Bills of Exchange Act · 2023 Revised Edition · Part 2
31. Negotiation of bill
Official textFrom Attorney General's Chambers, unchanged
A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee is the holder of the bill.
A bill payable to bearer is negotiated by delivery.
bearer
“bearer” means the person in possession of a bill or note which is payable to bearer;
A bill payable to order is negotiated by the indorsement of the holder completed by delivery.
Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer gives the transferee such title as the
holder
“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
Bills of Exchange 22
transferor had in the bill, and the transferee in addition acquires the right to have the indorsement of the transferor.
Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability.
Terms defined in s 2
bearer
Defined · s 2“bearer” means the person in possession of a bill or note which is payable to bearer;
delivery
Defined · s 2“delivery” means transfer of possession, actual or constructive, from one person to another;
holder
Defined · s 2“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
Part
Cheques on Banker
Part
Promissory Notes
Part