The Bills of Exchange Act

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THE BILLS OF EXCHANGE ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Interpretation.
part ii
BILLS OF EXCHANGE
(a) Form and Interpretation
3. Definition.
4. Inland and foreign bills.
5. Effect where different parties to bill are same person.
6. Address to drawee.
7. Certainty required as to payee.
8. What bills are negotiable.
9. Sum payable.
10. Bill payable on demand.
11. Bill payable at future time.
12. Omission of date in bill payable after date.
13. Ante-dating and post-dating.
14. Computation of time of payment.
15. Case of need.
16. Optional stipulations by drawer or endorser.
17. Definition and requisites of acceptance.
18. Time for acceptance.
19. General and qualified acceptances.
20. Inchoate instruments.
21. Delivery.

.
17. Definition and requisites of acceptance.
18. Time for acceptance.
19. General and qualified acceptances.
20. Inchoate instruments.
21. Delivery.

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(b) Capacity and Authority of Parties
22. Capacity of parties. 23. Signature essential to liability. 24. Forged or unauthorised signature. 25. Procuration signatures. 26. Person signing as agent or in representative capacity. (c) The Consideration for a Bill
27. Value and holder for value. 28. Accommodation bill or party. 29. Holder in due course. 30. Presumption of value and good faith. (d) Negotiation of Bills
31. Negotiation of bill. 32. Requisites of a valid endorsement. 33. Conditional endorsement. 34. Endorsement in blank and special endorsement. 35. Restrictive endorsement. 36. Negotiation of overdue or dishonored bill. 37. Negotiation of bill to party already liable thereon. 38. Rights of holder. (e) General Duties of the Holder
39. When presentment for acceptance is necessary. 40. Time for presenting bill payable after sight. 41. Rules as to presentment for Acceptance and excuses for non-presentment. 42. Non-acceptance. 43. Dishonour by non-acceptance and its consequences. 44.

Rules as to presentment for Acceptance and excuses for non-presentment. 42. Non-acceptance. 43. Dishonour by non-acceptance and its consequences. 44.

Duties as to qualified acceptances. 45. Rules as to presentment for payment. 46. Excuses for delay or non-presentment for payment. 47. Dishonour by non-payment. 48. Notice of dishonour and effect of non-notice. 49. Rules as to notice of dishonour. 50. Excuses for non-notice and delay. 51. Noting or protest of bill. 52. Duties of holder as regards drawee or acceptor. (f) Liabilities of Parties
53. Bill not assignment of funds in hands of drawee. 54. Liability of acceptor.

es of holder as regards drawee or acceptor. (f) Liabilities of Parties
53. Bill not assignment of funds in hands of drawee. 54. Liability of acceptor.

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55. Liability of drawer or indorser. 56. Stranger signing bill liable as indorser. 57. Measure of damages against parties to dishonoured bill. 58. Transferor by delivery and transferee. (g) Discharge of Bill
59. Payment in due course. 60. Banker paying demand draft where endorsement is forged. 61. Acceptor holder at maturity. 62. Express waiver. 63. Cancellation. 64. Alteration of bill. (h) Acceptance and Payment for Honour
65. Acceptance for honour supra protest. 66. Liability of acceptor for honour. 67. Presentment to acceptor for honour. 68. Payment for honour supra protest. (i) Lost Instruments
69. Holder’s right to duplicate of lost bill. 70. Action on lost bill. (j) Bill in a Set
71. Rules as to sets. (k) Conflict of Laws
72. Rules where laws conflict. part iii
CHEQUES AND PROTECTION OF A BANKER
73. Definition. 74. Presentment of cheque for payment. 75. Revocation of banker’s authority. Crossed Cheques
76. General and special crossings defined. 77. Crossing by drawer or after issue. 78.

r payment. 75. Revocation of banker’s authority. Crossed Cheques
76. General and special crossings defined. 77. Crossing by drawer or after issue. 78.

Crossing material part of cheque. 79. Duties of banker as to crossed cheques. 80. Protection to banker and drawer where cheque is crossed. 81. Effect of crossing on holder.

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82. Protection of bankers paying unendorsed cheques, etc.
83. Rights of bankers collecting unendorsed cheques.
84. An unendorsed cheque evidence of payment.
85. Protection of bankers collecting payment of cheques, etc.
86. Application of certain provisions of this Act to certain instruments.
87. Application.
88. Application of sections 76 to 87 to bankers’ drafts.
part iv
PROMISSORY NOTES
89. Definition.
90. Delivery necessary.
91. Joint and several notes.
92. Note payable on demand.
93. Presentment of note for payment.
94. Liability of maker.
95. Application of Part II to notes.
part v
SUPPLEMENTARY PROVISIONS
96. Good faith.
97. Signature.
98. Computation of time.
99. When noting equivalent to protest.
100. Protest when notary not accessible.
101. Dividend warrants may be crossed.
102. Savings.
SCHEDULE

of time.
99. When noting equivalent to protest.
100. Protest when notary not accessible.
101. Dividend warrants may be crossed.
102. Savings.
SCHEDULE

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PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Bills of Exchange Act. 2. In this Act, unless the context otherwise requires-
“acceptance” means an acceptance completed by delivery or
notification;
“action” includes counter claim and set off;
“banker” includes a body of persons whether incorporated
or not who carry on the business of banking;
“bankrupt” includes any person whose estate is vested in
a trustee or assignee under the law in force relating to
bankruptcy;
“bearer” means the person in possession of a bill or note
which is payable to bearer;
“bill” means bill of exchange;
“delivery” means transfer of possession, actual or
constructive, from one person to another;
“holder” means the payee or indorsee of a bill or note who is
in possession of it, or the bearer thereof;
“indorsement” means an indorsement completed by
delivery;
Short title
Interpretation
CHAPTER 215
THE BILLS OF EXCHANGE ACT
An Act relating to bills of exchange, cheques and promissory notes. [15th May, 1931]
Ords. Nos.

e
Interpretation
CHAPTER 215
THE BILLS OF EXCHANGE ACT
An Act relating to bills of exchange, cheques and promissory notes. [15th May, 1931]
Ords. Nos.

19 of 1931
2 of 1934
24 of 1938
13 of 1945
Acts Nos. 3 of 1969
4 of 2015

19 of 1931
2 of 1934
24 of 1938
13 of 1945
Acts Nos. 3 of 1969
4 of 2015

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50
“issue” means the first delivery of a bill or note, complete in
form to a person who takes it as a holder;
“note” means promissory note;
“value” means valuable consideration. PART II
BILLS OF EXCHANGE
(a) Form and Interpretation
3.–(1) A bill of exchange is an unconditional order in writing,
addressed by one person to another, signed by the person giving
it, requiring the person to whom it is addressed to pay on demand
or at a fixed or determinable future time, a sum certain in money
to or to the order of a specified person, or to bearer. (2) An instrument which does not comply with these
conditions, or which orders any act to be done in addition to
the payment of money, is not a bill of exchange.

rument which does not comply with these
conditions, or which orders any act to be done in addition to
the payment of money, is not a bill of exchange.

(3) An order to pay out of a particular fund is not
unconditional within the meaning of this section; but an
unqualified order to pay, coupled with-
(a) an indication of a particular fund out of which the
drawee is to reimburse himself or a particular account
to be debited with the amount; or
(b) a statement of the transaction which gives rise to the
bill, is unconditional. (4) A bill is not invalid by reason-
(a) that it is not dated;
(b) that it does not specify the value given, or that any value
has been given therefor; and
(c) that it does not specify the place where it is drawn or
the place where it is payable. 4.–(1) An inland bill is a bill which is or on the face of it
purports to be-
(a) both drawn and payable within East Africa; or
(b) drawn within East Africa upon some person resident
therein and any other bill is a foreign bill. Definition
Inland and
foreign bills

st Africa; or
(b) drawn within East Africa upon some person resident
therein and any other bill is a foreign bill. Definition
Inland and
foreign bills

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THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(2) Unless the contrary appears on the face of the bill, the
holder may treat it as an inland bill. (3) For the purposes of this section the expression, “East
Africa” means the Republic of Kenya, the United Republic of
Tanzania and Uganda. 5.–(1) A bill may be drawn payable to, or to the order of, the
drawer; or it may be drawn payable to, or to the order of, the
drawee. (2) Where in a bill drawer and drawee are the same
person, or where the drawee is a fictitious person or a person
not having capacity to contract, the holder may treat the
instrument, at his option, either as a bill of exchange or as a
promissory note. 6.–(1) The drawee shall be named or otherwise indicated in a
bill with reasonable certainty. (2) A bill may be addressed to two or more drawees whether
they are partners or not, but an order addressed to two drawees
in the alternative or to two or more drawees in succession is
not a bill of exchange.

they are partners or not, but an order addressed to two drawees
in the alternative or to two or more drawees in succession is
not a bill of exchange.

7.–(1) Where a bill is not payable to bearer, the payee shall
be named or otherwise indicated therein with reasonable
certainty. (2) A bill may be made payable to two or more payees
jointly, or it may be made payable in the alternative to one of
two, or one or some of several payees and a bill may also be
made payable to the holder of an office for the time being. (3) Where the payee is a fictitious or non-existing person,
the bill may be treated as payable to bearer. 8.–(1) When a bill contains words prohibiting transfer, or
indicating an intention that it should not be transferable, it is
valid as between the parties thereto but is not negotiable. (2) A negotiable bill may be payable either to order or to
bearer. Effect where
different parties
to bill are same
person
Address to
drawee
Certainty
required as
to payee
What bills are
negotiable

order or to
bearer. Effect where
different parties
to bill are same
person
Address to
drawee
Certainty
required as
to payee
What bills are
negotiable

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52
(3) A bill is payable to bearer which is expressed to be
so payable, or on which the only or last indorsement is an
indorsement in blank. (4) A bill is payable to order which is expressed to be so
payable, or which is expressed to be payable to a particular
person, and does not contain words prohibiting transfer or
indicating an intention that it should not be transferable
(5) Where a bill, either originally or by indorsement, is
expressed to be payable to the order of a specified person, and
not to him or his order, it is nevertheless payable to him or his
order at his option. 9.–(1) The sum payable by a bill is a sum certain within the
meaning of this Act, although it is required to be paid-
(a) with interest;
(b) by stated instalments;
(c) by stated instalments, with a provision that, upon
default in payment of any instalment the whole shall
become due;
(d) according to an indicated rate of exchange or according
to a rate of exchange to be ascertained as directed by
the bill.

e whole shall
become due;
(d) according to an indicated rate of exchange or according
to a rate of exchange to be ascertained as directed by
the bill.

