Grand Rapids Herald-Review Newspaper, April 30, 1913, Page 35

“BS 10 MaKe y table to ay pe lag And where 3 instrument. ro Jonger in the possession of a party whose signature, appears thereon, a valld and inten- tional delivery by.him is’ presumed until the contrary is proved. ~~ “ 3 Sec. 17. (CONSTRUCTION WHERE IN- STRUMBNT IS AMBIGUOUS.) Where the janguage of the instrument is ambiguous or there are omissions therein, the following rples of construction apply? ¥ (1) Where the sum payable 4s expressed tn words and also in figures'and there is a dis: crepancy. between the ‘two, the sum denote hy the words is the sum payable; but if the words are ambiguous or uncertain, reference had ip the: figures: to Aix the amount: he instrument provides for the 7 of interest, without specifying the Siete conclusive- |! in is ‘ : ‘ 46, (PLACE OF NDORSEMENT: PRESUMPTION.) Except where the —con- trary appears, every indorsement is presumed. prima facie to have been made at the place where the instrument is dated. i See, 47. (CONTINUATION OF: NEGOTIA- BLE CHARACTER.) An instrument negotl- d reseive payment aa! Abt. Peatonatle “hour ot a business »@) At a: proper tt) fo the iid eeranrue ii strument. or if he is absent or any person found at the place where the pfe- sentment {9 made, : Sec, 73:—(PLACE OF PRESENTMENT.) Presentment for. payment is made at the able in its origin continues to be negotiable! proper place— until it has been restrictively indorsed or di: charged by payment or otherwise, é Si 48. (STRIKING OUT” INDORSE- MENT.), The holder may at any time: strike out any indorsement which Is not necessary to his title. ‘The Indorger whose indorsement is struck out, and all-inddrsers ‘subsequent to him, are thereby relieved from liability on the instrument (1) Where a. place of payment is. specified in the instrument and it is there presented: 2) Wi no place of payment js specified, but the alldress of the person to make pay- ment is given in the instrument and it 1s there presented. (3) Where no place of payment is specified and no address is given and the, instrument the same time a ens. noe fecedent ‘parties “that the holder has after the dishonor, Seog Sec, 108.—(WHERB NOTICR MUST BE SENT.) Where a party has added an ad- Sauat. We" puede thee idem ot dane musi t address; but not given such adhress, then ‘ne’ notice m be sent ag follows: the (HOLDER ENTITLED ON FACE OF BILL) resenting the same for ‘The date from which interest {s to run,’ the interest from the date of the instrument, and if Instrument is undated, from the issue is preceeited at the usual place of busniess or residence of the person to make payment; (4) In any other case if presented to the petion to make payment wherever he ean, be found, or if presented at his last known plac of busines§ or residence. Sec. 74.—(INSTRUMENT MUST BE BX- HIBITED:) ‘The instrument must be exhibited to the person trom whom payment is demanded, and when it i8 paid must be delivered up to the party paying. it. ‘ Sec. 75.-(PRESENTMEND WHERE IN- SURUMENT ‘PAYABLE AT BANK.) Where NEGOTIATD INSTRUMENT.) Where an in-|the instrument is payable at a bank, present- NEGSent is negotiated back to a prior party;|™ment for payment must be made during bank- such party may, subjest to the provisions of|ing hours, unless the person to make payment this act, reissue and further negotiate thet as no funds there to meet it at any time same, But he is not entitled to enforce pay-|during the day, in which case presentment at Shent thereof against any intervening party to|#my hour before ‘the bank is closed on that whom he was personally liable,, day is sufficient. s § ARTICLE “IV. Sec. 76.—(PRESENTMENT WHERE PRIN- CIPAL DEBTOR IS DEAD.) Where 4 pe! RIGHTS OF THE HOLDER. en primarily jiable on the Srotrameatt | sec 51, (RIGHT OF HOLDER TO 5! paint ap NA peal age 5 ore ta tgp |pavieuNr.) “The holder Bf @ megoliable in| Presentment for payment must, be made to strument may sue thereon in ‘his ows name|™S Derscnal, repeeventative If oacl bk 5 and payment. to him in ue course discharges aan if, with the exercise of reasonable : ligence, he can be found. Mable to the same extent as if he had signed|the instrument. e. in hte gwe’meame ned tifec, 82. (WHAT CONSTITUTRS A HOLD. 77.—(PRESENTMENT TO PERSONS MGNATURE BY AGENT; AU-|ER IN DUE COURSE.) A holder in due/LIABLE AS. PARTNERS.) . Where the SHQWN,) The signature} course is a holder who has taken the instru-| Persons primarily’ liable on the iss be mate by a duly author-|ment under. the following conditions: Doe of uadeste te es idk oe oecneat rttoul ‘of appoint-| (1) Thi re! w . Pee ee ale ae and regular upon|/. payment may be made to any one of them, thay bgestaigished as| (2) That he became the holder of it before|even, though there has been @ disgolution of ” . lit Wes overdye, and without notice that it|the firm. j OF PERSON SIGN- | had een previously dishonored, if such was Bec. 78.(PRESENTMENT TO JOINT ‘C.) Where the instru- | the fact; reon adds to his signa- DEBTORS.) Where there are several persons, ‘That he took it tn good faith and for|nof partners, | primartiy Mable on the instru- that he signs for or on ment, 1, or fn a representative , and No Place of payment is fled, Prascatiment taunt be. make to them ab le on the instrument ¥ but the mere ad- Ce (WHEN PRESENTMENT NOT ized; REQUIRED TO CHARGE THE DRAW- bing him as an egent,|strument payable on demand 1s negotiated| ER.) Presentment for payment is not required ntattve character, with-|nim he had no notice of any infirmity in the| in order to charge the drawer where he has no does not exempt| instrument or defect in the title of the person| right to expect or require that the drawee or negotiating !t. aceeptor will pay the instrument. BY PROCURA-|an unreasonable length of time after its issue, Sec, 8 (WHEN ~ PRESENTMENT NOT ‘A signature by ‘“‘pro-|the holder is not deemed a holder in due/REQUIRED TO CHARGH THE® IN- notice that the agent | course, DORSER.) Presentment for payment is hority to sign, and the| Sec. 34. (NOTICE BEFORE FULL/|not required. in order to charge an indo ts bound only in case the agent In|AMOUNT PAID.) Where the transferee re-|er where the instrument was made or, ac- eo signing acted within the actual Limits of his | ceives. notice “of an infirmity ig the instru- aut It, ment or defect in the title of the person ne- cepted for his accommodation and he has no | reagon to expect that the instrument will be INDORSEMENT | gotiating the same before he has paid the full | paid if presente N.) ‘The fn-|emount agreed to be paid therefor, he gvill be} Sec. $1.