BILLS OF EXCHANGE ACT 1909 - SECT 74 Replacement of lost or destroyed bill
BILLS OF EXCHANGE ACT 1909 - SECT 74
Replacement of lost or destroyed bill(a) a bill (in this section referred to as the original bill ) is lost or destroyed; and
(b) the original bill was not, at the time of its loss or destruction, overdue;
a person (in this section referred to as the former holder ) who was the holder of, or otherwise lawfully in possession of, the original bill at the time of its loss or destruction may, by notice in writing given to the drawer of the original bill, request the drawer to give the former holder a replacement bill to the same tenor as the original bill.
(2) The notice is not effective for the purposes of this section unless it contains sufficient particulars of the original bill to enable the drawer to:
(a) identify the original bill with reasonable certainty; and
(b) draw a replacement bill to the same tenor as the original bill.
(3) The drawer may, by notice in writing given to the former holder within 14 days after the day on which the notice under subsection ( 1) is given to the drawer, request the former holder to give the drawer an indemnity in respect of any loss and expenses that the drawer may reasonably incur by reason of the drawing of a replacement bill to the same tenor as the original bill, and may also request the former holder to provide adequate security for the indemnity.
(a) in a case where the drawer requests the former holder, by notice under subsection ( 3), to give the drawer an indemnity and also to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the drawer or the day on which the security is provided, whichever last occurs;
(b) in a case where the drawer requests the former holder, by notice under subsection ( 3), to give the drawer an indemnity, but does not also request the former holder to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the drawer; or
(c) in any other case--within 14 days after the day on which the notice under subsection ( 1) is given to the drawer;
draw a replacement bill to the same tenor as the original bill and give the replacement bill to the former holder.
(5) Where the original bill had been accepted before its loss or destruction, the former holder may give the replacement bill to the acceptor and request the acceptor, by notice in writing, to accept the replacement bill to the same tenor as the acceptor's acceptance of the original bill.
(6) The acceptor may, by notice in writing given to the former holder within 14 days after the day on which the notice under subsection ( 5) is given to the acceptor, request the former holder to give the acceptor an indemnity in respect of any loss and expenses that the acceptor may reasonably incur by reason of the accepting of the bill to the same tenor as the acceptor's acceptance of the original bill, and may also request the former holder to provide adequate security for the indemnity.
(a) in a case where the acceptor requests the former holder, by notice under subsection ( 6), to give the acceptor an indemnity and also to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the acceptor or the day on which the security is provided, whichever last occurs;
(b) in a case where the acceptor requests the former holder, by notice under subsection ( 6), to give the acceptor an indemnity, but does not also request the former holder to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the acceptor; or
(c) in any other case--within 14 days after the day on which the notice under subsection ( 5) is given to the acceptor;
accept the replacement bill to the same tenor as the acceptor's acceptance of the original bill and give the replacement bill so accepted to the former holder.
(8) Where the original bill had been indorsed before its loss or destruction, the former holder may give the replacement bill to the indorser and request the indorser, by notice in writing, to indorse the replacement bill to the same tenor as the indorser's indorsement of the original bill.
(9) The indorser may, by notice in writing given to the former holder within 14 days after the day on which the notice under subsection ( 8) is given to the indorser, request the former holder to give the indorser an indemnity in respect of any loss and expenses that the indorser may reasonably incur by reason of the indorsing of the bill to the same tenor as the indorser's indorsement of the original bill, and may also request the former holder to provide adequate security for the indemnity.
(a) in a case where the indorser requests the former holder, by notice under subsection ( 9), to give the indorser an indemnity and also to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the indorser or the day on which the security is provided, whichever last occurs;
(b) in a case where the indorser requests the former holder, by notice under subsection ( 9), to give the indorser an indemnity, but does not also request the former holder to provide security for the indemnity--within 14 days after the day on which the indemnity is given to the indorser; or
(c) in any other case--within 14 days after the day on which the notice under subsection ( 8) is given to the indorser;
indorse the replacement bill to the same tenor as the indorser's indorsement of the original bill and give the replacement bill so indorsed to the former holder.
(11) Where the drawer, acceptor or indorser refuses or fails to comply with subsection ( 4), (7) or (10), as the case requires, the former holder may apply to a court of competent jurisdiction for an order directing:
(a) the drawer to draw a replacement bill to the same tenor as the original bill and give the replacement bill to the former holder;
(b) the acceptor to accept the replacement bill to the same tenor as the acceptor's acceptance of the original bill and give the replacement bill so accepted to the former holder; or
(c) the indorser to indorse the replacement bill to the same tenor as the indorser's indorsement of the original bill and give the replacement bill so indorsed to the former holder;
(12) Where an application is made to a court of competent
jurisdiction for an order of a kind referred to in subsection ( 11),
the court may make the order on such terms and conditions as it considers just
and equitable.