774

Dishonour
bv non:
payment.

Notice af
dishonour
and eftect of
non notice.

Rules as to
notice of
dishonour.

Ch. 31. No. 5.] Bills of Exchange.

 

(d) as regards an indorser, where the bill) was
accepted or made for the accommodation of that
indorser, and he has no reason to expect that the bill
would be paid if presented ;

(¢) by waiver of presentment, expressed or implied.

47. (1) A bill is dishonoured by non-payment (a) when
it is duly presented for payment and payment is refused or
cannot be ebiained, or (6) when presentment is excused and
the bill is overdue and unpaid.

(2) Subject to the provisions of this Ordinance, when
a billis dishonoured by non-payment, an immediate right of
recourse against: the drawer and indorsers accrue. to the
holder.

48. Subject to the provisions of this Ordinance, when
bill has been dishonoured by non-acceptance or by non-
payment, notice of dishonour must be given to the drawer
and cach indorser, and any drawer or indorser to whom such
hotice is not given is discharged

Provided that

(a) 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, shall
not be prejudiced by the omission ;

(6) where a bill is dishonoured by non-acceptance,
and due notice of dishonour is given, iW shall not be
nece, cary to give notice of a subsequent dishonour by
non-payment unless the bill shall ino the meantime
have been accepted.

49. Notice of dishonour in order to be valid and effectual
must be given in accordance with the following rule.

(1) The notice must be given by or on behalf of the
holder, or by or on behalf of an indorser who, at the
time of giving it, is himself liable on the bill.

(2) Notice of dishonour may be given by an agent
either in his own name, or in the name of any party
entitled to give notice whether that party be his
principal or not.