BILLS OF EXCHANGE ACT 1909 - SECT 64 Payment in due course

BILLS OF EXCHANGE ACT 1909 - SECT 64

  (1)   A bill is discharged by payment in due course by or on behalf of the drawee or acceptor.

"Payment in due course" means payment made at or after maturity of the bill to the holder thereof in good faith and without notice that his or her title to the bill is defective.

  (2)   Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but:

  (a)   where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not re - issue the bill;

  (b)   where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his or her former rights as regards the acceptor or antecedent parties, and he or she may, if he or she thinks fit, strike out his or her own and subsequent indorsements, and again negotiate the bill.

  (3)   Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.