(2) Where the sum payable is expressed in words and also
in figures, and there is a discrepancy between the two, the sum
denoted by the words is the amount payable. (3) Where a bill is expressed to be payable with interest,
unless the instrument otherwise provides, interest runs from
the date of the bill, and if the bill is undated, from the issue
thereof. 10.–(1) A bill is payable on demand-
(a) which is expressed to be payable on demand, or at sight,
or on presentation; or
(b) in which no time for payment is expressed. Sum payable
Bill payable
on demand

pressed to be payable on demand, or at sight,
or on presentation; or
(b) in which no time for payment is expressed. Sum payable
Bill payable
on demand

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THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(2) Where a bill is accepted or indorsed when it is overdue,
it shall, as regards the acceptor who so accepts, or any indorser
who so indorses it, be deemed a bill payable on demand. 11.–(1) A bill is payable at a determinable future time within
the meaning of this Act which is expressed to be payable-
(a) at a fixed period after date or sight;
(b) on or at a fixed period after the occurrence of a specified
event which is certain to happen, though the time of
happening may be uncertain. (2) An instrument expressed to be payable on a contingency
is not a bill, and the happening of the event does not cure the
defect. 12.

y be uncertain. (2) An instrument expressed to be payable on a contingency
is not a bill, and the happening of the event does not cure the
defect. 12.

Where a bill expressed to be payable at a fixed period after
the date is issued undated, or where the acceptance of a bill
payable at a fixed period after sight is undated, any holder may
insert therein the true date of issue or acceptance, and the bill
shall be payable accordingly:
Provided that-
(a) where the holder in good faith and by mistake inserts a
wrong date; and
(b) in every case where a wrong date is inserted,
if the bill subsequently comes into the hands of holder in due
course the bill shall not be avoided but shall operate and be
payable as if the date so inserted had been the true date. 13.–(1) Where a bill or an acceptance or any indorsement is
dated, the date shall, unless the contrary be proved, be deemed
to be the true date of the drawing, acceptance, or indorsement,
as the case may be. (2) A bill is not invalid by reason only that it is ante-dated
or post-dated or that it bears date on a Sunday. Bill payable at
future time
Omission of date
in bill payable
after date
Ante-dating and
post-dating

d
or post-dated or that it bears date on a Sunday. Bill payable at
future time
Omission of date
in bill payable
after date
Ante-dating and
post-dating

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54
14.

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54
14.

Where a bill is not payable on demand the day on which it
falls due is determined as follows:
(a) three days, called “days of grace”, are, in every case
where the bill itself does not otherwise provide, added
to the time of payment as fixed by the bill, and the bill
is due and payable on the last day of grace:
Provided that-
(i) when the last day of grace falls on Sunday,
Christmas Day, or Good Friday, the bill is, except
in the case hereinafter provided for, due and
payable on the preceding business day;
(ii) when the last day of grace is a public holiday,
other than Christmas Day or Good Friday under
the Public Holidays Act, or when the last day of
grace is a Sunday and the second day of grace is a
public holiday, the bill is due and payable on the
succeeding business day;
(b) where a bill is payable at a fixed period after date, after
sight, or after the happening of a specified event, the
time of payment is determined by excluding the day
from which the time is to begin to run and by including
the day of payment;
(c) where a bill is payable at a fixed period after sight, the
time begins to run from the date of the acceptance if the
bill be accepted, and from the date of noting or protest
if the bill be noted or protested for non-acceptance, or
for non-delivery;
(d) the term “month” in a bill, means calendar month.

of noting or protest
if the bill be noted or protested for non-acceptance, or
for non-delivery;
(d) the term “month” in a bill, means calendar month.

15.–(1) The drawer of a bill and any indorser may insert
therein the name of a person to whom the holder may resort
in case of need, that is to say, in case the bill is dishonoured by
non-acceptance or non-payment and such person is called the
“referee in case of need”. (2) It is in the option of the holder to resort to the referee in
case of need or not as he may think fit. Computation of
time of payment
Cap. 35
Case of need

s in the option of the holder to resort to the referee in
case of need or not as he may think fit. Computation of
time of payment
Cap. 35
Case of need

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THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
16. The drawer of a bill, and any indorser, may insert therein
an express stipulation-
(a) negativing or limiting his own liability to the holder; or
(b) waiving as regards himself some or all of the holder’s
duties. 17.–(1) The acceptance of a bill is the signification by the
drawee of his assent to the order of the drawer. (2) An acceptance is invalid unless it complies with the
following conditions, namely-
(a) it shall be written on the bill and be signed by the
drawee and the mere signature of the drawee without
additional words is sufficient;
(b) it shall not express that the drawee will perform his
promise by any other means than the payment of money
18.

out
additional words is sufficient;
(b) it shall not express that the drawee will perform his
promise by any other means than the payment of money
18.

A bill may be accepted-
(a) before it has been signed by the drawer, or while
otherwise incomplete;
(b) when it is overdue, or after it has been dishonoured by
a previous refusal to accept, or by non-payment;
(c) when a bill payable after sight is dishonoured by non-
acceptance, and the drawee subsequently accepts it,
the holder, in the absence of any different agreement,
is entitled to have the bill accepted as of the date of first
presentment to the drawee for acceptance. 19.–(1) An acceptance is either-
(a) general; or
(b) qualified. (2) A general acceptance assents without qualification to
the order of the drawer and a qualified acceptance in express
terms varies the effect of the bill as drawn. (3) In particular an acceptance is qualified which is-
(a) conditional, that is to say, which makes payment by the
acceptor dependent on the fulfilment of a condition
therein stated;
Optional
stipulations
by drawer or
endorser
Definition and
requisites of
acceptance
Time for
acceptance
General and
qualified
acceptances

rein stated;
Optional
stipulations
by drawer or
endorser
Definition and
requisites of
acceptance
Time for
acceptance
General and
qualified
acceptances

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56
(b) partial, that is to say, an acceptance to pay part only of
the amount for which the bill is drawn;
(c) local, that is to say, an acceptance to pay only at a
particular specified place;
(d) qualified as to time;
(e) the acceptance of some one or more of the drawees, but
not of all. (4) An acceptance to pay at a particular place is a general
acceptance, unless it expressly states that the bill is to be paid
there only and not elsewhere. 20.–(1) Where a simple signature on a blank stamped paper
is delivered by the signer in order that it may be converted
into a bill, it operates as a prima facie authority to fill it up
as a complete bill for any amount the stamp will cover, using
the signature for that of the drawer, or the acceptor, or an
indorser; and, in like manner, when a bill is wanting in any
material particular, the person in possession of it has a prima
facie authority to fill up the omission in any way he thinks fit.

ll is wanting in any
material particular, the person in possession of it has a prima
facie authority to fill up the omission in any way he thinks fit.

(2) In order that any such instrument when completed may
be enforceable against any person who became a party thereto
prior to its completion, it shall be filled up within a reasonable
time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact. (3) Where any instrument after completion is negotiated to
a holder in due course, it shall be valid and effectual for all
purposes in his hands, and he may enforce it as if it had been
filled up within a reasonable time and strictly in accordance
with the authority given. 21.–(1) Every contract on a bill, whether it be the drawer’s, the
acceptor’s or an indorser’s, is incomplete and revocable, until
delivery of the instrument in order to give effect thereto. (2) Where an acceptance is written on a bill, and the drawee
gives notice to or according to the directions of the person
entitled to the bill that he has accepted it, the acceptance then
becomes complete and irrevocable. Inchoate
instruments
Delivery

ctions of the person
entitled to the bill that he has accepted it, the acceptance then
becomes complete and irrevocable. Inchoate
instruments
Delivery

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THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(3) As between immediate parties, and as regards a remote
party other than a holder in due course, the delivery-
(a) in order to be effectual shall be made either by or
under the authority of the party drawing, accepting or
indorsing;
(b) may be shown to have been conditional or for a special
purpose only, and not for the purpose of transferring
the property in the bill. (4) Where a bill is in the hands of a holder in due course,
a valid delivery of the bill by all parties prior to him so as to
make them liable to him is conclusively presumed. (5) Where a bill is no longer in the possession of a party
who has signed it as drawer, acceptor, or indorser, a valid and
unconditional delivery by him is presumed until the contrary
is proved. (b) Capacity and Authority of Parties
22.–(1) Capacity to incur liability as a party to a bill is
co-extensive with capacity to contract.

y
is proved. (b) Capacity and Authority of Parties
22.–(1) Capacity to incur liability as a party to a bill is
co-extensive with capacity to contract.

(2) Nothing in this section shall enable a corporation to
make itself liable as drawer, acceptor, or indorser of a bill unless
it is competent to it so to do under the law for the time being in
force relating to corporations. (3) Where a bill is drawn or indorsed by an infant, minor, or
corporation having no capacity or power to incur liability on a
bill, the drawing or indorsement entitles the holder to receive
payment of the bill, and to enforce it against any other party. 23. A person is not liable as drawer, indorser, or acceptor of a
bill who has not signed it as such:
Provided that-
(a) where a person signs a bill in a trade or assumed name, he
is liable thereon as if he had signed it in his own name;
(b) the signature of the name of a firm is equivalent to the
signature by the person so signing of the names of all
persons liable as partners in that firm. Capacity of
parties
Signature
essential to
liability

e
signature by the person so signing of the names of all
persons liable as partners in that firm. Capacity of
parties
Signature
essential to
liability

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58
24. Subject to the provisions of this Act, where a signature
on a bill is forged or placed thereon without the authority of
the person whose signature it purports to be, the forged or
unauthorised signature is wholly inoperative, and no right
to retain the bill or to give a discharge or to enforce payment
against any party thereto can be acquired through or under
that signature, unless the party against whom it is sought to
retain or enforce payment of the bill is precluded from setting
up the forgery or want of authority:
Provided that, nothing in this section shall affect the
ratification of an unauthorised signature not amounting to a
forgery. 25. A signature by procuration operates as notice that the
agent has but a limited authority to sign, and the principal is
only bound by that signature if the agent in so signing was
acting within the actual limits of his authority.

authority to sign, and the principal is
only bound by that signature if the agent in so signing was
acting within the actual limits of his authority.

