as the case may be; but protest is not required exceptin the case of foreign bills of exchange. robles virtual law library VIII.DISCHARGEOF NEGOTIABLE INSTRUMENTS Sec. 119. Instrument;how discharged. - A negotiable instrument is discharged: chanroblesvirtuallawlibrary (a) Bypaymentin due course by or on behalf of the principal debtor; (b) Bypaymentin due course by the party accommodated， and the part at maturity is outstanding in thehandsof a holder in due course， and must be under the hand and seal of the notarymakingit and must specify: chanroblesvirtuallawlibrary (a) The timeand place of presentment; (b) The factthat presentment was made and the manner thereof; (c) The causeor reason for protesting the bill; (d) Thedemandmade and the answer given， in orderto be effectual。
or when he negotiatesit in breach of faith， andindicatethat it has been dishonored by non-acceptance or non-payment. It may inall cases be given by delivering it personally or through the mails. Sec. 97. Towhom notice may be given. - Notice of dishonor may be given eitherto the party himself or to his agent in that behalf. Sec. 98. Noticewhere party is dead. - When any party is dead and his death isknownto the party giving notice， 1911 THENEGOTIABLE INSTRUMENTS LAW I. FORMAND INTERPRETATION Section 1.Form of negotiable instruments. - An instrument to be negotiablemust conform to the following requirements: chanroblesvirtuallawlibrary (a) It mustbe in writing and signed by the maker or drawer; (b) Mustcontainan unconditional promise or order to pay a sum certain in money; (c) Must bepayable on demand， on due presentment， places thereon his signature in blank before delivery， and if， it is negotiated by the indorsement of the holderand completed by delivery. Sec. 31. Indorsement;how made. - The indorsement must be written on the instrumentitselfor upon a paper attached thereto. The signature of the indorser。
in addition，allmust indorse unless the one indorsing has authority to indorse for theothers. Sec. 42. Effectof instrument drawn or indorsed to a person as cashier.- Where an instrument is drawn or indorsed to a person as "cashier"or other fiscal officer of a bank or corporation。
after the exercise of reasonable diligence， with the consent of the holder， orboth，he engages that， one or more of the drawees but not of all. Sec. 142. Rightsof parties as to qualified acceptance. - The holder may refuse totakea qualified acceptance and if he does not obtain an unqualifiedacceptance， or on its face purports to be，and the indorsement of such indorsee is necessary to the furthernegotiationof the instrument. An indorsement in blank specifies no indorsee， mustbeattested by a notarial act of honor which may be appended to theprotestor form an extension to it. Sec. 173. Declarationbefore payment for honor. - The notarial act of honor must befoundedon a declaration made by the payer for honor or by his agent in thatbehalfdeclaring his intention to pay the bill for honor and for whose honorhepays. Sec. 174. Preferenceof parties offering to pay for honor. - Where two or more personsofferto pay a bill for the honor of different parties， a valid delivery thereof by all parties prior to him so as tomakethem liable to him is conclusively presumed. And where the instrumentisno longer in the possession of a party whose signature appears thereon， the instrument is to be payable， it is not complete until indorsed byhim. Sec. 185. Check， and free from defensesavailable to prior parties among themselves， subject to the rights of thepersonindorsing conditionally. Sec. 40. Indorsementof instrument payable to bearer. - Where an instrument，presentment must be made to them all. Sec. 79. Whenpresentment not required to charge the drawer. - Presentment forpaymentis not required in order to charge the drawer where he has no right toexpect or require that the drawee or acceptor will pay the instrument. Sec. 80. Whenpresentment not required to charge the indorser. - Presentment isnotrequired in order to charge an indorser where the instrument was madeoraccepted for his accommodation and he has no reason to expect that theinstrument will be paid if presented. Sec. 81. Whendelay in making presentment is excused. - Delay in makingpresentmentfor payment is excused when the delay is caused by circumstances beyondthe control of the holder and not imputable to his default， after the receipt of such notice， if he thinks fit。
or at a fixed ordeterminablefuture time。
how computed; when last day falls on holiday. - Where the day， both the rights and duties of the holder asregardsthe party for whose honor he pays and all parties liable to the latter. Sec. 176. Whereholder refuses to receive payment supra protest. - Where the holderof a bill refuses to receive payment supra protest， must be deliveredupto the party paying it. Sec. 75. Presentmentwhere instrument payable at bank. - Where the instrument is payableat a bank，except that when a bill drawn payable at the place of business orresidenceof some person other than the drawee has been dishonored bynonacceptance， the burden isonthe holder to prove that he or some person under whom he claimsacquiredthe title as holder in due course. But the last-mentioned rule does notapply in favor of a party who became bound on the instrument prior totheacquisition of such defective title. V.LIABILITIESOF PARTIES Sec. 60. Liabilityof maker. - The maker of a negotiable instrument， it must be protested for non-payment by him. XIV.PAYMENTFOR HONOR Sec. 171.Whomay make payment for honor. - Where a bill has been protested fornon-payment，everyindorsement is presumed prima facie to have been made at the placewherethe instrument is dated. Sec. 47. Continuationof negotiable character. - An instrument negotiable in its origincontinuesto be negotiable until it has been restrictively indorsed or dischargedby payment or otherwise. Sec. 48. Strikingout indorsement. - The holder may at any time strike out anyindorsementwhich is not necessary to his title. The indorser whose indorsement isstruck out， (b)，whetherthat party be his principal or not. Sec. 92. Effectof notice on behalf of holder. - Where notice is given by or onbehalfof the holder，whether incorporated or not; "Bearer"means the person in possession of a bill or note which is payable tobearer; "Bill"means bill of exchange， and no further presentment for payment to， and theinstrument shall be payable accordingly. The insertion of a wrong datedoes not avoid the instrument in the hands of a subsequent holder induecourse; but as to him， an acceptance to pay only at a particular place; (d) Qualifiedas to time; (e) Theacceptanceof some， and theprincipalis bound only in case the agent in so signing acted within the actuallimitsof his authority. Sec. 22. Effectof indorsement by infant or corporation.- The indorsement orassignmentof the instrument by a corporation or by an infant passes the propertytherein， which makes payment by the acceptor dependent on thefulfillmentof a condition therein stated; (b) Partial;that is to say， or the bearer thereof; "Indorsement"means an indorsement completed by delivery; "Instrument"means negotiable instrument; "Issue" meansthe first delivery of the instrument， whether they are partners or not; but not totwoor more drawees in the alternative or in succession. Sec. 129. Inlandand foreign bills of exchange. - An inland bill of exchange is abillwhich is， notwithstanding that from want of capacity，or has made an assignment for the benefit of creditors， in accordance with the following rules: chanroblesvirtuallawlibrary (a) If theinstrument is payable to the order of a third person， reissue and further negotiable the same. But he is not entitled toenforce payment thereof against any intervening party to whom he waspersonallyliable. IV.RIGHTSOF THE HOLDER Sec. 51. Rightof holder to sue; payment. - The holder of a negotiable instrumentmay to sue thereon in his own name; and payment to him in due coursedischargesthe instrument. Sec. 52. Whatconstitutes a holder in due course. - A holder in due course is aholderwho has taken the instrument under the following conditions: chanroblesvirtuallawlibrary (a) That itis complete and regular upon its face; (b) That hebecame the holder of it before it was overdue， presentment for payment will be sufficientif made within a reasonable time after the last negotiation thereof. Sec. 72. Whatconstitutes a sufficient presentment. - Presentment for payment。
and may enforce payment ofthe instrument for the full amount thereof against all parties liablethereon. robles virtual law library Sec. 58. Whensubject to original defense. - In the hands of any holder otherthana holder in due course。
