Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 27 of 1909 as amended
This compilation was prepared on 11 July 2008
taking into account amendments up to Act No. 73 of 2008
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may
be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and
Publishing,
Attorney‑General's Department, Canberra
Contents
Part I--Preliminary 1
1............ Short title [see Note 1] ....................................................................... 1
2............ Commencement [see Note 1] .............................................................. 1
4............ Interpretation of terms ....................................................................... 1
5............ Application of rules of bankruptcy and common law ........................ 2
6............ Application of Act ............................................................................. 2
7............ Application of State laws ................................................................... 2
Part II--Bills of exchange 3
Division 1--Form and interpretation 3
8............ Bill of exchange defined ...................................................................... 3
9............ Inland and foreign bills ........................................................................ 3
10.......... Effect where different parties to bill are the same person .................. 4
11.......... Address to drawee .............................................................................. 4
12.......... Certainty required as to payee ........................................................... 4
13.......... What bills are negotiable ..................................................................... 4
14.......... Sum payable ....................................................................................... 5
15.......... Bill payable on demand ...................................................................... 5
16.......... Bill payable at a future time ............................................................... 6
17.......... Omission of date in bill payable after date ......................................... 6
18.......... Ante‑dating and post‑dating ............................................................... 6
19.......... Computation of time of payment ....................................................... 7
20.......... Case of need ........................................................................................ 7
21.......... Optional stipulation by drawer or indorser ........................................ 7
22.......... Definition and requisites of acceptance .............................................. 7
23.......... Time for acceptance ............................................................................ 8
24.......... General and qualified acceptances ...................................................... 8
25.......... Inchoate instruments .......................................................................... 9
26.......... Delivery .............................................................................................. 9
Division 2--Capacity and authority of parties 11
27.......... Capacity of parties ........................................................................... 11
28.......... Signature essential to liability ........................................................... 11
29.......... Forged or unauthorized signature ..................................................... 11
30.......... Procuration signatures ...................................................................... 12
31.......... Person signing as agent or in representative capacity ....................... 12
Division 3--The consideration for a bill 13
32.......... Value and holder for value ................................................................ 13
33.......... Accommodation bill or party ........................................................... 13
34.......... Holder in due course ......................................................................... 13
35.......... Presumption of value and good faith ................................................ 14
Division 4--Negotiation of bills 15
36.......... Negotiation of bill ............................................................................. 15
37.......... Requisites of a valid indorsement ..................................................... 15
38.......... Conditional indorsement ................................................................... 16
39.......... Indorsement in blank and special indorsement ................................. 16
40.......... Restrictive indorsement .................................................................... 16
41.......... Negotiation of overdue or dishonoured bill ...................................... 17
42.......... Negotiation of bill to party already liable thereon ............................ 17
43.......... Rights of holder ................................................................................ 18
Division 5--General duties of the holder 19
44.......... When presentment for acceptance is necessary ............................... 19
