CHAPTER 83.

A GENERAL ACT RELATING TO NEGOTIABLE INSTRUMENTS,

BEING AN ACT TO ESTABLISH A LAW UNIFORM WITH THE
LAWS OF OTHER STATES ON THAT SUBJECT. C. B. No. 41;
Approved March 21, 1907.

CONTENTS.

Sec. 1. Form of negotiable instrument.
Sec. 2 Certainty as to sum; what constitutes.
Sec. 3. When promise is unconditional.
Suc. 4. Determinable future time; what constitutes.
Sec. . Additional provisions not affecting negotiability.
Sec. 6. Omissions; seal; particular money.
Sec. 7. When payable on demand.
Sec. 8. When payable to order.
Sec. 9. When payable to bearer.
Sec. 10. Terms when sufficient.
Sec. 11. Date, presumption as to.
Sec. 12. Ante-dated and post-dated.
Sec. 13. When date may be inserted.
Sec. 14. Blanks, when may be filled.
Sec. 15. Incomplete instrument not delivered.
Sec

16. Delivery; when effectual; when presumed.
Sec. 17. Construction where instrument is ambiguous.
Sec. 18. Liability of person signing in trade or assumed name.
Sec. 19. Signature by agent; authority; how shown.
Sec. 20. Liability of person signing as agent, et cetera.
Sec. 21. Signature by procuration, effect of.
Sec. 22. Effect of indorsement by infunt or corporation.
Sec. 23. Forged signature; effect of.
Sec. 24. Presumption of consideration.
Sec. 25. What constitutes consideration.
Sec. 26. What constitutes holder for value.
Sec. 27. When lien on instrument constitutes holder for value.
Sec. . 28. Effect of want of consideration.
Sec. 29. Liability of accommodation party.
Sec. 30. What constitutes negotiation.
Sec. 31. Indorsement; how made.
Sec. 32. Indorsement must be of entire instrument.
Sec. 33. Kinds of indorsement.
Sec. 34. Special indorsement; indorsement in blank.
Sec. 35. Blank indorsement; how changed to special indorsement.
Sec. 38. When indorsement restrictive.
Sec. 37. Effect of restrictive indorsement; rights of indorsee.
Sec. 38. Qualified indorsement.
Sec. 39. Conditional indorsement.
Sec. 40 Indorsement of instrument payable to bearer.
Sec. 41. Indorsement where payable to two or more persons.
Sec. 42. Effect of instrument drawn or indorsed to a person as cashier.
Sec. 43. Indorsement where name is mis-spelled, et cetera.
Sec. 44 Indorsement in representative capacity.
Sec. 45. Time of indorsement: presumption,
Sec. 46. Place of indorsement; presumption.

Sec. 47. Continuation of negotiable character.
Sec. 48. Striking out indorsement.
Sec. 49. Transfer without indorsement; effect of.
Sec. 50. When prior party may negotiate instrument.
Sec. 51. Right of holder to sue; payment.
Sec. 52. What constitutes a holder in due course.
Sec. 53. When person not deemed holder in due course.
Sec. 54. Notice before full amount paid.
Sec. 55. When title defective.
Sec. 56. What constitutes notice of defect.
Sec. 57. Rights of holder in due course.
Sec. 58. When subject to original defenses.
Sec. 59. Who deemed holder in due course.
Sec. 60. Liability of maker.
Sec. 61. Liability of drawer,
Sec. 62. Liability of acceptor.
Sec. 63. When person deemed indorser.
Sec. 61. Liability of irregular indorser.
Sec. 05. Warranty: where negotiation by delivery, et cetera,
Sec. 66. Liability of general indorsers.
Sec. 67. Liability of indorser where paper negotiable by delivery.
Sec. 68. Order in which indorsers are liable.
Sec. 69. Liability of agent or broker.
Sec. 70. Effect of want of demand on principal debtor.
Sec. 71. Presentment where instrument is not payable on demand.
Sec. 72. What constitutes a sumcient presentment.
Sec. 73. Place of presentment.
Sec. 74. Instrument must be exhibited.
Sec. 75. Presentment where instrument payable at bank.
Sec. 76. Presentment where principal debtor is dead.
Sec. 77. Presentment to persons liable as partners.
Sec. 78. Presentment to joint debtors.
Sec. 79. When presentment not required to charge the drawer.
Sec. 80. When presentment not required to charge the indorser.
Sec. 81. When delay in making presentment is excused.
Sec. 82. When presentment may be dispensed with.
Sec. 83. When instrument dishonored by non-payment.
Sec. 81. Liability of person secondarily liable, when instrument dishonored.
Sec. 85. Time of maturity.
Sec. 86. Time: how computed.
Sec. 87. Rule where instrument payable at bank.
Sec. 88. What constitutes payment in due course.
Sec. 89. To whom notice of dishonor must be given.
Sec. 90. By whom given.
Sec. 91. Notice given by agent.
Sec. 92. Effect of notice given on behalf of holder.
Sec. 93. Effect where notice is given by party entitled thereto.
Sec. 94. When agent may give notice.
Sec. 93. When notice suficient.
Sec. 96. Form of notice.
Sec. 97. To whom notice may be given.
Sec. 98. Notice where party is dead.
Sec. 99. Notice to partners.
Sec. 100. Notice to persons jointly liable.
Sec. 101. Notice to bankrupt.
Sec. 102. Time within which notice must be given.
Sec. 103. Where parties reside in same place.
Sec. 101. Where parties reside in different places.

