CONSTRUCTION, most favorable to validity adopted, 159, 166

of contract by bill, 384

of Act or document referring to repealed Act, 447

CONTENTS, vii.

CONTINGENCY, instrument payable on a, not a bill, 48
CONTINUING SECURITY See Collateral Security
CONTRACT, on a bill incomplete until delivery, 119
person with capacity to, may incur liability by bill, 124
law of place of, governs interpretation, 383-8
of drawer and indorser, 315, 317, 384

of acceptor, 312, 385

of maker of a note, 430

consideration for simple, sufficient for bill, 166
definition of simple, 168

holder having lien by, deemed holder for value, 180
bill upon usurious, valid without knowledge 202

CONTRIBUTION, between indorsers, 317
between joint makers, 422, 423

COPY, indorsement may be on in certain places, 213
protest may be on,

where bill lost or detained, 304

of bill or note may be in protest, 443

of protest prima facie evidence, 444

CORPORATION, bill drawn on officer of, 99

power of to become liable on bill, 124, 131, 134

under Dominion charter, 131

Provincial charter, 132-3

word "limited" to follow name of, 132-4

illustrations of bills of, 134

bill by officer in accordance with by-law binding on, 131

not to issue note payable to bearer, 132

without power, other parties on bill liable, 136

agent or officer of, party to bill, 159-164

how officers should sign to escape personal liability, 160

seal sufficient execution of writing by, 437

note or bill of, does not require seal, 437

municipal, liable on note, 135, 438

debentures of, negotiable, 455

COSTS,

in discretion of court, in action without presentment, 307, 427

of protest part of liquidated damages, 324

of protests in different provinces, 441-2

CO-SURETIES, when accommodation indorsers are, 317.

COUNTER-CLAIM, defined, 24

compared to incidental demand, 25
included in action in the Act, 23

defence in the Act, 30

COUNTERMAND of payment of bill, 294

cheque, 404

stops payment of cheque if not accepted, 404

COUNTRY, use of word as to Canada, 379, 381

conflict of laws where bill concerns more than one, 380

COUPONS, See Bonds or Debentures

are negotiable, 455-6

no days of grace, 456

dishonored, bear interest, 457

COURT has discretion as to costs when, 307, 427

CREDIT, letter of, not negotiable, 459

CROSS or mark, a sufficient signature, 40

CROSSED CHEQUES, 405-412 see Cheque
CURRENCY, meaning of, 41

bills and notes payable in, 42-5

rule for calculating foreign, 390

bank notes and Dominion notes are, 418

CURRENT RATE of exchange for bill dishonored abroad, 327

CUSTOM, See Usage

basis of law merchant, 451

local must be proved, 452

for foreign bill dishonored in Canada
390

general judicially established, 452

may determine negotiability of instrument 457
CUSTOMER, duty of bank to pay cheques of, 403
bank liable to, for improper refusal, 404

notice of death of, stops payment of cheque, 404

bank may pay bills of, made payable there, 404

DAMAGES, drawee liable for breach of agreement to accept, 104-5
measure of, on dishonored bill, 324

interest as, for non-payment at maturity, 325

DAMAGES--Continued,

further, on bill dishonored abroad, 326

which holder may recover, 324

which drawer or indorser may recover, 324

bank liable for improper refusal to pay cheque, 404
DATE, bill irregular but not invalid for want of, 50, 86
bill payable" with interest," runs from, 79

bill payable at fixed period after, 82

may be inserted in undated bill or acceptance, 85
insertion of wrong, does not invalidate bill, 86
computation of time when bill payable after, 93.5
presumed to be true date, 87-8, 230

presumption as to undated acceptance, 86

indorsement, 230

bill dated on Sunday or holiday valid, 88

antedated or postdated bill or cheque valid, 88, 396

alteration of, material, 363

of protest, delay runs from, on acceptance for honor, 368
protest may be extended as of date of noting, 438

