BILLS OF EXCHANGE ACT 1909

This compilation was prepared on 27 December 2011
taking into account amendments up to Act No. 46 of 2011

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 ............................................... 8

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.

All relevant information pertaining to application, saving or transitional provisions prior to 27 June 2011 is not included in this compilation. For subsequent information see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Bills of Exchange Act 1909	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
Bills of Exchange Amendment Act 1986	146, 1986	11 Dec 1986	1 July 1987 (see s. 2 and Gazette 1987, No. S131)	S. 7
Law and Justice Legislation Amendment Act 1991	136, 1991	12 Sept 1991	Schedule: 10 Oct 1991	S. 3(2)
Cheques and Payment Orders Amendment Act 1998	76, 1998	2 July 1998	Schedule 3: 1 Dec 1998 (see Gazette 1998, No. S371)	--
Statute Law Revision Act 2008	73, 2008	3 July 2008	Schedule 1 (items 12-14): Royal Assent Schedule 4 (items 90-108): 4 July 2008	--
Acts Interpretation Amendment Act 2011	46, 2011	27 June 2011	Schedule 2 (item 292) and Schedule 3 (items 10, 11): 27 Dec 2011	Sch. 3 (items 10, 11) [see Table A]

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
S. 8......................................	am. No. 73, 2008
S. 10....................................	am. No. 73, 2008
S. 13....................................	am. No. 73, 2008
S. 14....................................	am. No. 146, 1986
S. 19....................................	am. No. 136, 1991; No. 46, 2011
Ss. 20-22............................	am. No. 73, 2008
Ss. 25, 26............................	am. No. 73, 2008
Division 2
S. 27 ...................................	am. No. 216, 1973
S. 28 ...................................	am. No. 216, 1973; No. 73, 2008
Ss. 30, 31............................	am. No. 73, 2008
Division 3
Ss. 32, 33............................	am. No. 73, 2008
S. 34....................................	am. No. 24, 1912; No. 73, 2008
Division 4
Ss. 36, 37............................	am. No. 73, 2008
Ss. 39-43............................	am. No. 73, 2008
Division 5
Ss. 45-47............................	am. No. 73, 2008
Ss. 49-51............................	am. No. 73, 2008
Ss. 54, 55............................	am. No. 73, 2008
S. 56....................................	am. No. 146, 1986; No. 73, 2008
S. 57....................................	am. No. 73, 2008
Division 6
Ss. 59-63............................	am. No. 73, 2008
Division 7
S. 64....................................	am. No. 73, 2008
Ss. 66-69............................	am. No. 73, 2008
Division 8
Ss. 71-73............................	am. No. 73, 2008
Division 9
S. 74....................................	rs. No. 146, 1986
Division 10
S. 76....................................	am. No. 73, 2008
Division 11
S. 77A.................................	ad. No. 74, 1936
Part III
Division 1
S. 79....................................	am. No. 73, 2008
S. 81....................................	am. No. 73, 2008
Division 2
S. 83....................................	am. No. 73, 2008
Ss. 85-87............................	am. No. 73, 2008
S. 88....................................	rep. No. 4, 1971
S. 88A.................................	ad. No. 61, 1932
Division 3
Div. 3 of Part III..................	ad. No. 4, 1971
Ss. 88B-88E ......................	ad. No. 4, 1971
	am. No. 73, 2008
Part IV
S. 92....................................	am. No. 73, 2008
S. 94....................................	am. No. 73, 2008
Part V
S. 97....................................	am. No. 73, 2008
S. 98....................................	am. No. 10, 1958; No. 216, 1973

Commonwealth Consolidated Acts

BILLS OF EXCHANGE ACT 1909 - NOTES