Acceptance part 2

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The presentment must be made, by or on behalf of the holder, to the drawee or to some person authorized to accept or refuse acceptance on his behalf, at a reasonable hour on a business day and before the bill is overdue;
Non-acceptance
When a bill is duly presented for acceptance and is not accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he do not, the holder shall lose his right of recourse against the drawer and indorsers.

Dishonour by non-acceptance and its consequences
(1)
A bill is dishonoured by non-acceptance:
(a)
when it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or
(b)
when presentment for acceptance is excused, and the bill is not accepted.
(2)
Subject to the provisions of this Act, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and indorsers accrues to the holder, and no presentment for payment is necessary.

Rules as to presentment for payment
(1)
Subject to the provisions of this Act, a bill must be duly presented for payment. If it be not so presented, the drawer and indorsers shall be discharged.

A bill is duly presented for payment which is presented in accordance with the following rules:
(b)
Where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue, in order to render the drawer liable, and within a reasonable time after its indorsement, in order to render the indorser liable. In determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case.
Notice of dishonour and effect of non-notice
Subject to the provisions of this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged:

Liability of acceptor
The acceptor of a bill, by accepting it:
(a)
engages that he will pay it according to the tenor of his acceptance; and
(b)
is precluded from denying to a holder in due course:
(i)
the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill; and
(ii)
in the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuineness or validity of his indorsement; and
(iii)
in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to indorse, but not the genuineness or validity of his indorsement.

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

Acceptance for honour supra protest
(1)
Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supra protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.
(2)
A bill may be accepted for honour for part only of the sum for which it is drawn.
(3)
An acceptance for honour supra protest in order to be valid must:
(a)
be written on the bill, and indicate that it is an acceptance for honour; and
(b)
be signed by the acceptor for honour.
(4)
Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.
(5)
Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour.
Liability of acceptor for honour
(1)
The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts.
(2)
The acceptor for honour is liable to the holder, and to all parties to the bill subsequent to the party for whose honour he has accepted.


A bill of exchange is defined in section 8 of the Bills of Exchange Act as:
An unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.
A promissory note is defined in section 89 of the Bills of Exchange Act as:
An unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to or to the order of a specified person, or to bearer.

From the Notary Manual

The notary manual explains uner the section on "acceptance" that it is "acceptance" or "payment."

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