—(WHEN DELAY IN _MAK- instrument {deemed @ holder in due course only “to the|ING PRESENTMENT IS | EXCUSED.) hy a corporation or by an infant passes the|extent of the gmouunt theretofore pald by Iim.| Delay in making presentment, for pay- property. therein, notwithstanding that from|‘ Sec, °65. (WHEN TITLE DEFECTIVE.)|ment | is’ excused when the delay is want of capacity the corporation or infant may|The title of a person who negotiates an in-|caused by circumstances beyond the control . cur no lability thei |strument ts defective within the meaning of|of the holder, and not imputable, to his de- Sec, (FORC ATURE; EFFECT |this act when he obtained the Instrument, or/fault, misconduct or negligence. "When the OF.) When a signature 1s, forged or made|any signature thereto, by fraud, duress, or|cause of delay ceases to operate, present- without the authority of the person whose sig-|force and fear, or other unlawful.means, or for/ment must be made with reasonable diligence. nature It, pu to be. it ts wholly inoper-|an {legal consideration, or when he negotiates} Sec. 82.—(WHEN PRESENTMENT MAY BEr) . ative. and no Ti {ain the Instrument, or|it in breach of faith, ‘or under such ¢ireum- 2D WITH.) Presentment for pay- to give a therefor, or to enforce|stances as amount to a fraud. dispensed with— ¢ payment thereof party thereto,| Sec. (WHAT CONSTITUTES NOTICE} (1) Where, after the. exercise of reasonable tan be acquired through or under such sig-|OF DEFECT.) To coustitute notice of an in-| diligence presentment as required by this act nature, unless the party, against whom it Is/frmity in the instrument, or defect in the ought nforce such’ right, $s preckuded|title of the person negotiating the same, the cannot be made; (2) Where the drawee is a fictitious person; from setting up the forgery or want of author-| person to whom it is negotiated mbst have fty. |had actual knowledge of the infirmity or de- iG} BY Waiver of presentment, express ‘er implied. fect, or knowledge of such facts that his ac- (WHEN INSTRUMENT DISHON- tion’ in taking the instrument amounted to bad Sec. 83.—| ORED BY NONPAYMENT.) The instrument faith. Sec. 57, (RIGHTS OF HOLDER IN DUB A holder in due course holds the fs dishonored by nonpaymen’ when— COURSE.) instrument free from any defect of title of prior parties, and free from defenses available to prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties Hable there- on. Seo, 58. (WHEN SUBJECT TO ORIGINAL DHF@NSBS.) In the hands of any holder other than a holder in due course, a negoti- able instrument 1s subject to the same de- fenses as if it were non-negotiable, But a holder who derives his title through ‘a holder in due course, and who {s not himself a party to any fraud or {llegality affecting the instru- ment, has all the rights of such former holder in respect of all parties prior to the latter. Sec. 50.—(WHO DEEMED HOLDER IN DUE COURSE.) Every holder is deemed prima facie fo be a holder in due course; but’ when it is shown that the title of any person who has ne- gotiated the instrument was defective, the bur- den is on the holder to prove that he or some person under whom he claims: acquired the title as holder in duo course. But the Jast-mentioned rule does not apply in favor of a party who became bound on the instru- ment prior tg the acquisition of such defect- e title. \ Sec, 4! WITHOUT —IN- DORSEMENT; BFF! 1.) Where the holder of an instrament payable to. his order. transfers It for value without indorsing it, the transfer vests in the transferee such title as the transferor had therein, and the trans- feree acquires, in addition, the right to hay the indorsement of the transferor. But for th | purpose of determining whether the transferee is a holder in due course, the negotiation takes effect as of the time when the Indorse- ment is actually made. > sec. 50. (WHEN PRIOR PARTY MAY (1) Either’ t nearest to ‘his | of pity dPittteatte Peart carat er [ad rete tani, scortaer > rat he {8 accustomed ‘to recelve his letters; or Jom, Ne Ott se Sin as dishonored. If he live in one place, and have his aco of bi Sec, 184.— PTANCE BY SEPARATE place of business in another, notice may be peraeae ie vk sent to elther place; or ser (3) If he 1s sojourning in another place, {Written on a paper other than the ‘bit texetf, notice may be sent to the place where he |i, does not bind the acceptor except in favor {8 60. sojourning. lot a person to whom it i shown and who, L But mere the, notion ie actually xeoetvad fn, “tne faith “Wiereot, ‘receives “the bill for e party within the time in. accor iT ment eth thi Aas Re conditional promise in. writing to accept a bill this section. ' Sec, 109.. CE.) Ne before it is drawn is, deemed an actual ac- c. (WAIVER OF NOTICE.) Notice po a A tal of dishonor be waived, either before the Berson who upon time of, notice arrived, or after |the faith thereof, receives the bill for valu si Ee See. 138. (TIME ALLOWED | DRAWEE |TO ACCEPT.) The drawee is allowed twenty- four hours after presentment, in which to de- cide whether or not he will accept bill; but. the nccentance if given, dates as of thé presentation. q Sec, 17, -(IABILITY OF DRAWEE RB- TAINING OR DESTROYING BILL.) Where ‘a drawee to whom a bill is delivered for ai ceptance destroys the same, or refuses within twenty-four hours after such delivery, oF within such other period as the holder may allow, to return the bint ted or non- ‘accepted to the holder, he will be deemed to have accepted the same. Sec, 188—(ACCEPTANCE OF INCOM- PLETE BILL.) A bill may be accepted be- fore it has been signed by the drawer, or while otherwise incomplete, or when {t ie overdue, or after It has béen dishonored by a. previous refusal to ACCEPTANCE FOR HON Sec. 161.