from which prescription runs, 346-9

of acceptance after previous refusal to accept, 106
DAYS, time less than three, holidays excluded, 438
drawer has two, to decide as to acceptance, 250
of grace, not allowed on demand bills, 81, 90
rule in United States, 91

origin of, 95

determined by place of payment, 91, 390, 392

DEATH, revokes authority to complete bill not given for value, 118-9
if payee dead, bill payable to bearer, 63

presentment for acceptance where drawee dead, 248-9

for payment where drawee or acceptor dead, 262
notice of dishonor where drawer or indorser dead, 280
of drawer of cheque stops payment, 401-5

of holder, rights pass to personal representative, 209

DEBENTURES-See Bonds or Debentures

DEBT, antecedent, is consideration for a bill, 166, 168

DEFECT OF TITLE, holder taking without notice of, 186

what is, 190-6, 226

DEFENCE, in Act includes counter claim, 30

total failure of consideration a good, 176
partial failure may be good, pro tanto, 178
in action on "patent" note, 203

DEFENCE-Continued.

where plaintiff is not the owner, 233
to action by holder in due course, 235

DEFINITION, of words used in the Act, 22-31

of a bill of exchange, 33

of an inland bill, 52

of a foreign bill, 52

of a cheque, 395

of a promissory note, 413

See Words and Phrases

DELAY, caused by presentment excused, 243

in making presentment excused, 263-4, 371
for sending notice of dishonor, 282-9

in sending notice of dishonor excused, 290-2
in noting or protesting when excused, 305
when delay ceases, diligence required, 264,305
DELIVERY, definition of, 27

of bill necessary to complete contract, 119-121
requisites as to, 121

by whom it must be made, 121

possession creates presumption of, 121
conditional, or as an escrow, 122-3

bill payable to bearer negotiated by, 207
negotiation by indorsement completed by, 208
for value without indorsement, 209

person paying bill entitled to, 309

transferrer by, defined, 327

liability of, 328

what he warrants, 329-330

to acceptor at or after maturity, discharges bill, 352
to payee or bearer necessary to complete note, 421

DEMAND, bill or note payable on, 33, 413, 425

when a bill is payable on, 80

overdue bill accepted or indorsed is payable on, 82
when deemed overdue, 229

when prescription begins to run,

when interest begins to run, 233-4

343-4

liability of indorser of note payable on, 424

no days of grace on bill payable on, 424

when bill payable on, should be presented, 255-6

DEMAND-Continued.

note payable on, may be continuing security, 424
when it should be presented, 424-6
when deerned to be overdue, 426

when "at maturity," 426

cheque is bill payable on, drawn on bank, 395

DEPOSIT RECEIPTS, negotiable, 458

DETENTION, of bill by drawee, 251, 304

DETERMINABLE FUTURE TIME, 33, 82, 90, 413

DILIGENCE, REASONABLE, in attempting to present for accept-
ance, 249

in attempting to present for payment, 257

in attempting to present where drawee or acceptor dead, 262

in noting or protesting bill, 3C5

DIRECTORS, when personally liable on bill or note, 132-3, 159-164, 431
DISCHARGE, of bill by payment, 331-351

merger, 333

novation, 333

compensation or set-off, 339

prescription or Statute of Limitations, 341-9
confusion, 352

by cancellation, 359

material alteration, 361

of accommodation bill, 351

of party liable, by waiver, 353-5

of surety, by dealing with principal, 355
at place of contract, 380, 391

of one part of a bill in set, 378

DISCOUNT OF BILL, 181-3

entitles discounter to collaterals, 182

discounter holder for full value, 183

DISCRETION OF COURT, as to costs on premature action, 307, 427

DISCREPANCY between figures and words, 78

DISHONOR, case of need in event of, 97

acceptance after, 106

after notice of, holder takes subject to defects, 186, 230

by non-acceptance, 249, 251

after two days, 250

recourse for, 251

unless acceptance unqualified, 253