressed to be payable on demand or on presentation; or (b) in which no time for payment is expressed. Endorsed when overdue (2) Where a bill is accepted or endorsed when it is overdue, it shall, with respect to the acceptor who so accepts it, or any endorser who so endorses it, be deemed a bill payable on demand. R.S., c. B-5, s. 23
Bills of Exchange Act — B-4 23
Determinable future time 23 A bill is payable at a determinable future time, within the meaning of this Act, that is expressed to be payable (a) at sight or at a fixed period after date or sight; or (b) on or at a fixed period after the occurrence of a specified event that is certain to happen, though the time of happening is uncertain. R.S., c. B-5, s. 24
Bills of Exchange Act — B-4 24
Inland bill 24 (1) An inland bill is a bill that is, or on the face of it purports to be, (a) both drawn and payable within Canada; or (b) drawn within Canada on a person resident in Canada. Foreign bill (2) Any other bill is a foreign bill. Presumption (3) Unless the contrary appears on the face of a bill, the holder may treat it as an inland bill. R.S., c. B-5, s. 25
Bills of Exchange Act — B-4 25
Bill or note 25 Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill or as a note. R.S., c. B-5, s. 26
Bills of Exchange Act — B-4 26
Valid bill 26 A bill is not invalid by reason only that it (a) is not dated; (b) does not specify the value given, or that any value has been given therefor; (c) does not specify the place where it is drawn or the place where it is payable; or (d) is antedated or post-dated, or bears date on a Sunday or other non-juridical day. R.S., c. B-5, s. 27
Bills of Exchange Act — B-4 27
Sum certain 27 (1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid (a) with interest; (b) by stated instalments; (c) by stated instalments, with a provision that on default in payment of any instalment the whole shall become due; or (d) according to an indicated rate of exchange or a rate of exchange to be ascertained as directed by the bill. Figures and words (2) Where the sum payable by a bill is expressed in words and also in figures and there is a discrepancy between the two, the sum denoted by the words is the amount payable. With interest (3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill and, if the bill is undated, from the issue thereof. R.S., c. B-5, s. 28
Bills of Exchange Act — B-4 28
True date presumption 28 Where a bill or an acceptance, or any endorsement on a bill, is dated, the date shall, unless the contrary is proved, be deemed to be the true date of the drawing, acceptance or endorsement, as the case may be. R.S., c. B-5, s. 29
Bills of Exchange Act — B-4 29
Undated bill payable after date 29 Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at sight or at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the bill shall be payable accordingly, but where the holder in good faith and by mistake inserts a wrong date, or in every other case where a wrong date is inserted, if the bill subsequently comes into the hands of a holder in due course, the bill is not voided thereby, but operates and is payable as if the date so inserted had been the true date. R.S., c. B-5, s. 30
Bills of Exchange Act — B-4 30
Perfecting bill 30 Where a simple signature on a blank paper is delivered by the signer in order that it may be converted into a bill, it operates, in the absence of evidence to the contrary, as an authority to fill it up as a complete bill for any amount, using the signature for that of the drawer or acceptor, or an endorser, and, in like manner, when a bill is wanting in any material particular, the person in possession of it has, in the absence of evidence to the contrary, the authority to fill up the omission in any way he thinks fit. R.S., c. B-5, s. 31
Bills of Exchange Act — B-4 31
When completed 31 (1) In order that any instrument referred to in section 30 when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time and strictly in accordance with the authority given, but where any such instrument, after completion, is negotiated to a holder in due course, it is valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given. Reasonable time (2) Reasonable time within the meaning of this section is a question of fact. R.S., c. B-5, s. 32
Bills of Exchange Act — B-4 32
Referee in case of need 32 (1) The drawer of a bill and any endorser may insert therein the name of a person, who shall be called the referee in case of need, to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment. Option (2) The holder may, at his option, resort to the referee in case of need or not, as he thinks fit. R.S., c. B-5, s. 33
Bills of Exchange Act — B-4 33
Stipulations 33 The drawer of a bill, and any endorser, may insert therein an express stipulation (a) negativing or limiting his own liability to the holder; or (b) waiving, with respect to himself, some or all of the holder’s duties. R.S., c. B-5, s. 34
Bills of Exchange Act — B-4 34
