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Bill C-305

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C-305
Second Session, Fortieth Parliament,
57-58 Elizabeth II, 2009
HOUSE OF COMMONS OF CANADA
BILL C-305
An Act to amend the Bills of Exchange Act (rights of bill holders)

first reading, February 10, 2009

Ms. Davies

402075

SUMMARY
This enactment amends the Bills of Exchange Act to make the rights of a bill holder subject to a right or defence of set-off held by a purchaser in respect of an action by the seller. The purpose of the enactment is to prevent the cashing of cheques by a cheque-cashing business where a cheque has been cancelled by the person who wrote the cheque.

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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-305
An Act to amend the Bills of Exchange Act (rights of bill holders)
R.S., c. B-4
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Section 73 of the Bills of Exchange Act is renumbered as subsection 73(1).
(2) Paragraph 73(1)(b) of the Act is replaced by the following:
(b) where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, except for any defence or right of set-off that the purchaser would have had in an action by the seller, and may enforce partial or full payment against all parties liable on the bill;
(3) Section 73 of the Act is amended by adding the following after subsection (1):
Application of section 188
(2) The definitions in section 188 apply to this section.
Published under authority of the Speaker of the House of Commons
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