Section 54: Liability of acceptor.

The acceptor of a bill by accepting it-(a) engages that he will pay it according to the tenor of his acceptance;
(b) is precluded from denying to a holder in due course-
(i) the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill,
(ii) in the case of a bill payable to drawer's order, the then capacity of the drawer to endorse, but not the genuineness or validity of his endorsement;
(iii) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to endorse, but not genuineness or validity of endorsement.