because the acceptors were already liable jointly and severally,
Gordon v. Sutherland, 20th Jan. 1761, Mor. 14677, and where
a promissory note expressed no time of payment, and while
it was in the possession of the payee, the words " on demand"
were added without the assent of the maker, it was held that as
the alteration only expressed the effect of the note as it
originally stood, and was therefore immaterial, the validity
of the instrument was not affected, Aldous v. Cornwall, L. R. 3,
Q. B. 573, and where a bill bearing to be "for value received
in trust account," the addition of the words, "for Mr. P.,"
which was the fact, was held not to be a material alteration,
Commercial Bank v. Paton, 28th June, 1837, 15 Sh. 1202.

§ 64.

Acceptance and Payment for Honour.

honour supra

65. (1.) Where a bill of exchange has been protested Acceptance for for dishonour by non-acceptance (a), or protested for Protest. better security (b), and is not overdue (c), any person (d), not being a party already liable thereon (e), may, with the consent of the holder (f), intervene and accept the bill supra protest (g), for the honour of any party liable thereon (h), or for the honour of the person for whose account the bill is drawn (i).

(2.) A bill may be accepted for honour for part only of the sum for which it is drawn (j).

(3.) An acceptance for honour supra protest in order to be valid must (k)—

(a.) be written on the bill, and indicate that it is an acceptance for honour:

(b.) be signed by the acceptor for honour:

(4.) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer (1).

$ 65.

(5.) Where a bill is payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour (m).

(a.) Vide § 43.

(b.) Vide § 51 (5).

(c.) Vide § 14 and 45 (2).

(d.) Vide § 2. Where a bill bears the name of a referee, in case of need, the holder is not bound to resort to him, even any other person offers to accept for honour, and he agrees to take his acceptance, vide § 15.

if

(e.) Vide § 2. The drawee also may accept for honour of any party liable on the bill, because till acceptance he is not liable thereon. There may be several acceptors for honour, either of the same or different parties liable on the bill.

(f) The consent of the holder, vide § 2, is required even in the case of an acceptance for honour being offered by the drawee. If he takes an acceptance for honour, he cannot sue the parties liable in recourse to him, until the maturity of the bill and non-payment by the drawee or the acceptor for honour, Chitty on Bills, 11th Edit. p. 244.

(g.) The bill must be protested either for non-acceptance, vide § 43, or for better security, vide § 51 (5), and if this be omitted, an acceptance for honour by a drawee will probably be treated as an indorsement, vide § 56, and the addition of the words for the honour of A. B., as a mere statement that he is an accommodation party, but he will not have the rights of an acceptor for honour. An acceptance for honour by a person, not the drawee, without the taking of a protest will be invalid, because no one is entitled to accept a bill except the drawee, vide § 17, and his acceptance cannot be treated as an acceptance for honour, because the essential preliminary of a protest has been omitted. Protest must be made on the day of the dishonour by non-acceptance, vide § 51 (4), and in the manner provided in § 57 (6-9), and § 94.

(h.) The acceptance cannot be made for the honour o

drawee, who has not accepted, whether he be under an obligation to accept or not, because he is not liable on the bill, nor for the honour of an indorser who has indorsed without recourse, vide § 16, or as agent, or in a representative capacity, vide § 26, but in the latter case it may be made for the honour of his principal or the corporation he represents. It cannot be made for the honour of an indorser who has negotiated the bill back to the holder, nor for any party against whom recourse has been lost by failure duly to negotiate, vide § 45, 46, 49, 50, 51, or whose obligation has been waived, vide § 62, or signature cancelled, § 63. It seems doubtful, whether in the case of a bill drawn payable per advice, the drawee is entitled to accept or pay for the honour of the drawee supra protest. These words, per advice, seem to prohibit the drawee from accepting or paying, except on receipt of a letter of advice, and the drawee is thereby forbidden to apply the drawer's funds, which either are or may come into his hands before maturity in payment of the bill. The holder of the bill may be barred from claiming payment by some agreement between him and the drawer. It is different in the case of a third party accepting or paying for the honour of the drawer of such a bill. The acceptor for honour succeeds to the rights of the holder against the drawer, and if he have no rights, the acceptor and payer for honour will be in no better position than an indorsee with note of the objection to the holder's title. An acceptor for honour does not become entitled to insist on paying the bill at maturity, and the holder by taking such an acceptance, is not relieved from the duty of giving notice, vide § 48. If notice of dishonour be not given, the acceptor for honour loses his right of recourse against the person for whose honour he has accepted, because the only right which he has against him is derived through the holder, vide § 68 (5).