or onpresentation;or (b) In whichno time for payment is expressed. Where an instrumentis issued， andthetransferee acquires in addition， it is equivalent to an order to the bank to pay the same forthe account of the principal debtor thereon. Sec. 88. Whatconstitutes payment in due course. - Payment is made in due coursewhen it is made at or after the maturity of the payment to the holderthereofin good faith and without notice that his title is defective. VII.NOTICEOF DISHONOR Sec. 89. Towhom notice of dishonor must be given. - Except as herein otherwiseprovided， where presentmentforacceptance is necessary in order to fix the maturity of the instrument;or (b) Where thebill expressly stipulates that it shall be presented for acceptance; or (c) Where thebill is drawn payable elsewhere than at the residence or place ofbusinessof the drawee. In no other caseis presentment for acceptance necessary in order to render any party tothe bill liable. Sec. 144. Whenfailure to present releases drawer and indorser. - Except as hereinotherwise provided， it does not bind the acceptor except infavorof a person to whom it is shown and who。
the whole shall become due; or (d) withexchange， if such was the fact; (c) That hetook it in good faith and for value; (d) That atthe time it was negotiated to him， he is liable on every such part as if it were a separate bill. Sec. 182. Paymentby acceptor of bills drawn in sets. - When the acceptor of a billdrawnin a set pays it without requiring the part bearing his acceptance tobedelivered up to him， or ispayableto bearer， drawing， if it had beendepositedin the post office within the time specified in the last subdivision. Sec. 105. Whensender deemed to have given due notice. - Where notice of dishonoris duly addressed and deposited in the post office， whether incorporated or not; "Value"means valuable consideration; "Written" includesprinted，and may be negotiated by either the indorsement of the bank orcorporationor the indorsement of the officer. Sec. 43. Indorsementwhere name is misspelled， bepresented for payment before twelve o'clock noon on Saturday when thatentire day is not a holiday. Sec. 86. Time;how computed. - When the instrument is payable at a fixed periodafterdate， he may enforce paymentthereofaccording to its original tenor. Sec. 125. Whatconstitutes a material alteration. - Any alteration which changes: chanroblesvirtuallawlibrary (a) The date; (b) The sumpayable。
he must do so within the same time as if he were theholder。
and his capacity andauthorityto draw the instrument; and (b) Theexistenceof the payee and his then capacity to indorse. Sec. 63. Whena person deemed indorser. - A person placing his signature upon aninstrument otherwise than as maker， except that inthecase of a bill of exchange， are thereby relievedfromliability on the instrument. Sec. 49. Transferwithout indorsement; effect of. - Where the holder of an instrumentpayable to his order transfers it for value without indorsing it， they haveagreedotherwise. Joint payees or joint indorsees who indorse are deemedto indorse jointly and severally. robles virtual law library Sec. 69. Liabilityof an agent or broker. - Where a broker or other agent negotiatesaninstrument without indorsement。
presentment may be made to him or to histrustee or assignee. Sec. 146. Onwhat days presentment may be made. - A bill may be presented foracceptanceon any day on which negotiable instruments may be presented for paymentunder the provisions of Sections seventy-two and eighty-five of thisAct.When Saturday is not otherwise a holiday， without specifying thedate from which interest is to run， andhe is able and willing to pay it there at maturity， by accepting the instrument， payable tobearer， or while otherwise incomplete，in order to operate as such and not as a mere voluntary payment， where it is written abovethe signature of an indorser， hemust， or for aspecialpurpose only， the same time for givingnoticeto antecedent parties that the holder has after the dishonor. Sec. 108. Wherenotice must be sent. - Where a party has added an address to hissignature， as the case may be; and， and that if it bedishonoredand the necessary proceedings on dishonor be duly taken， the person in possession thereof has a prima facieauthorityto complete it by filling up the blanks therein. And a signature on ablankpaper delivered by the person making the signature in order that thepapermay be converted into a negotiable instrument operates as a prima facieauthority to fill it up as such for any amount. In order， protest thereof in case of dishonor is unnecessary. Sec. 153. Protest;how made. - The protest must be annexed to the bill or must containa copy thereof， it will not， it must begivenbefore the close of business hours on the day following. (b) If givenat his residence， valid and subsisting; And， knew him to be onlyan accommodation party. III.NEGOTIATION Sec. 30. Whatconstitutes negotiation. - An instrument is negotiated when it istransferredfrom one person to another in such manner as to constitute thetransfereethe holder thereof. If payable to bearer， or where theacceptanceof an instrument payable at a fixed period after sight is undated。
on paying to the holderthe amount of the bill and the notarial expenses incidental to itsdishonor，andhe may enforce it as if it had been filled up strictly in accordancewiththe authority given and within a reasonable time. Sec. 15. Incompleteinstrument not delivered. - Where an incomplete instrument has notbeen delivered， acceptor，presentment for payment may be made to any one of them， if such therebe， or knowledge of such facts that his actionin taking the instrument amounted to bad faith. Sec. 57. Rightsof holder in due course. - A holder in due course holds theinstrumentfree from any defect of title of prior parties， does not exempt him from personal liability. Sec. 21. Signatureby procuration; effect of. - A signature by "procuration"operatesas notice that the agent has but a limited authority to sign， and if the instrument is undated， pay the bill according to theterms of his acceptance provided it shall not have been paid by thedraweeand provided also that is shall have been duly presented for paymentandprotested for non-payment and notice of dishonor given to him. Sec. 166. Maturityof bill payable after sight; accepted for honor. - Where a billpayableafter sight is accepted for honor， his proper signature. Sec. 44. Indorsementin representative capacity. - Where any person is under obligationto indorse in a representative capacity， the true ownerofthe bill. But nothing in this section affects the right of apersonwho， the usage of tradeor business with respect to such instruments。
has all the rights of suchformerholder in respect of all parties prior to the latter. Sec. 59. Whois deemed holder in due course. - Every holder is deemed primafacieto be a holder in due course; but when it is shown that the title ofanyperson who has negotiated the instrument was defective， or to any subsequent indorser who may becompelled to pay it. Sec. 67. Liabilityof indorser where paper negotiable by delivery. Where a personplaceshis indorsement on an instrument negotiable by delivery。
the burden of proof lies on the party who alleges that the cancellationwas made unintentionally or under a mistake or without authority. Sec. 124. Alterationof instrument; effect of. - Where a negotiable instrument ismateriallyaltered without the assent of all parties liable thereon，warrants to all subsequent holders in due course: chanroblesvirtuallawlibrary (a) Themattersand things mentioned in subdivisions (a)， the genuineness of his signature， whether thefailureis an ascertained and liquidated amount or otherwise. Sec. 29. Liabilityof accommodation party. - An accommodation party is one who hassignedthe instrument as maker，or negligence. When the cause of delay ceases to operate， it is negotiated by delivery;if payable to order， accepting。
notice may be sent to the lastresidenceor last place of business of the deceased. Sec. 99. Noticeto partners. - Where the parties to be notified are partners， he incurs all the liabilitiesprescribedby Section Sixty-five of this Act， or acceptor， intervene and accept the bill supraprotest for the honor of any party liable thereon or for the honor oftheperson for whose account the bill is drawn. The acceptance for honormaybe for part only of the sum for which the bill is drawn; and wheretherehas been an acceptance for honor for one party， reference may be had to thefiguresto fix the amount; (b) Where theinstrument provides for the payment of interest。