45.......... Time for presenting bill payable after sight ...................................... 19
46.......... Rules as to presentment for acceptance and excuses for non‑presentment 19
47.......... Non‑acceptance ................................................................................ 20
48.......... Dishonour by non‑acceptance and its consequences ........................ 20
49.......... Duties as to qualified acceptances .................................................... 21
50.......... Rules as to presentment for payment .............................................. 21
51.......... Excuses for delay or non‑presentment for payment ........................ 23
52.......... Dishonour by non‑payment ............................................................. 23
53.......... Notice of dishonour and effect of non‑notice ................................... 23
54.......... Rules as to notice of dishonour ........................................................ 24
55.......... Excuses for non‑notice and delay ..................................................... 26
56.......... Noting or protest of bill .................................................................... 26
57.......... Duties of holder as regards drawee or acceptor ................................ 28
Division 6--Liabilities of parties 29
58.......... Funds in hands of drawee ................................................................. 29
59.......... Liability of acceptor ......................................................................... 29
60.......... Liability of drawer or indorser .......................................................... 29
61.......... Stranger signing bill liable as indorser ............................................... 30
62.......... Measure of damages against parties to dishonoured bill .................. 30
63.......... Transferor by delivery and transferee .............................................. 31
Division 7--Discharge of bill 32
64.......... Payment in due course ...................................................................... 32
65.......... Banker paying demand draft whereon indorsement is forged ........... 32
66.......... Acceptor the holder at maturity ....................................................... 33
67.......... Express waiver .................................................................................. 33
68.......... Cancellation ...................................................................................... 33
69.......... Alteration of bill ............................................................................... 34
Division 8--Acceptance and payment for honour 35
70.......... Acceptance for honour supra protest ............................................... 35
71.......... Liability of acceptor for honour ....................................................... 35
72.......... Presentment to acceptor for honour ................................................. 36
73.......... Payment for honour supra protest ................................................... 36
Division 9--Lost instruments 38
74.......... Replacement of lost or destroyed bill ............................................... 38
75.......... Action on lost bill ............................................................................. 41
Division 10--Bill in a set 42
76.......... Rules as to sets ................................................................................. 42
Division 11--Conflict of laws 43
77.......... Rules where laws conflict ................................................................. 43
77A....... Effect of non‑compliance with stamp laws in case of certain bills of exchange 44
Part III--Cheques on a banker 45
Division 1--Cheques generally 45
78.......... Cheque defined ................................................................................. 45
79.......... Presentment of cheque for payment ................................................. 45
80.......... Rights of banker as regards stale cheques ......................................... 45
81.......... Revocation of banker's authority ..................................................... 46
Division 2--Crossed cheques 47
82.......... General and special crossings defined ............................................... 47
83.......... Crossing by drawer or after issue ..................................................... 47
84.......... Crossing a material part of cheque .................................................... 48
85.......... Duties of banker as to crossed cheques ............................................ 48
86.......... Protection to banker and drawer where cheque is crossed ............... 49
87.......... Effect of crossing on holder .............................................................. 49
88A....... Cheques drawn by a bank on itself ................................................... 49
Division 3--Other provisions relating to cheques 50
88B....... Protection of bankers paying unindorsed or irregularly indorsed cheques or drafts 50
88C....... Payment of unindorsed cheque or draft as evidence of receipt by payee 51
88D....... Protection of bankers collecting payment of cheques etc. ................ 51
88E........ Rights of banker collecting cheque not indorsed by payee ............... 52
