Bills of Exchange Act - Ulii

[Pages:70]Laws.Africa Legislation Commons

Uganda

Bills of Exchange Act

Chapter 68

Legislation as at 31 December 2000 FRBR URI: /akn/ug/act/ord/1933/15/eng@2000-12-31

There may have been updates since this file was created. PDF created on 20 April 2022 at 14:45. Collection last checked for updates: 30 September 2020.

Check for updates

About this collection The legislation in this collection has been reproduced as it was originally printed in the Government Gazette, with improved formatting and with minor typographical errors corrected. All amendments have been applied directly to the text and annotated. A scan of the original gazette of each piece of legislation (including amendments) is available for reference.

This is a free download from the Laws.Africa Legislation Commons, a collection of African legislation that is digitised by Laws.Africa and made available for free. laws.africa info@laws.africa

There is no copyright on the legislative content of this document. This PDF copy is licensed under a Creative Commons Attribution 4.0 License (CC BY 4.0). Share widely and freely.

i

Bills of Exchange Act Contents

Part I ? Interpretation ........................................................................................................................................................................................ 1 1. Interpretation ............................................................................................................................................................................................. 1

Part II ? Bills of exchange ............................................................................................................................................................................... 1 2. Bill of exchange defined ....................................................................................................................................................................... 2 3. Inland and foreign bills ......................................................................................................................................................................... 2 4. Effect where different parties to bill are the same person ...................................................................................................... 2 5. Address to drawee ................................................................................................................................................................................... 2 6. Certainty required as to payee ........................................................................................................................................................... 3 7. What bills are negotiable ...................................................................................................................................................................... 3 8. Sum payable .............................................................................................................................................................................................. 3 9. Bill payable on demand ........................................................................................................................................................................ 3 10. Bill payable at a future time ............................................................................................................................................................ 4 11. Omission of date in bill payable after date ................................................................................................................................ 4 12. Antedating and postdating ................................................................................................................................................................ 4 13. Computation of time of payment .................................................................................................................................................... 4 14. Case of need ............................................................................................................................................................................................ 5 15. Optional stipulations by drawer or endorser .............................................................................................................................. 5 16. Definition and requisites of acceptance ........................................................................................................................................ 5 17. Time for acceptance .............................................................................................................................................................................. 5 18. General and qualified acceptances ................................................................................................................................................. 5 19. Inchoate instruments. .......................................................................................................................................................................... 6 20. Delivery ...................................................................................................................................................................................................... 6 21. Capacity of parties ................................................................................................................................................................................ 7 22. Signature essential to liability ......................................................................................................................................................... 7 23. Forged or unauthorised signature ................................................................................................................................................... 7 24. Procuration signatures ......................................................................................................................................................................... 7 25. Person signing as agent or in representative capacity ........................................................................................................... 7 26. Value and holder for value ................................................................................................................................................................ 7 27. Accommodation bill or party ............................................................................................................................................................. 8 28. Holder in due course ........................................................................................................................................................................... 8 29. Presumption of value and good faith ............................................................................................................................................ 8 30. Negotiation of bill ................................................................................................................................................................................. 8 31. Requisites of a valid endorsement ................................................................................................................................................. 9 32. Conditional endorsement ................................................................................................................................................................... 9

