DEFINITION of Acceptor for the honor
An acceptor for honor is one who accepts a protested bill of exchange. But on which he or she is not already liable for the honor of some party to the bill. The acceptor being liable to the holder. Also to all parties subsequent to the one for whose honor he or she accepts.
WHAT IT IS IN ESSENCE
The person who may voluntarily become a party to a bill as an acceptor in the event of the refusal by original drawee to accept the bill if demanded by the notary. The acceptor for honor offers to accept the bill supra protest. With a view to safeguarding the honor or prestige of the original drawer. Or any other endorser, as the case may be.
An acceptor for honor binds himself to all parties. Succeeding to the party for whose honor he accepts to pay the amount of the bill if the drawer does not. Such party and all prior parties are liable in their respective capacities to compensate the ”acceptor for honor”. For all loss or damage sustained by him in consequence of such acceptance.
But an acceptor for honor is not liable to the holder of the bill unless it is presented. Or, in case the address such acceptor gives on the bill is a place other than the place where the bill is made payable, forwarded for presentment. But not later than the day next after the day of its maturity.
HOW TO USE
This happens when the bill gets dishonored and a formal certificate of dishonor, known as the protest. It is issued by the Notary Public to the holder of a bill in question. Hence the term supra protest.