Bills of Exchange Ordinance

(1)
A bill is discharged by payment in due course by or on
                behalf of the drawee or acceptor.
Payment
                    in due
                course
(
按期付款
) means payment made at or after the
                maturity of the bill to the holder thereof in good faith and without notice that his
                title to the bill is defective.
(2)
Subject to the provisions hereinafter contained, when a bill is paid by the
                drawer or an indorser it is not discharged;
but—
(a)
where a bill payable to, or to the order of, a third party is paid by the
                    drawer, the drawer may enforce payment thereof against the acceptor, but may not
                    reissue the bill;
(b)
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 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.
[cf. 1882 c. 61 s. 59 U.K.]