Overdue or dishonoured a bill is negotiable in its origin it continues so to be until it has been (a) restrictively indorsed, or (I)) discharged by payment or otherwise. An overdue bill can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had. A bill payable on demand would be overdue if it had been in circulation for an unreasonable length of time. Except where the indorsement bears date after maturity, every negotiation is primil facie deemed to have been effected before the bill was overdue. Where a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but this rule would not affect the rights of a holder in due course. Where a bill is negotiated back to the drawer, or to a prior indorser, or to the acceptor, such party may reissue and further negotiate it, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.
General duties of the for a bill is payable after sight, presentment for acceptance is necessary in order to fix maturity. Where presentment for acceptance is expressly stipulated for, or where the bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment ; in no other case is presentment for acceptance necessary. Delay in presentment for acceptance before presentment for payment is excused where the bill is payable elsewhere than at the place of business or residence of the drawee, and the holder has used reasonable diligence. A bill payable after sight must be presented for acceptance, or negotiated, within a reasonable time, otherwise the drawer and prior indorsers are discharged. A bill is duly presented for acceptance which is presented in accordance with the following rules:—(a) The presentment must be made by or on behalf of the holder to the drawee, or to some person authorised to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue ; (b) where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only ; (c) where the drawee is dead, presentment may be made to his personal representative ; (d) where the drawee is bankrupt, presentment may be made to him or to his trustee ; (e) where authorised by agreement or usage, a presentment through the post-office is sufficient. It is usual to present during ordinary business hours, and in London to call for it on the following day. Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance--(a) where the drawee is dead or bankrupt, or is a fictitious person, or a person not having capacity to contract by bill ; (b) where, after the exercise of reasonable diligence, such presentment cannot be effected ; (c) where, although the presentment has been irregular, acceptance has been refused on some other ground. Presentment is not excused because the holder has reason to believe that the bill will be dishonoured thereon.
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 ; and if he do not, the holder loses hisright of recourse against the drawer and indorsers. A bill is dishonoured by non-acceptance (a) when acceptance is refused, or cannot be obtained, upon due presentment ; or (b) when present ment is excused and the bill is not accepted ; and a bill is dishonoured by non-acceptance, the holder has an immediate right of recourse against the drawer and indorsers, no presentment for •payment being necessary. The holder may refuse a qualified arid, in default of obtaining the acceptance unqualified, may treat the bill as dishonoured. Where a qualified
acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorised the holders to take a qualified acceptance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the bill ; but this would not be so in the case of a partial accept ance whereof due notice has been given. Where a foreign bill has been partially accepted, it must be protested as to the balance. If the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he will be deemed to have assented thereto.
Presentment for is dispensed with in the following cases :—(a) Where, after the exercise of reasonable diligence it cannot be effected—though the fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment ; (b) where the drawee is a fictitious person ; (c) as regards the drawer, where the drawee or acceptor is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if presented ; (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 ; (e) by waiver of presentment, express or implied. Save when the case comes within the above rules, if a bill be not duly presented the drawer and indorsers will be discharged. The following are the rules for due present ment:—(1) Where the bill is not payable on demand, presentment must be made on the day it falls due. (2) Where the bill is payable on demand, 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 indorse ment, in order to render the indorser liable. In determining what is a reasonable time, regard must be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case. (3) Presentment must be made by the holder, or by some person authorised to receive payment on his behalf, at a reasonable hour on a business day, at the proper place, as hereinafter defined, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf, if, with the exercise of reasonable diligence, such person can there be found. (4) A bill is presented at the proper place :—(a) Where a place of payment is specified in the bill, and the bill is there presented ; (b) where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented ; (c) where no place of payment is specified and no address given, and the bill is presented at the drawee's or acceptor's place of business if known, and if not, at his ordinary residence if known; (d) in any other case if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business or residence. (5) Where a bill is presented at the proper place, and after the exercise of reasonable diligence no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required. (6) Where a bill is drawn upon or accepted by two or more persons who are not partners, and no place of payment is specified, presentment must be made to them a)]. (7) Where the drawer or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found. (8) Where authorised by agreement or usage a presentment through the post-office is sufficient. Delay in making presentment for payment is excused when the delay is caused by circum stances beyond the control of the holder, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate, presentment must be made with reasonable diligence.