Section 39-45 Nigerian Bill of Exchange Act LFN 1990

Section 39-45 Bill of Exchange Act 1990

Section 39, 40, 41, 42, 43, 44, 45 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – General Duties of the Holder] of the Act, among other sections.

Section 39 Bill of Exchange Act 1990

(When presentment for acceptance is necessary)

 (1)            Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument.

(2)            Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment.

(3)            In no other case is presentment for acceptance necessary in order to render liable any party to the bill.

(4)            Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and endorsers.

Section 40 Bill of Exchange Act 1990

(Time for presenting bill payable after sight)

(1)            Subject to the provisions of this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time.

(2)            If he do not do so, the drawer and all endorsers prior to that holder are discharged.

(3)            In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case.

Section 41 Bill of Exchange Act 1990

(Rules as to presentment for acceptance and excuses for non-presentment)

(1)            A bill is duly presented for acceptance which is presented in accordance with the following rules-

(a)            the presentment must be made by or on behalf of the holder to the drawee or to some person authorised to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue;

(b)            where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only;

(c)            where the drawee is dead, presentment may be made to his personal representative;

(d)            where the drawee is bankrupt or insolvent, presentment may be made to him or to his trustee or to the official assignee;

(e)            where authorised by agreement or usage, a presentment through the post office is sufficient.

(2)            Notwithstanding anything contained in subsection (1) of this section, a bill may be presented for acceptance by means of an advice addressed to the person or persons to whom presentment must under subsection (1) of this section be made, and sent through the post office before the bill is overdue, stating that the bill is held for acceptance by the sender and giving the name of the drawer and particulars of the
place at which it is so held, the amount for which and the date on which it was drawn and any usance applicable to the bill. Wherepresentment is made in pursuance of this subsection, the bill shall be deemed to be duly presented for acceptance at the time the advice is posted.

(3)            Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance-

(a)            where the drawee is dead, bankrupt or insolvent, or is a fictitious person or a person not having capacity to contract by bill;

(b)            where, after the exercise of reasonable diligence, such presentment cannot be effected;

(c)            where, although the presentment has been irregular, acceptance has been refused on some other ground.

(4)            the fact that the holder has reason to believe that the bill, on presentment, will be dishonoured does not excuse presentment.

Section 42 Bill of Exchange Act 1990

(Non-acceptance)

  When a bill is duly presented for acceptance and is not accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he does not, the holder shall lose his right of recourse against the drawer and endorsers.

Section 43 Bill of Exchange Act 1990

(Dishonour by non-acceptance and its consequences)

(1) A bill is dishonoured by non-acceptance –

(a) when it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or where an advice is sent through the post office in pursuance of subsection (1) (a) of section 41 of this Act, and acceptance is not obtained within ten days from the time the advice is posted,

(b) when presentment for acceptance is excused and the bill is not accepted.

(2) Subject to the provisions of this Act when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.

Section 44 Bill of Exchange Act 1990

(Duties as to qualified acceptances)

(1) The holder of a bill may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance, may treat the bill as dishonoured by non-acceptance.

(2) Where a qualified acceptance is taken, and the drawer or an endorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or endorser is discharged from his liability on the bill.

  The provisions of this subsection do not apply to a partial acceptance, whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance.

(3) When the drawer or endorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto.

Section 45 Bill of Exchange Act 1990

(Rules as to presentment for payment)

 (1)            Subject to the provisions of this Act, a bill must be duly presented for payment; and if it be not so presented the drawer and endorsers shall be discharged.

(2)            A bill is duly presented for payment if it is presented in accordance with the following rules –

(a)            where the bill is not payable on demand, presentment must subject to the provisions of subsection (3) of this section, be made on the day it falls due;

(b)            where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue, in order to render the drawer liable, and within a reasonable time after its endorsement, in order to render the endorser liable; and in determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case;

(c)            presentment must be made by the holder or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf if with the exercise of reasonable diligence such person can there be found;

(d)            a bill is presented at the proper place –

(i)             where a place of payment is specified in the bill and the bill is there presented,

(ii)            where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented,

(iii)           where no place of payment is specified and no address given, and the bill is presented at the drawee’s or acceptor’s place of business if known, and if not, at his ordinary residence, if known,

(iv)           in any other case, if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business or residence;

(e)            where a bill is presented at the proper place, and after the exercise of reasonable diligence, no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required;

(f)            where a bill is drawn upon, or accepted by two or more persons who are not partners, and no place of payments specified, presentment must be made to them all;

(g)            where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found;

(h)            where authorised by agreement or usage, a presentment through the post office is sufficient.

(3)            Notwithstanding anything contained in subsection (2) of this section, a bill may, subject to the provisions of this subsection, be presented for payment by means of an advice addressed to the person or persons to whom presentment must under that subsection be made, at the proper place as defined in that subsection, and sent through the post office, stating that the bill is held for payment by the sender and giving the name of the drawer and particulars of the place at which it is so held, the amount for which and the date on which it was drawn and any usance applicable to the bill.

(4)            Where presentment is made in pursuance of this subsection, the bill shall be deemed to be duly presented for payment at the time the advice is posted; but a bill shall not be deemed to be duly presented for payment by virtue of an advice sent in pursuance of this subsection unless the advice is posted–

(a)            in the case of a bill not payable on demand, not more than ten days and not less than five days before the bill falls due; or

(b)            in the case of a bill payable on demand, within such reasonable time as is mentioned in paragraph (b) of subsection (2) of this section.

Credit: CommonLII