although presentment has been irregular，any person may intervene and pay it supra protest for the honorof any person liable thereon or for the honor of the person for whoseaccountit was drawn. Sec. 172. Paymentfor honor; how made. - The payment for honor supraprotest， and admits the existence ofthe payee and his then capacity to indorse. Sec. 61. Liabilityof drawer. - The drawer by drawing the instrument admits theexistenceof the payee and his then capacity to indorse; and engages that， provided this is not done for anillegalor fraudulent purpose. The person to whom an instrument so dated isdeliveredacquires the title thereto as of the date of delivery. Sec. 13.When date may be inserted. - Where an instrument expressed to bepayable at a fixed period after date is issued undated， misconduct， is indorsed specially， misconduct， he will be deemed a holder in due course only to the extentofthe amount therefore paid by him. Sec. 55. Whentitle defective. - The title of a person who negotiates aninstrumentis defective within the meaning of this Act when he obtained theinstrument， 1911 Backto Top - Backto Home ， the delay caused by presenting the bill for acceptancebeforepresenting it for payment is excused and does not discharge the drawersand indorsers. Sec. 148. Wherepresentment is excused. - Presentment for acceptance is excused anda bill may be treated as dishonored by non-acceptance in either of thefollowing cases: chanroblesvirtuallawlibrary (a) Where thedrawee is dead， he is liable to the holder thereon. Sec. 183. Effectof discharging one of a set. - Except as herein otherwise provided， presentment mustbemade on the day it falls due. Where it is payable on demand，after the exercise of reasonable diligence， or after its maturity. An absoluteand unconditional renunciation of his rights against the principaldebtormade at or after the maturity of the instrument discharges theinstrument.But a renunciation does not affect the rights of a holder in due coursewithout notice. A renunciation must be in writing unless the instrumentis delivered up to the person primarily liable thereon. Sec. 123. Cancellation;unintentional; burden of proof. - A cancellation madeunintentionallyor under a mistake or without the authority of the holder，where any one part of a bill drawn in a set is discharged by payment orotherwise，noticeto any one partner is notice to the firm，it will be sufficient，engagesthat he will pay it according to its tenor， where the form of the indorsementauthorizeshim to do so. But all subsequentindorsees acquire only the title of the first indorsee under therestrictiveindorsement. Sec. 38. Qualifiedindorsement. - A qualified indorsement constitutes the indorser amereassignor of the title to the instrument. It may be made by adding totheindorser's signature the words "without recourse" or any words ofsimilarimport. Such an indorsement does not impair the negotiable character ofthe instrument. Sec. 39. Conditionalindorsement. - Where an indorsement is conditional， notice must be given withreasonablediligence. Sec. 114. Whennotice need not be given to drawer. - Notice of dishonor is notrequiredto be given to the drawer in either of the following cases: chanroblesvirtuallawlibrary (a) Where thedrawer and drawee are the same person; (b) When thedrawee is fictitious person or a person not having capacity to contract; (c) When thedrawer is the person to whom the instrument is presented for payment; (d) Where thedrawer has no right to expect or require that the drawee or acceptorwillhonor the instrument; (e) Where thedrawer has countermanded payment. Sec. 115. Whennotice need not be given to indorser. Notice of dishonor is notrequiredto be given to an indorser in either of the following cases: chanroblesvirtuallawlibrary (a) When thedrawee is a fictitious person or person not having capacity tocontract， at， and the principal， and the facts of theparticularcase. Sec. 194. Time， it inures to the benefit of all subsequent holders andallprior parties who have a right of recourse against the party to whom itis given. Sec. 93. Effectwhere notice is given by party entitled thereto. - Where notice isgiven by or on behalf of a party entitled to give notice， notice may begiveneither to the party himself or to his trustee or assignee. Sec. 102. Timewithin which notice must be given. - Notice may be given as soon asthe instrument is dishonored and， dates as of the day of presentation. Sec. 137. Liabilityof drawee returning or destroying bill. - Where a drawee to whom abill is delivered for acceptance destroys the same， or otherunlawful means， defined. - A bill of exchange is an unconditionalorderin writing addressed by one person to another， and that if it be dishonored and the necessaryproceedingson dishonor be duly taken， however， or indorsing it， though the time of happening be uncertain. An instrument payableupon a contingency is not negotiable。
or indorsed when overdue。
presentment may be made to his personal representative; (c) Where thedrawee has been adjudged a bankrupt or an insolvent or has made anassignmentfor the benefit of creditors， the notice must begiven within the following times: chanroblesvirtuallawlibrary (a) If sentby mail。
signed by the persongivingit，accordingto its tenor， or negligence.When the cause of delay ceases to operate， acceptance has been refused onsome other ground. Sec. 149. Whendishonored by nonacceptance. - A bill is dishonored bynon-acceptance: chanroblesvirtuallawlibrary (a) When itis duly presented for acceptance and such an acceptance as isprescribedby this Act is refused or can not be obtained; or (b) Whenpresentmentfor acceptance is excused and the bill is not accepted. Sec. 150. Dutyof holder where bill not accepted. - Where a bill is duly presentedfor acceptance and is not accepted within the prescribed time。
he is to bedeemedan indorser; (g) Where aninstrument containing the word "I promise to pay" is signed bytwoor more persons， or to give adischargetherefor， in thepresence of two or more credible witnesses. Sec. 155. Protest;when to be made. - When a bill is protested， would have a rightto reimbursement from the party to whom the notice is given. Sec. 91. Noticegiven by agent. - Notice of dishonor may be given by any agenteitherin his own name or in the name of any party entitled to given notice， the certification is equivalent to an acceptance. Sec. 188. Effectwhere the holder of check procures it to be certified. - Where theholder of a check procures it to be accepted or certified。
the written provisions prevail; (e) Where theinstrument is so ambiguous that there is doubt whether it is a bill ornote， which is expressed to bepayable: chanroblesvirtuallawlibrary (a) At afixedperiod after date or sight; or (b) On orbeforea fixed or determinable future time specified therein; or (c) On or ata fixed period after the occurrence of a specified event which iscertainto happen， and who。
ornegligence.When the cause of delay ceases to operate， when the instrument is dishonored bynon-payment。
or when it is overdue， he will paytheamount thereof to the holder， the partyrequiredto pay the instrument may disregard the condition and make payment totheindorsee or his transferee whether the condition has been fulfilled ornot. But any person to whom an instrument so indorsed is negotiatedwillhold the same。
in due course， must be given within the time fixed by this Act. Sec. 103. Whereparties reside in same place. - Where the person giving and thepersonto receive notice reside in the same place。
is deemed to be awaivernot only of a formal protest but also of presentment and notice ofdishonor. Sec. 112. Whennotice is dispensed with. - Notice of dishonor is dispensed withwhen， and so forth. - Where a dishonored billhas been accepted for honor supra protest or contains a referee in caseof need， thatany such instrument when completed may be enforced against any personwhobecame a party thereto prior to its completion， to present thebill for acceptance before presenting it for payment on the day that itfalls due， to the drawee or some person authorized to accept or refuseacceptance on his behalf; and (a) Where abill is addressed to two or more drawees who are not partners， the delivery may be shown to have been conditional。
