§§ 300-303 Payment for Honor L. 1909, ch. 43 ARTICLE 16 PAYMENT FOR HONOR Section 300. Who may make payment for honor. 301. Payment for honor; how made. 302. Declaration before payment for honor. 303. Preference of parties offering to pay for honor. honor. 305. Where holder refuses to receive payment supra pro test. 306. Rights of payer for honor. $ 300. Who may make payment for honor. Where a bill has been protested for non-payment, any person may intervene and pay it supra protest for the honor of any person liable thereon or for the honor of the person for whose account it was drawn. This section was derived from the Negotiable Instruments Law of 1897, § 300. § 301. Payment for honor; how made. The payment for honor supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honor which may be appended to the protest or form an extension to it. This section was derived from the Negotiable Instruments Law of 1897, § 301. § 302. Declaration before payment for honor. The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays. This section was derived from the Negotiable Instruments Law of 1897, § 302. § 303. Preference of parties 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 bill is to be given the preference. This section was derived from the Negotiable Instruments Law of 1897, § 303. L. 1909, ch. 43 Payments for Honor §§ 304-306 8304. Effect on subsequent parties where bill is paid for honor. Where a bill has been paid for honor all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor is subrogated for, and succeeds to, both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter. This section was derived from the Negotiable Instruments Law of 1897, § 304. $305. Where holder refuses to receive payment supra protest. Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourses against any party who would have been discharged by such payment. This section was derived from the Negotiable Instruments Law of 1897, § 305. § 306. Rights of payer for honor. The payer for honor on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest. This section was derived from the Negotiable Instruments Law of 1897, § 306. 12 §§ 310-313 Bill in Sets L. 1909, ch. 43 ARTICLE 17 BILLS IN SETS Section 310. Bill in sets constitutes one bill. 311. Rights of holders where different parts are negotiated. 312. Liability of holder who indorses two or more parts of a set to different persons. 313. Acceptance of bills drawn in sets. 314. Payment by acceptor of bills drawn in sets. 315. Effect of discharging one of a set. § 310. Bill in sets constitutes one bill. Where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other parts, the whole of the parts constitutes one bill. This section was derived from the Negotiable Instruments Law of 1897, § 310. § 311. Rights of holders where different parts are negotiated. Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders the true owner of the bill. But nothing in this section affects the rights of a person who in due course accepts or pays the part first presented to him. This section was derived from the Negotiable Instruments Law of 1897, § 311. § 312. Liability of 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 different persons he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed, as if such parts were separate bills. This section was derived from the Negotiable Instruments Law of 1897, § 312. 8 313. Acceptance of bills drawn in sets. The acceptance may be written on any part and it must be written on one part only. If the drawee accepts more than one part, and such accepted L. 1909, ch. 43 Bills in Sets §§ 314, 315 parts are negotiated to different holders in due course, he is liable on every such part as if it were a separate bill. This section was derived from the Negotiable Instruments Law of 1897, § 313. § 314. Payment by acceptor of bills drawn in sets. When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereon. This section was derived from the Negotiable Instruments Law of 1897, § 314. § 315. Effect of discharging one of a set. Except as herein otherwise provided, where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged. This section was derived from the Negotiable Instruments Law of 1897, § 315. Conflict of laws.-A bill drawn in this state but payable in France, is, on the question of performance, controlled by the law of France; and a payment by the drawee of one bill of a set in such a manner as to discharge the bill according to the law of that country will discharge the drawer from liability thereon in this state. Caras v. Thalmann, (1910) 138 App. Div. 297, 123 N. Y. S. 97. The question whether a foreign check or draft has been duly accepted and paid is to be determined by the law of the place where it is payable; and, if one part of a bill drawn in a set is discharged by payment according to such law, the whole bill is discharged. Casper v. Kuhne, (1913) 159 App. Div. 389, 144 N. Y. S. 502, affirming 79 Misc. 411, 140 N. Y. S. 86. § 320 Promissory Notes and Checks ARTICLE 18 PROMISSORY NOTES AND CHECKS Section 320. Promissory note defined. 321. Check defined. L. 1909, ch. 43 322. Within what time a check must be presented. 323. Certification of check; effect of. 324. Effect where holder of check procures it to be certified. 325. When check operates as an assignment. 326. Recovery of forged check. § 320. Promissory note defined. A negotiable promissory note within the meaning of this chapter is an unconditional promise in writing made by one person to another signed by the maker engaging to pay on demand or at a fixed or determinable future time, a sum certain in money to order or to bearer. Where a note is drawn to the maker's own order, it is not complete until indorsed by him. This section was derived from the Negotiable Instruments Law of 1897, § 320. Other definitions: see supra, § 2. When promissory note is negotiable: see supra, § 20. Consideration of note: see supra, § 50 et seq. Presentment: see supra, § 130 et seq. Notice of dishonor: see supra, § 160 et seq. 66 Definition before enactment of statute.- Before the enactment of the Negotiable Instruments Law, a promissory note was defined as a written engagement by one person to pay absolutely and unconditionally to another person therein named, or his order, or to the bearer, a certain sum of money at a specified time, or on demand, or at sight." Hall v. Farmer, (1848) 5 Denio 484; New York Security, etc., Co. v. Storm, (1894) 81 Hun 33, 30 N. Y. S. 605. "A promissory note is defined to be a written engagement by one person to pay absolutely and unconditionally to another person therein named, or to the bearer, a certain sum of money at a specified time or place. It must contain the positive engagement of the maker to pay at a certain definite time and the agreement to pay must not depend upon any contingency but must be absolute and at all events." Cartwright v. Gray, (1891) 127 N. Y. 92, 27 N. E. 835, 24 A. S. R. 424, 12 L. R. A. 845. What instruments are promissory notes.-A written statement that a certain sum of money is due another followed by the signature of the maker of the statement is a promissory note, for the acknowledgment of the indebtedness and that it is due implies a promise to pay it on demand. Hegeman v. Moon, (1892) 131 N. Y. 462, 30 N. E. 487; Sheldon v. Heaton, (1895) 88 Hun 535, 34 N. Y. S. 856. If no time of payment is mentioned, it is due immediately under section 26. Sheldon v. Heaton, (1895) 88 Hun 535, 34 N. Y. S. 856. A written instrument reciting "having been cause of money loss to my friend Geraldine H. Hickok I have given her $3,000, I hold this amount in trust for her, and one year after date or thereafter, on demand, I promise to pay to the order of Geraldine H. Hickok, her heirs or assigns, $3,000 with |