26.–(1) Where a person signs a bill as drawer, indorser, or
acceptor, and adds words to his signature, indicating that he signs
for or on behalf of a principal, or in a representative character,
he is not personally liable but the mere addition to his signature
of words describing him as an agent, or as filling a representative
character, does not exempt him from personal liability. (2) In determining whether a signature on a bill is that of the
principal or that of the agent by whose hand it is written, the
construction most favourable to the validity of the instrument
shall be adopted. (c) The Consideration for a Bill
27.–(1) Valuable consideration for a bill may be constituted
by-
(a) any consideration sufficient to support a simple contract;
(b) an antecedent debt or liability and such a debt or
liability is deemed valuable consideration whether the
bill is payable on demand or at a future time. Forged or
unauthorised
signature
Procuration
signatures
Person signing
as agent or in
representative
capacity
Value and holder
for value

future time. Forged or
unauthorised
signature
Procuration
signatures
Person signing
as agent or in
representative
capacity
Value and holder
for value

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THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(2) Where value has at any time been given for a bill the
holder is deemed to be a holder for value as regards the acceptor
and all parties to the bill who became parties prior to that time. (3) Where the holder of a bill has a lien on it arising either
from contract or by implication of law, he is deemed to be a
holder for value to the extent of the sum for which he has a lien. 28.–(1) An accommodation party to a bill is a person who has
signed a bill as drawer, acceptor, or indorser, without receiving
value therefor, and for the purpose of lending his name to
some other person. (2) An accommodation party is liable on the bill to a holder
for value; and it is immaterial whether, when such holder took
the bill, he knew that party to be an accommodation party or not.

the bill to a holder
for value; and it is immaterial whether, when such holder took
the bill, he knew that party to be an accommodation party or not.

29.–(1) A holder in due course is a holder who has taken a
bill, complete and regular on the face of it, under the following
conditions, namely-
(a) that he became the holder of it before it was overdue,
and without notice that it had been previously
dishonoured, if such was the fact;
(b) that he took the bill in good faith and for value, and
that at the time the bill was negotiated to him, he had
no notice of any defect in the title of the person who
negotiated it. (2) In particular, the title of a person who negotiates a bill
is defective within the meaning of this Act when he obtained
the bill, or the acceptance by fraud, duress, or force and fear, or
other unlawful means, or for an illegal consideration or when
he negotiates it in breach of faith, or under such circumstances
as amount to a fraud. (3) A holder, whether for value or not, who derives his title
to a bill through a holder in due course, and who is not himself
a party to any fraud or illegality affecting it, has all the rights of
that holder in due course as regards the acceptor and all parties
to the bill prior to that holder. Accommodation
bill or party
Holder in due
course

f
that holder in due course as regards the acceptor and all parties
to the bill prior to that holder. Accommodation
bill or party
Holder in due
course

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
60
30.–(1) Every party whose signature appears on a bill is prima
facie deemed to have become a party for value. (2) Every holder of a bill is prima facie deemed to be a
holder in due course; but if in an action on a bill it is admitted
or proved that the acceptance, issue or subsequent negotiation
of the bill is affected with fraud, duress, or force and fear, or
illegality, the burden of proof is shifted, unless and until the
holder proves that, subsequent to the alleged fraud or illegality,
value has in good faith been given for the bill
(d) Negotiation of Bills
31.–(1) A bill is negotiated when it is transferred from one
person to another in such a manner as to constitute the
transferee the holder of the bill. (2) A bill payable to bearer is negotiated by delivery. (3) A bill payable to order is negotiated by the endorsement
of the holder completed by delivery.

A bill payable to bearer is negotiated by delivery. (3) A bill payable to order is negotiated by the endorsement
of the holder completed by delivery.

(4) Where the holder of a bill payable to his order transfers it for
value without indorsing it, the transferor gives the transferee such
title as the transferor had in the bill, and the transferee in addition,
acquires the right to have the endorsement of the transferor. (5) Where any person is under obligation to indorse a bill in
a representative capacity, he may indorse the bill in such terms
as to negative personal liability. 32.–(1) An endorsement in order to operate as a negotiation
shall comply with the following conditions, namely-
(a) it shall be written on the bill itself and be signed by the
endorser and the simple signature of the endorser on
the bill, without additional words, is sufficient;
(b) it shall be an endorsement of the entire bill and a partial
endorsement, that is to say, an endorsement which
purports to transfer to the endorsee a part only of the
amount payable, or which purports to transfer the bill
to two or more endorsees severally does not operate as
a negotiation of the bill;
Presumption of
value and good
faith
Negotiation of bill
Requisites
of a valid
endorsement

ees severally does not operate as
a negotiation of the bill;
Presumption of
value and good
faith
Negotiation of bill
Requisites
of a valid
endorsement

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.61
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(c) where a bill is payable to the order of two or more payees
or endorsees who are not partners all shall indorse,
unless the one indorsing has authority to indorse for
the others;
(d) where, in a bill payable to order, the payee or endorsee
is wrongly designated, or his name is misspelt, he may
indorse the bill as therein described, adding, if he
thinks fit, his proper signature;
(e) where there are two or more endorsements on a bill,
each endorsement is deemed to have been made in the
order in which it appears on the bill, until the contrary
is proved;
(f) an endorsement may be made in blank or special and it
may also contain terms making it restrictive. (2) An endorsement written on an allonge, or on a copy
of a bill issued or negotiated in a country where copies are
recognised, is deemed to be written on the bill itself. 33.

n on an allonge, or on a copy
of a bill issued or negotiated in a country where copies are
recognised, is deemed to be written on the bill itself. 33.

Where a bill purports to be indorsed conditionally, the
condition may be disregarded by the payer, and payment to
the endorsee is valid whether the condition has been fulfilled
or not. 34.–(1) An endorsement in blank specifies no endorsee, and a
bill so indorsed becomes payable to bearer. (2) A special endorsement specifies the person to whom, or
to whose order, the bill is to be payable. (3) The provisions of this Act relating to a payee apply with
the necessary modifications to an endorsee under a special
endorsement. (4) When a bill has been indorsed in blank, any holder may
convert the blank endorsement into a special endorsement by
writing above the endorser’s signature a direction to pay the
bill to or to the order of himself or some other person. Conditional
endorsement
Endorsement in
blank and special
endorsement

e a direction to pay the
bill to or to the order of himself or some other person. Conditional
endorsement
Endorsement in
blank and special
endorsement

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
62
35.–(1) An endorsement is restrictive which prohibits the
further negotiation of the bill or which expresses that it is a
mere authority to deal with the bill as thereby directed and not
a transfer of the ownership thereof, as, for example, if a bill be
indorsed “Pay D. only,” or “Pay D. for the account of X”, or “Pay
D. or order for collection”. (2) A restrictive endorsement gives the endorsee the right to
receive payment of the bill and to sue any party that his endorser
could have sued, but gives him no power to transfer his rights as
endorsee unless it expressly authorises him to do so. (3) Where a restrictive endorsement authorises further
transfer, all subsequent indorsees take the bill with the same
rights and subject to the same liabilities as the first endorsee
under the restrictive endorsement. 36.–(1) Where a bill is negotiable in its origin, it continues to
be negotiable until it has been-
(a) restrictively indorsed; or
(b) discharged by payment or otherwise.

l is negotiable in its origin, it continues to
be negotiable until it has been-
(a) restrictively indorsed; or
(b) discharged by payment or otherwise.

(2) Where an overdue bill is negotiated, it can only be
negotiated subject to any defect of title affecting it at its
maturity, and thence forward no person who takes it can
acquire or give a better title than that which the person from
whom he took it had. (3) A bill payable on demand is deemed to be overdue
within the meaning and for the purposes of this section, when
it appears on the face of it to have been in circulation for an
unreasonable length of time and what is an unreasonable
length of time for this purpose is a question of fact. (4) Except where an indorsement bears date after the
maturity of the bill, every negotiation is prima facie deemed to
have been effected before the bill was overdue. (5) Where a bill which is not overdue has been dishonored,
any person who takes it with notice of the dishonor takes it
subject to any defect of title attaching thereto at the time of
dishonor, but nothing in this subsection shall affect the rights
of a holder in due course. Restrictive
endorsement
Negotiation
of overdue or
dishonored bill

r, but nothing in this subsection shall affect the rights
of a holder in due course. Restrictive
endorsement
Negotiation
of overdue or
dishonored bill

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.63
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
37. Where a bill is negotiated back to the drawer, or to a prior
endorser or to the acceptor, that party may, subject to the
provisions of this Act, re-issue and further negotiate the bill,
but he is not entitled to enforce payment of the bill against any
intervening party to whom he was previously liable. 38. The rights and powers of the holder of a bill are as follows-
(a) he may sue on the bill in his own name;
(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, and may enforce payment against
all parties liable on the bill;
(c) where his title is defective-
(i) where he negotiates the bill to a holder in due
course, that holder obtains a good and complete
title to the bill; and
(ii) where he obtains payment of the bill the person
who pays him in due course gets a valid discharge
for the bill.

d complete
title to the bill; and
(ii) where he obtains payment of the bill the person
who pays him in due course gets a valid discharge
for the bill.

(e) General Duties of the Holder
39.–(1) Where a bill is payable after sight, presentment for
acceptance is necessary in order to fix the maturity of the
instrument. (2) Where a bill expressly stipulates that it shall be presented
for acceptance or where a bill is drawn payable elsewhere than
at the residence or place of business of the drawee, it shall
be presented for acceptance before it can be presented for
payment. (3) In no other case is presentment for acceptance necessary
in order to render liable any party to the bill. (4) Where the holder of a bill, drawn payable elsewhere
than at the place of business or residence of the drawee, has
no time, with the exercise of reasonable diligence, to present
the bill for acceptance before presenting it for payment on the
Negotiation of bill
to party already
liable thereon
Rights of holder
When
presentment for
acceptance is
necessary

ore presenting it for payment on the
Negotiation of bill
to party already
liable thereon
Rights of holder
When
presentment for
acceptance is
necessary

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
64
day that it falls due, the delay caused by presenting the bill for
acceptance before presenting it for payment is excused, and
does not discharge the drawer and indorsers. 40.–(1) Subject to the provisions of this Act, when a bill payable
after sight is negotiated, the holder shall either present it for
acceptance or negotiate it within a reasonable time. (2) Where he does not do so, the drawer and all indorsers
prior to that holder are discharged. (3) In determining what is a reasonable time within the
meaning of this section, regard shall be had to the nature of
the bill, the usage of trade with respect to similar bills, and the
facts of the particular case.

f this section, regard shall be had to the nature of
the bill, the usage of trade with respect to similar bills, and the
facts of the particular case.

