Discharge of Bill
Payment
Marginal note:Payment
138. (1) A bill is discharged by payment in due course by or on behalf of the drawee or acceptor.
(2) Payment in due course means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective.
Accommodation bill
(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.
R.S., c. B-5, s. 139.
Marginal note:Payment by drawer or endorser
139. Subject to the provisions of section 138 with respect to an accommodation bill, when a bill is paid by the drawer or endorser, it is not discharged, but,
(a) where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not reissue the bill; and
(b) where a bill is paid by an endorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent endorsements and again negotiate the bill.
R.S., c. B-5, s. 140.
Marginal note:Acceptor holding at maturity
140. When the acceptor of a bill is or becomes the holder of it, at or after its maturity, in his own right, the bill is discharged.
R.S., c. B-5, s. 141.
Marginal note:Renouncing rights
141. (1) When the holder of a bill, at or after its maturity, absolutely and unconditionally renounces his rights against the acceptor, the bill is discharged.
Marginal note:Against one party
(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at or after its maturity.
Marginal note:In writing
(3) A renunciation must be in writing, unless the bill is delivered to the acceptor.
Marginal note:Holder in due course
(4) Nothing in this section affects the rights of a holder in due course without notice of renunciation.
R.S., c. B-5, s. 142.
Marginal note:Cancellation of bill
142. (1) Where a bill is intentionally cancelled by the holder or his agent and the cancellation is apparent thereon, the bill is discharged.
Marginal note:Of any signature
(2) In like manner, any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent.
Marginal note:Discharge of endorser
(3) In any case described in subsection (2), any endorser who would have had a right of recourse against the party whose signature is cancelled is also discharged.
R.S., c. B-5, s. 143.
