When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public. Such certificate is called a protest.
Protest for better security.
When the acceptor of a bill of exchange has become insolvent, or his credit has been publicly impeached, before the maturity of the bill, the holder may, within a reasonable time, cause a notary public to demand better security of the acceptor, and on its being refused may, within a reasonable time, cause such facts to be noted and certified as aforesaid.
Such certificate is called a protest for better security.
Legal Commentary & Landmark Judgments: Section 100
Section 100 defines 'protest', providing for a formal notarial certificate attesting the dishonour of a promissory note or bill of exchange by non-acceptance or non-payment, or certifying security for better security.
In international trade disputes involving foreign buyers or cross-border bills of exchange, always obtain a formal Notarial Protest Certificate under Section 100. Foreign courts and arbitration tribunals will reject recovery claims that lack formal protest.