Document ID: chunk:federal_register_of_legislation:C2012C00128:section:74:p3
Version: federal_register_of_legislation:C2012C00128
Segment Type: section
Provision Reference: s 74 (pt 3/3)
Character Range: 68964–70893

to provide adequate security for the indemnity.

 (10) The indorser shall:
 (a) in a case where the indorser requests the former holder, by notice under subsection (9), to give the indorser an indemnity and also to provide security for the indemnity—within 14 days after the day on which the indemnity is given to the indorser or the day on which the security is provided, whichever last occurs;
 (b) in a case where the indorser requests the former holder, by notice under subsection (9), to give the indorser an indemnity, but does not also request the former holder to provide security for the indemnity—within 14 days after the day on which the indemnity is given to the indorser; or
 (c) in any other case—within 14 days after the day on which the notice under subsection (8) is given to the indorser;
indorse the replacement bill to the same tenor as the indorser's indorsement of the original bill and give the replacement bill so indorsed to the former holder.

 (11) Where the drawer, acceptor or indorser refuses or fails to comply with subsection (4), (7) or (10), as the case requires, the former holder may apply to a court of competent jurisdiction for an order directing:
 (a) the drawer to draw a replacement bill to the same tenor as the original bill and give the replacement bill to the former holder;
 (b) the acceptor to accept the replacement bill to the same tenor as the acceptor's acceptance of the original bill and give the replacement bill so accepted to the former holder; or
 (c) the indorser to indorse the replacement bill to the same tenor as the indorser's indorsement of the original bill and give the replacement bill so indorsed to the former holder;
as the case may be.

 (12) Where an application is made to a court of competent jurisdiction for an order of a kind referred to in subsection (11), the court may make the order on such terms and conditions as it considers just and equitable.