—(WHEN BILL MAY ED FOR HONOR.) Where a b has been protested for dishonor b Jance or protested for better securlts not overdue, any person not being a Dé ready Mable thereon may, with th the holder, intervene and’ accept the t for t ee ee whose account the bill is drawn. i ance for honor may be for the sum for which the bill is drawn; there has been an acceptance for one party, there may be further by a different person for the honor ¢ party. . < £ Sec. _162.—(ACCEPTANCE FOR HOW MADE. An acceptance pi pg ot must bel, Where the instrument is not dated, {t 1 be considered ‘to be dated as of the time was issued: +4) Where there is ‘a confilct between the and printed provisions of the instru- . the written provisions preva! ) Where the Instrument. Is so" amblgous that there ig,doubt whether it: is a Bill oF note, the holfer may treat it as etther at nis election; (6) Where a signature ts so placed w instrument that it is not clear to what the person making the same intended he ia to be deemed an indorser: Where an instrument containing the words “I promise to pay’ 1a signed by two r more persons, they are deemed to be Joint- ally te thereon. (LIABILITY OF PERSON SIGN-| < TRADE-OR ASSUMED NAME.) No person is Hable on the instrument whose sig- nature does not appear thereon, except as here in othe pressiy provided, But one who signs. in a trade or assumed name willbe th the omission to give due notice, and the waiver may be or implied. Ses, 1102-(WHOM AYPRCTED BY WATY- BR.) | Where the waiver ig embodied, in the instrument. itself, itis binding upon all par- ties; but where ‘it is written above the sig- nature of an indorsex, it binds him only. Sec. 111.—(WAIVER OF PROTEST.) | A waiver of protest, whether in the case of a foreign bill of exchange or other negotiable instrument, {s deemed to be a waiver not only of a formal protest, but also of present- ment ‘and notice of dishonor. Sec. 112.—(WHEN NOTICE IS DISPENSED WITH.) Notice of dishonor {ty dispensed with when, after the exercise of reasonable dili- gence, it cannot be given to or does not reach’ the parties sought to be charged. Sec, 13.(DELAY IN GIVING NOTICE; HOW EXCUSED.) Delay in. giving notice of dishonor is excused when the delay !s caused ccept by circumstances beyond the control of the|ment. But when a Dill pa; holder, and not. imputable to this Wefault,|is dishonored by non-acceptan misconduct or negligence, When the cause of |drawee subsequently accepts it, the holder in delay ceases to operate, notice must be the absence of any different’ agreement, is with reasonable, diligence. entitled to have the bill accepted as ef the Sec, 114.(WHEN NOTICE NEED NOT|date of the first presentment. BH GIVEN "TO DRAWER.) Notice of dis.) , Seo, (39.(KINDS OF ACCEPTANCES. honor 1s not required to. be given to the|An acceptance is either general or qualified drawer in either of the following cases A general acceptance assests without qualifi- (1) Where the drawer and drawee @ cation to the order of the drawer. A qualified |same person: acceptance in express terms varies the effect (2) When the drawee 1s a fictitious person jof the bill as drawn. or a person not having Sec. 140.—(WHAT CONSTITUTHS A GEN- (3) When the drawer ERAL ACCEPTANCE.) An acceptance to pay the instrument is presen ‘payme! at a\particular place is a general tance, (4) Where the drawer has no right to ex-|unless it expressly) states that the bill is to pect or require that the drawee or acceptor |be paid there only and not elsewhere. will honor the ingtrument; Sec. 141.—(QUALIFIED ACCEPTANCE.) An (3) “Where the drawer has countermanded |accepiance is qualified, which ts:— payment. : (1) Conditional, that 1s to say, which ‘Sec. 115.—(WHEN NOTICE NEED NOT BE |makes payment by the acceptor. it on GIVEN TO INDORSER.) Notice of dishonor |the fulfillment of a condiwon therein stated; fs not required to be given to an Indorser in|. (2) Partial, that is to say, an acceptance leither of the following cases:— to pay part ‘only of the amount for which (1). Where the drawee 1s a fictitious person| the bill is drawn. \ or a person xiot having capacity to con! and the indorser was aware of the fact the time he indorsed the instrument; (©) Where the indorser is the person to whom the instrument {s presented for pay- ment; (3) Where the instrument was made or accepted for his accommodation. Sec. 116.—(NOTICD OF NON-PAYMENT WHERE ACCEPTANCE REFUSED.) Where due notice of dishonor by non-acceptance has been gfven notice of @ subsequent dishonor by nen-payment 1s not wecessary, unless in the meantime the instrument has been ac- cented. Sec. 117.—(BFFECT OF OMISSION TO GIVE NOTICE OF NON-ACCEPTANCE.) An Jomission to give notice of dishonor by non- acceptance does not prejudice the rights of a holder tm due course subsequent to the jomtssion, ec. 118.—CWHEN PROTEST NEMD NOT BE MADE; WHEN MUST BE MADE.) Where any ‘negotiable instrument has been dishonored it may be protested for non- ceptance or non-payment, as~the case may be: but protest is not requifed except In the case of foreign bills of exchange. RRTICLE VIIT. DISCHARGE OF NEGOTIABLE INSTRU- MENTS. Sec. 119.—(INSTRUMENTS; “HOW DIS- CHARGED.) A negotiable’ instrument ts dis- charged :— (1). By payment in dw course by or on behalf of the principal debtor; (2) By payment in due course by the party accommodated, where. the instrument 1s made or accepted for accommodation; (8) By the intentional sancellatipn thereof by the holder; |") “By any’ other act which will discharge a simple contract for the payment of money; (5) When the principal debtor becomes the holder of the instrument at or after maturity in his own right; Sec. 120.(WHEN PERSONS _SECOND- ARILY LIABLE ON, DISCHARGED.) | Ay person secondarily Mable op the instrumen’ ig discharged:— (1) By ahy act which ¢ischarges the in- strument; (2) By the intentional cancellation of his signatvre. by the holder; (8) By the discharge of a prior party; ( By a valid tender of payment ‘msde bya prior party; x (5) By a release of the principal debtor, the holder's right of recourse against rty secondarily lable is expressly re- (6) By any agreement binding upon the holder to extend the time of payment, or to postpone the holder’s right to enforce the in- Strument, unless made with the assent of th party secondarily liable, or unless the right of recourse 61 inst such party 1s expressly re- served. "Sec, 121.