XII Banking - Question 21 - Noting of the Bill

Q.6. What do you mean by Noting of the Bill?




NOTING OF THE BILL
When the bill of exchange is dishonoured by the party, the holder of the bill has a legal right to take action against them. In this regard he prepares a type of Public Notice. It is known as Notery Public which is attached along with the bill and is again presented for repayment. Usually this entry of the bill is made on a separate attached with the bill. If the payment is not made i.e. refused again then the date of the presentation the reference of the register with his signature is entered in the notice. This is called Notice of the Bill.


PROTESTING OF THE BILL

Sometimes due to refusal of payment a certificate or document is issued by the notary public containing all the information about the dishonour. This document is known as protest of the bill. It contains

i. Attested copy of the bill.

ii. Signature of Notery Public.

iii. The name of the person whose bill was protested.

iv. The date and amount of the protest.

v. The cause of the protest.

vi. The reply of the drawee.

vii. The reason of absence of the drawee and the accepted.

viii. The reason for the non-payment of the bill.

ix. The certificate stamp of the notery public.