Banking · Negotiable Instruments Act
Consider the following statements regarding bill finance under the Negotiable Instruments Act: Statement I: The liability of the drawer of a bill of exchange is primary and absolute from the moment the bill is drawn, similar to the maker of a promissory note. Statement II: An acceptor of a bill of exchange is liable to the holder only after the bill has been presented for payment at the specified place and time. Statement III: Every endorser of a bill of exchange is liable to all subsequent parties to the instrument as a surety for the drawer and the acceptor. Which of the statements given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only I
- 2Only I and II
- 3Only II and III
- 4Only III✓
Correct answer
Only III
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