—(RIGHT OF PARTY WHO DIS- CHARGES INSTRUMENT.) Where the n- strument {s paid by a party secondarily li- able thereon, it 1s not discharged; but the party so paying it 1s remitted to his former rights as regards all prior parties, and he may strike out. his own and all subsequent indorsements, and again megotiate the instruy} ment, excepti— (1) Where it 1s payable to the order of a seve 18 protest must be in writing, and It ia an acceptance for honor. si ie acceptor for is ;, Bee. 183. (WHEN. DI BE AN ‘ACCEPTANCE FOR HONOR THE DRAWER) Where an acceptance, for honor aces not expressly state for whoed: bese: Mae made, it is an acceptance the honor of the drawer. ; Sec, 164.—(LIABILITY OF THE ACCEPTOR FOR HONOR.) The acceptor for honor Is lia ble to the holder and to all parties to the bil subsequent to the party for whose honor he has! accepted. it FOR HONOR) The acceptor £ mee ac lor such acceptance engages that he Bae p tment, pay the bill according to the ferms of his acceptance, provided it shell not. have been paid by the drawee, and prove Ped ne and pon BE : yment for payment Pl for nonpa! and notice of dishonor given him. — Sec. 166.—(MATURITY OF BILL Moe eo AFTER SIGHT; ACCEPTED FOR ) ‘Where a bill payable after sight is accepted for} honor, its maturity is calculated from the: date of the noting for nonacceptance and not from the date of ac ee as Section 167.—( OF BILL ACCEPT-}, ED FOR HONOR, CETERA.) Where a dishonored bill has ‘1 accepted for honor supra protest or contains ¢ reference in ease ot heed, it must be protested for nonpayment be: fore it is present for ent to the ac- tor for honor or referee in of need. Ce 68.(PRESENTMENT FOR MENT TO ACCEPTOR R HONOR; MADE.) Presentment payment. acceptor for honor must be made as @) If it 1s to be presented in the where the protest for nonpayment was it must be presented not later following its maturity. (2) If it ts to be presented place than the place where it ‘then it.must be forwarded wit specified in tion one hundred ai e189 WEN DELAY INT visions. of Section eighty-one apply there i ‘detay “In "making presen to the = a, .—-(DISHONOR OF BILL BY AC. CEPTOR FOR HONOR.) When the Dill is dis- honored by the acceptor for honor it must be protested for nonpayment by him. / ARTICLE VI. | PAYMENT FOR HONOR, 171.—(WHO MAY MAKE PAYMENT ‘Where a bill has been pro- tested for nonpayment, any person may tervene and pay it supra protest for the hon- ‘of any. Hable thereon or for: the honor of person for account it was drawn, , Sec. 172.(PAYMENT FOR HONOR; HOW MADE.) ‘The payment for honor suj r0- test in order to operate as such and not as 8 mere voluntary. peyment must be: attested y a not act jonor which may be aj panded to the Drotest or form an extension fo Sec. 178.—(DECLARATION BEFORD PAY- MENT FOR HONOR.) The notarial act of enor must _be founded! op. a deol made y the payer for honor or by his agéht in that Dehalf Qeclaring his intention to pay the bil for honor and for whose honor he‘ pays. Sec. 174.—(PREFERENCE OF PARTINS OFFERING TO PAY FOR HONOR.) Where two or more persons offer to pay a bill for the honor of different parties, the person whose payment will discharge most parties to the ae a be given the preference. 0. 175. (EFFECT ON SUBSEQUENT PARTIES “WHERE BILL. 18 PAID. FOR HONOR.) Where a bill has been pald for | te honor, all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor {s subrogated for, an succeeds to, both the rights and duties of the holder as regards, the pa for whose honor he pays, and all parties liable to the latter. Sec. i76. HOLDER REFUSES TO RECEIVE PAYMENT SUPRA PROTEST.) Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourse against any party who would have Deen a ie ei Dee LIGHTS F PAYER FOR HONOR.) "The payer for honor on paying to the helder the amount of the bill and the no- tarial expenses cidental to its dishonor, is entitled to receive both the bill ftself and the protest. 2 ARTICLE VII. BILLS IN A SET. Sec, 178.—(BILLS “IN SETS CONSTITUTH| OND BILL.) Where a bill is drawn in a set, each part of the set being numbered and con- taining a reforence to the other parts, the whole of the parts constitutes one bil. Sec, 179,—(RIGHT OF HOLDERS E DIFFERENT PARTS ARE NEGOTIATED.) ere ‘© Or more parts of a set are ne Mtlated to different holders in due course, | pi the holder whose title first acerués is as be-| tween such holders the true owner of the|p: AN ACT HOW value (4) ‘That at the time tt was negotiated to Bec. 53. (WHEN PERSON NOT DEEMED HOLDER IN DUB COURSE.) Where an tn a & T OF CORPORATIO? dorsemeant assignment of the u RY IN 42 af Rel : (8) Local, that ts to say, an acceptance to pay only at a particular places (4 Qualified as to time; (5). ‘The acceptance of some one or more of the drawees, but not of all. Sec. 142 (RIGHTS OF PARTIES AS TO QUALIFIED ACCEPTANCE.) The holder may refuse to take a qualified acceptance, and if he does not obtain an unqualified accept- lance, he may treat the bill as dishonored by non-acceptance. Where a qualified acoept- ance is taken the drawer and Indorsers are @ischarged from Itability on the bill, unless they jhave expressly or tmpliedly authorized the holder to take a qualified acceptance, or subsequently assent thereto. When the draw- er orvan indorser receives ‘notice of a qualt- fled acceptance, he must, within a reasonable time, express his dissent to the holder, or he will be deemed to have assented thereto. ARTICLE MI, PRESENTMENT FOR ACCEPTANCE. ¢ Sec. 143,—(WHEN PRESENTMENT FOR ACCHPTANCE MUST BE MADE.) Present- ment ‘for acceptance must be made; (1) Where the bill is payable after sight, or in any other case, where presentment for acceptance is necessary in order to fix the maturity of fhe instrument; or (@) Where the bill expressly stipulates that S all be presented for acceptance; or ). Where the bill. fe drawn Ie else- Where tian at the residence oF of basi- ness of e drawee. In no other case 1s presentment for ac- ceptance’ ni in order to render any party to the bill Hable. ‘Sec. 144.