Acceptance 34 (1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. Drawee’s name wrong (2) Where in a bill the drawee is wrongly designated or his name is misspelt, he may accept the bill as therein described, adding, if he thinks fit, his proper signature or he may accept by his proper signature. R.S., c. B-5, s. 35
Bills of Exchange Act — B-4 35
Acceptance 35 (1) An acceptance is invalid unless it complies with the following conditions: (a) it must be written on the bill and be signed by the drawee; and (b) it must not express that the drawee will perform his promise by any other means than the payment of money. Mere signature (2) The mere signature of the drawee written on the bill without additional words is a sufficient acceptance. R.S., c. B-5, s. 36
Bills of Exchange Act — B-4 36
Acceptance 36 (1) A bill may be accepted (a) before it has been signed by the drawer or while otherwise incomplete; or (b) when it is overdue or after it has been dishonoured by a previous refusal to accept, or by non-payment. Acceptance after dishonour (2) When a bill payable at sight or after sight is dishonoured by non-acceptance and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance. R.S., c. B-5, s. 37
Bills of Exchange Act — B-4 37
Kinds 37 (1) An acceptance is either general or qualified. General (2) A general acceptance assents without qualification to the order of the drawer. Qualified (3) A qualified acceptance in express terms varies the effect of the bill as drawn and, in particular, an acceptance is qualified that is (a) conditional, that is to say, that makes payment by the acceptor dependent on the fulfilment of a condition therein stated; (b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn; (c) qualified as to time; or (d) the acceptance of one or more of the drawees, but not of all. Specified place (4) An acceptance to pay at a particular specified place is not on that account conditional or qualified. R.S., c. B-5, s. 38
Bills of Exchange Act — B-4 38
When acceptance complete 38 Every contract on a bill, whether it is the drawer’s, the acceptor’s or an endorser’s, is incomplete and revocable until delivery of the instrument in order to give effect thereto, but where an acceptance is written on a bill and the drawee gives notice to, or according to the directions of, the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable. R.S., c. B-5, s. 39
Bills of Exchange Act — B-4 39
Requisites 39 (1) As between immediate parties and as regards a remote party, other than a holder in due course, the delivery of a bill (a) in order to be effectual must be made either by or under the authority of the party drawing, accepting or endorsing, as the case may be; or (b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill. Presumption (2) Where the bill is in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him, so as to make them liable to him, is conclusively presumed. R.S., c. B-5, s. 40
Bills of Exchange Act — B-4 40
Parting with possession 40 Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or endorser, a valid and unconditional delivery by him is presumed until the contrary is proved. R.S., c. B-5, s. 41
Bills of Exchange Act — B-4 41
Computation of time 41 Where a bill is not payable on demand, three days, called days of grace, are, in every case, where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace, but whenever the last day of grace falls on a legal holiday or non-juridical day in the province where any such bill is payable, the day next following, not being a legal holiday or non-juridical day in that province, is the last day of grace. R.S., c. B-5, s. 42
Bills of Exchange Act — B-4 42
Non-juridical days 42 In all matters relating to bills of exchange, the following and no other days shall be observed as legal holidays or non-juridical days: (a) in all the provinces, (i) Sundays, New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, National Day for Truth and Reconciliation, which is observed on September 30, Remembrance Day and Christmas Day, (ii) the birthday (or the day fixed by proclamation for the celebration of the birthday) of the reigning Sovereign, (iii) any day appointed by proclamation to be observed as a public holiday, or as a day of general prayer or mourning or day of public rejoicing or thanksgiving, throughout Canada, and (iv) the day next following New Year’s Day, Christmas Day and the birthday of the reigning Sovereign (if no other day is fixed by proclamation for the celebration of the birthday) when those days respectively fall on a Sunday; (b) in any province, any day appointed by proclamation of the lieutenant governor of the province to be observed as a public holiday, or for a fast or thanksgiving within the province, and any day that is a non-juridical day by virtue of an Act of the legislature of the province; and (c) in any city, town, municipality or other organized district, any day appointed to be observed as a civic holiday by resolution of the council, or other authority charged with the administration of the civic or municipal affairs of the city, town, municipality or district. R.S., 1985, c. B-4, s. 42 2021, c. 11, s. 2