(i.) E.g., where the drawee is directed to place the sum for which the bill is drawn to the account of the principal of the person who draws the bill.

(j.) A partial acceptance is the only qualified acceptance which a holder may take from a drawee, unless with the

$ 65.

§ 65.

Liability of acceptor for honour.

assent of the drawer; but, in the case of an acceptance for honour, it is not competent for the holder, with or without the drawer's assent, to take an acceptance for honour qualified except as to the sum.

(k.) The formal requisites of an acceptance for honour, which has been preceded by a protest, vide § 50 (7 & 8), are(1.) That it be written (or printed, vide § 2). (2.) That it be on the bill. (3.) That it indicate that it is an acceptance for honour. No special form of words is necessary. The usual form is, "Accepted for the honour of A. B. supra protest," or Accepted S. P.," Thomson on Bills, p. 323. It is not enacted in this case that, as in the case of an ordinary acceptance, the signature is sufficient. It is not necessary that it bear the name of the person for whose honour it is made. (4.) That it be signed by the acceptor. As to the requisites of the signature, vide note on §§ 17 and 91 (1). Formerly, it was necessary that the acceptance for honour should be made in presence of a notary, and that an Act of Honour should be executed; but this is not declared to be requisite by this Act. In the case of an acceptance supra protest made abroad, the law of the country where it is made regulates its requisites, vide § 72 (1). It is, however, competent to execute an act of honour.

(7.) This applies even though the acceptance supra protest be written under the name of an indorser with the view of indicating that the acceptance is for his honour. The only prejudice that an acceptor for honour suffers from his contract being deemed to be made on behalf of the drawer is that he cannot recover from the indorser the charges to which he has been put by so accepting, unless he can prove, otherwise than by the bill, that he had authority so to accept for him.

(m.) The date in the protest for non-acceptance is evidence of the date of presentment for acceptance, while the date of acceptance for honour is immaterial.

66. (1.) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay

the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts (a).

(2.) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted (b).

(a.) The engagement of an acceptor for honour differs from that of an ordinary acceptor in being conditional on due presentment, vide §§ 67 (2) and 52 (1); on due presentment having been previously made to the drawee, vide § 45, unless excused, vide § 46, followed by a protest for non-acceptance, whether the bill be a foreign or inland bill; and (3), on notice of the presentment and protest. No time is specified for the giving of the notice, but it ought to be before or at the time of presentment for payment. A presentment for payment not accompanied by notice will, probably, not be held to imply notice, and, therefore, not to be a due presentment. The notice need not be in writing. Exhibition of the protest to the acceptor for honour will be sufficient. A verbal or written notice ought to be given in such terms as sufficiently identify the bill, vide note on § 49, and intimate, expressly, the facts of due presentment and of a protest for non-payment being taken. If the bill is not duly presented for payment, vide § 67, the acceptor for honour is discharged. If the bill is duly presented, he is bound to pay the sum in the bill and the charges thereon, vide § 68 (6).

(b.) The liability of an acceptor for honour is not greater than that of an ordinary acceptor, and, accordingly, any defence which an acceptor may state may be relied on by an acceptor for honour, vide § 54. An acceptor for honour is not liable to parties on a bill prior to the party for whose honour he accepts.

§ 66.

67. (1.) Where a dishonoured bill has been Presentment accepted for honour supra protest (a), or contains a for honour.

to acceptor