—(WHEN FAILURE TO PRESENT RELEASES DRAWER AND INDORSER,) Ex- cept as herein otherwise provided, the holder of a bill which is required by the next pre- ceding section to be presented for acceptance must elther present it for acceptance or ne- gotlate it within a reasonable time. If he fails to do so, the drawer and all indorsers are discharged. x. ‘Sec. 145.—(PRESENTMENT; HOW, MADE.) Presentment for acceptance must be made by or om behalf of the holder at a reasonab! hour, on a business day and before the bill is overdue, to the drawee or some person au- thorized to accept or refuse acceptance on his behalf; and: , (1) Where a bill’1s addressed to two or more drawees who are mot partners, pre- seritment must be made to them all, ‘unless one has \authority to accept or refuse ac- ceptance for all, in which case, presentment may be made to ‘him only, (@) Where the ‘drawee is dead, “present ment may be made to his personal represen tative . (3) "Where the drawee has been adjudged 8 bankrupt or an insolvent or has made an as- signment for the benefit of creditors, pre- sentment may be made to him or tg his trus- tee or assignee. Sec. 146.(ON WHAT DAYS PRESENT- MENT, MAY BE MADE.) A bill may be pre- ‘sented “for acceptance on any day on which negotiable instruments may be presented for payment under the provisions of sections eev- enty-two and eighty-five of this act. When Saturday is not otherwise a hollday, pre- seniment, for acceptance may be made before twelve o'clock, noon. on that day. Sec. 147.(PRESENTMENT WHERE TIM! IS INSUFFICIENT.) Where the holder of a vill drawn payable el than at the E i f £ i ‘| ; i i i pero HY ul tf A ARTICLB It, CONSTDERATION. (PRESUMPTION OF CONSIDER- Every negotiable instrument a facte to have been issued for valuable jeration; and every person| whose signature appears therean to have be- come a party thereto for value. NSIDERATION,. WHAT CON- .) Value is any consideration suf- apport a simple contract. An ante- cedent or pre-existing debt constitutes value; is deemed such whether the instrument 1s m demand or at a fature time. $. (WHAT CONSTITUTES HOLDER | FOR VALUE.) Where vaiue has at any time been given for the Instrument, the holder ts for value in’ respect to all uch prior to that time. LIEN ON INSTRUMENT HOLDER FOR holder has a Men on arising cither from contract or by implication of law, he ts deemed a holder for value to the extent of his lien. FECT OF WANT OF CON- Absence or . faljure of, con- sideration Is matter of defense as against any person not a holder fn due course; and partial failure of consideration 1s a defence pro tanto, the fatlure is an ascertained and ount or otherwise, 7 (LIABILITY OF ACCoMMODA- |! PARTY.) An accommodation party {s e who has signed the instrument as maker. acceptor, or indorser, without recetying value therefor, and for the purpose of lending] his name to some other person. Such a per-| mal a negotiable instrument, by making it son {3 lable on the instrument to a holder for| engages that he will pay it according to its standing such holder at the) tenor, and admits fhe existence of the payee the instrument knew him to be|and his then capacity to indorse. y an accommodation party. | oh tuted best aa ph oar oe by drawing the instrament adm! e x ARTICLE Itt. e of the payee and his then capacity to NEGOTIATION indorse; and engages that on due present- Sec. 30. (WHAT CONSTITUTES N®GO-|ment the instrument will be accepted or paid, TIATION.) ‘An Instrument ts negotiated when|or both, according to its tenor, and that, if it it 1s transferred from one person to another in| be dishonored and the nécessary proceedings on such maner as to constitute the transferee|dishonor be duly taken, he will pay the the holder thereof. If payable to bearer tt 1s|amount thereof to the holder, or to any sub- negotiated by delivery; 1f payable to order it sequent indorser who may be compel! dd to js negotiated by the Indorsement of the holder|pay it. But the drawer may insert in the completed by delive: : instrument an express. stipulation negativing 1. NDORSEMENT!, HOW MADE.) . or limiting. his own Hability to the holder, I he indorsement must be written on’ the in- c, 82.—(LIABILITY OF ACCEPTOR.) The strument itself or upon @ paper attached acceptor by accepting the instrument engages ‘ {hereto.. ‘The signature of the indorser, with-| that he will pay it according to the tenor of | out additional words, !s a sufficient {ndorse- his acceptance; and admits, ment. the genu- (INDORSEMENT MUST BP OF (1) ‘The existence of the drawer, Sec tneness of his signature, and his capacity and| ENTIR INSTRUMENT.) ‘The indorsement an indorsement of the entire instru- authority to. draw the instrument; and must be (2) The existence of the payee and hik ment. An. indorsement which putports to then capacity to indorse, transfer to the indorsee a part only of the Ww PERSON DEEMED .) A person placing his sis- avable, or which ‘purports to transfer!nature upon’ an instrument, otherwise than trally, does not operate as a negotiation of the| #8 maker, drawer or acceptor, 1s, deemed to be instrument. But where the” instrument has| 9% inderser, unless he clearly indicates: by apy 1 propriate words his intention to be bound in been paid in part, it may be indorsed as to ome other capacity. (1) It is duly presented for payment and payment 1s refused or cannot be obtain (2) Presentment is excused and the instru- ment is_overdus ‘and unpaid. Sec, 84,—(LIABILITY OF PERSON SEC- ONDARILY LIABLE, WHEN INSTRUMENT DISHONORED.) Subject to the provisions of this act, when the instrument is dishonored by nonpayment, an immediate right of recourse to all partles secondarily Mable thereon ac- erues to the holder, Sec. $5.—(IIMB OF MATURITY.) Every ne. gotiable instrument 4s payable at the time fixe therein without grace. When the day of ma- turity falls upon Sunday, or a holiday, the instrument 1s payable onthe next succeeding| business day. Instruments falling due (or| becoming payable) on Saturday are to be pre-| sented for payment on the next succeeding | business day, except that instruments payable | on demand: may, at the option of the holder, be presented for payment before 12 o'clock noon on Saturday when that entire day is not a holiday. Sec. 86.