ACCEPTANCE FOR HONOUR. The drawer of a bill and any indorser may insert in the bill the name of person to whom a holder may resort in case of need, that is in case the bill is dishonoured by non-accept ance or non-payment ; such a person is called the referee in case of need. If the drawee refuses to accept the bill, the holder may, after the bill is protested for non-acceptance, present it to the referee in case of need. When the referee accepts it, he becomes an acceptor for honour.
After protest for non-acceptance, any person may, with the consent of the holder, accept a bill supra protest for the honour of any party thereon. Section 65 of the Bills of Exchange Act, 1882, provides as follows : " (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 accept ance for honour : " (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." An acceptance for honour is written across the bill as, " Accepted for the honour of John Brown, Thomas Jones," or, " Accepted supra protest, Thomas Jones," or " Accepted for the honour of John Brown with for notarial charges, Thomas Jones," or, " Ac cepted S.P. (i.e. supra protest), Thomas Jones." The liability of an acceptor for honour_is dealt with in Section 66 as follows : " (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 accept ance, 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." (See ACCEPTANCE, BILL OF Ex CHANGE.)