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Inland Bill

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INLAND BILL. The Bills of Exchange Act, 1882, Section 4, defines an inland bill as follows : " (I) An inland bill is a bill which is or on the face of it purports to be (a) both drawn and payable within the British Islands, or (b) drawn I within the British Islands upon some person resident therein. Any other bill is a foreign bill.

" For the purposes of this Act, British Islands ' mean any part of the United Kingdom of Great Britain and Ireland, the islands of Man, Guernsey, Jersey, Alderney, and Sark, and the islands adjacent to any of them being part of the dominions of Her Majesty.

" (2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill." By Section 36 of the Stamp Act, 1891, " a bill or note purporting to be drawn or made out of the United Kingdom is, for the purposes of stamp duty, to be deemed to have been so drawn or made, although it may in fact hava been drawn or made within the United Kingdom." Thus, by the Stamp Act, a bill drawn in the Isle of Man and the Channel Islands (which places are out of the United Kingdom) is regarded as a foreign bill, whereas, by the Bills of Exchange Act, it is an inland bill.

Where an inland bill is dishonoured, it is not necessary that it should be noted or protested for non-acceptance or non payment in order to preserve recourse against the drawer or indorser, but this is sometimes done in order to induce a friend to come forward to accept the bill for the honour of a certain party to the bill. The sections of the Act with regard to noting and protest are given in the article PROTEST.

Where an inland bill is indorsed in a foreign country, the indorsement shall as regards the payer be interpreted according to the law of the United Kingdom. As to the other rules laid down in the Bills of Exchange Act with regard to bills drawn in one country and negotiated, accepted or payable in another, see Section 72, under FOREIGN BILL.

The following is the usual form in which a bill of exchange is drawn :— This bill is drawn at Birmingham on July 10, 1910, being payable at six months after date it falls due (or matures) on January 13, 1911 ; the six months are called its term and the following three days are the days of grace. The date is always expressed

in figures, but to use words would be quite in order. The amount is quoted in both words and figures, but either alone would be according to law, the repetition being to avoid mistakes or fraudulent alteration.

The currency of this bill on July 10, 1910. the day it is drawn, is 187 days, on July 11 it is 186 days, and so on, this being the time it has yet to run.

This is an " after date " bill, but it might have been drawn " after sight," in which case Mr. Thomas Jones, when he accepted it, would have written the then present date in his acceptance and the due date would have been reckoned from that.

Or, instead of " Six months after date," the bill might have been drawn " At sight " or " On presentation " or " On demand," in all which three cases there would be no acceptance at all, for payment would have to be made at once.

The drawer is John Brown, who in this case is also the payee, but the drawer could have made the bill payable to anyone he pleased or to bearer.

The drawee is Thomas Jones and by writing his name across the bill he has become the acceptor ; that is to say, he accepts John Brown's demand for money due, and, by the words he has added, in structs the Rivergate Branch of the British Bank (where John Jones keeps his account) to pay to John Brown or his order in six months' time.

This bill is said to be domiciled at the British Bank, Ltd., Rivergate, London, who are also called the " drawee bank." Referring to the indorsements on the bill, John Brown wishes to pay .150 to Smith, Robinson & Co. ; he therefore, as shown, indorses the bill over to them ; who in their turn indorse it to the Imperial Trading Co., Ltd. ; this firm indorse it and then, perhaps, discount it with their own bankers who will sort it away in their bill case until the time comes for presentation for payment. For stamp duties see BILL OF EXCHANGE. (See BILL OF EXCHANGE. FOREIGN BILL.)