—(TIME, HOW COMPUTED.) Where the instrument is payable at a fixed period ter date, after sight, or after the happen- ing of a iffed event, the time of pay- ment 1s determined by ‘excluding the day from which the time is to begin to run, and by including the date of payment, Sec. #.—(RULE WHERE INSTRUMENT PAYABLE AT BANK.) Where the instrument is made payable at @ bank it shall not be equivalent to. an order to the bank to pay the same for the account of the principal debtor thereon. Sec. §8.—(WHAT CONSTITUTED PAYMENT IN DUE COURSE.) Payment is made in due course when it is made at or after the maturity of the instrument to the holder thereof in good faitn and without notice that his title is de. tectiv ig i i See. ATION.) @eemed pri age a o8 is nt 0928 (i) ; i F33 i - pe E i a eRe ‘a fy i if HE F ARTICLD V. LIABILITIES OF PARTIES. (LIABILITY OF MAKER.) The ARTICLE Vu, NOTICE OF DISHONOR. Sec. 89.(TO WHOM NOTICE OF DISHON- OR MUST BE GIVEN.) Except as herein oth- erwise provided, when a negotiable instrument h&s been dishonored by nonacceptance or non- payment, notice of dishonor must be given| to the drawer and to each indorser, and any drawer or indorser to whom such’ notice is not given is discharged. Sec. #0.—(BY WHOM GIVEN.) The notice may be given by. or on behalf of the holder, or by or on pehalf.of any party to the in- strument who might be compelled to pay it to the holder, and who upon taking it up would have a right to reimbursement from the party to whom the notice 1s given, Sec, 91.—(NOTICE GIVEN BY AGENT.) Notice of dishonor may be given by an agent either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not. Bee, 02, PHCE OF NOTICE GIVEN ON 8 the residue } . 83. Sec. 64,—(LIABILITY OF IRREGULAR IN-| BEHALF 0: HOLDER.) Where notice is given and id ~ . Bec 8 OF INDGRSEMENT.) An/pORSERS.) Where @ person not otherwise @|by or on behalf of the holder, it enures. for the third person, and has been paid by the draw-|piace of ‘business, or’ the residence of then. But nothing in this section aitects the CORSE RS.) instrument) places thereon hia aig-| benefit of all subsequent holders and all prior| "ja," "Where it was made or accepted for ac-|{taWee Pas, not me with, the exence of lrights of @ person who in due course accepts blank y also be either restrictive or quallfied, or condition Sec. 34. (SPECIAL INDORSEMENT: IN- DORSHMENT IN BLANK;) A _ special in- dorsement specifies the person to whom, or to whose order, the instrument Is to be pay- and the indorsement of such indorsee ts to the further negédtiation of the An Indorsemept in blank specl- rsee, and an instrument so !n- vable to bearer, and may be no- delivery. parties who have a right of recourse against the party to whom it 1s given. Sec. 93.—(EFFECT WHERE NOTIGD IS GIVEN BY PARTY ENTITLED THERETO.) ‘Where notice is given by or on behalf of a party entitled to give notice, it gnures for the benefit of the holder and all ‘parties subsequent to the party to, whom “hotice is given. ‘Sec. $4.—(WHEN AGENT, MAY GIVE NO- TICH.) Where the instrumer@ has been dishon- ored in the hands of an agent he may either himself give notice to the hee Mable thereon, commodation, and has been paid by the party accommodated. Sec. 122._(RENUNCIATION. BY HOLDER.) ‘The holder may éxpressly renounce his rights against any party to the instrument, before, ‘at or_after its maturity. An absolute and unconditional renunciation of his rights against the principal debtor made at or-after the maturity of the instrument discharges the instrument. But a renunetation does not af. fect the rights @f a holder in due course with: out notice. A renunciation must be in writ- {ng, unless jthe instrament 1s delivered up to the’ person primarily Mable thereon. Sec. _123.—(CANCELLATION; UNINTEN- TIONAL; BURDEN OF PROOF.) A cancel- lation made unintentionally, —— a mistake ‘or without the authority of the holder, is in- operative; but where an instrument or ‘any signature thereon appears to have been can- celled the burden-of proof lies on the party who allegég that the cancellation was made unintentionally, or under a mistake or with- out: authority, Sec. 124.—-(ALTERATION OF INSTRU- MENT; EFFECT Of.) Where a negotiable instrument is matet ly a jthout the assent of ail parties Mablé thereon, it is avoided, except as against a party who has himself made, thorized er assented to the alteration, and-subsequent Indorsers. nature in blank before delivery he is liable as indorser, in accordance with the following) rules: acceptance before it for payment on the day that i¢ Yale dues the delay caused by presenting the bill for ‘acceptance before ing it for payment ts ‘and does not discharge the drawers and indorsers, See. 148—(WHERE PRESENTMENT IS EECUBED Presentment for acceptance is excused and a bill may be treated as dishon- ered by non-acceptance, in elther of the fol- lowing cases ’ (1) Where. Grawee is dead, or has ab- sconded, or isa fictitious person or a not haying capacity to contract by bill. 2) ere, after the ise of reasonable diligence, presentment cannot be made. (8) Where, although presentment has been irregular, acceptance has been refused on some ,other ground. Sec, 149,_(WHEN DISHONORED BY NON- ACCEPTANCE.) .A Dill is dishonered by non- acceptance, — i (1) When {t.1s duly presented for accept- ance and such an acceptance as is prescribed by thig act is refused or cannot: be! obtained; or (2) ‘When \presentment for acceptance 1s excused and the Dill is not accepted. ‘Sec. _150,—(DUTY OF HOLDER WHERE ‘BILL NOT ACCEPPED.) Where a bill is dul, presented for acceptance and i not accep’ within the prescribed time, the person’ pre- senting it must. treat the pill as dishonored’ by non-acceptance or he loses the right of recourse against the drawer and indorsers. Sec. 151_—(RIGHTS OF HOLDER WHERE BILL NO® ACCE) .) dishonored by right of recourse indorsers accrues to the holder and no pre- sentment for payment is necessary. ARTICLE Iv, PROTEST. Sec. 152—(1N_ WHAT CASES PR NECESSARY.) Where a Jf the instrument ts payable to the or act ota Hird person, fhe istttable to the payed and to all subsequent ‘tes. (2) If the Instrument 1s payable to the or- der of the maker or drawer, or is payable to bearer, he is liable to all parties subsequent to the maker or drawer, (2) It he signs -for the accommodation of the payee, he is liable to all parties subse- quent to the payee. ‘Sec. 05.