Negotiable Instruments Act Section 111 — Liability of acceptor for honour
CHAPTER XI OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
General
Summary
When a person accepts a bill of exchange "for honour," they take on the responsibility of paying the bill's amount to all parties who come after the person they are honouring, if the original drawee fails to pay. The person being honoured and everyone before them must compensate this acceptor for honour for any loss or damage they suffer from stepping in. However, the acceptor for honour is only required to pay the bill's holder if the bill is presented for payment, or sent for presentment, no later than the day after the bill's maturity date—unless the acceptor's address on the bill is somewhere other than where the bill is payable.
Official Text
An acceptor for honour binds himself to all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee do not; and such party and all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him in consequence of such acceptance. But an acceptor for honour is not liable to the holder of the bill unless it is presented, or (in case the address given by such acceptor on the bill is a place other than the place where the bill is made payable) forwarded for presentment, not later than the day next after the day of its maturity.