Notice of dishonour and effect of non‑notice
53 Notice of dishonour and effect of non‑notice
Subject to the provisions of this Act, when a bill has been dishonoured by non‑acceptance or by non‑payment, notice of dishonour must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged:
Provided that:
where a bill is dishonoured by non‑acceptance, and notice of dishonour is not given, the rights of a holder in due course, subsequent to the omission, shall not be prejudiced by the omission; and
where a bill is dishonoured by non‑acceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non‑payment, unless the bill has in the meantime been accepted.
This Act’s bill:Second reading speech
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