—-(WARRANTY WHERE NEGO- TIATION BY DELIVERY, ET CETERA.) Every person negotiating an instrument by 4 livery or by a qualified indorsement, warrants— (1) That the instrument is genuine and in all respects what it purports to be; (2) That he, has a good title to it; (8) That all prior parties had capacity to contract; (4) That he hag no knowledge of any fact which would impair the validity .of the in: strument or render it) valueless. But. when the negotiation 13 by delivery ‘ony the warranty extends in favor of no holder other than the immediate transferee. ‘The provisions of subdivision three of this section do not apply to,,persons negotiating Public. or corporation sécurities, other than bills and notes. Sec. 6 ABILITY OF GENERAL IN- DORSPR.) Every indorser who indorses with- out qualification, wi ints to all subsequent holders in due coursé (1) The matters and things mentioned in subdivisions one, two and three of the next preceding section; and (@) That the jastrument is /at the ‘time of his indorsement valid and subsisting. And, in addition, he engages that on due presentment, it shall be accepted or paid, or both, as the case may be, according to’ its tenor, and that if it be dishonored, and the cessary proceedings on dishonor be duly ken, he will pay the amount thereof to the older or to any subsequent indorser who may be compelled to py it. a! Sec. _67.—(LIABILI’ OF INDORSER WHERE PAPER NEGOTIABLE BY DB- LIVERY.) Where a person places his in- dorsement on, an instrument negotiable by de- mits he ineurs all the Mabilities of an in- orse! Sec. 68.—(ORDER IN WHICH INDORSERS ARP LIABLE.) As respects one another in- dorsers are liable prima facie in the order in which they indorsé; but evidence is admissable to show that as bet mn or among themselves they have agreed otherwise, Joint payees or joint Indorsees. who indorse are deemed to indorse jointly and. severally. Sec, 69.—(LTABILITY. AN AGENT OR BROKDR.) Where # broker or other agent ne- gotlates an instrument without indorsement he ii ilittes prescribed by Section necessary instrument. fles no in dorsed 1s gotiated by Sec. %5., (BLANK INDORSEMENT; HOW CHANGED TO SPECIAL INDORSEMENT.) he older may convert a blank {ndorsement into a special indorsement by writing over the » signature of the indorsér in blank any con- tract consistent with the character of the indorsement. Sec, 36. . STRICTIV! which _eith (1) Prohibits the further negotiation of the instrument; or (2) Constitutes the indorsee the agent ef the indorser; or (3) Vests the title fn the Indorses in trust for or to the use of some other person. But the mere absence of words implying power to negotiate does not make an Indorse- ment restrictive. ——— Se (BFFECT OF RESTRICTING TN- if nol IENT; RIGHTS OF INDORSBE.) A restrictive indorsement confers upon the n- dorsee the right, (1) To receive payment of the !nstrument; ©) ‘To bring any action thereon that ‘the indorser could bring: (3) To transfer his rights as such indorsee, where the form of the indorsement authorizes ~ him to do so. But all subsequent indorsees acquire only the title of the first indorses under the re- strictive Indorsement. 4 Sec. 38. (QUALIFIED INDORSEMENT.) A qualjfied indorsement constitutes the in- @oreer a more assignor of the title to the in- strument. It may be made by adding to the indorser's signature the words “without re- course’ or any words of aimflar {mport. Such an indorsement dors not Impair the negotiable character of the instrument, Sec. 39, (CONDITIONAL INDORSEMENT.) Where ‘an fadorsement 4s conditional,*a party required to pay the instrument may ‘disregard the condition, and make payment. tol the in- dorsee or his transferee, whether the condition been fulfilled or not. But any person to ) an, fnstrument ts’ so indorsed is nego- will hold the ‘same, or the proceeds . subject to the rights of the person dorsing conditionally, (INDORSHMENT OF INSTRU- M ABLE TO BEARER.) Where an } instrament, payable to bearer, ts indorsed spe- cially. It may nevertheless be further ne- or he may give notice to principal. If he gives notice to his principal he must do so within the same time as if he were the holder, and the principal upon the receipt of such notice himself the same time for giving notice ao if the agent had been an’ independent older. Sec. 95.—(WHEN NOTICE SUFFICIENT.) A written notice need not be signed, and an in- sufficient written notice may be supplemented and validated by verbal communication. A misdescription of the “instrument does "not vitiate the notice unless.the party to whom the notice Je, given Js. in fact mislead thereby. ‘Sec,’ &—(FORM. QF -NOTICE.)- The notice may be in writing “or ‘merely ora) and may be given in any termé which sufficiently identity the instrument, and indicate that it has been dishonored by nonacceptance or nonpayment. Tt may in all cases be given by del personally or through even py elivering it)" SC t when an instrument hag been materially Sec. —(TO OM NOTICH MAY Br/altered and is in the hands of a holder in GIVEN.) Notice of dishonor may be given | due course, not a party to the alteration, he either to the party himself or to his agent in/may enforce payment thereof according to that behalf. its original tenor. ‘Sec. 98,—(NOTICE. WHERE PARTY Is| Sec. 125.—(WHAT CONSTITUTES A MA- DBAD.) When any partys dead, and his death| TERIAL ALTERATION.) Any alteration which is known A the party giving notios, the notice Ca ast niust be glyen to a personal yrepresentative, Tethere Be one, and It with Peasonable dit: |, (2) The sum ‘payable, efther for princtpal or gence “he can be found. If there be no per-| interest: Sonal-representative, notice may be sent to| (3) The time or place of payment: the last residence of last place’ of business of| (4) ‘The number or the relations ‘of the , parties: Sec. 99.