c. When deemed acceptance for honor of drawer.- The Negotiable Instruments Law provides that: "An acceptance for honor does not expressly state for whose honor it is made, it is deemed "to be an acceptance for the honor of the drawer." " It is important that the acceptance for honor should expressly state for whose honor the acceptance is made, otherwise the acceptance will be deemed under this section for the drawer, and the acceptor will have no right of action against any party subsequently liable.75

§ 161. Liability and rights of acceptor for honor.

a. Liability of acceptor for honor.- The Negotiable Instruments Law provides that: "The acceptor for honor is liable to the holder and to all parties to the bill subsequent to the party "for whose honor he has accepted." 16 A similar provision is contained in the English Bills of Exchange Act." An acceptor supra protest for the honor of the first indorser may require, as a condition of payment, that the holder shall indorse the bill to him.78

b. Agreement of acceptor for honor.- The Negotiable Instruments Law provides that: "The acceptor for honor by such acceptance engages that he will on due presentment pay the bill 66 according to the terms of his acceptance, provided it shall not "have been paid by the drawee, and provided also that it shall "have been duly presented for payment and protested for nonpayment and notice of dishonor given to him." 79 The English Bills of Exchange Act contains a similar provision.80 The undertaking of the acceptor for honor is not an absolute engagement to pay at all events, but only a collateral conditional engagement to pay, if the drawee do not.81 The result of this rule is to require, as provided in the statute, that the bill be presented to the drawee named therein at its maturity, for payment, and if payment is refused that it be protested and notice of dishonor given to him.82 And the rule has been stated that the acceptor of

74. Neg. Inst. L. (N. Y.), § 282. For the same section in the statutes of other States see Appendix.

75. Story on Bills, § 256.

76. Neg. Inst. L. (N. Y.), § 283. For the same section in the statutes of other States see Appendix.

77. English Bills of Exchange Act, § 66 (2).

78. Freeman v. Perot, Fed. Cas. No. 5,087, 2 Wash. C. C. (U. S.) 485.

79. Neg. Inst. L. (N. Y.), § 284. For the same section in statutes of other States see Appendix.

80. English Bills of Exchange Act, § 66 (1).

81. Byles on Bills (16th ed.), 277. 82. Presentment to drawee at maturity.- Daniel on Negotiable Instruments, 527. In the case of Hoare v. Cazenove, 16 East (Eng.), 391, Lord Ellenborough said: "It is an

a bill for the honor of the drawer cannot maintain an action thereon against him, without proof of its presentment to the drawee and nonacceptance or nonpayment by him, and notice thereof to the drawer, 83

§ 162. Maturity of bill payable after sight; protest and dishonor of bill accepted for honor.

a. Maturity of bill payable after sight.- The Negotiable Instruments Law provides that: "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 the acceptance for honor."

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b. Protest of bill accepted for honor.- The Negotiable Instruments Law provides that: "Where a dishonored bill has been accepted for honor supra protest or contains a reference in case "of need, it must be protested for nonpayment before it is pre"sented for payment to the acceptor for honor or referee in case "of need." 85 A similar provision is contained in the English Bills of Exchange Act.86 As we have seen, the Negotiable Instruments Law authorizes the drawer or indorser to insert therein the name of a person to whom the holder may resort in case of need.87 And by the same section it is provided that it is in the option of the holder to resort to the referee in case of need or not as he may see fit.

c. Dishonor of bill by acceptor for honor.—The Negotiable Instruments Law provides that: "When the bill is dishonored "by the acceptor for honor it must be protested for nonpayment

of benefit to arise from such second demand, or at any rate to the benefit of that evidence which the protest affords, that the demand has been made duly without effect, as far as such evidence may be available to him for purposes of ulterior resort."

83. Baring V. Clark, 19 Pick. (Mass.) 220.

undertaking to pay if the original the drawer is entitled to the chance drawee upon a presentment to him for payment should persist in dishonoring the bill, and such a dishonor by him be notified, by protest, to the person who has accepted for honor." And also in regard to the necessity for a presentment for payment to the drawee named in the bill, he says: "Indeed, the reason of the thing as well as the strict law of the case seems to render a second resort to the drawee proper, when the unaccepted bill still remains with the holder; for funds often reach the drawee, who has refused acceptance in the first instance, out of which the bill may and would be satisfied, if presented to him again when the period of payment had arrived, and

84. Neg. Inst. L. (N. Y.), § 285. For the same section in statutes of other States see Appendix.

85. Neg. Inst. L. (N. Y.), § 286. For the same section in statutes of other States see Appendix.

86. English Bills of Exchange Act, § 67 (1).

87. Neg. Inst. L. (N. Y.), § 215. See ante, § 137.

"by him." 88 A similar provision is also contained in the English Bills of Exchange Act.89

§ 163. Presentment for payment to acceptor for honor.

a. How made.- The Negotiable Instruments Law provides that: "Presentment for payment to the acceptor for honor must "be made as follows:

