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.
Legal Commentary & Landmark Judgments: Section 111
Section 111 establishes the liability of an acceptor for honour, binding them to pay the amount of the bill to the holder or any subsequent party, provided the bill is duly presented at maturity and protested for non-payment.
When seeking to recover from an acceptor for honour, follow the statutory sequence: (1) present the bill to original drawee at maturity; (2) on dishonour, obtain notarial protest for non-payment; (3) then present to the acceptor for honour under Section 111.