Payment for honour.—Where a bill has been protested for non-payment, any person may intervene and pay it supra protest for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference. Payment for honour must be attested by a notarial act of honour. Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for, and succeeds to both the right; and duties of, the holder as regards the party for whose honour he pays, and all parties liable to that party. The payer for honour is entitled to delivery of the bill and the protest on payment of the amount and of the notarial expenses ; if the holder should not on demand deliver them up, he will be liable to the payer for honour in damages. Where the holder refuses to receive payment supra protest, he will lose his right of recourse against any party who would have been discharged by such payment.
Lost instruments.—Where a bill has been lost before it is overdue, the holder who has lost it may compel the drawer to give him a duplicate bil; against an indemnity. In any action or proceeding on a bill, the Court may order that the loss of the instrument shall not be set up, provided an indemnity is given against the claims of other persons upon the instrument in question.
Bill in a set.—Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill. Where the holder of a set indorses two or more parts to different persons, he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if the said parts were separate bills. Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders deemed the true owner of the bill ; but this rule will not affect the rights of a person who in due course accepts or pays the part first presented to him. The acceptance may be written on any part, and it must be w ritten on one part only. If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill. When the acceptor pays without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof. But subject to the preceding rules, where one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.
Conflict of laws.—Where a bill drawn in one country is negotiated, accepted, or payable in another, the rights, duties, and liabilities of the parties thereto are determined as follows :—(1) The validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance or indorsement, or acceptance supra protest, is determined by the law of the place where such contract was made. But where a bill is issued out of the United Kingdom, it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue. Also, where a
bill issued out of the United Kingdom conforms, as regards requisites in form, to the law of the United Kingdom, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold, or become parties to it in the United Kingdom. (2) Generally speak ing, the interpretation of the drawing, indorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made ; but where an inland bill is indorsed in a foreign country the indorsement will, as regards the payer, be interpreted according to the law of the United Kingdom. (3) The duties of the holder with respect to presentment for acceptance or payment, and the necessity for or sufficiency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured. (4) Where a bill is drawn out of but payable in the United Kingdom, and the sum payable is not expressed in the currency of the United Kingdom, the amount will, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable. (5) Where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable.
Evidence in Scotland.—In any judicial proceeding in Scotland, any fact relating to a bill of exchange, bank cheque, or promissory note, which is relevant to any question of liability thereon, may be proved by parole evidence. But nothing is to affect the A' xisting law and practice whereby the party who is, according to the tenor of any bill of exchange, bank cheque, or promissory note, debtor to the holder in the amount thereof, may be required, as a condition of obtaining a silt of diligence, or suspension of a charge, or threatened charge, to make such consignation, or to find such caution as the Court before whom the cause is depending may require. The above, however, does not apply to any case where the bill of exchange, bank cheque, or promissory note has undergone the sesennial prescription.
Stamps.—All bills must be written on paper stamped before execution with the appropriate impressed stamp. After execution a bill cannot be stamped. Any person who issues, indorses, transfers, negotiates, presents for payment, or pays any bill liable to duty, and not being duly stamped, incurs a penalty of £10. The person taking or receiving such a bill not duly stamped, either in payment or as security, is barred from recovering thereon, or making it in any way available.
The stamp duty where the amount or value of the money for which the bill is drawn does not exceed £5 is— . . . . . £0 0 1 Exceeds £5 and does not exceed £10 . . 0 0 2 ff 10 9 9 25 . . . 0 0 3 ff 25 If 50 . . 0 0 6 Of 50 )1 75 . . • 0 0 9 IN 75 51 100 • • • 0 1 0 Id 100 for every £100, and also for any fractional part of £100 of such amount or value . 0 1 0 If the bill is payable on demand, the duty is fixed for all amounts at the sum of one penny, which may be denoted by an adhesive stamp, to be cancelled by the party by whom the bill is payable. See further hereon : ACCOMMODATION BILL ; CHEQUE ; PROMISSORY NOTE; USA NCE.