Home >> Dictionary Of Banking >> Paying Banker to Transfer Of Shares >> Payment for Honour

Payment for Honour

bill, protest and party

PAYMENT FOR HONOUR. When an acceptor fails to pay a bill at maturity, any person may, after the bill has been protested, pay it supra protest for the honour of some party to the bill.

The regulations regarding payment for honour supra protest are contained in Section 68 of the Bills of Exchange Act, 1882, which is as follows : " (1) 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.

" (2) 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.

" (3 Payment for honour supra protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour, which may be appended to the protest or form an extension of it.

" (4) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his inten tion to pay the bill for honour, and for whose honour he pays.

" (5) NN'here 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 rights and duties of, the holder as regards the party for whose honour he pays, and all parties liable to that party.

" (6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is en titled to receive both the bill itself and the protest. If the holder do not on demand deliver them up he shall be liable to the payer for honour in damages.

" (7) Where the holder of a bill refuses to receive payment supra protest he shall lose his right of recourse against any party who would have been discharged by such payment." (See ACCEPTANCE FOR 140N0UR, BILL OF EXCHANGE.)