Section 54

The acceptor of a bill, by accepting it—

of Bills of Exchange Act 1949

ActIn forceProvision 54 of 107

(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 indorsement.

38 Laws of Malaysia ACT 204

Read in full context — Bills of Exchange Act 1949 →