Acceptance for honour
Full Text
Acceptance for honour.—When a bill of exchange has been noted or protested for non-acceptance or for better security, any person not being a party already liable thereon may, with the consent of the holder, by writing on the bill, accept the same for the honour of any party thereto.
Plain English Summary
Allows a third party to step in and accept a protested bill of exchange for the honour of any liable party, subject to the holder's consent.
Key Legal Elements
- Bill must have been noted or protested for non-acceptance or better security
- Acceptor for honour must not be a party already liable on the bill
- Requires consent of the holder
- Must be executed by writing on the bill
Practical Note
An ancient mercantile mechanism allowing a business associate or friend of the drawer or endorser to protect that party's commercial reputation after dishonour. The person accepting for honour becomes an intervenor and steps into a conditional guarantor role.
हिंदी पाठ
साखार्थ प्रतिग्रहण।—जब किसी विनिमय-पत्र का अप्रतिग्रहण के लिए या बेहतर प्रतिभूति के लिए टिप्पण या प्रत्याख्यान कराया जा चुका हो, तब कोई भी व्यक्ति, जो उस पर पहले से दायी पक्षकार न हो, धारक की सहमति से, बिल पर लिखकर उसके किसी भी पक्षकार के साखार्थ उसे स्वीकार कर सकता है।