Part IV--Promissory notes 53
89.......... Promissory note defined ................................................................... 53
90.......... Delivery necessary ........................................................................... 53
91.......... Joint and several notes ...................................................................... 53
92.......... Note payable on demand .................................................................. 53
93.......... Presentment of note for payment ..................................................... 54
94.......... Liability of maker ............................................................................. 54
95.......... Application of Part II to notes ......................................................... 54
Part V--Supplementary 56
96.......... Good faith ......................................................................................... 56
97.......... Signature ........................................................................................... 56
98.......... Computation of time ........................................................................ 56
99.......... When noting equivalent to protest ................................................... 57
100........ Protest when notary not accessible .................................................. 57
101........ Dividend warrants ............................................................................ 57
Schedules 58
The First Schedule 58
Second Schedule--Form of protest which may be used 60
Notes 61
An Act relating to Bills of Exchange, Cheques and Promissory Notes
Notes to
the
Bills of Exchange Act 1909 Note 1 The Bills of Exchange Act 1909 as shown in this
compilation comprises Act No. 27,
1909 amended as indicated in the Tables below. Table of Acts
|
Act |
Number |
Date |
Date of commencement |
Application, saving or transitional provisions |
|
|
27, 1909 |
13 Dec 1909 |
1 Feb 1910 (see Gazette 1910, p. 45) |
|
||
|
Bills of Exchange Act 1912 |
24, 1912 |
24 Dec 1912 |
24 Dec 1912 |
-- |
|
|
Bills of Exchange Act 1932 |
61, 1932 |
5 Dec 1932 |
5 Dec 1932 |
-- |
|
|
Bills of Exchange Act 1936 |
74, 1936 |
7 Dec 1936 |
7 Dec 1936 |
-- |
|
|
Bills of Exchange Act 1958 |
10, 1958 |
12 May 1958 |
9 June 1958 |
-- |
|
|
Bills of Exchange Act 1971 |
4, 1971 |
12 Mar 1971 |
1 May 1971 (see Gazette 1971, p. 2490) |
-- |
|
|
Statute Law Revision Act 1973 |
216,1973 |
19 Dec 1973 |
31 Dec 1973 |
Ss. 9(1) and 10 |
|
|
146, 1986 |
11 Dec 1986 |
1 July 1987 (see s. 2 and Gazette 1987, No. S131) |
|||
|
136, 1991 |
12 Sept 1991 |
Schedule: 10 Oct 1991 (a) |
S. 3(2) |
||
|
76, 1998 |
2 July 1998 |
Schedule 3: 1 Dec 1998 (see Gazette 1998, No. S371) (b) |
-- |
||
|
73, 2008 |
3 July 2008 |
Schedule 1 (items 12-14): Royal Assent |
-- |
||
(a) The Bills of Exchange Act 1909 was amended by the Schedule only of the Law and Justice Legislation Amendment Act 1991, subsection 2(1) of which provides as follows:
(1) Subject to this section, this Act commences on the 28th day after the day on which it receives the Royal Assent.
(b) The Bills of Exchange Act 1909 was amended by Schedule 3 only of the Cheques and Payment Orders Amendment Act 1998, subsection 2(2) of which provides as follows:
(2) Subject to subsection (3), the items in Schedule 1, other than item 27 and items 70 to 82, and the items of Schedules 2 and 3, commence on a day to be fixed by Proclamation.
Table of Amendments
|
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
|
|
Provision affected |
How affected |
|
Part I |
|
|
S. 3 ..................................... |
rs. No. 4, 1971 |
|
|
rep. No. 216, 1973 |
|
S. 4 ..................................... |
am. No. 216, 1973 |
|
S. 6 ..................................... |
am. No. 146, 1986; No. 76, 1998 |
|
Part II |
|
|
Division 1 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
am. No. 146, 1986 |
|
|
am. No. 136, 1991 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Division 2 |
|
|
S. 27 ................................... |
am. No. 216, 1973 |
|
S. 28 ................................... |
am. No. 216, 1973; No. 73, 2008 |
|
am. No. 73, 2008 |
|
|
Division 3 |
|
|
am. No. 73, 2008 |
|
|
am. No. 24, 1912; No. 73, 2008 |
|
|
Division 4 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Division 5 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
am. No. 146, 1986; No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Division 6 |
|
|
am. No. 73, 2008 |
|
|
Division 7 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Division 8 |
|
|
am. No. 73, 2008 |
|
|
Division 9 |
|
|
rs. No. 146, 1986 |
|
|
Division 10 |
|
|
am. No. 73, 2008 |
|
|
Division 11 |
|
|
ad. No. 74, 1936 |
|
|
Part III |
|
|
Division 1 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Division 2 |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
S. 88.................................... |
rep. No. 4, 1971 |
|
ad. No. 61, 1932 |
|
|
Division 3 |
|
|
Div. 3 of Part III.................... |
ad. No. 4, 1971 |
|
ad. No. 4, 1971 |
|
|
|
am. No. 73, 2008 |
|
Part IV |
|
|
am. No. 73, 2008 |
|
|
am. No. 73, 2008 |
|
|
Part V |
|
|
am. No. 73, 2008 |
|
|
am. No. 10, 1958; No. 216, 1973 |
|