41.–(1) A bill is duly presented for acceptance which is
presented in accordance with the following rules-
(a) the presentment shall be made by or on behalf of the
holder to the drawee or to some person authorised to
accept or refuse acceptance on his behalf at a reasonable
hour on a business day and before the bill is overdue;
(b) where a bill is addressed to two or more drawees, who
are not partners, presentment shall be made to them
all, unless one has authority to accept for all, then
presentment may be made to him only;
(c) where the drawee is dead, presentment may be made to
his personal representative;
(d) where the drawee is bankrupt, presentment may be
made to him or to his trustee;
(e) where authorised by agreement or usage, a presentment
through the post office is sufficient. (2) Presentment in accordance with these rules is excused,
and a bill may be treated as dishonoured by non-acceptance-
(a) where the drawee is dead or bankrupt, or is a fictitious
person or a person not having capacity to contract by
bill;
Time for
presenting
bill payable
after sight
Rules as to
presentment for
Acceptance and
excuses for non-
presentment
Act No. 4 of 2015 s. 59

by
bill;
Time for
presenting
bill payable
after sight
Rules as to
presentment for
Acceptance and
excuses for non-
presentment
Act No. 4 of 2015 s. 59

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.65
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(b) where, after the exercise of reasonable diligence, such
presentment cannot be effected;
(c) where although the presentment has been irregular,
acceptance has been refused on some other ground. (3) The fact that the holder has reason to believe that the
bill, on presentment, will be dishonoured does not excuse
presentment. (4) Notwithstanding subsection (1), a cheque may be
presented in a payment system electronically. 42. When a bill is duly presented for acceptance and is not
accepted within the customary time, the person presenting
it must treat it as dishonoured by non-acceptance and if he
does not, the holder shall lose his right of recourse against the
drawer and indorsers. 43.–(1) A bill is dishonoured by non-acceptance-
(a) when it is duly presented for acceptance, and such an
acceptance as is prescribed by this Act, is refused or
cannot be obtained; or
(b) when presentment for acceptance is excused and the
bill is not accepted.

ptance as is prescribed by this Act, is refused or
cannot be obtained; or
(b) when presentment for acceptance is excused and the
bill is not accepted.

(2) Subject to the provisions of this Act, when a bill is
dishonoured by non-acceptance, an immediate right of
recourse against the drawer and indorsers accrues to the
holder, and no presentment for payment is necessary. 44.–(1) The holder of a bill may refuse to take a qualified
acceptance, and if he does not obtain an unqualified acceptance,
may treat the bill as dishonoured by non-acceptance. (2) Where a qualified acceptance is taken, and the drawer
or an indorser has not expressly or impliedly authorised the
holder to take a qualified acceptance, or does not subsequently
assent thereto, such drawer or indorser is discharged from his
liability on the bill. Non-acceptance
Dishonour by
non-acceptance
and its
consequences
Duties as
to qualified
acceptances

orser is discharged from his
liability on the bill. Non-acceptance
Dishonour by
non-acceptance
and its
consequences
Duties as
to qualified
acceptances

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
66
(3) The provisions of subsection (2) do not apply to a partial
acceptance, whereof due notice has been given and where
a foreign bill has been accepted as to part, it shall be protested
as to the balance. (4) When the drawer or indorser of a bill receives notice of
a qualified acceptance, and does not within a reasonable time,
express his dissent to the holder, he shall be deemed to have
assented thereto. 45.–(1) Subject to the provisions of this Act a bill shall be duly
presented for payment and if it be not so presented the drawer
and indorsers shall be discharged.

t to the provisions of this Act a bill shall be duly
presented for payment and if it be not so presented the drawer
and indorsers shall be discharged.

(2) A bill is duly presented for payment which is presented
in accordance with the following rules-
(a) where the bill is not payable on demand, presentment
shall be made on the day it falls due;
(b) where the bill is payable on demand, then, subject to
the provisions of this Act, presentment shall be made
within a reasonable time after its issue in order to
render the drawer liable, and within a reasonable time
after its indorsement, in order to render the indorser
liable;
(c) presentment shall be made by the holder or by some
person authorised to receive payment on his behalf at a
reasonable hour on a business day, at the proper place
as hereinafter defined, either to the person designated
by the bill as payer, or to some person authorised to pay
or refuse payment on his behalf if with the exercise of
reasonable diligence such person can there be found;
(d) a bill is presented at the proper place-
(i) where a place of payment is specified in the bill
and the bill is there presented;
(ii) where no place of payment is specified, but the
address of the drawee or acceptor is given in the
bill, and the bill is there presented;
Rules as to
presentment for
payment

ent is specified, but the
address of the drawee or acceptor is given in the
bill, and the bill is there presented;
Rules as to
presentment for
payment

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.67
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E.

ania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.67
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E.

2023]
(iii) where no place of payment is specified and no
address given, and the bill is presented at the
drawee’s or acceptor’s place of business if known,
and if not, at his ordinary residence if known;
(iv) in any other case, if presented to the drawee or
acceptor wherever he can be found, or if presented
at his last known place of business or residence;
(e) where a bill is presented at the proper place, and after the
exercise of reasonable diligence no person authorised
to pay or refuse payment can be found there, no further
presentment to the drawee or acceptor is required;
(f) where a bill is drawn upon, or accepted by two or more
persons who are not partners, and no place of payment
is specified, presentment shall be made to them all;
(g) where the drawee or acceptor of a bill is dead, and no
place of payment is specified, presentment shall be
made to a personal representative, if such there be,
and with the exercise of reasonable diligence he can
be found;
(h) where authorised by agreement or usage, a presentment
through the post office is sufficient.

the exercise of reasonable diligence he can
be found;
(h) where authorised by agreement or usage, a presentment
through the post office is sufficient.

(3) In determining what is a reasonable time, regard shall
be had to the nature of the bill, the usage of trade with regard
to similar bills, and the facts of the particular case. 46.–(1) Delay in making presentment for payment is excused
when the delay is caused by circumstances beyond the control
of the holder, and not imputable to his default, misconduct,
or negligence and when the cause of delay ceases to operate,
presentment shall be made with reasonable diligence. (2) Presentment for payment is dispensed with-
(a) where, after the exercise of reasonable diligence,
presentment as required by this Act, cannot be effected;
(b) where the drawee is a fictitious person;
Excuses for
delay or non-
presentment for
payment

resentment as required by this Act, cannot be effected;
(b) where the drawee is a fictitious person;
Excuses for
delay or non-
presentment for
payment

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
68
(c) as regards the drawer where the drawee or acceptor
is not bound, as between himself and the drawer, to
accept or pay the bill, and the drawer has no reason to
believe that the bill would be paid if presented;
(d) as regards an indorser, where the bill was accepted or
made for the accommodation of that indorser, and he
has no reason to expect that the bill would be paid if
presented
(e) by waiver of presentment, express or implied. (3) The fact that the holder has reason to believe that the bill
will, on presentment be dishonoured, does not dispense with
the necessity for presentment. 47.–(1) A bill is dishonoured by non-payment-
(a) when it is duly presented for payment and payment is
refused or cannot be obtained; or
(b) when presentment is excused and the bill is overdue
and unpaid. (2) Subject to the provisions of this Act, when a bill is
dishonoured by non-payment, an immediate right of recourse
against the drawer and indorsers accrues to the holder. 48.

ons of this Act, when a bill is
dishonoured by non-payment, an immediate right of recourse
against the drawer and indorsers accrues to the holder. 48.

Subject to the provisions of this Act, when a bill has been
dishonoured by non-acceptance or by non-payment, notice of
dishonour shall be given to the drawer and each indorser, and
any drawer or indorser to whom such notice is not given is
discharged:
Provided that-
(a) when a bill is dishonoured by non-acceptance, and
notice of dishonour is not given, the rights of a holder
in due course subsequent to the omission, shall not be
prejudiced by the omission;
(b) where a bill is dishonoured by non-acceptance, and due
notice of dishonour is given, it shall not be necessary
to give notice of a subsequent dishonour by non-
payment, unless the bill shall in the meantime have
been accepted. Dishonour by
non-payment
Notice of
dishonour and
effect of non-
notice

nour by non-
payment, unless the bill shall in the meantime have
been accepted. Dishonour by
non-payment
Notice of
dishonour and
effect of non-
notice

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.69
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E.

ania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.69
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E.

2023]
49.–(1) Notice of dishonour in order to be valid and effectual
shall be given in accordance with the following rules-
(a) the notice shall be given by or on behalf of the holder,
or by or on behalf of an indorser, who at the time of
giving it, is himself liable on the bill;
(b) notice of dishonour may be given by an agent either in
his own name, or in the name of any party entitled to
give notice whether that party be his principal or not;
(c) where the notice is given by or on behalf of the holder,
it ensures for the benefit of all subsequent holders and
all prior indorsers who have a right of recourse against
the party to whom it is given;
(d) where notice is given by or on behalf of an indorser
entitled to give notice it ensures for the benefit of the
holder and all indorsers subsequent to the party to
whom notice is given;
(e) the notice may be given in writing or by personal
communication, and may be given in any terms which
sufficiently identify the bill, and intimate that the bill
has been dishonoured by non-acceptance or non-
payment;
(f) the return of a dishonoured bill to the drawer or an
indorser is, in point of form, deemed a sufficient notice
of dishonour;
(g) a written notice need not be signed, and an insufficient
written notice may be supplemented and validated by
verbal communication and a misdescription of the bill
shall not vitiate the notice unless the party to whom the
notice is given is in fact misled thereby;
(h) where notice of dishonour is required to be given to
any person, it may be given either to the party himself,
or to his agent in that behalf;
(i) where the drawer or indorser is dead, and the party
giving notice knows it, the notice shall be given to a
personal representative if such there be, and with the
exercise of reasonable diligence he can be found;
Rules as to notice
of dishonour

be given to a
personal representative if such there be, and with the
exercise of reasonable diligence he can be found;
Rules as to notice
of dishonour

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anzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E.

