Legal Definitions - acceptance supra protest

Definition: Acceptance supra protest is a type of acceptance for honor. It is an acceptance or undertaking made by a third party, not a party to the instrument, to protect the honor or credit of one of the parties. The third party agrees to pay the debt when it becomes due if the original drawee does not. This type of acceptance inures to the benefit of all successors to the party for whose benefit it is made.

Example: A bill of exchange has been dishonored by non-acceptance and is not overdue. With the consent of the holder, the bill may be accepted for the honor of either the drawer or an indorser by a friend placing his own name upon it as acceptor for the whole or part only of the amount of the bill. After a protest has been drawn up declaratory of its dishonor by the drawee, the bill can be accepted for honor supra protest.

Explanation: In this example, the third party accepts the bill for the honor of the drawer or indorser to prevent the bill from being sent back upon them as unpaid. This type of acceptance is an exception to the rule that only the drawee can accept a bill. It is called acceptance supra protest because it is made after a protest has been drawn up declaratory of its dishonor by the drawee.