damages on bills of exchange
1 definition found
damages on bills of exchange - Bouvier's Law Dictionary, Revised 6th Ed (1856) :
DAMAGES ON BILLS OF EXCHANGE, contracts. 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.
2. The discordant and shifting regulations on this subject which have
been enacted in the several states, render it almost impossible to give a
correct view of this subject. The drawer of a bill of exchange may limit the
amount of damages by making a memorandum in the bill, that they shall be a
definite sum; as, for example, "In case of 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,
will be acceptable to the commercial lawyer.
3. Alabama. 1. When drawn on a person in the United States. By the
Act of January 15, 1828, the damages on a protested bill of exchange drawn
on a person, either in this or any other of the United States, are ten per
cent. By the Act of December 21, 1832, the damages 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 or its branches, are five per cent.
4.-2. Damages on protested bills drawn on on person out of the United
States are twenty per cent.
5. Arkansas. 1. It is provided 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 shall be duly presented for acceptance or payment,
and protested for non-acceptance or non-payment, shall be subject to damages
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 principal
sum specified in the bill; second, if the bill shall be drawn on any person,
and payable in any of the states of Alabama, Louisiana, Mississippi,
Tennessee, Kentucky, Ohio, Indiana, Illinois, and Missouri, or any point on
the Ohio river, at the rate of four per centum on the principal sum in such
bill specified: third, if the bill shall have been drawn on any person, and
payable at any place within the limits of the United States, not
hereinbefore expressed, at the rate of five per centum on the principal sum
specified in the bill: fourth, if the bill shall have been drawn on any
person, and payable at any point or place beyond the limits of the United
States, at the rate of ten per centum on the sum specified in the bill.
6.-2. 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,
shall be drawn on any person at any place within this state, and accepted
and protested for non-payment, there shall be allowed and paid to the
holder, by the acceptor, damages 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 principal sum therein specified: second, if the bill be drawn
at any place without this state, but within the limits of the United States,
at the rate of six per centum on the sum therein specified: third, if the
bill be drawn on any person at any place without the limits of the United
Sates, at the rate of ten per centum on the sum therein specified. And, by
sect 9, in addition to the damages allowed in the two preceding sections to
the holder of any bill of exchange protested for non-payment or
nonacceptance, he shall 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 the protest until the amount of the bill shall be paid."
7. Connecticut. 1. When drawn on another place in the United States.
When drawn upon persons in the city of New York, two per cent. When in other
parts of the state of New York, or the New England states (other than this,)
New Jersey, Pennsylvania, Delaware, maryland, Virginia, or the District of
Columbia, three per cent. When on persons in North or South Carolina,
Georgia, or Ohio, five per cent. On other states, territories or districts,
in the United States, eight per cent, on the principal sum in each case,
with interest on the amount of such sum, with the damage after notice and
demand. Stat. tit. 71, Notes and Bills, 413, 414. When drawn on persons
residing in Connecticut no damages are allowed.
8.-2. When the bill is drawn on person out of the United States,
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.
9. Delaware. If any person shall draw or endorse any bill of exchange
upon any person in Europe, or beyond seas, and the same shall be returned
back unpaid, with a legal protest, the drawer there and all others concerned
shall pay and discharge the contents of the said bill, together with twenty
per cent advance f or the damage thereof; 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 equivalent to that which was first paid to
the drawer or endorser.
10. Georgia. 1. Bills on persons in the United States. First, in the
state. No damages are allowed on protested bills of exchange drawn in the
state, on a person in the state, except bank bills, on which the damages 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 persons out of the state, but
within the United States, five per cent, and interest. Act of 1823, Prince's
Dig. 454; 4 Laws of Geo. 212.
11.-2. When drawn upon a person out of the United States, ten per
cent. damages 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.
12. Indiana. 1. When drawn by a person in the state on another person
in Indiana, no damages are allowed.
13.-2. 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,
ten percent. Rev. Code, c. 13, Feb. 17, 1838.
14. Kentucky. 1. When drawn by a person in Kentucky on a person in the
state, or in any other state, territory, or district of the United States,
no damages are allowed. See, Acts, Sessions of 1820, p. 823.
15.-2. When on a person in a foreign country, damages are given at the
rate of ten per cent. per ann. from the date of the bill until paid, but not
more than eighteen months interest to be collected. 2 Litt. 101.
16. Louisiana. The rate of damages to be allowed and paid upon the
usual protest for non-acceptance, or for non-payment of bills of exchange,
drawn or negotiated within this state in the following cases, is as follows:
on all bills of exchange drawn on or payable in foreign countries, ten
dollars upon the hundred upon the principal sum specified in such bills; on
all bills of exchange, drawn on and payable in other states in the United
States, five dollars upon the hundred upon the principal sum specified in
such bill. Act of March 7, 1838, s. 1.