2023]
70
(j) where the drawer or indorser is bankrupt, notice may
be given either to the party himself or to the trustee;
(k) where there are two or more drawers or indorsers who
are not partners, notice shall be given to each of them,
unless one of them has authority to receive that notice
for the others;
(l) the notice may be given as soon as the bill is
dishonoured and shall be given within a reasonable
time thereafter;
(m) where a bill when dishonoured is in the hands of an
agent, he may either himself give notice to the parties
liable on the bill, or he may give notice to his principal,
and if he gives notice to his principal, he shall do so
within the same time as if he were the holder, and the
principal upon receipt of that notice has himself the
same time for giving notice as if the agent had been an
independent holder;
(n) where a party to a bill receives due notice of dishonour,
he has after the receipt of that notice the same period
of time for giving notice to antecedent parties that the
holder has after the dishonour;
(o) where a notice of dishonour is duly addressed and
posted, the sender is deemed to have given due notice
of dishonour, notwithstanding any miscarriage by the
post office.

ishonour is duly addressed and
posted, the sender is deemed to have given due notice
of dishonour, notwithstanding any miscarriage by the
post office.

(2) In the absence of special circumstances notice is not
deemed to have been given within a reasonable time, unless-
(a) where the person giving and the person to receive
notice reside in the same place, the notice is given or
sent off in time to reach the latter on the day after the
dishonour of the bill;
(b) where the person giving and the person to receive
notice reside in different places, the notice is sent off
on the day after the dishonour of the bill, if there be a
post at a convenient hour on that day, and if there be no
such post on that day then by the next post thereafter.

dishonour of the bill, if there be a
post at a convenient hour on that day, and if there be no
such post on that day then by the next post thereafter.

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.71
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
50.–(1) Delay in giving notice of dishonour is excused where
the delay is caused by circumstances beyond the control
of the party giving notice, and not imputable to his default,
misconduct or negligence and when the cause of delay ceases
to operate the notice shall be given with reasonable diligence.

imputable to his default,
misconduct or negligence and when the cause of delay ceases
to operate the notice shall be given with reasonable diligence.

(2) Notice of dishonour is dispensed with-
(a) when, after the exercise of reasonable diligence, notice
as required by this Act cannot be given to or does not
reach the drawer or indorser sought to be charged;
(b) by waiver express or implied, and notice of dishonour
may be waived before the time of giving notice has
arrived, or after the omission to give due notice;
(c) as regards the drawer in the following cases, namely-
(i) where drawer and drawee are the same person;
(ii) where the drawee is a fictitious person or a person
not having capacity to contract;
(iii) where the drawer is the person to whom the bill is
presented for payment;
(iv) where the drawee or acceptor is as between himself
and the drawer under no obligation to accept or
pay the bill;
(v) where the drawer has countermanded payment;
(d) as regards the indorser in the following cases, namely-
(i) where the drawee is a fictitious person or a person
not having capacity to contract and the indorser
was aware of the fact at the time he indorsed the
bill;
(ii) where the indorser is the person to whom the bill
is presented for payment;
(iii) where the bill was accepted or made for his
accommodation.

ill;
(ii) where the indorser is the person to whom the bill
is presented for payment;
(iii) where the bill was accepted or made for his
accommodation.

51.–(1) Where an inland bill has been dishonoured it may,
if the holder thinks fit, be noted for non-acceptance or non-
payment, but it shall not be necessary to note or protest any
such bill in order to preserve the recourse against the drawer
or indorser. Excuses for non-
notice and delay
Noting or protest
of bill

or protest any
such bill in order to preserve the recourse against the drawer
or indorser. Excuses for non-
notice and delay
Noting or protest
of bill

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72
(2) Where a foreign bill, appearing on the face of it to be
such, has been dishonoured by non-acceptance it shall be
duly protested for non-acceptance, and where that bill, which
has not been previously dishonoured by non-acceptance, is
dishonoured by non-payment it shall be duly protested for
non-payment. (3) Where a bill is not protested the drawer and indorsers
are discharged and where a bill does not appear on the face of
it to be a foreign bill, protest thereof in case of dishonour is
unnecessary. (4) A bill which has been protested for non-acceptance may
be subsequently protested for non-payment. (5) Subject to the provisions of this Act, when a bill is noted
or protested, it may be noted on the day of its dishonour and
shall be noted not later than the next succeeding business
day and when a bill has been duly noted, the protest may be
subsequently extended as of the date of the noting.

ater than the next succeeding business
day and when a bill has been duly noted, the protest may be
subsequently extended as of the date of the noting.

(6) Where the acceptor of a bill becomes bankrupt or
insolvent or suspends payment before it matures, the holder
may cause the bill to be protested for better security against the
drawer and indorsers. (7) A bill shall be protested at the place where it is
dishonoured:
Provided that-
(a) when a bill is presented through the post office, and
returned by post dishonoured, it may be protested at
the place to which it is returned and on the day of its
return if received during business hours, and if not
received during business hours, then not later than the
next business day;
(b) when a bill drawn payable at the place of business
or residence of some person other than the drawee,
has been dishonoured by non-acceptance, it shall be
protested for non-payment at the place where it is
expressed to be payable, and no further presentment
for payment to, or demand on, the drawee is necessary.

ed for non-payment at the place where it is
expressed to be payable, and no further presentment
for payment to, or demand on, the drawee is necessary.

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.73
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(8) A protest shall contain a copy of the bill, and shall be
signed by the notary making it, and shall specify-
(a) the person at whose request the bill is protested;
(b) the place and date of protest, the cause or reason for
protesting the bill, the demand made, and the answer
given, if any, or the fact that the drawee or acceptor
could not be found. (9) Where a bill is lost or destroyed, or is wrongly detained
from the person entitled to hold it, protest may be made on a
copy or written particulars thereof. (10) Protest is dispensed with by any circumstances
which would dispense with notice of dishonour and delay
in noting or protesting is excused when the delay is caused
by circumstances beyond the control of the holder, and not
imputable to his default, misconduct or negligence. (11) When the cause of delay ceases to operate, the bill shall
be noted or protested with reasonable diligence.

his default, misconduct or negligence. (11) When the cause of delay ceases to operate, the bill shall
be noted or protested with reasonable diligence.

52.–(1) When a bill is accepted generally, presentment for
payment is not necessary in order to render the acceptor liable. (2) When by the terms of a qualified acceptance, presentment
for payment is required, the acceptor, in the absence of an
express stipulation to that effect, is not discharged by the
omission to present the bill for payment on the day that it
matures. (3) In order to render the acceptor of a bill liable it is not
necessary to protest it or that notice of dishonour should be
given to him. (4) Where the holder of a bill presents it for payment, he
shall exhibit the bill to the person from whom he demands
payment, and when a bill is paid, the holder shall forthwith
deliver it up to the party paying it:
Provided that, this subsection shall not apply in electronic
presentment of cheque or a bill in any other written law. Duties of holder
as regards drawee
or acceptor
Act No. 4 of 2015 s. 60

t apply in electronic
presentment of cheque or a bill in any other written law. Duties of holder
as regards drawee
or acceptor
Act No. 4 of 2015 s. 60

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
74
(f) Liabilities of Parties
53. A bill, of itself, does not operate as an assignment of funds
in the hands of the drawee available for the payment thereof,
and the drawee of a bill who does not accept as required by this
Act is not liable on the instrument. 54. The acceptor of a bill, by accepting it-
(a) engages that he will pay it according to the tenor of his
acceptance;
(b) is precluded from denying to a holder in due course-
(i) the existence of the drawer, the genuineness of his
signature, and his capacity and authority to draw
the bill;
(ii) in the case of a bill payable to drawer’s order, the
then capacity of the drawer to indorse, but not the
genuineness or validity of his indorsement;
(iii) in the case of a bill payable to the order of a third
person, the existence of the payee and his then
capacity to indorse, but not the genuineness or
validity of his endorsement.

e to the order of a third
person, the existence of the payee and his then
capacity to indorse, but not the genuineness or
validity of his endorsement.

55.–(1) The drawer of a bill by drawing it-
(a) engages that on due presentment, it shall be accepted
and paid according to its tenor, and that if it be
dishonoured he will compensate the holder or any
indorser who is compelled to pay it, provided that the
requisite proceedings on dishonour be duly taken;
(b) is precluded from denying to a holder in due course
the existence of the payee and his then capacity to
indorse. (2) The indorser of a bill by indorsing it-
(a) engages that on due presentment it, shall be accepted and
paid according to its tenor, and that if it be dishonoured
he will compensate the holder or a subsequent indorser
who is compelled to pay it, provided that the requisite
proceedings on dishonour be duly taken;
Bill not
assignment of
funds in hands
of drawee
Liability of
acceptor
Liability of
drawer or
indorser

equisite
proceedings on dishonour be duly taken;
Bill not
assignment of
funds in hands
of drawee
Liability of
acceptor
Liability of
drawer or
indorser

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.75
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(b) is precluded from denying to a holder in due course
the genuineness and regularity in all respects of the
drawer’s signature and all previous indorsements;
(c) is precluded from denying to his immediate or a
subsequent indorsee that the bill was at the time of his
indorsement a valid and subsisting bill, and that he had
then a good title. 56. Where a person signs a bill otherwise than as drawer or
acceptor, he thereby incurs the liabilities of an indorser to a
holder in due course. 57.

56. Where a person signs a bill otherwise than as drawer or
acceptor, he thereby incurs the liabilities of an indorser to a
holder in due course. 57.