Sec. 105. When sender deemed to have given due notice.
Sec. 106 Deposit in post-office, what constitutes.
Sec. 107. Notice to subsequent parties, time of.
Sec. 108. Where notice must be sent.
Sec. 109. Waiver of notice.
Sec. 110. Whom affected by waiver.
Sec. 111. Waiver of protest.
Sec. 112. When notice dispensed with.
Sec, 113. Delay in giving notice; how excused.
Sec. 114. When notice need not be given to drawer.
Sec. 115. When notice need not be given to indorser.
Sec. 116. Notice of nou-payment where acceptance refused.
Sec. 117. Effect of omission to give potice of non-acceptance.
Sec. 118. When protest need not be made; when must be made.
Sec. 119. Instrument; how discharged.
Sec. 120. When person secondarily liable on, discharged.
Sec. 121. Right of party who discharges instrument.
Sec. 122. Renunciation by holder.
Sec. 123. Cancellation; unintentional; burden of proof.
Sec. 124. Alteration of instrument; effect of.
Sec. 125. What constitutes a material alteration.
Sec. 128. Bill of exchange defined.
Sec. 127. Bill not an assignment of funds in hands of drawee.
Sec, 128, Bill addressed to more than one drawee.
Sec. 129. Inland and foreign bills of exchange.
Sec. 130. When bill may be treated as promissory note.
Sec. 131. Referee in case of need.
Sec. 132. Acceptance, how made, et cetera.
Sec. 133. Holder entitled to acceptance on face of bill.
Sec. 134. Acceptance by separate instrument.
Sec. 135, Promise to accept; when equivalent to acceptance.
Sec. 136. Time allowed drawee to accept.
Sec. 137. Liability of drawee retaining or destroying bill.
Sec. 138. Acceptance of incomplete bill.
Sec. 139. Kinds of acceptances.
Sec. 140. What constitutes a general acceptance.
Sec. 141. Qualified acceptance.
Sec. 142. Rights of parties as to qualified acceptance.
Sec. 143. When presentment for acceptance must be made.
Sec. 144. When failure to present releases drawer and indorser.
Sec. 145. Presentment; how made.
Sec. 146. On what days presentment may be made.
Sec. 147. Presentment; whère time is insufficient.
Sec. 148. When presentment is excused,
Sec, 149. When dishonored by non-acceptance.
Sec. 150. Duty of holder where bill not accepted.
Sec. 151. Rights of holder where bill not accepted.
Sec. 152. In what cases protest necessary.
Sec. 153. Protest; how made.
Sec. 154. Protest: by whom inade.
Sec, 155. Protest: when to be made.
Sec. 158. Protest; where made.
Sec. 157. Protest both for non-acceptance and non-payment.
Sec. 158. Protest before maturity where acceptor insolvent.
Sec. 159. When protest dispensed with.
Sec. 160. Protest; where bill is lost, et cetera.
Sec. 161. When bill may be accepted for honor.
Sec. 162. Acceptance for honor; how made.