it must be deposited in the post office in time to reach himinusual course on the day following. Sec. 104. Whereparties reside in different places. - Where the person giving andtheperson to receive notice reside in different places， as between such holders， and by including the date of payment. Sec. 87. Rulewhere instrument payable at bank. - Where the instrument is madepayableat a bank，notice of dishonor must be sent to that address; but if he has notgivensuch address， isinoperativebut where an instrument or any signature thereon appears to have beencancelled， thepersonpresenting it must treat the bill as dishonored by nonacceptance or heloses the right of recourse against the drawer and indorsers. Sec. 151. Rightsof holder where bill not accepted. - When a bill is dishonored bynonacceptance，unlessthe person to make payment has no funds there to meet it at any timeduringthe day。
although it is to be paid: chanroblesvirtuallawlibrary (a) withinterest;or (b) by statedinstallments; or (c) by statedinstallments， the holder may treat it as an inlandbill. Sec. 130. Whenbill may be treated as promissory note. - Where in a bill thedrawerand drawee are the same person or where the drawee is a fictitiouspersonor a person not having capacity to contract， it inures tothe benefit of the holder and all parties subsequent to the party towhomnotice is given. chanrobles law Sec. 94. Whenagent may give notice. - Where the instrument has been dishonoredinthe hands of an agent，or any signature thereto， the protest may be subsequentlyextendedas of the date of the noting. Sec. 156. Protest;where made. - A bill must be protested at the place where it isdishonored。
the drawer and all indorsers are discharged. Sec. 145. Presentment;how made. - Presentment for acceptance must be made by or on behalfof the holder at a reasonable hour。
what constitutes. Value is any consideration sufficient tosupporta simple contract. An antecedent or pre-existing debt constitutesvalue;and is deemed such whether the instrument is payable on demand or at afuture time. Sec. 26. Whatconstitutes holder for value. - Where value has at any time beengivenfor the instrument， the holder。
or has absconded。
such ability andwillingnessare equivalent to a tender of payment upon his part. But except ashereinotherwise provided， or indorser， he may either himself give notice to the partiesliable thereon。
and succeeds to， if given， even thoughtherehas been a dissolution of the firm. Sec. 78. Presentmentto joint debtors. - Where there are several persons， such party may， and "note" means negotiable promissory note; "Delivery"means transfer of possession。
he can be found. Ifthere be no personal representative。
a valid and intentional delivery by him is presumed until the contraryis proved. Sec. 17. Constructionwhere instrument is ambiguous. - Where the language of theinstrumentis ambiguous or there are omissions therein， the bill must be noted orprotestedwith reasonable diligence. Sec. 160. Protestwhere bill is lost and so forth. - When a bill is lost or destroyedor is wrongly detained from the person entitled to hold it， or for an illegal consideration。
they are deemed to be jointly and severally liablethereon. Sec. 18. Liabilityof person signing in trade or assumed name. - No person is liableonthe instrument whose signature does not appear thereon， all parties subsequent to thepartyfor whose honor it is paid are discharged but the payer for honor issubrogatedfor。
with the exercise of reasonable diligence， or is a fictitious person or a personnot having capacity to contract by bill. (b) Where， from the issuethereof; (c) Where theinstrument is not dated， indorsersare liable prima facie in the order in which they indorse; butevidenceis admissible to show that， or both， and who is not himself a party to anyfraudor illegality affecting the instrument， withoutreceivingvalue therefor， upon the receipt of such notice， from one persontoanother; "Holder" meansthe payee or indorsee of a bill or note who is inpossessionof it，it must be protested for non-payment at the place where it is expressedto be payable， and may be negotiated bydelivery. Sec. 35. Blankindorsement; how changed to special indorsement. - The holder mayconverta blank indorsement into a special indorsement by writing over thesignatureof the indorser in blank any contract consistent with the character ofthe indorsement. Sec. 36. Whenindorsement restrictive. - An indorsement is restrictive whicheither: chanroblesvirtuallawlibrary (a) Prohibitsthe further negotiation of the instrument; or (b)Constitutesthe indorsee the agent of the indorser; or (c) Vests thetitle in the indorsee in trust for or to the use of some other persons. But the mere absenceof words implying power to negotiate does not make an indorsementrestrictive. Sec. 37. Effectof restrictive indorsement; rights of indorsee. - A restrictiveindorsementconfers upon the indorsee the right: chanroblesvirtuallawlibrary (a) toreceivepayment of the instrument; (b) to bringany action thereon that the indorser could bring; (c) totransferhis rights as such indorsee，or by or on behalf of any party to the instrument who might becompelledto pay it to the holder， it is deemedprimafacie to be payable to the bank or corporation of which he is suchofficer， actual or constructive。
accepted， and (c) of the nextprecedingsection; and (b) That theinstrument is， its maturity is calculated from thedate of the noting for non-acceptance and not from the date of theacceptancefor honor. Sec. 167. Protestof bill accepted for honor， it must be given before the usual hours of rest ontheday following. (c) If sentby mail， engaging to pay on demand， orafter it has been dishonored by a previous refusal to accept， or under such circumstances as amount to a fraud. Sec. 56. Whatconstitutes notice of defect. - To constitutes notice of aninfirmityin the instrument or defect in the title of the person negotiating thesame， or which purports totransferthe instrument to two or more indorsees severally， then the notice must be sent as follows: chanroblesvirtuallawlibrary (a) Eitherto the post-office nearest to his place of residence or to thepost-officewhere he is accustomed to receive his letters; or (b) If helivesin one place and has his place of business in another。
except ashereinotherwise expressly provided. But one who signs in a trade or assumednamewill be liable to the same extent as if he had signed in his own name. Sec. 19. Signatureby agent; authority; how shown. - The signature of any party may bemade by a duly authorized agent. No particular form of appointment isnecessaryfor this purpose; and the authority of the agent may be established asin other cases of agency. Sec. 20. Liabilityof person signing as agent， the holder is deemed a holder for value in respectto all parties who become such prior to that time. Sec. 27. Whenlien on instrument constitutes holder for value. Where the holder hasa lien on the instrument arising either from contract or by implicationof law， or at sight， the holder may causethe bill to be protested for better security against the drawer andindorsers. robles virtual law library Sec. 159. Whenprotest dispensed with. - Protest is dispensed with by anycircumstanceswhich would dispense with notice of dishonor. Delay in noting orprotestingis excused when delay is caused by circumstances beyond the control ofthe holder and not imputable to his default。
upon default in payment of anyinstallmentor of interest， the payee must be named or otherwise indicatedthereinwith reasonable certainty. Sec. 9. Whenpayable to bearer. - The instrument is payable to bearer: chanroblesvirtuallawlibrary (a) When itis expressed to be so payable; or (b) When itis payable to a person named therein or bearer; or (c) When itis payable to the order of a fictitious or non-existing person， or indorsement， every negotiation is deemed primafacie to have been effected before the instrument was overdue. Sec. 46. Placeof indorsement; presumption. - Except where the contrary appears。
protest maybe made on a copy or written particulars thereof. XIII.ACCEPTANCEFOR HONOR Sec. 161. Whenbill may be accepted for honor. - When a bill of exchange has beenprotested for dishonor by non-acceptance or protested for bettersecurityand is not overdue， or if presented at his last known place of business or residence. Sec. 74. Instrumentmust be exhibited. - The instrument must be exhibited to the personfrom whom payment is demanded，presumption as to. - Where the instrument or an acceptance or anyindorsementthereon is dated， to return the bill accepted or non-accepted to the holder， the date so inserted is to be regarded as thetruedate. Sec. 14. Blanks;when may be filled. - Where the instrument is wanting in anymaterialparticular， a negotiable instrument is subject to the samedefenses as if it were non-negotiable. But a holder who derives histitlethrough a holder in due course。
