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(e) The expression “ Bill” means bill of exchange, and “ Note” means promissory note ;
(f) The expression “ Delivery” means transfer of possession, actual or constructive, from one person to another;
(g) The expression “Holder" means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
(h) The expression “Indorsement” means an indorsement completed by delivery;
(i) The expression “Issue" means the first delivery of a bill or note, complete in form, to a person who takes it as a holder;
(1) The expression "Value" means valuable consideration.
(k) The expression “ Defence includes counter-claim.
BILLS OF EXCHANGE.
Form und Interpretation. 3. A bill of exchange is an unconditional order in writ- Bill of ex
change deing, addressed by one person to another, signed by the fined. person giving it, requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer :
2. An instrument which does not comply with these When inconditions, or which orders any act to be done in addition is not such to the payment of money, is not, except as hereinafter provided, a bill of exchange :
3. An order to pay out of a particular fund is not un- Unconconditional within the meaning of this section ; but an order deunqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to re-imburse himself, or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional:
4. A bill is not invalid by reason(a) That it is not dated ;
specified. (6) That it does not specify the value given, or that any value has been given therefor ;
(c) That it does not specify the place where it is drawn or the place where it is payable.
Bill not in. valid for reasons
Inland and foreign bills.
4. An inland bill is a bill which is, or on the face of it purports to be, (a) both drawn and payable within Canada, or (6) drawn within Canada upon some person resident therein. Any other bill is a foreign bill:
2. Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.
If notnoted as foreign.
If different parties to
5. A bill may be drawn payable to, or to the order of, bill are the the drawer; or it may be drawn payable to, or to the order
of, the drawee : Option of 2. Where in a bill drawer and drawee are the same per
son, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.
holder in case speoified.
Drawee to be named
If there are more than one.
6. The drawee must be named or otherwise indicated in a bill with reasonable certainty:
2. A bill may be addressed to two or more drawees, whether they are partners or not; but an order addressed to two drawees in the alternative, or to two or more drawees in succession is not a bill of exchange.
Certainty 7. Where a bill is not payable to bearer, the payee required as to payee. must be named or otherwise indicated therein with reason
able certainty : If payable 2. A bill may be made payable to two or more payees
jointly, or it may be made payable in the alternative to
being : It payee is 3. Where the payee is a fictitious or non-existing pering. son, the bill may be treated as payable to bearer.
to two or more payees, or to holder of office.
A bill may
8. When a bill contains words prohibiting transfer, or Certain indicating an intention that it should not be transferable, but not ne
' gotiable. it is valid as between the parties thereto, but it is not negotiable :
2. A negotiable bill may be payable either to order or to Payable to bearer :
3. A bill is payable to bearer which is expressed to be To bearer. so payable, or on which the only or last indorsement is an indorsement in blank :
4. A bill is payable to order which is expressed to be so To order. payable, or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable :
5. Where a bill, either originally or by indorsement, is Option of expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order, at his option.
9. The sum payable by a bill is a sum certain within Sum paythe meaning of this Act, although it is required to be paid
(a) With interest;
(c) By stated instalments, with a provision that upon default in payment of any instalment the whole shall become due;
(d) According to an indicated rate of exchange, or according to a rate of exchange to be ascertained as directed by the bill;
2. Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable :
3. Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated, from the issue thereof.
Bill pay: able on
10. A bill is payable on demand
(u) Which is expressed to be payable on demand, or on presentation; or
(6) In which no time for payment is expressed :
2. Where a bill is accepted or indorsed when it is overwhen over due, it shall, as regards the acceptor who so accepts, or any
indorser who so indorses it, be deemed a bill payable on demand.
11. A bill is payable at a determinable future time, within the meaning of this Act, which is expressed to be payable
at sight or
(6) On or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening is uncertain :
2. An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.
As to contingencies.
Omission of date in
12. Where a bill expressed to be payable at a fixed bil pamer period after date is işsued undated, or where the acceptance
of a bill payable at a fixed period after sight is undated, any