Bills of Exchange Act — B-4 43
Time of payment 43 Where a bill is payable at sight, or at a fixed period after date, after sight or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment. R.S., c. B-5, s. 44
Bills of Exchange Act — B-4 44
Sight bill 44 Where a bill is payable at sight or at a fixed period after sight, the time begins to run from the date of the acceptance if the bill is accepted, and from the date of noting or protest if the bill is noted or protested for non-acceptance or for non-delivery. R.S., c. B-5, s. 45
Bills of Exchange Act — B-4 45
Due date 45 (1) Every bill that is made payable at a month or months after date becomes due on the same numbered day of the month in which it is made payable as the day on which it is dated, unless there is no such day in the month in which it is made payable, in which case it becomes due on the last day of that month, with the addition, in all cases, of the days of grace. Definition of “month” (2) The term month in a bill means the calendar month. R.S., c. B-5, s. 46
Bills of Exchange Act — B-4 46
Capacity of parties 46 (1) Capacity to incur liability as a party to a bill is coextensive with capacity to contract. Corporations (2) Nothing in this section enables a corporation to make itself liable as drawer, acceptor or endorser of a bill, unless it may do so under the law in force relating to that corporation. R.S., c. B-5, s. 47
Bills of Exchange Act — B-4 47
Effect of disability on holder 47 Where a bill is drawn or endorsed by any infant, minor or corporation having no capacity or power to incur liability on a bill, the drawing or endorsement entitles the holder to receive payment of the bill and to enforce it against any other party thereto. R.S., c. B-5, s. 48
Bills of Exchange Act — B-4 48
Forgery 48 (1) Subject to this Act, where a signature on a bill is forged, or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorized signature is wholly inoperative, and no right to retain the bill or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority. Ratification (2) Nothing in this section affects the ratification of an unauthorized signature not amounting to a forgery. Recovery of amount paid on forged cheque (3) Where a cheque payable to order is paid by the drawee on a forged endorsement out of the funds of the drawer, or is so paid and charged to his account, the drawer has no right of action against the drawee for the recovery of the amount so paid, nor any defence to any claim made by the drawee for the amount so paid, as the case may be, unless he gives notice in writing of the forgery to the drawee within one year after he has acquired notice of the forgery. Default of notice (4) In case of failure by the drawer to give notice of the forgery within the period referred to in subsection (3), the cheque shall be held to have been paid in due course with respect to every other party thereto or named therein, who has not previously instituted proceedings for the protection of his rights. R.S., c. B-5, s. 49
Bills of Exchange Act — B-4 49
Recovery of amount paid on forged endorsement 49 (1) Where a bill bearing a forged or an unauthorized endorsement is paid in good faith and in the ordinary course of business by or on behalf of the drawee or acceptor, the person by whom or on whose behalf the payment is made has the right to recover the amount paid from the person to whom it was paid or from any endorser who has endorsed the bill subsequent to the forged or unauthorized endorsement if notice of the endorsement being a forged or an unauthorized endorsement is given to each such subsequent endorser within the time and in the manner mentioned in this section. Rights against prior endorsers (2) Any person or endorser from whom an amount has been recovered under subsection (1) has the like right of recovery against any prior endorser subsequent to the forged or unauthorized endorsement. Notice of forgery (3) The notice referred to in subsection (1) shall be given within a reasonable time after the person seeking to recover the amount has acquired notice that the endorsement is forged or unauthorized, and may be given in the same manner, and if sent by post may be addressed in the same way as notice of protest or dishonour of a bill may be given or addressed under this Act. R.S., c. B-5, s. 50
Bills of Exchange Act — B-4 50
Procuration signatures 50 A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is bound by such signature only if the agent in so signing was acting within the actual limits of his authority. R.S., c. B-5, s. 51
Bills of Exchange Act — B-4 51