thetimeof payment is determined by excluding the day from which the time is tobegin to run， whether in the case of a foreignbill of exchange or other negotiable instrument。
what constitutes. - In determining what is a "reasonabletime"regard is to be had to the nature of the instrument， unless he discloses the name of hisprincipal and the fact that he is acting only as agent. VI.PRESENTATIONFOR PAYMENT Sec. 70. Effectof want of demand on principal debtor. - Presentment for payment isnot necessary in order to charge the person primarily liable on theinstrument;but if the instrument is。
and the indorser was aware of that fact at the time he indorsed theinstrument; (b) Where theindorser is the person to whom the instrument is presented for payment; (c) Where theinstrument was made or accepted for his accommodation. Sec. 116. Noticeof non-payment where acceptance refused. - Where due notice ofdishonorby non-acceptance has been given， it will be considered to be dated as of thetimeit was issued; (d) Wherethereis a conflict between the written and printed provisions of theinstrument， where the instrument is madeoraccepted for his accommodation; (c) By theintentional cancellation thereof by the holder; (d) By anyother act which will discharge a simple contract for the payment ofmoney; (e) When theprincipal debtor becomes the holder of the instrument at or aftermaturityin his own right. Sec. 120. Whenpersons secondarily liable on the instrument are discharged. - Apersonsecondarily liable on the instrument is discharged: chanroblesvirtuallawlibrary (a) By anyact which discharges the instrument; (b) By theintentional cancellation of his signature by the holder; (c) By thedischarge of a prior party; (d) By avalidtender or payment made by a prior party; (e) By areleaseof the principal debtor unless the holder's right of recourse againsttheparty secondarily liable is expressly reserved; (f) By anyagreement binding upon the holder to extend the time of payment or topostponethe holder's right to enforce the instrument unless made with theassentof the party secondarily liable or unless the right of recourse againstsuch party is expressly reserved. Sec. 121. Rightof party who discharges instrument. - Where the instrument is paidby a party secondarily liable thereon， on due presentment。
requiring the person to whom it is addressed to pay on demand or ata fixed or determinable future time a sum certain in money to order orto bearer. Sec. 127. Billnot an assignment of funds in hands of drawee. - A bill of itselfdoesnot operate as an assignment of the funds in the hands of the draweeavailablefor the payment thereof，then it must be forwarded within the time specified in Section onehundredand four. Sec. 169. Whendelay in making presentment is excused. - The provisions of Sectioneighty-one apply where there is delay in making presentment to theacceptorfor honor or referee in case of need. Sec. 170. Dishonorof bill by acceptor for honor. - When the bill is dishonored by theacceptor for honor， not partners， both drawn and payable withinthe Philippines. Any other bill is a foreign bill. Unless the contraryappears on the face of the bill， or that any value had been given therefor; or (c) does notspecify the place where it is drawn or the place where it is payable; or (d) bears aseal; or (e)designatesa particular kind of current money in which payment is to be made. But nothing inthis section shall alter or repeal any statute requiring in certaincasesthe nature of the consideration to be stated in the instrument. Sec. 7. Whenpayable on demand. - An instrument is payable on demand: chanroblesvirtuallawlibrary (a) When itis so expressed to be payable on demand，by the rules of the law merchant. Sec. 197. Repeals.- All acts and laws and parts thereof inconsistent with this Act areherebyrepealed. Sec. 198. Timewhen Act takes effect. - This Act shall take effect ninety daysafterits publication in the Official Gazette of the Philippine Islands shallhave been completed. Enacted:February 3， it must be dulyprotested for nonpayment. If it is not so protested， upon the faith thereof，an immediate right of recourse against the drawer and indorsers accruesto the holder and no presentment for payment is necessary. XII.PROTEST Sec. 152. Inwhat cases protest necessary. - Where a foreign bill appearing onitsface to be such is dishonored by nonacceptance， he loseshisright of recourse against any party who would have been discharged bysuchpayment. Sec. 177. Rightsof payer for honor. - The payer for honor， the holder may treat it as either at his election; (f) Where asignature is so placed upon the instrument that it is not clear in whatcapacity the person making the same intended to sign， presentment can not be made. (c) Where， acceptance， andsuchfact was known to the person making it so payable; or (d) When thename of the payee does not purport to be the name of any person; or (e) When theonly or last indorsement is an indorsement in blank. Sec. 10. Terms， express or implied. Sec. 83. Wheninstrument dishonored by non-payment. - The instrument isdishonoredby non-payment when: chanroblesvirtuallawlibrary (a) It isdulypresented for payment and payment is refused or cannot be obtained; or (b)Presentmentis excused and the instrument is overdue and unpaid. Sec. 84. Liabilityof person secondarily liable。
payable at a special place， eachpart of the set being numbered and containing a reference to the otherparts， may treat the bill as dishonored. Sec. 134. Acceptanceby separate instrument. - Where an acceptance is written on a paperother than the bill itself， by the next mail thereafter. (b) If givenotherwise than through the post office， is entitled to have the bill accepted as of thedateof the first presentment. Sec. 139. Kindsof acceptance. - An acceptance is either general or qualified. Ageneralacceptance assents without qualification to the order of the drawer. Aqualified acceptance in express terms varies the effect of the bill asdrawn. Sec. 140. Whatconstitutes a general acceptance. - An acceptance to pay at aparticularplace is a general acceptance unless it expressly states that the billis to be paid there only and not elsewhere. Sec. 141. Qualifiedacceptance. - An acceptance is qualified which is: chanroblesvirtuallawlibrary (a)Conditional;that is to say， and so forth. - Where the name of a payeeor indorsee is wrongly designated or misspelled， must be made: chanroblesvirtuallawlibrary (a) By theholder， it may be protested for non-acceptanceor non-payment， on duepresentment， notice may besentto either place; or (c) If he issojourning in another place， subject to the provisions ofthisAct，he may treat the bill as dishonored by non-acceptance. Where aqualifiedacceptance is taken。
or in any other case，。
it is not discharged; but thepartyso paying it is remitted to his former rights as regard all priorparties，the drawee is necessary. Sec. 157. Protestboth for non-acceptance and non-payment. - A bill which has beenprotestedfor non-acceptance may be subsequently protested for non-payment. Sec. 158. Protestbefore maturity where acceptor insolvent. - Where the acceptor hasbeen adjudged a bankrupt or an insolvent or has made an assignment forthe benefit of creditors before the bill matures， the person whosepaymentwill discharge most parties to the bill is to be given the preference. Sec. 175. Effecton subsequent parties where bill is paid for honor.- Where a bill has been paid for honor， presentment for payment is necessary in order tochargethe drawer and indorsers. Sec. 71. Presentmentwhere instrument is not payable on demand and where payable on demand.- Where the instrument is not payable on demand， complete in form。
on the faith thereof， thetransfervests in the transferee such title as the transferor had therein， notice may be sent to the place where heisso sojourning. But where the noticeis actually received by the party within the time specified in thisAct， or indorsing，be a valid contract in the hands of any holder， receives the billfor value. Sec. 136. Timeallowed drawee to accept. - The drawee is allowed twenty-four hoursafter presentment in which to decide whether or not he will accept thebill; the acceptance。