ii

33. Endorsement in blank and special endorsement ...................................................................................................................... 9 34. Restrictive endorsement ...................................................................................................................................................................... 9 35. Negotiation of overdue or dishonoured bill ............................................................................................................................. 10 36. Negotiation of bill to party already liable on the bill .......................................................................................................... 10 37. Rights of the holder ........................................................................................................................................................................... 10 38. When presentment for acceptance is necessary ...................................................................................................................... 11 39. Time for presenting bill payable after sight ............................................................................................................................. 11 40. Rules as to presentment for acceptance and excuses for nonpresentment .................................................................. 11 41. Nonacceptance ..................................................................................................................................................................................... 12 42. Dishonour by nonacceptance and its consequences .............................................................................................................. 12 43. Duties as to qualified acceptances ............................................................................................................................................... 12 44. Rules as to presentment for payment ........................................................................................................................................ 12 45. Excuses for delay or nonpresentment for payment ............................................................................................................... 13 46. Dishonour by nonpayment .............................................................................................................................................................. 14 47. Notice of dishonour and effect of nonnotice ............................................................................................................................ 14 48. Rules as to notice of dishonour .................................................................................................................................................... 14 49. Excuses for nonnotice and delay .................................................................................................................................................. 15 50. Noting or protest of bill ................................................................................................................................................................... 16 51. Duties of holder as regards drawee or acceptor ..................................................................................................................... 17 52. Bill not assignment of funds in hands of drawee .................................................................................................................. 17 53. Liability of acceptor ........................................................................................................................................................................... 17 54. Liability of drawer or endorser ...................................................................................................................................................... 17 55. Stranger signing bill liable as endorser ..................................................................................................................................... 18 56. Measure of damages against parties to dishonoured bill ................................................................................................... 18 57. Transferor by delivery and transferee .......................................................................................................................................... 18 58. Payment in due course ..................................................................................................................................................................... 19 59. Banker paying demand draft on which endorsement is forged ......................................................................................... 19 60. Acceptor the holder at maturity .................................................................................................................................................... 19 61. Express waiver ..................................................................................................................................................................................... 19 62. Cancellation ........................................................................................................................................................................................... 19 63. Alteration of bill .................................................................................................................................................................................. 20 64. Acceptance for honour supra protest .......................................................................................................................................... 20 65. Liability of acceptor for honour ..................................................................................................................................................... 20 66. Presentment to acceptor for honour ............................................................................................................................................ 21 67. Payment for honour supra protest ................................................................................................................................................ 21

iii

68. Holder's right to duplicate of lost bill ........................................................................................................................................ 21 69. Action on lost bill ............................................................................................................................................................................... 22 70. Rules as to sets ................................................................................................................................................................................... 22 71. Rules where laws conflict ................................................................................................................................................................ 22 Part III ? Cheques on a banker ................................................................................................................................................................... 23 72. Cheque defined .................................................................................................................................................................................... 23 73. Presentment of cheque for payment ........................................................................................................................................... 23 74. Revocation of banker's authority ................................................................................................................................................... 23 75. General and special crossings defined ........................................................................................................................................ 23 76. Crossing by drawer or after issue ................................................................................................................................................. 24 77. Crossing a material part of cheque .............................................................................................................................................. 24 78. Duties of banker as to crossed cheques .................................................................................................................................... 24 79. Protection to banker and drawer where cheque is crossed ................................................................................................ 24 80. Effect of words "not negotiable" ................................................................................................................................................... 25 81. Protection to collecting banker ..................................................................................................................................................... 25 Part IV ? Promissory notes ............................................................................................................................................................................ 25 82. Promissory note defined ................................................................................................................................................................... 25 83. Delivery necessary .............................................................................................................................................................................. 25 84. Joint and several notes ..................................................................................................................................................................... 25 85. Note payable on demand ................................................................................................................................................................ 25 86. Presentment of note for payment ................................................................................................................................................ 26 87. Liability of maker ................................................................................................................................................................................ 26 88. Application of Part II to notes ....................................................................................................................................................... 26 Part V ? Supplementary ................................................................................................................................................................................. 26 89. Good faith .............................................................................................................................................................................................. 26 90. Signature ................................................................................................................................................................................................ 27 91. Computation of time .......................................................................................................................................................................... 27 92. When noting equivalent to protest .............................................................................................................................................. 27 93. Protest when notary not accessible ............................................................................................................................................. 27 94. Dividend warrants may be crossed .............................................................................................................................................. 27 95. Savings .................................................................................................................................................................................................... 27 Schedule 3 (s. 93) .............................................................................................................................................................................................. 28

iv

Bills of Exchange Act

Uganda

Uganda

Bills of Exchange Act

Chapter 68

Commenced on 15 August 1933 [This is the version of this document at 31 December 2000 and includes any amendments published up to 30 September 2020.] [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]

An Act relating to bills of exchange, cheques and promissory notes.

Part I ? Interpretation

1. Interpretation

In this Act, unless the context otherwise requires-- (a) "acceptance" means an acceptance completed by delivery or notification; (b) "action" includes counterclaim and setoff; (c) "banker" includes a body of persons whether incorporated or not who carry on the business of

banking; (d) "bankrupt" includes any person whose estate is vested in a trustee or assignee under the law for

the time being in force relating to bankruptcy; (e) "bearer" means the person in possession of a bill or note which is payable to bearer; (f) "bill" means bill of exchange, and "note" means promissory note; (g) "delivery" means transfer of possession, actual or constructive, from one person to another; (h) "endorsement" means an endorsement completed by delivery; (i) "holder" means the payee or endorsee of a bill or note who is in possession of it, or the bearer of a

bill or note; (j) "issue" means the first delivery of a bill or note, complete in form, to a person who takes it as a

holder; (k) "person" includes a body of persons whether incorporated or not; (l) "value" means valuable consideration; (m) "written" includes printed, and "writing" includes print.