Sec. 183. When deemed to be an acceptance for honor of the drawer.
Sec. 164. Liability of acceptor for honor.
Sec. 165. Agreement of acceptor for honor
Sec. 166. Maturity of bill payable after sight; accepted for honor.
Sec. 167. Protest of bill accepted for honor, et cetera.
Sec. 168. Presentment for payment to acceptor for honor; how made.
Sec. 169. When delay in making presentment is excused.
Sec. 170. Dishonor of bill by acceptor for honor.
Sec. 171 Who may make payment for honor.
Sec. 172. Payment for honor; how made.
Sec. 173. Declaration before payment for honor.
Sec. 174. Preference of parties offering to pay for honor.
Sec. 175. Effect on subsequent parties where bill is paid for honor.
Sec. 170. Where holder refuses to receive payment supra protest.
Sec. 177. Rights of payer for honor.
Sec. 178. Bills in sets constitute one bill.
Sec. 179. Rights of holders where different parts are negotiated.
Sec. 180. Liability of holder who indorses two or more parts of a set to different

persons.
Sec. 181. Acceptance of bills drawn in sets.
Sec. 182. Payment by acceptor of bills drawn in sets.
Sec. 183. Effect of discharging one of a set.
Sec. 181. Promissory notes defined.
Sec. 185. Check defined.
Sec. 186. Within what time a check must be presented.
Sec. 187. Certification of check; effect of.
Sec. 183. Effect where holder of check procures it to be certified.
Sec. 189. When check operates as an assignment.
Sec. 190. Short title.
Sec. 191. Definitions and ineaning of terms.
Sec. 192. Persons primarily liable on instrument.
Sec. 193. Reasonable time, what constitutes.
Sec. 194. Time, how computed; when last day falls on holiday.
Sec. 195, Application of chapter.
Sec. 198. Rule of law merchant; when governs.
Be it enacted by the Legislative Assembly of the Territory of New
Mexico:

TITLE I.

NEGOTIABLE INSTRUMENTS IN GENERAL.

ARTICLE I.

FORM AND INTERPRETATION. Section 1. An instrument to be negotiable must conform to the following requirements:

I. It must be in writing and signed by the maker or drawer;

II. Must contain an unconditional promise or order to pay a sum certain in money; .

III. Must be payable on demand, or at a fixed or determinable future time;

IV. Must be payable to order or to bearer; and,
V. Where the instrument is addressed to a drawee, he

must be named or otherwise indicated therein with reasonable certainty.

Sec. 2. The sum payable is a sum certain within the meaning of this act, although it is to be paid:

I. With interest; or
II. By stated installments; or

III. By stated installments, with a provision that upon default in payment of any installment or of interest, the whole shall become due; or

IV. With exchange, whether at a fixed rate or at the current rate; or

V. With costs of collection or an attorney's fee, in case payment shall not be made at maturity.

Sec. 3. An unqualified order or promise to pay is uncon. ditional within the meaning of this act, though coupled with:

An indication of a particular fund out of which reimbursement is to be made, or a particular account to be de. bited with the amount; or

II. A statement of the transaction which gives rise to the instrument. But an order or promise to pay out of a particular fund is not unconditional.

Sec. 4. An instrument is payable at a determinable future time, within the meaning of this act, which is expressed to be payable:

1. Ata fixed period after date or sight; or

II. On or before a fixed or determinable future time specified therein; or

III. On or at a fixed period after the occurrence of a specified event, which is certain to happen, though the time of happening be uncertain.

An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the de. fect.

Sec. 5. An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which:

I. Authorizes the sale of collateral securities in case the instrument be not paid at maturity; or

II. Authorizes a confession of judgment if the instrument be not paid at maturity; or

III. Waives the benefit of any law intended for the advantage or protection of the obligor; or

IV. Gives the holder an election to require something to be done in lieu of payment of money.