(1) The drawer of a bill by drawing it—
(a) engages that, on due presentment, it shall be accepted and paid according to its tenor, and that, if it be dishonoured he or she will compensate the holder or any indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;
(b) is precluded from denying to a holder in due course the existence of the payee and his or her then capacity to indorse.
(2) The indorser of a bill by indorsing it—
(a) engages that, on due presentment, it shall be accepted and paid according to its tenor, and that, if it be dishonoured he or she will compensate the holder or a subsequent indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;
(b) is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer's signature and all previous indorsements;
(c) is precluded from denying, to his or her immediate or a subsequent indorsee, that the bill was at the time of his or her indorsement a valid and subsisting bill, and that he or she had then a good title thereto.