"1. If it is to be presented in the place where the protest for nonpayment was made, it must be presented not later than the day following its maturity;

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2. If it is to be presented in some other place than the place "where it was protested, then it must be forwarded within the "time specified in section 175." 90 The English Bills of Exchange Act contains a similar provision.91 The provision of the English act was a re-enactment of the statute of 6 & 7 Will. IV, chap. 58, which was originally enacted to remove doubts which had arisen as to the day when the bill should be again presented to the acceptor for honor.92 It is presumed that if the bill be not presented in due time to the acceptor for honor, that any party who would have been discharged if he had paid the bill is discharged by the holder's laches.93

b. Delay in making presentment.- The Negotiable Instruments Law provides that: "The provisions of section 141 apply "where there is delay in making presentment to the acceptor for "honor or referee in case of need." " The provision referred to in this section relates to a delay in making presentment for payment.

95

88. Neg. Inst. L. (N. Y.), § 289. For the same section in statutes of other States see Appendix.

89. English Bills of Exchange Act, § 67 (4).

90. Neg. Inst. L. (N. Y.), § 287. For the same section in statutes of other States see Appendix.

91. English Bills of Exchange Act, § 67 (2).

92. Byles on Bills (1st ed.), 263. 93. Chalmers on Bills of Exchange, 229. Judge Story says in his work on Bills of Exchange, § 363: "If there has been an acceptance supra protest, then (as we have seen) the presentment for payment must first be made to the original acceptor; and, if he refuses payment, then the bill is to

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be protested, and notice given to the acceptor supra protest, who will thereupon be liable to pay the bill; and a presentment for payment may be made to him accordingly at his place of business, or at his dwelling-house, and so in other cases exactly in the same mode and under the same qualifications as if he were the original acceptor. Upon his refusal to pay the bill the same proceedings as to protest and notice are to be had, in order to bind the drawer and indorsers, as if he were the original acceptor."

94. Neg. Inst. L. (N. Y.), § 288. For the same section in statutes of other States see Appendix.

95. See ante, § 100, and cases cited thereunder.

§ 164. Payment for honor.

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a. Who may make.- The Negotiable Instruments Law provides that: "Where a bill has been protested for nonpayment, 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." 96 This provision is the same as that contained in the English Bills of Exchange Act.97 The payment for honor can only be made supra protest for the honor of the drawer or indorser.98 If a bill has already been accepted for the honor of one of the parties, it can only be paid by the acceptor for the honor of the party for whom he accepted. It is no objection to intervention and payment by a person not a party to the bill, that it has been done at the request and under the guaranty of the drawees of the bill, who had refused to accept or pay the same.1

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b. How made.- The Negotiable Instruments Law provides that: "A 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."2 This is the same as a provision contained in the English Bills of Exchange Act. It is declaratory of the general rule. It has been said, "The right of a stranger to constitute himself the creditor of another, by paying his debt without his concurrence, is allowed only by the law merchant, for the benefit of trade, and cannot be recognized unless the form of proceeding sanctioned by the custom of merchants be substantially pursued." 4

for honor.- The Negotiable "The notarial act of honor

c. Declaration before payment Instruments Law provides that: "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." 995 The same provision is also contained in the English Bills of Exchange Act.R

$165. Rights and liabilities of parties.

a. Preference of parties offering to pay for honor.-— The Negotiable Instruments Law provides that: "Where two or more per"sons 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 is the same as a provision contained in the English Bills of Exchange Act.

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b. Effect of payment for honor on subsequent parties.— The Negotiable Instruments Law provides that: "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." The English Bills of Exchange Act contains the same provision.10 If a stranger pays a bill for the honor of all the parties, he acquires a right of action against all of them, and will be considered as standing in the place of a bona fide holder." The payment for honor provided for in the statute is the payment made for the honor of a single party. The statute is declaratory of the general rule where it provides for the succession of the payer to the rights and duties of the holder as regards the party for whose honor he has paid the bill.12

c. Refusal of holder to receive payment supra protest.— The Negotiable Instruments Law provides that: "Where the holder "of a bill refuses to receive payment supra protest, he loses his "right of recourse against any party who would have been dis

5. Neg. Inst. L. (N. Y.), § 302. For the same section in statutes of other States see Appendix.

6. English Bills of Exchange Act, § 68 (4).

7. Neg. Inst. L. (N. Y.), § 303. For the same section in statutes of other States see Appendix.

8. English Bills of Exchange Act, § 68 (2). To the same effect is the French Code, art. 159, and the German Exchange Law, art. 64.

9. Neg. Inst. L. (N. Y.), § 304. For the same section in statutes of other States see Appendix.

10. English Bills of Exchange Act, § 68 (5).

11. Edwards on Bills, 440. See also Fairley v. Roch, Lutw. (Eng.)

891.

12. Mertens v. Withington, 1 Esp. (Eng.) 112; Goodall v. Polhill, 14 L. J. C. P. (Eng.) 146; Ex parte Swam, L. R., 6 Eq. (Eng.) 344.