Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 38

Rights and powers of holder

The rights and powers of the holder of a bill are as follows-

   (a)  he may sue on the bill in his own name;

   (b)  where he is a holder in due course, he holds the bill free from any
        defect of title of prior parties, as well as from mere personal
        defences available to prior parties among themselves, and may enforce
        payment against all parties liable on the bill;

   (c)  where his title is defective-

        (i)    if he negotiates the bill to a holder in due course, that
               holder obtains a good and complete title to the bill; and

        (ii)   if he obtains payment of the bill, the person who pays him in
               due course gets a valid discharge for the bill. [cf. 1882 c. 61
               s. 38 U.K.]