Where a bill is dishonoured, the measure of damages,
which shall be deemed to be liquidated damages, shall be as
follows-
(a) the holder may recover from any party liable on the
bill, and the drawer who has been compelled to pay the
bill may recover from the acceptor or from the drawer,
or from a prior indorser-
(i) the amount of the bill;
(ii) interest thereon from the time of presentment
for payment if the bill is payable on demand, and
from the maturity of the bill in any other case;
(iii) the expenses of noting, or, when protest is
necessary, and the protest has been extended, the
expenses of protest;
(b) in the case of a bill which has been dishonoured abroad,
in lieu of the above damages, the holder may recover from
the drawer or an indorser, and the drawer or an indorser
who has been compelled to pay the bill may recover from
any party liable to him, the amount of the re-exchange
with interest thereon until the time of payment;
(c) where by this Act interest may be recovered as damages,
such interest may, if justice require it, be withheld wholly
or in part, and where a bill is expressed to be payable with
interest at a given rate, interest as damages may or may not
be given at the same rate as interest proper.

here a bill is expressed to be payable with
interest at a given rate, interest as damages may or may not
be given at the same rate as interest proper.

Stranger signing
bill liable as
indorser
Measure of
damages against
parties to
dishonoured bill

Stranger signing
bill liable as
indorser
Measure of
damages against
parties to
dishonoured bill

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76
58.–(1) Where the holder of a bill payable to bearer negotiates
it by delivery without indorsing it, he is called a “transferor by
delivery”. (2) A transferor by delivery is not liable on the instrument. (3) A transferor by delivery who negotiates a bill thereby
warrants to his immediate transferee being a holder for value
that the bill is what it purports to be, that he has a right to
transfer it, and that at the time of transfer, he is not aware of
any fact which renders it valueless. (g) Discharge of Bill
59.–(1) A bill is discharged by payment in due course by or on
behalf of the drawee or acceptor.

act which renders it valueless. (g) Discharge of Bill
59.–(1) A bill is discharged by payment in due course by or on
behalf of the drawee or acceptor.

(2) Subject to the provisions hereinafter contained, when
a bill is paid by the drawer or an indorser it is not discharged;
but-
(a) where a bill payable to, or to the order of, a third party
is paid by the drawer, the drawer may enforce payment
thereof against the acceptor, but may not re-issue the
bill;
(b) where a bill is paid by an indorser, or where a bill payable
to drawer’s order is paid by the drawer, the party paying
it is remitted to his former rights as regards the acceptor
or antecedent parties, and he may, if he thinks fit, strike
out his own and subsequent indorsements, and again
negotiate the bill. (3) Where an accommodation bill is paid in due course by
the party accommodated, the bill is discharged. (4) For the purposes of this section, “payment in due course”
means payment made at or after the maturity of the bill to the
holder in good faith and without notice that his title to the bill
is defective. Transferor by
delivery and
transferee
Payment in
due course

ll to the
holder in good faith and without notice that his title to the bill
is defective. Transferor by
delivery and
transferee
Payment in
due course

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.77
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
60.–(1) When a bill payable to order on demand is drawn on
a banker, and the banker on whom it is drawn pays the bill
in good faith and in the ordinary course of business, it is not
incumbent on the banker to show that the indorsement of the
payee or any subsequent indorsement was made by or under
the authority of the person whose indorsement it purports
to be, and the banker is deemed to have paid the bill in due
course, although that indorsement has been forged or made
without authority.

it purports
to be, and the banker is deemed to have paid the bill in due
course, although that indorsement has been forged or made
without authority.

(2) A draft or order, other than a bill or cheque drawn upon a
banker for a sum of money payable to order on demand which
shall, when presented for payment, purport to be indorsed by
the person to whom the same shall be drawn payable, shall
be a sufficient authority to that banker to pay the amount of
the draft or order to the bearer thereof; and it shall not be
incumbent upon such banker to prove that the indorsement,
or any subsequent indorsement, was made by or under the
direction or authority of the person to whom the said draft or
order was or is made payable either by the drawer or indorser
thereof. 61. When the acceptor of a bill is or becomes the holder of it
at or after its maturity, in his own right, the bill is discharged. 62.–(1) When the holder of a bill at or after its maturity
absolutely and unconditionally renounces his rights against
the acceptor, the bill is discharged and the renunciation shall
be in writing, unless the bill is delivered up to the acceptor.

ces his rights against
the acceptor, the bill is discharged and the renunciation shall
be in writing, unless the bill is delivered up to the acceptor.

(2) The liabilities of any party to a bill may in like manner
be renounced by the holder before, at, or after its maturity; but
nothing in this section shall affect the rights of a holder in due
course without notice of the renunciation. 63.–(1) Where a bill is intentionally cancelled by the holder or
his agent, and the cancellation is apparent the bill is discharged. Banker paying
demand
draft where
endorsement is
forged
Acceptor holder
at maturity
Express waiver
Cancellation

ion is apparent the bill is discharged. Banker paying
demand
draft where
endorsement is
forged
Acceptor holder
at maturity
Express waiver
Cancellation

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78
(2) In like manner, any party liable on a bill may be
discharged by the intentional cancellation of his signature
by the holder or his agent and in such case any indorser who
would have had a right of recourse against the party whose
signature is cancelled, is also discharged. (3) A cancellation made unintentionally, or under a mistake,
or without the authority of the holder is inoperative; but where
a bill or any signature thereon appears to have been cancelled,
the burden of proof lies on the party who alleges that the
cancellation was made unintentionally, or under a mistake, or
without authority.

cancelled,
the burden of proof lies on the party who alleges that the
cancellation was made unintentionally, or under a mistake, or
without authority.

64.–(1) Where a bill or acceptance is materially altered without
the assent of all parties liable on the bill, the bill is avoided
except as against a party who has himself made, authorised, or
assented to the alteration, and subsequent indorsers:
Provided that, where a bill has been materially altered, but
the alteration is not apparent, and the bill is in the hands of a
holder in due course, such holder may avail himself of the bill
as if it had not been altered, and may enforce payment of it
according to its original tenor. (2) In particular, the following alterations are material,
namely, any alteration of the date, the sum payable, the time
of payment, the place of payment, and, where a bill has been
accepted generally, the addition of a place of payment without
the acceptor’s assent.

ime
of payment, the place of payment, and, where a bill has been
accepted generally, the addition of a place of payment without
the acceptor’s assent.

(h) Acceptance and Payment for Honour
65.–(1) Where a bill of exchange has been protested for
dishonor by non-acceptance, or protested for better security,
and is not overdue, any person, not being a party already liable
thereon, may, with the consent of the holder, intervene and
accept the bill supra protest, for the honour of any party liable
thereon, or for the honour of the person for whose account the
bill is drawn. Alteration of bill
Acceptance for
honour supra
protest

any party liable
thereon, or for the honour of the person for whose account the
bill is drawn. Alteration of bill
Acceptance for
honour supra
protest

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.79
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(2) A bill may be accepted for honour for part only of the
sum for which it is drawn. (3) An acceptance for honour supra protest in order to be
valid shall-
(a) be written on the bill, and indicate that it is an
acceptance for honour; and
(b) be signed by the acceptor for honour. (4) Where an acceptance for honour does not expressly state
for whose honour it is made, it is deemed to be an acceptance
for the honour of the drawer. (5) Where a bill payable after sight is accepted for honour,
its maturity is calculated from the date of the noting for non-
acceptance, and not from the date of the acceptance for honour. 66.–(1) The acceptor for honour of a bill by accepting it engages
that he will, on due presentment, pay the bill according to the
tenor of his acceptance, if it is not paid by the drawee, provided
it has been duly presented for payment, and protested for non-
payment, and that he receives notice of these facts.

s not paid by the drawee, provided
it has been duly presented for payment, and protested for non-
payment, and that he receives notice of these facts.

(2) The acceptor for honour is liable to the holder and to all
parties to the bill subsequent to the party for whose honour he
has accepted. 67.–(1) Where a dishonoured bill has been accepted for
honour supra protest, or contains a reference in case of need,
it shall be protested for non-payment before it is presented for
payment to the acceptor for honour, or referee in case of need. (2) Where the address of the acceptor for honour is in the
same place where the bill is protested for non-payment, the bill
shall be presented to him not later than the day following its
maturity; and where the address of the acceptor for honour is
in some place other than the place where it was protested for
non-payment, the bill shall be forwarded not later than the day
following its maturity for presentment to him. (3) Delay in presentment or non-presentment is excused by
any circumstances which would excuse delay in presentment
for payment or non-presentment for payment
Liability of
acceptor for
honour
Presentment
to acceptor for
honour

which would excuse delay in presentment
for payment or non-presentment for payment
Liability of
acceptor for
honour
Presentment
to acceptor for
honour

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80
(4) When a bill of exchange is dishonoured by the acceptor
for honour it shall be protested for non-payment by him. 68.–(1) Where a bill has been protested for non-payment, any
person may intervene and pay it supra protest for the honour
of any party liable thereon, or for honour of the person for
whose account the bill is drawn. (2) Where two or more persons offer to pay a bill for the
honour of different parties, the person whose payment will
discharge most parties to the bill shall have the preference. (3) Payment for honour supra protest, in order to operate as
such and not as a mere voluntary payment, shall be attested by
a notarial act of honour which may be appended to the protest
or form an extension of it. (4) The notarial act of honour shall be founded on a
declaration made by the payer for honour, or his agent in that
behalf, declaring his intention to pay the bill for honour, and
for whose honour he pays.

claration made by the payer for honour, or his agent in that
behalf, declaring his intention to pay the bill for honour, and
for whose honour he pays.

(5) Where a bill has been paid for honour, all parties
subsequent to the party for whose honour it is paid are
discharged, but the payer for honour is subrogated for, and
succeeds to both the rights and duties of, the holder as regards
the party for whose honour he pays, and all parties liable to
that party. (6) The payer for honour on paying to the holder the amount
of the bill and the notarial expenses incidental to its dishonour
is entitled to receive both the bill itself and the protest and if
the holder does not on demand deliver them up, he shall be
liable to the payer for honour in damages. (7) Where the holder of a bill refuses to receive payment
supra protest, he shall lose his right of recourse against any
party who would have been discharged by such payment. Payment for
honour supra
protest

supra protest, he shall lose his right of recourse against any
party who would have been discharged by such payment. Payment for
honour supra
protest

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.81
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(i) Lost Instruments
69.–(1) Where a bill has been lost before it is overdue, the
person who was the holder of it may apply to the drawer to
give him another bill of the same tenor, giving security to
the drawer if required to indemnify him against all persons
whatever in case the bill alleged to have been lost shall be
found again
(2) Where the drawer on request as aforesaid refuses to give
such duplicate bill he may be compelled to do so. 70. In any action or proceeding upon a bill, the court may order
that the loss of the instrument shall not be set up, provided an
indemnity be given to the satisfaction of the court against the
claims of any other person upon the instrument in question. (j) Bill in a Set
71.–(1) Where a bill is drawn in a set, each part of the set being
numbered, and containing a reference to the other parts, the
whole of the parts constitute one bill.

ill is drawn in a set, each part of the set being
numbered, and containing a reference to the other parts, the
whole of the parts constitute one bill.

