Damages On Bills Of Exchange

Damages on Bills of Exchange

In the Past

A penalty affixed by law to the non-payment of a bill of exchange when it is not paid at maturity, which the parties to it are obliged to pay to the holder.

Developments

The discordant and shifting regulaaions on this subject which have been enacted in the several states, make it almost impossible to give a correct view of this subject. The drawer of a bill of exchange may limit the amount of damages (see more about this popular legal topic in the U.S. encyclopedia) by making a memorandum in the bill, that they must be a definite sum; as, for example, “if non-acceptance or non-payment, reexchange and expenses not to exceed ___________ dollars. 1 Bouv. Inst. n. 1133. The following abstract of the laws of several of the United States of America, will be acceptable to the commercial lawyer.

Details

Alabama (see more about this State laws here). 1. When drawn on a person in the United States of America. By the Act of January 15, 1828, the damages (see more about this popular legal topic in the U.S. encyclopedia) on a protested bill of exchange drawn on a person, either in this or any other of the United States of America, are ten per cent. By the Act of December 21, 1832, the damages (see more about this popular legal topic in the U.S. encyclopedia) on such bills drawn on any person in this state or upon any person payable in New Orleans and purchased by the Bank of Alabama (see more about this State laws here) or its branches, are five per cent.

Other Aspects

Damages on protested bills drawn on on person out of the United States of America are twenty per cent.

More Information

Arkansus. 1. It is given by the Act of February 28, 1838, s. 7, Ark. Rev. Stat. 150, that “every bill of exchange expressed to be for value received, drawn or negotiated within this state, payable after date, to order or bearer, which must be duly presented for acceptance or payment and protested for non-acceptance or non-payment, must be depending on damages (see more about this popular legal topic in the U.S. encyclopedia) in the following cases: first, if the bill have been drawn on any person at any place within this state, at the rate of two per centum on the main sum specified in the bill; second, if the bill must be drawn on any person and payable in any of the states of Alabama (see more about this State laws here) , Louisiana (see more about this State laws here) , Mississippi (see more about this State laws here) , Tennessee (see more about this State laws here) , Kentucky (see more about this State laws here) , Ohio (see more about this State laws here) , Indiana (see more about this State laws here) , Illinois (see more about this State laws here) and Missouri (see more about this State laws here) or any point on the Ohio (see more about this State laws here) river, at the rate of four per centum on the main sum in such bill specified: third, if the bill must have been drawn on auy person and payable at any place within the Iimits of the United States of America, not before now expressed, at the rate of five per centum on the main sum specified in the bill: fourth, if the bill must have been drawn on any person and payable at any point or place beyond the limits of the United States of America, at the rate of ten per centum on the sum specified in the bill.

Other Issues

And by the 8th section of the same act, if any bill of exchange expressed to be for value received and made payable to order or bearer, must be drawn on any person at any place within this state and accepted and protested for non-payment, there must be allowed and paid to the holder, by the acceptor, damages (see more about this popular legal topic in the U.S. encyclopedia) in the following cases: first, if the bill be drawn by any person at any place within this sate, at the rate of two per centum on the main sum there specified: second, if the bill be drawn at any place without this state, but within the limits of the United States of America, at teh rate of six per centum on the sum there specified: third, if the bill be drawn on any person at any place without the limites of the United Sates, at the rate of ten per centum on the sum there specified. And, by sect 9, as well as the damages (see more about this popular legal topic in the U.S. encyclopedia) allowed inthe two preceding sections to the holder of any bill of exchange protested for non-payment or nonacceptance, he must be entitled to costs of protest and interest at the rate of ten per centum per annum, on the amount specified in the bill, from the date of teh protest until the amount of the bill must be paid.”

When the bill is drawn on person out of the United States of America, twenty per cent is said to be the amount which ought reasonably to be allowed. Swift's Ev. 336. There is no statutory provision on the subject.

Delaware (see more about this State laws here). If any person must draw or endorse any bill of exchange upon any person in Europe or beyond seas and the same must be returned back unpaid, with a legal protest, the drawer there and all others concerned must pay and discharge the contents of the said bill, together with twenty per cent advance f or the damage (see more about this popular legal topic in the U.S. encyclopedia) tof this; and so proportionably for a greater or less sum, in the sam specie as the same bill was drawn or current money of this government (see more about this popular legal topic in the U.S. encyclopedia) equal or similar to that which was first paid to the drawer or endorser.

Georgia (see more about this State laws here). 1. Bills on people in the United States of America. First, in the state. No damages (see more about this popular legal topic in the U.S. encyclopedia) are allonved on protested bills of exchange drawn in the state, on a person in the state, except bank bills, on which the damages (see more about this popular legal topic in the U.S. encyclopedia) are ten per cent for refusal to pay in specie. 4 Laws of Geo. 75. Secondly, upon bills drawn or negotiated in the state on people out of the state, but within the United States of America, five per cent and interest. Act of 1823, Prince's Dig. 454; 4 Laws of Geo. 212. When drawn upon a person out of the United States of America, ten per cent. damages (see more about this popular legal topic in the U.S. encyclopedia) and postage, protest and necessary expenses; also the premium, if any, on the face of the bill; but if at a discount, the discount must be deducted. Act of 1827, Prince's Dig. 462; 4 Laws of Geo. 221. Indiana (see more about this State laws here). 1. When drawn by a person in the state on another person in Indiana (see more about this State laws here) , no damages (see more about this popular legal topic in the U.S. encyclopedia) are allowed. When drawn on a person in another state, territory or district, five per cent. 3. When drawn on a person out of the United States of America, ten percent. Rev. Code, c. 13, Feb. 17, 1838. Kentucky (see more about this State laws here). 1. When drawn by a person in Kentucky (see more about this State laws here) on a person in the state or in any other state, territory or district of the United Stateg, no damages (see more about this popular legal topic in the U.S. encyclopedia) are allowed. See, Acts, Sessions of 1820, p. 823. [1]

Resources

Notes and References

Partialy, this information about damages on bills of exchange is based on the Bouvier?s Law Dictionary, 1848 edition. There is a list of terms of the Bouvier?s Law Dictionary, including damages on bills of exchange.

Damages On Bills Of Exchange

Damages On Bills Of Exchange