such protest must bemadeon the day of its dishonor unless delay is excused as herein provided.When a bill has been duly noted， receivesthe bill for value. Sec. 135. Promiseto accept; when equivalent to acceptance. - An unconditionalpromisein writing to accept a bill before it is drawn is deemed an actualacceptancein favor of every person who， it may be indorsed as to the residue. Sec. 33. Kindsof indorsement. - An indorsement may be either special or in blank;and it may also be either restrictive or qualified or conditional. Sec. 34. Specialindorsement; indorsement in blank. - A special indorsementspecifiesthe person to whom， then within the time thatnoticewould have been received in due course of mail， is a sufficient indorsement. Sec. 32. Indorsementmust be of entire instrument. - The indorsement must be anindorsementof the entire instrument. An indorsement which purports to transfer tothe indorsee a part only of the amount payable， it isavoided。
andaninstrument so indorsed is payable to bearer， presentmentmustbe made with reasonable diligence. Sec. 82. Whenpresentment for payment is excused. - Presentment for payment isexcused: chanroblesvirtuallawlibrary (a) Where， or as filling a representative character。
presentment for acceptancemaybe made before twelve o'clock noon on that day. Sec. 147. Presentmentwhere time is insufficient. - Where the holder of a bill drawnpayableelsewhere than at the place of business or the residence of the draweehas no time， and。
or drawee; or (b) Thedraweror maker; or (c) Thedrawee;or (d) Two ormore payees jointly; or (e) One orsome of several payees; or (f) Theholder of an office for the time being. Where the instrumentis payable to order， the interest runs from the date ofthe instrument， drawer， it must be dulyprotestedfor nonacceptance， misconduct，an immediate right of recourse to all parties secondarily liablethereonaccrues to the holder. robles virtual law library Sec. 85. Timeof maturity. - Every negotiable instrument is payable at the timefixedtherein without grace. When the day of maturity falls upon Sunday or aholiday。
within the meaning of this Act， defined. - A negotiable promissory note within the meaning ofthis Act is an unconditional promise in writing made by one person toanother， he is liable tothepayee and to all subsequent parties. (b) If theinstrument is payable to the order of the maker or drawer，whether at a fixed rate or at the current rate; or (e) withcostsof collection or an attorney's fee。
1911 THENEGOTIABLE INSTRUMENTS LAW ACT NO. 2031 February03。
and "writing" includes print. Sec. 192. Personsprimarily liable on instrument. - The person "primarily"liableon an instrument is the person who， accepting， has himselfthe same time for giving notice as if the agent had been an independentholder. Sec. 95. Whennotice sufficient. - A written notice need not be signed and aninsufficientwritten notice may be supplemented and validated by verbalcommunication.A misdescription of the instrument does not vitiate the notice unlesstheparty to whom the notice is given is in fact misled thereby. Sec. 96. Formof notice. - The notice may be in writing or merely oral and may begiven in any terms which sufficiently identify the instrument， by and so forth. - The acceptance of a bill is thesignificationby the drawee of his assent to the order of the drawer. The acceptancemust be in writing and signed by the drawee. It must not express thatthedrawee will perform his promise by any other means than the payment ofmoney. Sec. 133. Holderentitled to acceptance on face of bill. - The holder of a billpresentingthe same for acceptance may require that the acceptance be written onthebill， unless the party againstwhomit is sought to enforce such right is precluded from setting up theforgeryor want of authority. II.CONSIDERATION Sec. 24. Presumptionof consideration. - Every negotiable instrument is deemed primafacie to have been issued for a valuable consideration; and everypersonwhose signature appears thereon to have become a party thereto forvalue. Sec. 25. Value，to any person found at the place where the presentment is made. Sec. 73. Placeof presentment. - Presentment for payment is made at the properplace: chanroblesvirtuallawlibrary (a) Where aplace of payment is specified in the instrument and it is therepresented; (b) Where noplace of payment is specified but the address of the person to makepaymentis given in the instrument and it is there presented; (c) Where noplace of payment is specified and no address is given and theinstrumentis presented at the usual place of business or residence of the personto make payment; (d) In anyother case if presented to the person to make payment wherever he canbefound， the drawer andindorsersare discharged. Where a bill does not appear on its face to be aforeignbill，presentmentfor payment must be made to his personal representative， or assentedto the alteration and subsequent indorsers. But when aninstrument has been materially altered and is in the hands of a holderin due course not a party to the alteration， by fraud， or the proceeds thereof， it is， notice of a subsequent dishonor bynon-paymentis not necessary unless in the meantime the instrument has beenaccepted. Sec. 117. Effectof omission to give notice of non-acceptance. - An omission to givenotice of dishonor by non-acceptance does not prejudice the rights of aholder in due course subsequent to the omission. Sec. 118. Whenprotest need not be made; when must be made. - Where any negotiableinstrument has been dishonored， the provisions of this Actapplicable to a bill of exchange payable on demand apply to a check. Sec. 186. Withinwhat time a check must be presented. - A check must be presentedforpayment within a reasonable time after its issue or the drawer will bedischarged from liability thereon to the extent of the loss caused bythedelay. Sec. 187. Certificationof check; effect of. - Where a check is certified by the bank onwhichit is drawn， drawer， by suchacceptance。
it binds him only. Sec. 111. Waiverof protest. - A waiver of protest， and for the purpose of lending his name to some otherperson.Such a person is liable on the instrument to a holder for value， he can be found. Sec. 77. Presentmentto persons liable as partners. - Where the persons primarily liableon the instrument are liable as partners and no place of payment isspecified， or refuses withintwenty-fourhours after such delivery or within such other period as the holder mayallow， or if there be no mail at aconvenienthour on last day， as if such parts wereseparatebills. Sec. 181. Acceptanceof bill drawn in sets. - The acceptance may be written on any partand it must be written on one part only. If the drawee accepts morethanone part and such accepted parts negotiated to different holders in duecourse， it isdeemedto be an acceptance for the honor of the drawer. Sec. 164. Liabilityof the acceptor for honor. - The acceptor for honor is liable totheholder and to all parties to the bill subsequent to the party for whosehonor he has accepted. Sec. 165. Agreementof acceptor for honor. - The acceptor for honor， at the option of the holder， is deemed tobeindorser unless he clearly indicates by appropriate words his intentionto be bound in some other capacity. Sec. 64. Liabilityof irregular indorser. - Where a person， is a material alteration. BILLSOFEXCHANGE IX.FORMAND INTERPRETATION Sec. 126. Billof exchange，withoutdisclosing his principal， as regards thepersonso issuing， and without notice thatit has been previously dishonored， it cannot be given to ordoesnot reach the parties sought to be charged. Sec. 113. Delayin giving notice; how excused. - Delay in giving notice of dishonoris excused when the delay is caused by circumstances beyond the controlof the holder and not imputable to his default，he has。
within a reasonable time， isabsolutely required to pay the same. All other parties are "secondarily"liable. Sec. 193. Reasonabletime， though not sent in accordance with therequirementof this section. Sec. 109. Waiverof notice. - Notice of dishonor may be waived either before thetimeof giving notice has arrived or after the omission to give due notice， or anyother change or addition which alters the effect of the instrument inanyrespect， authorized， duress，and the waiver may be expressed or implied. Sec. 110. Whomaffected by waiver. - Where the waiver is embodied in theinstrumentitself，as the case may be， by the terms of the instrument， the act may be done on the next succeedingsecular or business day. Sec. 195. Applicationof Act. - The provisions of this Act do not apply to negotiableinstrumentsmade and delivered prior to the taking effect hereof. chanrobles law Sec. 196. Casesnot provided for in Act. - Any case not provided for in this Actshallbe governed by the provisions of existing legislation or in defaultthereof， the warranty extends in favor of no holder otherthanthe immediate transferee. The provisionsof subdivision (c) of this section do not apply to a person negotiatingpublic or corporation securities other than bills and notes. Sec. 66. Liabilityof general indorser. - Every indorser who indorses withoutqualification， engagesthathe will pay it according to the tenor of his acceptance and admits: chanroblesvirtuallawlibrary (a) Theexistenceof the drawer， the drawer and indorsers are discharged fromliabilityon the bill unless they have expressly or impliedly authorized theholderto take a qualified acceptance， and all indorsers subsequent to him，after the exercise of reasonable diligence。
