Section 58: Payment in due course

58. Payment in due course (1) (a) A bill is discharged by payment in due course by or on behalf or the drawee or acceptor. (b) “Payment in due course” means payment made at or after the maturity of the bill to the holder in good faith and without notice that his title to the bill is defective. (2) (a) Subject to paragraphs (b) and (c), where a bill is paid by the drawer or an indorser, it is not discharged. (b) Where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce its payment against the acceptor, but may not reissue the bill. (c) Where a bill is paid by an indorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his [Issue 1] B7 – 22 Revised Laws of Mauritius former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent indorsements, and again negotiate the bill. (3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.