(2) Where the holder of a set indorses two or more parts
to different persons, he is liable on every such part, and every
indorser subsequent to him is liable on the part he has himself
indorsed as if the said parts were separate bills. (3) Where two or more parts of a set are negotiated to
different holders in due course, the holder whose title first
accrues is as between such holders deemed the true owner of
the bill; but nothing in this subsection shall affect the rights
of a person who in due course accepts or pays the part first
presented to him. (4) The acceptance may be written on any part, and it shall
be written on one part only. (5) Where the drawee accepts more than one part, and such
accepted parts get into the hands of different holders in due
course, he is liable on every such part as if it were a separate
bill. Holder’s right
to duplicate of
lost bill
Action on lost bill
Rules as to sets

e
course, he is liable on every such part as if it were a separate
bill. Holder’s right
to duplicate of
lost bill
Action on lost bill
Rules as to sets

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82
(6) When the acceptor of a bill drawn in a set pays it without
requiring the part bearing his acceptance to be delivered up to
him, and that part at maturity is outstanding in the hands of a
holder in due course, he is liable to the holder thereof. (7) Subject to the preceding rules, where any one part of a
bill drawn in a set is discharged by payment or otherwise, the
whole bill is discharged.

. (7) Subject to the preceding rules, where any one part of a
bill drawn in a set is discharged by payment or otherwise, the
whole bill is discharged.

(k) Conflict of Laws
72.–(1) Where a bill drawn in one country is negotiated,
accepted or payable in another, the rights, duties and liabilities
of the parties are determined as follows-
(a) the validity of a bill as regards requisites in form is
determined by the law of the place of issue, and the
validity as regards requisites in form of the supervening
contracts, such as acceptance or endorsement, or
acceptance supra protest, is determined by the law of
the place where such contract was made:
Provided that-
(i) where a bill is issued out of Tanzania, it is not
invalid by reason only that it is not stamped in
accordance with the law of the place of issue;
(ii) where a bill is issued out of Mainland Tanzania,
conforms, as regards requisites in form, to the
law of Mainland Tanzania, it may, for the purpose
of enforcing payment thereof, be treated as valid
as between all persons who negotiate, hold or
become parties to it in Tanzania;
(b) subject to the provisions of this Act, the interpretation
of the drawing, indorsement, acceptance, or acceptance
supra protest of a bill, is determined by the law of the
place where such contract is made;
(c) the duties of the holder with respect to presentment
for acceptance or payment and the necessity for or
sufficiency of a protest or notice of dishonour, or
otherwise, are determined by the law of the place where
the act is done or the bill is dishonoured;
Rules where laws
conflict

notice of dishonour, or
otherwise, are determined by the law of the place where
the act is done or the bill is dishonoured;
Rules where laws
conflict

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.83
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(d) where a bill is drawn out of, but payable in Tanzania
and the sum payable is not expressed in the currency
of Tanzania, the amount shall, in the absence of some
express stipulation, be calculated according to the rate
of exchange for sight drafts at the place of payment on
the day the bill is payable;
(e) where a bill is drawn in one country and is payable in
another, the due date thereof is determined according
to the law of the place where it is payable. (2) Where an inland bill is indorsed in a foreign country,
the indorsement shall, as regards the payer be interpreted
according to the law of Tanzania. PART III
CHEQUES AND PROTECTION OF A BANKER
73.–(1) A cheque is a bill of exchange drawn on a banker
payable on demand
(2) Except as otherwise provided in this Part, the provisions
of this Act applicable to a bill of exchange payable on demand
apply to a cheque. 74.

nd
(2) Except as otherwise provided in this Part, the provisions
of this Act applicable to a bill of exchange payable on demand
apply to a cheque. 74.

Subject to the provisions of this Act-
(a) where a cheque is not presented for payment within
a reasonable time of its issue, and the drawer or the
person on whose account it is drawn had the right
at the time of such presentment as between him and
the banker to have the cheque paid and suffers actual
damage through the delay, he is discharged to the extent
of such damage, that is to say, to the extent to which
such drawer or person is a creditor of such banker to
a larger amount than he would have been had such
cheque been paid;
(b) in determining what is a reasonable time regard shall
be had to the nature of the instrument, the usage of
trade and of bankers, and the facts of the particular
case;
Definition
Presentment
of cheque for
payment

to the nature of the instrument, the usage of
trade and of bankers, and the facts of the particular
case;
Definition
Presentment
of cheque for
payment

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84
(c) the holder of such cheque as to which such drawer or
person is discharged shall be a creditor, in lieu of the
drawer or person, of the banker to the extent of the
discharge, and entitled to recover the amount from
him. 75. The duty and authority of a banker to pay a cheque drawn
on him by his customer are determined by-
(a) countermand of payment;
(b) notice of the customer’s death. Crossed Cheques
76.–(1) Where a cheque bears across its face an addition of-
(a) the words “and company” or any abbreviation thereof
between two parallel transverse lines, either with or
without the words “not negotiable”; or
(b) two parallel transverse lines simply, either with or
without the words “not negotiable”,
that addition constitutes a crossing, and the cheque is crossed
generally. (2) Where a cheque bears across its face an addition of
the name of a banker, either with or without the words “not
negotiable”, that addition constitutes a crossing, and the cheque
is crossed specially and to that banker.

nker, either with or without the words “not
negotiable”, that addition constitutes a crossing, and the cheque
is crossed specially and to that banker.

77.–(1) A cheque may be crossed generally or specially by the
drawer. (2) Where a cheque is uncrossed, the holder may cross it
generally or specially. (3) Where a cheque is crossed generally the holder may
cross it specially. (4) Where a cheque is crossed generally or specially, the
holder may add the words “not negotiable”. (5) Where a cheque is crossed specially, the banker to whom
it is crossed may again cross it specially to another banker for
collection. Revocation of
banker’s authority
General and
special crossings
defined
Crossing by
drawer or after
issue

t specially to another banker for
collection. Revocation of
banker’s authority
General and
special crossings
defined
Crossing by
drawer or after
issue

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.85
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(6) Where an uncrossed cheque, or a cheque crossed
generally, is sent to a banker for collection, he may cross it
specially to himself. 78. A crossing authorised by this Act is a material part of the
cheque and it shall not be lawful for any person to obliterate or,
except as authorised by this Act, to add to or alter the crossing. 79.–(1) Where a cheque is crossed specially to more than one
banker except when crossed to an agent for collection being a
banker, the banker on whom it is drawn shall refuse payment
thereof. (2) Where the banker on whom a cheque is drawn which
is so crossed nevertheless pays the same, or pays a cheque
crossed generally otherwise than to a banker, or if crossed
specially otherwise than to the banker to whom it is crossed,
or his agent for collection being a banker, he is liable to the
true owner of the cheque for any loss he may sustain owing to
the cheque having been so paid.

agent for collection being a banker, he is liable to the
true owner of the cheque for any loss he may sustain owing to
the cheque having been so paid.

(3) Where a cheque is presented for payment which does not
at the time of presentment appear to be crossed, or to have had
a crossing which has been obliterated, or to have been added to
or altered otherwise than as authorised by this Act, the banker
paying the cheque in good faith and without negligence shall
not be responsible or incur any liability, nor shall the payment
be questioned by reason of the cheque having been crossed, or
of the crossing having been obliterated or having been added
to or altered otherwise than as authorised by this Act, and of
payment having been made otherwise than to a banker or to
the banker to whom the cheque is or was crossed, or to his
agent for collection being a banker, as the case may be. 80. Where the banker, on whom a crossed cheque is drawn, in
good faith and without negligence pays it, if crossed generally,
to a banker, and if crossed specially, to the banker to whom it is
crossed, or his agent for collection being a banker, the banker
paying the cheque, and, if the cheque has come into the hands
Crossing material
part of cheque
Duties of banker
as to crossed
cheques
Protection to
banker and
drawer where
cheque is crossed

as come into the hands
Crossing material
part of cheque
Duties of banker
as to crossed
cheques
Protection to
banker and
drawer where
cheque is crossed

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
86
of the payee, the drawer, shall respectively be entitled to the
same rights and be placed in the same position as if payment of
the cheque had been made to the true owner thereof. 81. Where a person takes a crossed cheque which bears on it
the words “not negotiable”, he shall not have and shall not be
capable of giving a better title to the cheque than that which
the person from whom he took it had. 82.–(1) Where a banker in good faith, and in the ordinary
course of business, pays a cheque drawn on him which is not
indorsed or is irregularly indorsed, he shall not by doing so
incur any liability by reason of the absence, or irregularity
in indorsement, and shall be deemed to have paid it in the
ordinary course of business.

incur any liability by reason of the absence, or irregularity
in indorsement, and shall be deemed to have paid it in the
ordinary course of business.

(2) Where a banker in good faith and in the ordinary course
of business pays-
(a) any document issued by his customer which, though
not a bill of exchange, is intended to enable a person to
obtain payment from him of the sum specified in the
document;
(b) a draft payable on demand drawn by him upon himself,
whether payable at the head office or some other office
of his bank,
he shall not in doing so, incur any liability by reason of the
absence of, or irregularity in, indorsement, and payment shall
discharge the instrument. 83. A banker who gives value for, or has a lien on a cheque
payable to order which the holder delivers to him for collection
without indorsing it, has the same rights, if any, as he would
have had if, upon delivery, the holder had indorsed it in blank. Effect of crossing
on holder
Protection of
bankers paying
unendorsed
cheques, etc. Act No. 3 of 1969 s. 2
Rights of bankers
collecting
unendorsed
cheques
Act No. 3 of 1969 s. 3

er
Protection of
bankers paying
unendorsed
cheques, etc. Act No. 3 of 1969 s. 2
Rights of bankers
collecting
unendorsed
cheques
Act No. 3 of 1969 s. 3

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.87
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
84. An unindorsed cheque which appears to have been paid by
the banker on whom it is drawn shall be prima facie evidence
of the receipt by the payee of the sum payable in respect of the
cheque. 85.–(1) Where a banker in good faith and without negligence-
(a) receives payment for a customer of an instrument to
which this section applies; or
(b) having credited a customer’s account with the amount
of an instrument to which this section applies, receives
payment thereof for himself,
and the customer has no title, or has a defective title, to the
instrument, the banker shall not incur any liability to the
true owner of the instrument by reason of having received
payment thereof.

e title, to the
instrument, the banker shall not incur any liability to the
true owner of the instrument by reason of having received
payment thereof.