Part II ? Bills of exchange

Form and interpretation.

By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely.

1

Bills of Exchange Act

Uganda

2. Bill of exchange defined

(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer.

(2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.

(3) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with--

(a) an indication of a particular fund out of which the drawee is to reimburse himself or herself or a particular account to be debited with the amount; or

(b) a statement of the transaction which gives rise to the bill, is unconditional.

(4) A bill is not invalid by reason--

(a) that it is not dated;

(b) that it does not specify the value given or that any value has been given therefor;

(c) that it does not specify the place where it is drawn or the place where it is payable.

3. Inland and foreign bills

(1) An inland bill is a bill which is or on the face of it purports to be--

(a) both drawn and payable within East Africa; or

(b) drawn within East Africa upon some person resident in East Africa, and any other bill is a foreign bill.

(2) Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.

4. Effect where different parties to bill are the same person

(1) A bill may be drawn payable to, or to the order of, the drawer, or it may be drawn payable to, or to the order of, the drawee.

(2) Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his or her option, either as a bill of exchange or as a promissory note.

5. Address to drawee

(1) The drawee must be named or otherwise indicated in a bill with reasonable certainty.

(2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or two or more drawees in succession is not a bill of exchange.

By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely.

2

Bills of Exchange Act

Uganda

6. Certainty required as to payee

(1) Where a bill is not payable to bearer, the payee must be named or otherwise indicated in it with reasonable certainty.

(2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being.

(3) Where the payee is a fictitious or nonexisting person, the bill may be treated as payable to bearer.

7. What bills are negotiable

(1) When a bill contains words prohibiting transfer, or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable.

(2) A negotiable bill may be payable either to order or to bearer.

(3) A bill is payable to bearer which is expressed to be so payable, or on which the only or last endorsement is an endorsement in blank.

(4) A bill is payable to order which is expressed to be so payable, or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.

(5) Where a bill, either originally or by endorsement, is expressed to be payable to the order of a specified person, and not to him or her or his or her order, it is, nevertheless, payable to him or her or his or her order at his or her option.

8. Sum payable

(1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid--

(a) with interest;

(b) by stated installments;

(c) by stated installments, with a provision that upon default in payment of any installment the whole shall become due;

(d) according to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill.

(2) Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable.

(3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated, from the issue of the bill.

9. Bill payable on demand

(1) A bill is payable on demand--

(a) which is expressed to be payable on demand, or at sight, or on presentation; or

(b) in which no time for payment is expressed.

By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely.

3

Bills of Exchange Act

Uganda

(2) Where a bill is accepted or endorsed when it is overdue, it shall, as regards the acceptor who so accepts, or any endorser who so endorses it, be deemed a bill payable on demand.

10. Bill payable at a future time

(1) A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable--

(a) at a fixed period after date or sight;

(b) on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain.

(2) An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.

11. Omission of date in bill payable after date

Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert in the bill the true date of issue or acceptance, and the bill shall be payable accordingly; but--

(a) where the holder in good faith and by mistake inserts a wrong date; and

(b) in every case where a wrong date is inserted, if the bill subsequently comes into the hands of a holder in due course, the bill shall not be avoided thereby, but shall operate and be payable as if the date so inserted had been the true date.

12. Antedating and postdating

(1) Where a bill or an acceptance or any endorsement on a bill is dated, the date shall, unless the contrary is proved, be deemed to be the true date of the drawing, acceptance or endorsement.

(2) A bill is not invalid by reason only that it is antedated or postdated, or that it bears a date on a Sunday.

13. Computation of time of payment

Where a bill is not payable on demand, the date on which it falls due is determined as follows--

(a) three days, called "days of grace", are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace; but--

(i) when the last day of grace falls on a Sunday, Christmas Day or Good Friday, the bill is, except in the case hereafter provided for, due and payable on the preceding business day;

(ii) when the last day of grace is a public holiday, other than Christmas Day or Good Friday, or when the last day of grace is a Sunday and the second day of grace is a public holiday, the bill is due and payable on the succeeding business day;

(b) where a bill is payable at a fixed period after date, after sight or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment;

By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely.

4

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download