7. Notice of dishonor.—When a bill has been dis honored by non-acceptance or by non-payment (by non-payment in the case of a note), notice of dis honor must be given to the drawer and each indorser; a drawer or indorser who is not so notified is dis charged, tho a holder in due course subsequent to the omission is not prejudiced. Notice must be given not later than the juridical or business day next fol lowing the dishonor of the bill.
8. By whom notice is may 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. Hence, when a note payable at a bank is sent there for collection, the protest may prop erly be made and notice be given by the bank, altho it has no interest in the note. Each party who re ceives notice of dishonor has the next following busi ness day. to send notice to parties whom he, in turn, may wish to hold liable.
9. Sun7ciency of return of a dishon ored bill to the drawer or an indorser is a sufficient notice of dishonor. The notice need not be signed. If insufficient, the notice may be supplemented and validated by verbal communication. It may be given in writing or by personal communication, and in any terms which identify the instrument and intimate that the bill has been dishonored by non-acceptance or non payment. An error in the description of the instru ment will not vitiate the notice unless the person to whom it is given is misled thereby.
10. Time within which notice 'must be tice of dishonor must be given on the day when pre sentment has been made, or on the next following business day. This rule is satisfied if the notice is either served or posted within this delay. Delay in giving notice of dishonor is excused when the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his default, conduct or negligence. Thus the death or sudden ill ness of the holder or his agent who has the bill, will be a good excuse, or delay caused by the indorser having given a wrong or illegible address.
11. Place of of dishonor of a bill or note is sufficiently given if addressed in due time to the person, entitled to such notice, at his customary ad dress or place of residence, or at the place at which the bill is dated, unless any party so entitled to notice, has under his signature, designated another place. Where notice of dishonor 'is duly addressed and posted, the sender is deemed to have given due notice of dishonor, even if the notice miscarries in the post.
12. Notice waived and of dis honor is dispensed with, when after the exercise of reasonable diligence, notice cannot be given or does not reach the drawer or indorser who is sought to be charged. It may be excused by waiver, express or im
plied. The waiver may be in writing or oral. Thus it has beeh held that where an indorser asked for time and promised to pay, it was a waiver of notice. No tice of dishonor is dispensed with as regards the drawer, where the drawer and the drawee are the same person; where the drawee is a fictitious person, or a person not having capacity to contract; where the drawer is the person to whom the bill is presented for payment; where the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill; and where the drawer has counter manded payment. It is dispensed with as regards the indorSer where the drawee is a fictitious person, or a person not having capacity to contract, and the in dorser was aware of the fact at the time but indorsed the bill; where the indorser is the person to whom the bill is presented for payment ; and where the bill is accepted or made for his accommodation.
13. protest of bills and notes is done by a notary public who establishes and certifies that the instrument has been presented and dishonored. The notary's certificate is authentic and makes proof itself of its contents, and hence while' protest is necessary only for foreign bills of exchange, except in the Province of Quebec where inland bills also must be protested, a formal protest in other cases makes it easy to prove dishonor and notice to the drawer and indorsers. Protest is not necessary to render the acceptor of a bill liable. It is dispensed with by any circumstances which would dispense with notice of dishonor, as just above set out. Delay in noting or protest is excused by reason of circum stances beyond the control of the holder, where these are not due to his fault, misconduct or negligence. A bill which has been protested for non-acceptance or a bill of which protest for non-acceptance has not been waived, may be subsequently protested for non-pay anent. A bill must be protested at the place where it is dishonored.
To facilitate the making of protests in country dis tricts, the act also provides that protest may be made at some other place in Canada situated within five miles of the place of presentment and dishonor of the bill. Tho, when a bill is presented thru the post of fice and is returned by post dishonored, it may be pro tested at the place to which it is returned, on the day of return or on the next day.