Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 50

Excuses for non-notice and delay

(1) Delay in giving notice of dishonour is excused where the delay is caused
by circumstances beyond the control of the party giving notice, and not
imputable to his default, misconduct, or negligence. When the cause of delay
ceases to operate, the notice must be given with reasonable diligence.

(2) Notice of dishonour is dispensed with-

   (a)  where, after the exercise of reasonable diligence, notice, as required
        by this Ordinance, cannot be given to or does not reach the drawer or
        indorser sought to be charged;

   (b)  by waiver, express or implied. Notice of dishonour may be waived
        before the time of giving notice has arrived or after the omission to
        give due notice;

   (c)  as regards the drawer, in the following cases, namely-

        (i)    where drawer and drawee are the same person;

        (ii)   where the drawee is a fictitious person or a person not having
               capacity to contract;

        (iii)  where the drawer is the person to whom the bill is presented
               for payment;

        (iv)   where the drawee or acceptor is, as between himself and the
               drawer, under no obligation to accept or pay the bill;

        (v)    where the drawer has countermanded payment;

   (d)  as regards the indorser, in the following cases, namely-

        (i)    where the drawee is a fictitious person or a person not having
               capacity to contract, and the indorser was aware of the fact at
               the time he indorsed the bill;

        (ii)   where the indorser is the person to whom the bill is presented
               for payment;

        (iii)  where the bill was accepted or made for his accommodation. [cf.
               1882 c. 61 s. 50 U.K.]