(2) This section applies to the following instruments, that
is to say-
(a) cheques;
(b) a document issued by a customer of a banker which,
though not a bill of exchange, is intended to enable a
person to obtain payment from that banker of the sum
specified in the document;
(c) a document, not being a bill of exchange, issued by a
public officer which is intended to enable a person to
obtain payment from the Government, or from a local
authority, of the sum specified in the document;
(d) a draft payable on demand drawn by a banker upon
himself, whether payable at the head office or some
other office of his bank. (3) For the purposes of this section, the failure of a banker
to concern himself with the absence of, or irregularity in
indorsement of an instrument, shall not constitute negligence. An unendorsed
cheque evidence
of payment
Act No. 3 of 1969 s. 4
Protection of
bankers collecting
payment of
cheques, etc. Act No. 3 of 1969 s. 5

ence. An unendorsed
cheque evidence
of payment
Act No. 3 of 1969 s. 4
Protection of
bankers collecting
payment of
cheques, etc. Act No. 3 of 1969 s. 5

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
88
86. The provisions of this Act relating to cross cheques shall, so
far as is applicable, have effect in relation to the instruments,
other than cheques, to which section 85 of this Act applies, in
the same way as they have effect in relation to cheques. 87. Sections 82 to 86 shall not make negotiable any instrument
which, apart from them, is not negotiable. 88.–(1) Sections 76 to 87 shall apply to a banker’s draft as if the
draft were a cheque. (2) For the purposes of this section, the expression “banker’s
draft” means a draft payable on demand drawn by or on behalf
of a bank upon itself, whether payable at the head office or
some other office of the bank. PART IV
PROMISSORY NOTES
89.–(1) A promissory note is an unconditional promise in
writing made by one person to another signed by the maker,
engaging to pay, on demand or at a fixed or determinable
future time, a sum certain in money, to, or to the order of, a
specified person or to bearer.

engaging to pay, on demand or at a fixed or determinable
future time, a sum certain in money, to, or to the order of, a
specified person or to bearer.

(2) An instrument in the form of a note payable to maker’s
order is not a note within the meaning of this section unless
and until it is indorsed by the maker. (3) A note is not invalid by reason only that it contains also
a pledge of collateral security with authority to sell or dispose
thereof. (4) A note which is, or on the face of it purports to be, both
made and payable within Tanzania is an inland note and any
other note is a foreign note. 90. A promissory note is inchoate and incomplete until
delivery to the payee or bearer. Application
of certain
provisions of this
Act to certain
instruments
Act No. 3 of 1969 s. 6
Application
Act No. 3 of 1969 s. 6
Application of
sections 76 to 87
to bankers’ drafts
Act No. 3 of 1969 s. 6
Definition
Delivery
necessary

1969 s. 6
Application
Act No. 3 of 1969 s. 6
Application of
sections 76 to 87
to bankers’ drafts
Act No. 3 of 1969 s. 6
Definition
Delivery
necessary

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.89
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
91.–(1) A promissory note may be made by two or more
makers, and they may be liable jointly or jointly and severally
according to its tenor. (2) Where a note runs, “I promise to pay” and is signed by
two or more persons, it is deemed to be their joint and several
note. 92.–(1) Where a note payable on demand has been indorsed,
it shall be presented for payment within a reasonable time of
the indorsement and if it be not so presented, the indorser is
discharged. (2) In determining what is a reasonable time, regard shall
be had to the nature of the instrument, the usage of trade, and
the facts of the particular case. (3) Where a note payable on demand is negotiated, it is not
deemed to be overdue, for the purpose of affecting the holder
with defects of title of which he had no notice, by reason that
it appears that a reasonable time for presenting it for payment
has elapsed since its issue.

efects of title of which he had no notice, by reason that
it appears that a reasonable time for presenting it for payment
has elapsed since its issue.

93.–(1) Where a promissory note is in the body of it made
payable at a particular place, it shall be presented for payment
at that place in order to render the maker liable and in any
other case, presentment for payment is not necessary in order
to render the maker liable. (2) Presentment for payment is necessary in order to render
the indorser of a note liable. (3) Where a note is in the body of it made payable at a
particular place, presentment at that place is necessary in
order to render an indorser liable; but when a place of payment
is indicated by way of memorandum only, presentment
at that place is sufficient to render the indorser liable, but a
presentment to the maker elsewhere, if sufficient in other
respects, shall also suffice. Joint and several
notes
Note payable on
demand
Presentment of
note for payment

e maker elsewhere, if sufficient in other
respects, shall also suffice. Joint and several
notes
Note payable on
demand
Presentment of
note for payment

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
90
94. The maker of a promissory note by making it-
(a) engages that he will pay it according to its tenor;
(b) is precluded from denying to a holder in due course the
existence of the payee and his then capacity to indorse. 95.–(1) Subject to the provisions in this Part, and except as
by this section provided, the provisions of this Act relating to
bills of exchange apply, with the necessary modifications, to
promissory notes. (2) In applying those provisions, the maker of a note shall
be deemed to correspond with the acceptor of a bill, and the
first indorser of a note shall be deemed to correspond with the
drawer of an accepted bill payable to drawer’s order. (3) The following provisions as to bills do not apply to notes,
namely, provisions relating to-
(a) presentment for acceptance;
(b) acceptance;
(c) acceptance supra protest;
(d) bills in a set. (4) Where a foreign note is dishonoured, protest thereof is
unnecessary. PART V
SUPPLEMENTARY PROVISIONS
96.

ptance supra protest;
(d) bills in a set. (4) Where a foreign note is dishonoured, protest thereof is
unnecessary. PART V
SUPPLEMENTARY PROVISIONS
96.

A thing is deemed to be done in good faith, within the
meaning of this Act, where it is in fact done honestly, whether
it is done negligently or not. 97.–(1) Where, by this Act, any instrument or writing is
required to be signed by any person, it is not necessary that
he should sign it with his own hand, but it is sufficient if his
signature is written thereon by some other person by or under
his authority. (2) In the case of a corporation, where, by this Act, any
instrument or writing is required to be signed, it is sufficient
if the instrument or writing be sealed with the corporate seal. Liability of maker
Application of
Part II to notes
Good faith
Signature

is sufficient
if the instrument or writing be sealed with the corporate seal. Liability of maker
Application of
Part II to notes
Good faith
Signature

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.91
THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
(3) Nothing in this section shall be construed as requiring
the bill or note of a corporation to be under seal. 98.–(1) Where, by this Act, the time limited for doing any
act or thing is less than three days, in reckoning time, non-
business days are excluded
(2) “Non-business days” for the purposes of this Act means-
(a) Sunday; and
(b) a public holiday under the Public Holidays Act. 99. For the purposes of this Act, where a bill or note is required
to be protested within a specified time, or before some further
proceeding is taken, it is sufficient that the bill has been noted
for protest before the expiration of the specified time or the
taking of the proceeding; and the formal protest may be
extended at any time thereafter as of the date of the noting.

ion of the specified time or the
taking of the proceeding; and the formal protest may be
extended at any time thereafter as of the date of the noting.

100.–(1) Where a dishonoured bill or note is authorised or
required to be protested, and the services of a notary cannot
be obtained at the place where the bill is dishonoured, any
householder or substantial resident of the place may, in the
presence of two witnesses, give a certificate, signed by them,
attesting the dishonor of the bill, and the certificate shall, in all
respects operate as if it were a formal protest of the bill. (2) The form given in the Schedule to this Act may be used,
with necessary modifications, and if used, shall be sufficient. 101. The provisions of this Act as to crossed cheques shall
apply a warrant for payment of dividend. 102.–(1) The rules in bankruptcy relating to bills of exchange,
promissory notes and cheques, shall continue to apply
notwithstanding anything in this Act contained. (2) The rules of common law including the law of merchant,
except in so far as they are inconsistent with the express
provisions of this Act, shall continue to apply to bills of
exchange, promissory notes, and cheques. Computation of
time
Cap. 35
When noting
equivalent to
protest
Protest when
notary not
accessible
Dividend
warrants may be
crossed
Savings

and cheques. Computation of
time
Cap. 35
When noting
equivalent to
protest
Protest when
notary not
accessible
Dividend
warrants may be
crossed
Savings

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BILLS OF EXCHANGE ACT [CAP. 215 R.E. 2023]
92
(3) Nothing in this Act shall affect-
(a) the provisions of the Stamp Duty Act, or any law or
enactment for the time being in force relating to the
revenue;
(b) the provisions of the Companies Act or any law relating
to joint stock banks or companies;
(c) the validity of any usage relating to dividend warrants,
or the indorsements thereof. SCHEDULE
(Made under section 100)
FORM OF PROTEST WHICH MAY BE USED
WHEN THE SERVICES OF A NOTARY
CANNOT BE OBTAINED IN TANZANIA
KNOW ALL MEN that I, A.B. (householder), of .................................... ...................... in Tanzania at the request of C.D., there being no Notary
Public available did on the .................................... day of ............... 20........ at ............................. demand payment (or acceptance) of the bill of
exchange hereunder written, from E.F., to which demand he made
answer (state answer, if any), wherefore I now, in the presence of G.H. and J.K., do protest the said bill of exchange.

E.F., to which demand he made
answer (state answer, if any), wherefore I now, in the presence of G.H. and J.K., do protest the said bill of exchange.

............................................................ (Signed)
Witnesses A.B. G.H. J.K. N.B. The Bill itself should be annexed, or a copy of the bill, and all that
is written thereon should be underwritten. Cap. 189
Cap. 212