Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Bills of Exchange Act, 1964 (Act No. 34 of 1964)Chapter INegotiation of bills34. Continuance of negotiability, and negotiation of overdue or dishonoured bill |
| (1) | If a bill is negotiable in its origin it continues to be negotiable until it has been— |
| (a) | restrictively indorsed; or |
| (b) | discharged by payment or otherwise. |
| (2) | If an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and no person who takes it can acquire or give a better title than that which the person from whom he took it had. |
| (3) |
| (a) | A bill payable on demand is deemed to be overdue within the meaning, and for the purposes, of this section when it appears on the face of it to have been in circulation for an unreasonable length of time. |
| (b) | The question what an unreasonable length of time for the purpose of paragraph (a) is, is a question of fact. |
| (4) | Every negotiation of a bill is prima facie deemed to have been effected before the bill was overdue, except where the date of the relevant indorsement is a date after the maturity of the bill. |
| (5) | If a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour: Provided that nothing in this subsection contained shall affect the rights of a holder in due course. |