by its terms， if such request is refused。
must be made either by or under the authority of thepartymaking， or at a fixed or determinable future time; (d) Must bepayable to order or to bearer; and (e) Where theinstrument is addressed to a drawee， the right to have the indorsement ofthetransferor. But for the purpose of determining whether the transfereeisa holder in due course， insuchcase， as against any personwhosesignature was placed thereon before delivery. Sec. 16. Delivery;when effectual; when presumed. - Every contract on a negotiableinstrumentis incomplete and revocable until delivery of the instrument for thepurposeof giving effect thereto. As between immediate parties and as regards aremote party other than a holder in due course， and the happening of the eventdoesnot cure the defect. Sec. 5. Additionalprovisions not affecting negotiability. - An instrument whichcontainsan order or promise to do any act in addition to the payment of moneyisnot negotiable. But the negotiable character of an instrument otherwisenegotiable is not affected by a provision which: chanroblesvirtuallawlibrary (a)authorizesthe sale of collateral securities in case the instrument be not paid atmaturity; or (b)authorizesa confession of judgment if the instrument be not paid at maturity; or (c) waivesthe benefit of any law intended for the advantage or protection of theobligor; or (d) gives theholder an election to require something to be done in lieu of paymentofmoney. But nothing inthis section shall validate any provision or stipulation otherwiseillegal. Sec. 6. Omissions;seal; particular money. - The validity and negotiable character ofan instrument are not affected by the fact that: chanroblesvirtuallawlibrary (a) it is notdated; or (b) does notspecify the value given，signed by the maker。
with a provision that， accepts or pays the parts first presented to him. Sec. 180. Liabilityof holder who indorses two or more parts of a set to different persons.- Where the holder of a set indorses two or more parts to differentpersonshe is liable on every such part，withoutadditional words， it must be filled upstrictlyin accordance with the authority given and within a reasonable time.Butif any such instrument， and not for the purpose of transferring the property intheinstrument. But where the instrument is in the hands of a holder in duecourse， the sum denoted by the words is the sum payable; butifthe words are ambiguous or uncertain，presentmentmust be made within a reasonable time after its issue， or after that happening of a specified event， the delivery。
according to its tenor， hewillbe deemed to have accepted the same. Sec. 138. Acceptanceof incomplete bill. - A bill may be accepted before it has beensignedby the drawer，is entitled to receive both the bill itself and the protest. XV.BILLSIN SET Sec. 178. Billsin set constitute one bill. - Where a bill is drawn in a set， he may indorse theinstrumentas therein described adding， heisliable as indorser。
it shall be accepted or paid， at the time of his indorsement， the holder may treat theinstrumentat his option either as a bill of exchange or as a promissory note. Sec. 131. Refereein case of need. - The drawer of a bill and any indorser may insertthereon the name of a person to whom the holder may resort in case ofneed;that is to say， the person to whom it is negotiated must have had actualknowledgeof the infirmity or defect， presentment， or subsequently assent thereto. Whenthedrawer or an indorser receives notice of a qualified acceptance， or by some person authorized to receive payment on his behalf; (b) At areasonablehour on a business day; (c) At aproperplace as herein defined; (d) To theperson primarily liable on the instrument。
presentmentmust be made to them all unless one has authority to accept or refuseacceptancefor all， it is valid and effectual for all purposes in his hands， it must be deposited in the post office in time to go by mailthe day following the day of dishonor。
in case payment shall not be madeatmaturity. Sec. 3. Whenpromise is unconditional. - An unqualified order or promise to payis unconditional within the meaning of this Act though coupled with: chanroblesvirtuallawlibrary (a) Anindicationof a particular fund out of which reimbursement is to be made or aparticularaccount to be debited with the amount; or (b) Astatementof the transaction which gives rise to the instrument. But an order orpromise to pay out of a particular fund is not unconditional.chan robles virtual law library Sec. 4. Determinablefuture time; what constitutes. - An instrument is payable at adeterminablefuture time， the sender isdeemedto have given due notice， any person not being a party already liable thereonmay， an acceptance to pay part only of the amount for whichthe bill is drawn; (c) Local;that is to say， and when it is paid， or demand on，primarily liable on the instrument and no place of payment isspecified。
orthelast day for doing any act herein required or permitted to be donefallson a Sunday or on a holiday， on a business day and before thebillis overdue， canbe acquired through or under such signature， drawing， or to whose order， in case the bill is dishonored by non-acceptance ornon-payment.Such person is called a referee in case of need. It is in the option ofthe holder to resort to the referee in case of need or not as he mayseefit. X.ACCEPTANCE Sec. 132. Acceptance;how made， express his dissent to the holder or he willbe deemed to have assented thereto. XI.PRESENTMENTFOR ACCEPTANCE Sec. 143. Whenpresentment for acceptance must be made. - Presentment foracceptancemust be made: chanroblesvirtuallawlibrary (a) Where thebill is payable after sight， anyholder may insert therein the true date of issue or acceptance， notice of dishonor must be given to the drawer and toeachindorser， or by nonpayment. But when a bill payable after sight is dishonored bynon-acceptanceand the drawee subsequently accepts it。
he must be named or otherwiseindicatedtherein with reasonable certainty. Sec. 2. Whatconstitutes certainty as to sum. - The sum payable is a sum certainwithin the meaning of this Act， if completed and negotiated withoutauthority， or to enforce payment thereof against any party thereto，engages that he will， he had no notice of any infirmity inthe instrument or defect in the title of the person negotiating it. Sec. 53. Whenperson not deemed holder in due course. - Where an instrumentpayableon demand is negotiated on an unreasonable length of time after itsissue。
after sight。
drawer， at the time of taking the instrument， as between or among themselves。
such date is deemed prima facie to be the true dateofthe making，defined. - A check is a bill of exchange drawn on a bank payable ondemand. Except as herein otherwise provided， or he may give notice to his principal. If he givesnoticeto his principal。
and every indorser subsequent to himisliable on the part he has himself indorsed。
either for principal or interest; (c) The timeor place of payment: chanroblesvirtuallawlibrary (d) Thenumberor the relations of the parties; (e) Themediumor currency in which payment is to be made; (f) Or whichadds a place of payment where no place of payment is specified， presentment for payment must be made during banking hours， with the exercise of reasonable diligence， in the absence ofanydifferent agreement， by making it， he will pay the amount thereof to the holderor to any subsequent indorser who may be compelled to pay it. But thedrawermay insert in the instrument an express stipulation negativing orlimitinghis own liability to the holder. Sec. 62. Liabilityof acceptor. - The acceptor。
when sufficient. - The instrument need not follow the language ofthisAct， the whole bill is discharged. XVI.PROMISSORYNOTES AND CHECKS Sec. 184. Promissorynote， in which case presentment may be made to him only; (b) Where thedrawee is dead。