17. By the second section of the same act it is provided that such
damages shall be in lieu of interest, charge of protest, and all other
charges, incurred previous to the time of giving notice of non-acceptance or
non-payment; but the principal and damages shall bear interest thereafter.
18. By section 3, it is enacted, that if the contents of such bill be
expressed in the money of account of the United States, the amount of the
principal and of the damages herein allowed for the non-acceptance or non-
payment shall be ascertained and determined, without any reference to the
rate of exchange existing between this state and the place on which such
bill shall have been drawn, at the time of the payment, on notice of non-
acceptance or non-payment.
19. Maine. 1. When drawn payable in the United States. The damages in
addition to the interest are as follows: if for one hundred dollars or more,
and drawn, accepted, or endorsed in the state, at a place, seventy-five
miles distant from the place where drawn, one per cent.; if, for any sum
drawn, accepted, and endorsed in this state, and payable in New Hampshire,
Vermont, Connecticut, Rhode Island, or New York, three per cent; if payable
in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, South Carolina,
Georgia, or the District of Columbia, six per cent.; if payable in any other
state, nine per cent. Rev. St. tit. 10 c. 115, Sec. 110, 111.
20.-2. Out of the United States, no statutory provision. It is the
usage to allow the holder of the bill the money for which it was drawn,
reduced to the currency of the state, at par, and also the charges of
protest with American interest upon those sums from the time when the bill
should have been paid and the further sum of one-tenth of the money for
which the bill was drawn, with interest upon it from the time payment of the
dishonored bill was demanded of the drawer. But nothing has been allowed for
re-exchange, whether it is below or above par. Per Parsons, Ch. J. 6 Mass.
157, 161 see 6 Mass. 162.
21. Maryland. 1. No damages are allowed when the bill is drawn in the
state on another person in Maryland.
22.-2. When it is drawn on any "person, company, or society, or
corporation in any other of the United States," eight per cent. damages on
the amount of the bill are allowed, and an amount to purchase another bill,
at the current exchange, and interest and losses of protest.
24.-3. If the bill be drawn on a "foreign country," fifteen per cent.
damages are allowed, and the expense of purchasing a new bill as above,
besides interest and costs of protest. See Act of 1785, c. 88.
25. Michigan. 1. When a bill is drawn in the state on a person in the
state, no damages are allowed.
26.-2. When drawn or endorsed within the state and payable out of it,
within the United States, the rule is as follows: in addition to the
contents of the bill, with interest and costs, if payable within the states
of Wisconsin, Illinois, Indiana, Ohio, and New York, three per cent. on the
contents of the bill if payable within the states of Missouri, Kentucky,
Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New
Jersey, Pennsylvania, Delaware, Maryland, Virginia, or the District of
Columbia, five per centum; if payable elsewhere in the United States, out of
Michigan, ten per cent. Rev. St. 156, S. 10.
27.-3. When the bill is drawn within this state, and payable out of
the United States, the party liable must pay the same at the current rate of
exchange at the time of demand of payment, and damages at the rate of five
per cent. on the contents thereof, together with interest on the said
contents, which must be computed, from the date of the protest, and are in
full of all damages and charges and expenses. Rev. Stat. 156, s. 9.
28. Mississippi. 1. When drawn on a person in the state, five per
cent. damages are allowed. How. & Hutch. 376, ch. 35, s. 20, L. 1827; How.
Rep. 3. 195.
29.-2. When drawn on a person in another state or territory, no
damages are given. Id. 3. When drawn on a person out of the United States,
ten per cent. damages are given, and all charges incidental thereto, with
lawful interest. How. & Hutch. 376, ch. 35, s. 19, L. 1837.
30. Missouri. 1. When drawn on a person within the state, four per
cent. damages on the sum specified in the bill are given. Rev. Code, 1835,
Sec. 8, cl. 1, p. 120.
31.-2. When on another state or territory, ten per cent. Rev. Code,
1835, Sec. 8, cl. 2, p. 120. 3. When on a person out of the United States,
twenty per cent. Rev. Code, 1835, Sec. 8, cl. 3, p. 120.
