Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 55

Liability of drawer or indorser

(1) The drawer of a bill, by drawing it-

   (a)  engages that, on due presentment, it shall be accepted and paid
        according to its tenor, and that if it is dishonoured he will
        compensate the holder or any indorser who is compelled to pay it,
        provided that the requisite proceedings on dishonour are duly taken;

   (b)  is precluded from denying to a holder in due course the existence of
        the payee and his then capacity to indorse.

(2) The indorser of a bill, by indorsing it-

   (a)  engages that, on due presentment, it shall be accepted and paid
        according to its tenor, and that if it is dishonoured he will
        compensate the holder or a subsequent indorser who is compelled to pay
        it, provided that the requisite proceedings on dishonour are duly
        taken;

   (b)  is precluded from denying to a holder in due course the genuineness
        and regularity in all respects of the drawer's signature and all
        previous indorsements;

   (c)  is precluded from denying to his immediate or a subsequent indorsee
        that the bill was, at the time of his indorsement, a valid and
        subsisting bill, and that he had then a good title thereto. [cf. 1882
        c. 61 s. 55 U.K.]