Re-Exchange

The expense incurred by a bill's being dishonored in a foreign country, where it is made payable and returned to that country in which it was made or indorsed, and there taken up. 11 East, 265; 2 Campb. 65. It is the sum for which a sight bill must be drawn at the time and place of dishonor at the then rate of exchange on the place where the drawer or indorser sought to be charged resides, in order to realize, at the place of dishonor, the amount of the dishonored bill, and the expenses consequent on its dishonor. 2 Daniell, Neg. Inst. § 1445. See "Redraft."

The expense incurred by a bill being dishonored in a foreign country where it is made payable and returned to that country in which it was made or indorsed and there taken up. 11 East 265; 2 Campb. 65., The loss resulting from the dishonor of a bill of exchange in a country different from that in which it was drawn or indorsed. It is ascertained by proof of the sum for which a sight bill (drawn at the time and place of dishonor at the then rate of exchange at the place where the drawer or indorser sought to be charged resides) must be drawn in order to realize at the place of dishonor the amount of the dishonored bill and the expenses consequent on its dishonor. The holder may draw a sight bill for such sum on either the drawer or one of the indorsers. Such bill is a “redraft”; Benj. Chaim. Bills, art. 221. See L.. R. 3 App. Cas. 146; Byles, Bills 444. The drawer of a bill is liable for the whole amount of re-exchange occasioned by the circuitous mode of returning the bill through the various countries in which it has been negotiated, as much as for that occasioned by a direct return; 11 East 265; 3 B. & P. 335. And see Price v. Page, 24 Mo. 65; Watt v. Riddle, 8 Watts (Pa.) 545; 2 How. 764; 9 Exch. 25. In some states legislative enactments have been made which regulate damages on re-exchange. These damages are different in the several states. See Ivennig v. Ralston, 23 Pa. 137; Hendricks v. Franklin, 4 Johns. (N. Y.) 119; Farmers’ Bank of Canton v. Brainerd, 8 Ohio 292; Measure of Damages.