Report No. 11

122. Dishonour by non-acceptance and its consequences.-

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

(a) when the drawee, or one of several drawees not being partners, makes default in acceptance upon being duly required to accept the bill;

[Section 91, para. 1, part.]

(b) where presentmen is excused and the bill is not accepted;

[Section 91, para. 1, part.]

(c) where the drawee is incompetent to contract, or the acceptance is qualified.

[Section 91, para. 2)

(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 indorsers accrues to the holder, and no presentment for payment is necessary.1

1. See section 43(2), BEA.