Bill Dishonoured on Day following Maturity.

Question 56.— A draft sent by Bank A to Bank B for collection with instructions — "No protest for non-acceptance " attached, was returned by Bank B to Bank A on the first business day after the maturity of the bill unprotested. Can the drawer of the bill decline to take it up on his being requested to do so by Bank A? If not, can Bank A hold Bank B liable for the amount? Under section 49, sub-secs. 3 and 4, Bills of Exchange Act, is not the return of the bill unpaid a good notice of dishonour?

The bill in question bore only the endorsement of the drawer, he having made it payable to his own order.

Answer.—As the return within the proper time of the dishonoured bill was in point of fact notice of dishonour, we do not think Bank A can refuse to take it back, and if they notify their customer within the proper time of the dishonour, either by a formal notice to that effect or by sending him the dishonoured bill, he is liable.

The rights of the parties are not affected by the fact that there is no endorsement other than that of the drawer. If Bank A's customer had been an endorser and not the drawer, he would in turn have the same right to pass on the bill to the drawer.