— TICH TO PARTNERS.) Where| (5) The medium or currency in which pay- the parties to be notified are partriers, notice to ment 1s to bé made; any one partner is notice to the firm even| Or which adds a place of payment where no though there has been a dissolution. place of payment 1s specified. or any other Sec. 100.-(NOTICE TO PERSONS JOINTLY change or addition which alters the effect | non: LIABLE,) Notice to Joint parties who are not|of the instrument.in any respect, ts a ma-|non-acceptan — (WITHIN: TIME. h partners must. be given to each of them unless heck | terial alteration, one of them has authority to receive such notice ip hel wer for the others. ‘TITLE 11. er the delay. ro ais ts. ed ogo. 18). (EEABILITY. OF HOLDER, WH 180. — LDER WHO. INDORSES TWO. OR MORE PARTS OF A] pargtt SET TO DIFFERENT PERSONS.) — Where the holder of a set indorses two or mo parts to different persons he is lable on every. ch part, and every indorser subsequent to’ him is Hable on the part he has himself tn.| dorsed, as if such parts were te Bil Sec, 181—(ACCEPTANCE OF BILLS] DRAWN IN SBTS.) The acceptance de written on any part and it must. be. written on one part only. If the drawee accepts more than one part, and such accepted parts are negotiated to different holders in di course, he is liable on every such part as if it _were a separate bill. Sec, 182.—(PAYMENT ‘BY ACCEPTOR OF, (WHEN INDORSEMENT RE- BILLS DRAWN IN SETS.) When the accept- ) An indorsement 1s restrictive, or of a bill grawn in a set pays it without i requiring the bearing his acceptance to be, delivered up to him, and that part at matur- Noein at oe co ae course, he is, to the holder. ti : (EFFECT 3 Sec. 183.—( OF DISCHARGIN seed OF NL ng Except as ee where any one rt of providen ghee, anyone, pert oe al gue fwise the whole bil] is discharged. c % PROMISSORY NOTES | ARTICLE Sec, 184. FINED.) A negotiable promissory note with the rosenilig: of this Tall) an tconatiaeal prom: ma ‘one person. other signed by the maker engaging to pay demand, or at a, fixed or determinable futur time, a’ sum certain in money to order or bearer. Where a note is drawn to the m crs order, it i not complete until indorsed | nim, 185.—(CHECK DEFINED.) A. Uj of exchange drawn on a. bar on demand. here! |. Except st ‘the provisions of this act. re 2B hin Bs Fi ~ Sec. 101.—(NOTICE TO BANKRUPT). Wh a party? hias been adjudged a bankrupt or an BILLS OF EXCHANGE. ARTICLE 1. check drawn, the certif- insolvent, or has made an assignment for the FORM AND INTERPRETATION, benefit of creditors, notice may be given eith- er to the party himself or to his trustee or Sec. 126.-ABILL| OF EXCHANGE’ DE- FINED.) A bill of exchange ig an uncondi- assignee. Sec. 102.—(TIME WITHIN WHICH NOTICE MUST BE GIVEN.) Notice may be given ae tional order in writing ‘by one per. son to another, signed by the person giving soon as the instrument is Wishonored; and less delay is excused as hereinafter ‘provided, it, requiring, the person to whom it ts ad- dressed to pay on demand or at a must be given within the times fixed-by this or.) a Baan eects Se Sec, 188.—(EFFECT a neh gotiated by delivery: but “the person tn- Corsing ‘speciatly {¥ lable as tndorser to only such holders a5 make title through his indorse- ment. fec. 41, (INDORSEMENT WHERD PAY- ABLE To TWO OR MORB PERSONS.) Where an instrument {s payable to the order|’ of two or more payees or indorsees whe are not partners, all must indorse, unless’ the one indorsing has authority to indorse for the others. 7 Sen 42, (SFFECT .oF INSTRUMENT DRAWN OR INDORSED TO 4 PERSON AS CASHIER.) Where an instrumbnt tg drawn or {Mdorsed to a person. as “Cashier” or other fiscal officer of a bank or corporation, it 1s jeemned prima facle to be payable to the bank St corporation of which he Is much officer; and thay be negotiated by cither the Indorsement te the bank or corporation, or the indorsement f the office s. INDORSEMENT WHERE NAME. SPELLED, ET CETERA.) Where the i are all the jie sixty-five of this act, unless he discloses the hame_of bis principal, and the fact that he is acting only as an agent. ARTICLE VI. PRESENTMENT FOR PAYMENT. Sec, 70.—(DFFECT OF WANT OF DB. MAND | ON. PRINCIPAL DEBTOR.) Presentment for payment not nec- essary in order to charge the per- son. primarily Mable on the instrument, ‘but if the instrument {s, by its terms, payable at ‘a special place, and he is able and willing to pay it there'at maturity, such bility and Sitlingness are equivalent to a tender of pa: ment upon his part. But except as otherwise provided, presentment for is necessary in order to charge’ the drawer and indorsers. Sec. 71.—(PRESENTMENT WHERE, IN- STRUMENT IS NOT PAYABLE ON” DE- MAND AND WHDRE PAYABLD ON DB. ‘act. Sec. 103.4(WHERE PARTIES RESIDE IN SAME PLACE.) ‘Where the person giving and ‘the person to receive notice reside in the same |: lace, notice must be given within the fol- wing times: @) It given at the place of business of the person to recetye notice, it must be given be- fore the close of business hours on the day following; it must be (2) It given before the usual hours of tap following. ra bugtical o." (8) If sent.by mair tt must be: d the, postofiice in- time to reach ume int eeant coutse’.on the following (487. | Sec. 104.—(WHERE PARTIES RESIDE IN DIFFERENT PLACES.) ‘Where the person giv- aiffetent ‘pinces, the notes. must aren. , the WGA: tie following: times: Phere sent by mail it must be deposi thy postofice in time to go by mall cig) following the day of dishonor, or if there be ven at his residence ture tain tn determinable fut time @ sum ce! in {honey to order or the bearer, os Bee, 127 -GHILL NOT AN ASSIGNMENT oF FUNDS IN HANDS OF DRAWEE) A bill of itself does not operate as an assign- Be ot elite: oatuans: Pood ane Tae yment. th srallenlay not diable cu the bill Gniges od Unth he accepts the same. Bee. 128—(BILL ADDRESSED TO MO! bye! Onn ae een Aa may = ad- seeped more drawees : whether they are partners or not; Fig to two or more drawees in the alternative or on ta INLAND AND FORBIGN BI: Saree, matin come 3 OF. drawn and payable within Righother bill is 8 contrary on the may reat it as .— (WHEN