An Act to amend the Bills of Exchange Act (rights of bill holders)

This bill was last introduced in the 39th Parliament, 2nd Session, which ended in September 2008.

Sponsor

Libby Davies  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Not active, as of June 16, 2008
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Bills of Exchange Act to make the rights of a bill holder subject to a right or defence of set-off held by a purchaser in respect of an action by the seller. The purpose of the enactment is to prevent the cashing of cheques by a cheque-cashing business where a cheque has been cancelled by the person who wrote the cheque.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Bills of Exchange ActRoutine Proceedings

June 16th, 2008 / 3:05 p.m.
See context

NDP

Libby Davies NDP Vancouver East, BC

moved for leave to introduce Bill C-564, An Act to amend the Bills of Exchange Act (rights of bill holders).

Mr. Speaker, I am pleased to rise in the House today to introduce my private member's bill entitled, “An Act to amend the Bills of Exchange Act”.

The bill would prevent the cashing of cheques by a cheque-cashing business when a cheque has been cancelled by the person who wrote it. This would put the onus on the cheque-cashing business to ensure any cheques it is cashing have not had a stop-payment put on them.

As currently worded, the Bills of Exchange Act allows businesses, such as Money Mart, to successfully sue the issuer of a cheque cashed by a third party, even when a stop-payment order has been issued. There are dozens of cases on record and the problem is rooted in the Bills of Exchange Act that dates back to the 1890s.

My bill today is a much needed amendment to this flawed and outdated piece of legislation. I hope all members of the House will support this bill so we can put an end to this injustice and protect the rights of consumers.

(Motions deemed adopted, bill read the first time and printed)