Question 297. - Referring to the Bills of Exchange Act, ion 98 (c) and (d), read as follows: "By an agent either in his own name or in the name of any party entitled to give notice whether that party is his principal or not." "In writing or by personal communication and in any terms which identify the bill and intimate that the bill has been dishonoured by non-acceptance or non-payment." A bank holds a cheque sent to it for collection. This cheque is dishonoured by non-payment. By the above clause cannot a bank send out notice of dishonour itself instead of having a notary protest the cheque?

Answer - Yes. Unless specially instructed to do so or unless the bill is a foreign one or payable in the Province of Quebec a collecting bank is not required to protest a dishonoured cheque. Protest is also unnecessary in cases where notice of dishonour is dispensed with (see sections 11 4 and 106 to 108, Bills of Exchange Act). The immediate return of the cheque by the collecting bank would be sufficient notice of dishonour (section 99), but as the Act allows the bank to protest if it sees fit (section 113) it is always safer to follow the established practice particularly as the protest affords prima facie evidence of presentation and dishonour, and of the service of notice thereof.