Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 48

Notice of dishonour and effect of non-notice

Subject to the provisions of this Ordinance, when a bill has been dishonoured
by non-acceptance or by non-payment, notice of dishonour must be given to the
drawer and each indorser, and any drawer or indorser to whom such notice is
not given is discharged: Provided that-

   (a)  where a bill is dishonoured by non-acceptance and notice of dishonour
        is not given, the rights of a holder in due course subsequent to the
        omission shall not be prejudiced by the omission;

   (b)  where a bill is dishonoured by non-acceptance and due notice of
        dishonour is given, it shall not be necessary to give notice of a
        subsequent dishonour by non-payment, unless the bill has in the
        meantime been accepted. [cf. 1882 c. 61 s. 48 U.K.]