Question

Noting and protest is a must for ---- bills .

• A. Domestic bills
• B. Foreign bills
• C. Overdue bills
• D. Demand bills

Answer 1

Answer:

B. Foreign bills

Noting and Protesting 

• The act of recording the fact of cause for dishonouring of a bill by "Notary, Public "is called noting 

• In case of dishonour of a bill, due notice is mandatory In case of dishonour of bill, noting and protesting are needed.

Protest:

• The certificate issued by a notary public stating the cause for dishonour of a bill is called protest.

• Noting and protest is must for "Foreign bills". 

• Noting and protest can be done by notary public 

• Noting charges is an expenses to the acceptor (Drawee) but it is paid by the drawer at the time of Noting and later it is claimed from the drawee. 

• Noting charges is neither a gain nor loss to the drawer 

Noting Charges:

• It is charge for specifying the  cause for dishonouring the bill of by notary public.

• The debtor (buyer or Drawee) has the responsibility to pay the noting charges to the bank.