Noting, when a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each.
Such notes must be made within a reasonable time after dishonour, and must specify the date of dishonour, the reason, if any, assigned for such dishonour, or if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary's charges. [Negotiable Instruments Act, 1881 (26 of 1881), s. 99]
--The making of a memorandum or note on a bill of exchange by a notary which states that he has presented the bill for payment or acceptance, and that it has been dishonoured. It is usual, in cases of non-payment of bills of exchange, for London bankers, after six o'clock on the day upon which the bills fall due, to cause inland bills to be noted. The duty of a notary in protesting a bill consists in three parts: (1) demanding, (2) noting, (3) protesting. To preserve the recourse against the drawer or indorser of an inland bill it is not necessary to note or protest it. Noting is for business purposes generally taken as showing due presentment. The expenses of noting can be recovered as liquidated damages. (Bills of Exchange Act, 1882, s. 57. See Chalmers, Bills of Exchange)
Although, in the case of inland bills of exchange, neither noting nor protesting is necessary, the case is widely different in the case of a dishonoured foreign bill, which should certainly be taken to a notary the day it is refused acceptance or payment, and it is his business to note, demand, and protest it; and notice of this must be sent the same day to the drawer and indorsers, with a copy of the bill, if the drawer and indorsers are abroad, but mere notice is sufficient if they are in England. A bill must be noted not later than the next succeeding day of business after the day of dishonour. See Bills of Exchange Act, 1882, s. 51, and Bills of Exchange (Time of Noting) Act, 1917. See PROTEST.
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