32. New York. By the Revised Statutes, Laws of N. Y. sess. 42, ch. 34,
it is provided that upon bills drawn or negotiated within the state upon any
person, at any place within the six states east of New York, or in New
Jersey, Pennsylvania, Ohio, Delaware, Maryland, Virginia, or the District of
Columbia, the damages to be allowed and paid upon the usual protest for non-
acceptance or non-payment, to the holder of the bill, as purchase thereof,
or of some interest therein, for a valuable consideration, shall be three per
cent. upon the principal sum specified in the bill; and upon any person at
any place within the states of North Carolina, South Carolina, Georgia,
Kentucky, and Tennessee, five percent; and upon any person in any other
state or territory of the United States, or at any other place on, or
adjacent to, this continent, and north of the equator, or in any British or
foreign possessions in the West Indies, or elsewhere in the Western Atlantic
Ocean, or in Europe, ten per cent. The damages are to be in lieu of
interest, charges of protest, and all other charges incurred previous to,
and at the time of, giving notice of non-acceptance or non-payment. But the
holder will be entitled to demand and recover interest upon the aggregate
amount of the principal sum specified in the bill, and the damages from time
of notice of the protest for non-acceptance, or notice of a demand and
protest for non-payment. If the contents of the bill be expressed in the
money of account of the United States, the amount due thereon, and the
damages allowed for the non-payment, are to be ascertained and determined,
without reference to the rate of exchange existing between New York and the
place on which the bill is drawn. But if the contents of the bills be
expressed in the money of account or currency of any foreign. country, then
the amount due, exclusive of the damages, is to be ascertained and
determined by the rate of exchange, or the value of such foreign currency,
at the time of the demand of payment.
33. Pennsylvania. The Act of March 30, 1821, entitled an act
concerning bills of exchange, enacts, that, Sec. 1, "whenever any bill of
exchange hereafter be drawn and endorsed within this commonwealth, upon any
person or persons, or body corporate, of, or in any other state, territory,
or place, shall be returned unpaid with a legal protest, the person or
persons to whom the same shall or may be payable, shall be entitled to
recover and receive of and from the drawer or drawers, or the endorser or
endorsers of such bill of exchange, the damages hereinafter specified, over
and above the principal sum for which such bill of exchange shall have been
drawn, and the charges of protest, together with lawful interest on the
amount of such principal sum, damages and charges of protest, from the time
at which notice of said protest shall have been given, and the payment of
said principal sum and damages, and charges of protest demanded; that is to
say, if such bill shall have been drawn upon any person or persons, or body
corporate, of, or in any of the United States or territories thereof,
excepting the state of Louisiana, five per cent. upon such principal sum; if
upon any person or persons, or body corporate, of, or in Louisiana, or of,
or in any other state or place in North America, or the islands thereof,
excepting the northwest coast of America and Mexico, or of, or in any of the
West India or Bahama Islands, ten per cent. upon such principal sum; if upon
any person or persons, or body corporate, of, or in the island of Madeira,
the Canaries, the Azores, the Cape de Verde Islands, the Spanish Main, or
Mexico, fifteen per cent. upon such principal sum; if upon any person or
persons, or body corporate, of, or in any state or place in Europe, or any
of the island's thereof, twenty per cent. upon such principal sum; if upon
any person or persons, or body corporate, of, or in any other part of the
world, twenty-five per cent. upon such principal sum.
34.-2. "The damages, which, by this act, are to be recovered upon any
bill of exchange, shall be in lieu of interest and all other charges, except
the charges of protest, to the time when notice of the protest and demand of
payment shall have been given and made, aforesaid; and the amount of such
bill and of the damages payable thereon, as specified in this act, shall be
ascertained and determined by the rate, of exchange, or value of the money
or currency mentioned in such bill, at the time of notice of protest and
demand of payment as before mentioned."
35. Tennessee. 1. On a bill drawn or endorsed within the state upon
any person or persons, or body corporate, of, or in, any other state,
territory, or place, which shall be returned unpaid, with a legal protest,
the holder shall be entitled to the damages hereinafter specified, over and
above the principal sum for which such bill of exchange shall have been
drawn, and the charge of protest, together with lawful interest on the
amount of such principal sum, damages, and charges of protest, from the time
at which notice of such protest shall have been given, and the payment of
said principal sum, damages, and charges of protest demanded; that is to
say, if such bill shall have been drawn on any person or persons, or body
corporate, of, or in any of these United States, or the territories thereof,
three per cent. upon such principal sum: if upon any other person or
persons, or body corporate, of, or in, any other state or place in North
America, bordering upon the Gulf of Mexico, or of, or in, any of the West
India Islands, fifteen per cent. upon such principal sum; if upon any person
or persons, or body corporate, of, or in, any other part of the world,
twenty per cent. upon such principal sum.
36.-2. The damages which, by this act, are to be recovered upon any
bill of exchange, shall be in lieu of interest and all other charges, except
charges of protest, to the time when notice of the protest and demand of
payment shall have been given and made as aforesaid. Carr. & Nich. Comp.
125; Act of 1827, c. 14.
|
