Part II Bills of Exchange

Liabilities of Parties

57 Measure of damages against parties to dishonoured bill.

Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows:

1

The holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior indorser—

a

The amount of the bill:

b

Interest thereon from the time of presentment for payment if the bill is payable on demand, and from the maturity of the bill in any other case:

c

The expenses of noting, or, when protest is necessary, and the protest has been extended, the expenses of protest.

2

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3

Where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.