Noting charges
Noting charges
"Noting"
must be recorded with Notary Public within a reasonable time after the
dishonour and must contain the fact of dishonour, the date of dishonour, the
reason if any given for such dishonour and the noting charges. For this service
they charge a small fee. This fee is known as noting charges. Noting charges
have to be borne by the person responsible for dishonour. Hence, when a bill is
dishonoured, the amount due is the amount of the bill plus the noting charges.
However, if the acceptor proves that the bill was not properly presented to him
for payment, he may escape his liability.
Noting charges are the amounts paid by the drawer to notary , who warns
the drawee of the bill to get clear in a specific time period .
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