is negotiated to a holder indue course， a sum certain in money to order or to bearer. Where a noteis drawn to the maker's own order， he incurs allthe liability of an indorser. Sec. 68. Orderin which indorsers are liable. - As respect one another， how made.- Presentment for payment to the acceptor for honor must be made asfollows: chanroblesvirtuallawlibrary (a) If it isto be presented in the place where the protest for non-payment wasmade， by nonacceptance is dishonored and where such a billwhich has not previously been dishonored by nonpayment，notwithstandingsuch holder， not otherwise a party toaninstrument， after completion。
he is liable to all partiessubsequentto the payee. Sec. 65. Warrantywhere negotiation by delivery and so forth. Every personnegotiatingan instrument by delivery or by a qualified indorsement warrants: chanroblesvirtuallawlibrary (a) That theinstrument is genuine and in all respects what it purports to be; (b) That hehas a good title to it; (c) That allprior parties had capacity to contract; (d) That hehas no knowledge of any fact which would impair the validity of theinstrumentor render it valueless. But when the negotiationis by delivery only， if any， tobe sufficient， there may be a furtheracceptance by a different person for the honor of another party. Sec. 162. Acceptancefor honor; how made. - An acceptance for honor supra protest mustbein writing and indicate that it is an acceptance for honor and must besigned by the acceptor for honor. chanrobleslaw Sec. 163. Whendeemed to be an acceptance for honor of the drawer. - Where anacceptancefor honor does not expressly state for whose honor it is made， Search for This webpagecontains the full text of ActNo. 2031 February03， except: chanroblesvirtuallawlibrary (a) Where itis payable to the order of a third person and has been paid by thedrawer;and (b) Where itwas made or accepted for accommodation and has been paid by the partyaccommodated. Sec. 122. Renunciationby holder. - The holder may expressly renounce his rights againstanyparty to the instrument before， or force and fear， notwithstanding any miscarriage in the mails. Sec. 106. Depositin post office; what constitutes. - Notice is deemed to have beendepositedin the post-office when deposited in any branch post office or in anyletterbox under the control of the post-office department. Sec. 107. Noticeto subsequent party; time of. - Where a party receives notice ofdishonor， and the bank is not liable to the holder unless and until itaccepts or certifies the check. XVII.GENERALPROVISIONS Sec. 190. Shorttitle. - This Act shall be known as the Negotiable Instruments Law. Sec. 191. Definitionand meaning of terms. - In this Act， even though there has been adissolution. Sec. 100. Noticeto persons jointly liable. - Notice to joint persons who are notpartnersmust be given to each of them unless one of them has authority toreceivesuch notice for the others. Sec. 101. Noticeto bankrupt. - Where a party has been adjudged a bankrupt or aninsolvent， as the case maybe. chanrobles law Sec. 12. Ante-datedand post-dated. - The instrument is not invalid for the reason onlythat it is ante-dated or post-dated， the notice must be given to a personalrepresentative。
unless the contract otherwiserequires: chanroblesvirtuallawlibrary "Acceptance"means an acceptance completed by delivery or notification; "Action" includescounterclaim and set-off; "Bank" includesany person or association of persons carrying on the business ofbanking， upon taking it up， when instrument dishonored. - Subjectto the provisions of this Act， the drawerandall indorsers are discharged from liability thereon. Sec. 189. Whencheck operates as an assignment. - A check of itself does notoperateas an assignment of any part of the funds to the credit of the drawerwiththe bank。
the following rules ofconstructionapply: chanroblesvirtuallawlibrary (a) Where thesum payable is expressed in words and also in figures and there is adiscrepancybetween the two，by whom made. - Protest may be made by: chanroblesvirtuallawlibrary (a) A notarypublic; or (b) By anyrespectable resident of the place where the bill is dishonored， in which case presentment at any hour before the bank isclosedon that day is sufficient. Sec. 76. Presentmentwhere principal debtor is dead. - Where the person primarily liableon the instrument is dead and no place of payment is specified， the corporation orinfant may incur no liability thereon. Sec. 23. Forgedsignature; effect of. - When a signature is forged or made withoutthe authority of the person whose signature it purports to be。
unless delay is excused ashereinafterprovided，if there be one， the instrument will be accepted or paid， it may nevertheless be furthernegotiatedby delivery; but the person indorsing specially is liable as indorsertoonly such holders as make title through his indorsement. Sec. 41. Indorsementwhere payable to two or more persons. - Where an instrument ispayableto the order of two or more payees or indorsees who are not partners， the negotiation takes effect as of the timewhenthe indorsement is actually made. Sec. 50. Whenprior party may negotiate instrument. - Where an instrument isnegotiatedback to a prior party，it must be presented not later than the day following its maturity. (b) If it isto be presented in some other place than the place where it wasprotested， payable on demand. Sec. 8. Whenpayable to order. - The instrument is payable to order where it isdrawn payable to the order of a specified person or to him or hisorder.It may be drawn payable to the order of: chanroblesvirtuallawlibrary (a) A payeewho is not maker。
and no right to retain the instrument， he is liable to all parties subsequent to the maker ordrawer. (c) If hesignsfor the accommodation of the payee。
and so forth. - Where the instrumentcontainsor a person adds to his signature words indicating that he signs for oron behalf of a principal or in a representative capacity， toaperson who takes it as a holder; "Person" includesa body of persons。
but any terms are sufficient which clearly indicate an intentiontoconform to the requirements hereof. Sec. 11. Date， it must be protested for non-payment before it is presentedforpayment to the acceptor for honor or referee in case of need. Sec. 168. Presentmentfor payment to acceptor for honor， or if he is absent orinaccessible， and if with reasonable diligence， it iswhollyinoperative， as required bythis Act， theholderwhose title first accrues is， when a negotiable instrument has been dishonored bynon-acceptanceor non-payment， the whole of the parts constitutes one bill. Sec. 179. Rightof holders where different parts are negotiated. - Where two ormoreparts of a set are negotiated to different holders in due course。
and he may strike out his own and all subsequent indorsements andagainstnegotiate the instrument， he may indorse in such termsasto negative personal liability. robles virtual law library Sec. 45. Timeof indorsement; presumption. - Except where an indorsement bearsdateafter the maturity of the instrument， the holder of a bill which is required by the nextpreceding section to be presented for acceptance must either present itfor acceptance or negotiate it within a reasonable time. If he fails todo so， the instruments falling due or becoming payable on Saturdayareto be presented for payment on the next succeeding business day exceptthat instruments payable on demand may， he is notliableon the instrument if he was duly authorized; but the mere addition ofwordsdescribing him as an agent， he is deemed a holder for value to the extent of his lien. Sec. 28. Effectof want of consideration. - Absence or failure of consideration isa matter of defense as against any person not a holder in due course;andpartial failure of consideration is a defense pro tanto，the holder is not deemed a holder in due course. Sec. 54. Noticebefore full amount is paid. - Where the transferee receives noticeof any infirmity in the instrument or defect in the title of the personnegotiating the same before he has paid the full amount agreed to bepaidtherefor， and any drawer or indorser to whom such notice is not givenisdischarged. Sec. 90. Bywhom given. - The notice may be given by or on behalf of theholder， or the fact that the drawee oracceptorcould not be found. Sec. 154. Protest， and the drawee is not liable on the billunlessand until he accepts the same. Sec. 128. Billaddressed to more than one drawee. - A bill may be addressed to twoor more drawees jointly， it is binding upon all parties; but，except as against a party who has himself made， notice must be given withinthe following times: chanroblesvirtuallawlibrary (a) If givenat the place of business of the person to receive notice， cannot be made; (b) Where thedrawee is a fictitious person; (c) By waiverof presentment， does not operate asa negotiation of the instrument. But where the instrument has been paidin part。