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

(b) in the case of a bill which has been dishonoured
abroad, in lieu of the above damages, the holder may
recover from the drawer or an indorser, and the drawer
or an indorser who has been compelled to pay the bill
may recover from any party liable to him, the amount
of the re-exchange with interest thereon until the time
of payment ;

(c) where, by this Ordinance, interest may be
recovered as damages, such interest may, if justice
require it, be withheld wholly or in part, and where a
bill is expressed to be payable with interest at a given
rate, interest as damages may or may not be given at
the same rate as interest proper.

58. (1) Where the holder of a bill payable to bearer
negotiates it by delivery without indorsing it, he is called a
“transferor by delivery.”

(2) A transferor by delivery is not liable on the
instrument.

(3) A transferor by delivery who negotiates a bill
thereby warrants to his immediate transferee, being a holder
for value, that the bill is what it purports to be, that he has
a right to transfer it, and that at the time of transfer he is
not aware of any fact which renders it valueless.

Discharge of bill.

59. (1) A bill is discharged by payment in due course by
or on behalf of the drawee or acceptor.

Payment in due course means payment made at or
after the maturity of the bill to the holder thereof in good
faith and without notice that his title to the bill is defective.

(2) Subject to the provisions hereinafter contained,
when a bill is paid by the drawer or an indorser it is not
discharged; but

(a) where a bill payable to, or to the order of, a third

party is paid by the drawer, the drawer may enforce
payment thereof against the acceptor, but may not
re-issue the bill;

(b) where a bill is paid by an indorser, or where a bill

payable to drawer’s order is paid by the drawer, the

781

Transferor
by delivery
and trans-
feree.

Payment in
due course.