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(1)A promissory note is an unconditional promise in writing made by one person to another signed by the maker, engaging 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 in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is indorsed by the maker.
(3)A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.
(4)A note which is, or on the face of it purports to be, both made and payable within the British Islands is an inland note. Any other note is a foreign note.
A promissory note is inchoate and incomplete until delivery thereof to the payee or bearer.
(1)A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally according to its tenour.
(2)Where a note runs “I promise to pay” and is signed by two or more persons it is deemed to be their joint and several note.
(1)Where a note payable on demand has been indorsed, it must be presented for payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged.
(2)In determining what is reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case.
(3)Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.
(1)Where a promissory note is in the body of it made payable at a particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable.
(2)Presentment for payment is necessary in order to render the indorser of a note liable.
(3)Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an indorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the indorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.
The maker of a promissory note by making it—
(1)Engages that he will pay it according to its tenor;
(2)Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.
(1)Subject to the provisions in this part, and except as by this section provided, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes.
(2)In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order.
(3)The following provisions as to bills do not apply to notes; namely, provisions relating to—
(a)Presentment for acceptance;
(b)Acceptance;
(c)Acceptance supra protest;
(d)Bills in a set.
(4)Where a foreign note is dishonoured, protest thereof is unnecessary.
A thing is deemed to be done in good faith, within the meaning of this Act, where it is in fact done honestly, whether it is done negligently or not.
(1)Where, by this Act, any instrument or writing is required to be signed by any person it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority.
(2)In the case of a corporation, where, by this Act, any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal.
But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.
Where, by this Act, the time limited for doing any act or thing is less than three days, in reckoning time, non-business days are excluded.
“Non-business days” for the purposes of this Act mean—
(a)[F1Saturday] Sunday, Good Friday, Christmas Day:
(b)A bank holiday under [F2the M1Banking and Financial Dealings Act 1971:]
(c)A day appointed by Royal proclamation as a public fast or thanksgiving day.
[F3(d)A day declared by an order under section 2 of the Banking and Financial Dealings Act 1971 to be a non-business day.]
Any other day is a business day.
F1Word inserted by Banking and Financial Dealings Act 1971 (c. 80), s. 3(1)(3)
F2Words substituted by Banking and Financial Dealings Act 1971 (c. 80), s. 4(4)
F3S. 92(d) added by Banking and Financial Dealings Act 1971 (c. 80) s. 4(4)
M11971 c. 80.
For the purposes of this Act, where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting.
Where a dishonoured bill or note is authorised or required to be protested, and the services of a notary cannot be obtained at the place where the bill is dishonoured, any householder or substantial resident of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the dishonour of the bill, and the certificate shall in all respects operate as if it were a formal protest of the bill.
The form given in Schedule 1 to this Act may be used with necessary modifications, and if used shall be sufficient.
The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.
(1)The rules in bankruptcy relating to bills of exchange, promissory notes, and cheques, shall continue to apply thereto notwithstanding anything in this Act contained.
(2)The rules of common law including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques.
(3)Nothing in this Act or in any repeal effected thereby shall affect—
(a) . . . F1 any law or enactment for the time being in force relating to the revenue:
(b)The provisions of the M1Companies Act 1862, or Acts amending it, or any Act relating to joint stock banks or companies:
(c)The provisions of any Act relating to or confirming the privileges of the Bank of England or the Bank of Ireland respectively:
(d)The validity of any usage relating to dividend warrants, or the indorsements thereof.
F1Words repealed by Statute Law Revision Act 1898 (c. 22)
M11862 c. 89.
Nothing in this Act or in any repeal effected thereby shall extend or restrict, or in any way alter or affect the law and practice in Scotland in regard to summary diligence.
Where any Act or document refers to any enactment repealed by this Act, the Act or document shall be construed, and shall operate, as if it referred to the corresponding provisions of this Act.
In any judicial proceeding in Scotland, any fact relating to a bill of exchange, bank cheque, or promissory note, which is relevant to any question of liability thereon, may be proved by parole evidence: Provided that this enactment shall not in any way affect the existing law and practice whereby the party who is, according to the tenour of any bill of exchange, bank cheque, or promissory note, debtor to the holder in the amount thereof, may be required, as a condition of obtaining a sist of diligence, or suspension of a charge, or threatened charge, to make such consignation, or to find such caution as the court or judge before whom the cause is depending may require.
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F1Words repealed by Prescription and Limitation (Scotland) Act 1973 (c. 52), s. 16(2) Sch. 5 Pt. I
Bills of Exchange Act 1882