30: Liability of drawer

Liability of drawer.—(1) (a) The drawer of a bill of exchange by drawing it, engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured, he will compensate the holder or any indorser who is compelled to pay it; and (b) the drawer of a cheque by drawing it, engages that in the case of dishonour by the drawee he will compensate the holder: Provided that due notice of dishonour of the bill or cheque has been given to or received by the drawer as hereinafter provided. (2) The drawee of a bill of exchange is not liable thereon until acceptance in the manner provided by this Act.]

Effective date: 1881-12-09

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