Signing in representative capacity 51 (1) Where a person signs a bill as drawer, endorser or acceptor and adds words to his signature indicating that he has signed for or on behalf of a principal, or in a representative character, he is not personally liable thereon, but the mere addition to his signature of words describing him as an agent, or as filling a representative character, does not exempt him from personal liability. Rule for determining capacity (2) In determining whether a signature on a bill is that of the principal or that of the agent by whose hand it is written, the construction most favourable to the validity of the instrument shall be adopted. R.S., c. B-5, s. 52
Bills of Exchange Act — B-4 52
Valuable consideration 52 (1) Valuable consideration for a bill may be constituted by (a) any consideration sufficient to support a simple contract; or (b) an antecedent debt or liability. Form of bill (2) An antecedent debt or liability is deemed valuable consideration, whether the bill is payable on demand or at a future time. R.S., c. B-5, s. 53
Bills of Exchange Act — B-4 53
Holder for value 53 (1) Where value has, at any time, been given for a bill, the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to that time. In case of lien (2) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien. R.S., c. B-5, s. 54
Bills of Exchange Act — B-4 54
Accommodation bill 54 (1) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or endorser, without receiving value therefor, and for the purpose of lending his name to some other person. Liability of party (2) An accommodation party is liable on a bill to a holder for value, and it is immaterial whether, when that holder took the bill, he knew that party to be an accommodation party or not. R.S., c. B-5, s. 55
Bills of Exchange Act — B-4 55
Holder in due course 55 (1) A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely, (a) that he became the holder of it before it was overdue and without notice that it had been previously dishonoured, if such was the fact; and (b) that he took the bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it. Title defective (2) In particular, the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud. R.S., c. B-5, s. 56
Bills of Exchange Act — B-4 56
Right of subsequent holder 56 A holder, whether for value or not, who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder. R.S., c. B-5, s. 57
Bills of Exchange Act — B-4 57
Presumption of value 57 (1) Every party whose signature appears on a bill is, in the absence of evidence to the contrary, deemed to have become a party thereto for value. Presumed holder in due course (2) Every holder of a bill is, in the absence of evidence to the contrary, deemed to be a holder in due course, but if, in an action on a bill, it is admitted or proved that the acceptance, issue or subsequent negotiation of the bill is affected with fraud, duress or force and fear, or illegality, the burden of proof that he is the holder in due course is on him, unless and until he proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill by some other holder in due course. R.S., c. B-5, s. 58
Bills of Exchange Act — B-4 58
Usurious consideration 58 No bill, although given for a usurious consideration or on a usurious contract, is void in the hands of a holder, unless the holder had at the time of its transfer to him actual knowledge that it was originally given for a usurious consideration or on a usurious contract. R.S., c. B-5, s. 59
Bills of Exchange Act — B-4 59
By transfer 59 (1) A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill. By delivery (2) A bill payable to bearer is negotiated by delivery. By endorsement (3) A bill payable to order is negotiated by the endorsement of the holder. R.S., c. B-5, s. 60
Bills of Exchange Act — B-4 60
Without endorsement 60 (1) Where the holder of a bill payable to his order transfers it for value without endorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the endorsement of the transferor. Representative capacity (2) Where any person is under obligation to endorse a bill in a representative capacity, he may endorse the bill in such terms as to negative personal liability. R.S., c. B-5, s. 61
Bills of Exchange Act — B-4 61
Endorsing 61 (1) An endorsement in order to operate as a negotiation must be (a) written on the bill itself and be signed by the endorser; and (b) an endorsement of the entire bill. Allonge (2) An endorsement written on an allonge, or on a copy of a bill issued or negotiated in a country where copies are recognized, is deemed to be written on the bill itself. Partial endorsement (3) A partial endorsement, that is to say, an endorsement that purports to transfer to the endorsee a part only of the amount payable, or that purports to transfer the bill to two or more endorsees severally, does not operate as a negotiation of the bill. R.S., c. B-5, s. 62
Bills of Exchange Act — B-4 62
Signature sufficient 62 (1) The simple signature of the endorser on a bill, without additional words, is a sufficient endorsement. Two or more payees (2) Where a bill is payable to the order of two or more payees or endorsees who are not partners, all must endorse, unless the one endorsing has authority to endorse for the others. R.S., c. B-5, s. 63