### Bills of Exchange Ordinance 《匯票條例》

21. Delivery
(1) Every contract on a bill, whether it is the drawer’s, the acceptor’s or an indorser’s, is incomplete and revocable, until delivery of the instrument in order to give effect thereto:
Provided that 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.
(2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery—
(a) in order to be effectual, must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be;
(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;
but if 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.
(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved.
[cf. 1882 c. 61 s. 21 U.K.]

22. Capacity of parties
(1)  Capacity to incur liability as a party to a bill is co-extensive with capacity to contract:
Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it to do so under the law relating to corporations. (Amended 50 of 1911; 62 of 1911 Schedule) 
(2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
[cf. 1882 c. 61 s. 22 U.K.]

23. Signature essential to liability
No person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such:
Provided that—
(a) where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name;
(b) 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.
[cf. 1882 c. 61 s. 23 U.K.]

### Bills of Exchange Ordinance 《匯票條例》

24. Forged or unauthorized signature
Subject to the provisions of this Ordinance, 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:
Provided that nothing in this section shall affect the ratification of an unauthorized signature not amounting to a forgery.[cf. 1882 c. 61 s. 24 U.K.]

25. Procuration signature
A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.
[cf. 1882 c. 61 s. 25 U.K.]

26. Person signing as agent or in representative capacity
(1) Where a person signs a bill as drawer, indorser, or acceptor, and adds words to his signature, indicating that he signs for or on behalf of a principal or in a representative character, he is not personally liable thereon; but, subject to section 26A, 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. (Amended 16 of 1983 s. 2)
(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.
[cf. 1882 c. 61 s. 26 U.K.]

### Bills of Exchange Ordinance 《匯票條例》

26A. Corporate signatures
(1) A person who makes, accepts or indorses a bill for, in the name of, on behalf of or on account of a company shall not be liable in respect of that making, acceptance or indorsement where, on a proper construction of the bill as a whole, that making, acceptance or indorsement is a making, acceptance or indorsement of that company.
(2) In subsection (1), company (公司) has the meaning given by section 2(1) of the Companies Ordinance (Cap. 622) and includes a non-Hong Kong company as defined by that section. (Amended 28 of 2012 ss. 912 & 920)
(3) This section shall apply to the making, acceptance or indorsement of a bill after the commencement* of the Bills of Exchange (Amendment) Ordinance 1983 (16 of 1983).
(Added 16 of 1983 s. 3) Editorial Note:
* Commencement date: 29 April 1983.

27. Value and holder for value
(1) Valuable consideration for a bill may be constituted by—
(a) any consideration sufficient to support a simple contract;
(b) an antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.
(2) 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 such time.
(3) 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.
[cf. 1882 c. 61 s. 27 U.K.]

28. Accommodation party
(1) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person.
(2) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.
[cf. 1882 c. 61 s. 28 U.K.]