NEGOTIABLE INSTRUMENTS LAW

L. 1909, Ch. 43. “An Act in relation to negotiable instruments, constituting chapter thirty-eight of the Consolidated Laws.”

(In effect February 17, 1909.)

CHAPTER 38 OF THE CONSOLIDATED LAWS

[Formerly L. 1897, Ch. 612, being chapter 50 of the General Laws.] Article 1. Short title; definitions (§§ 1, 2).

2. General provisions (§§ 3-7).

3. Form and interpretation (§§ 20-42).
4. Consideration (§§ 50-55).

5. Negotiation (§§ 60-80).

6. Rights of holder (§§ 90-98).

7. Liabilities of parties (§§ 110-119).

8. Presentment for payment (§§ 130-148).

9. Notice of dishonor (§§ 160-189).

10. Discharge (§§ 200-206).

11. Bills of exchange; form and interpretation (§§ 210

215).

12. Acceptance (§§ 220-230).

13. Presentment for acceptance (§§ 240-248).

14. Protest (§§ 260-268).

15. Acceptance for honor (§§ 280-289).

16. Payment for honor (§§ 300-306).

17. Bills in sets (§§ 310-315).

18. Promissory notes and checks (§§ 320-326).

19. Notes given for patent rights and for a speculative consideration (§§ 330–332).

20. Laws repealed; when to take effect (§§ 340–341).

ARTICLE 1

Short Title; Definitions

Section 1. Short title.

2. Definitions.

Explanation. For location and disposition of former sections of the Negotiable Instruments Law see L. 1897, Ch. 612, in Consolidated Schedule of Repeals," Vol. 7.

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§ 2. Definitions. In this chapter, unless the context otherwise requires:

"Acceptance" means an acceptance completed by delivery or notification.

"Action" includes counter-claim and set-off.

"Bank" includes any person or association of persons carrying on the business of banking, whether incorporated or not.

"Bearer " means the person in possession of a bill or note which is payable to bearer.

"Bill" means bill of exchange, and "note" means negotiable promissory note.

"Delivery" means transfer of possession, actual or constructive, from one person to another.

"Holder" means the payee or indorsee of a bill or note, who is in possession of it, or the bearer thereof.

"Indorsement" means an indorsement completed by delivery. "Instrument means negotiable instrument.

"Issue" means the first delivery of the instrument, complete in form, to a person who takes it as a holder.

"Person" includes a body of persons, whether incorporated or

not.

"Value" means valuable consideration.

"Written" includes printed, and "writing" includes print. Formerly L. 1897, ch. 612, § 2.

ARTICLE 2

General Provisions

Section 3. Person primarily liable on instrument. 4. Reasonable time, what constitutes.

5. Time, how computed; when last day falls on holiday. 6. Application of chapter.

7. Law merchant; when governs.

The

§ 3. Person primarily liable on instrument. person "primarily " liable on an instrument is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are "secondarily" liable.

Formerly L. 1897, ch. 612, § 3.

Arts. 2, 3

Form and Interpretation.

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§ 4. Reasonable time, what constitutes. In determining what is a "reasonable time" or an "unreasonable time" regard is to be had to the nature of the instrument, the usage of trade or business (if any) with respect to such instruments, and the facts of the particular case.

Formerly L. 1897, ch. 612, § 4.

§ 5. Time, how computed; when last day falls on holiday. Where the day, or the last day, for doing any act herein required or permitted to be done falls on Sunday or on a holiday, the act may be done on the next succeeding secular or business day.

Formerly L. 1897, ch. 612, § 5.

§ 6. Application of chapter. The provisions of this chapter do not apply to negotiable instruments made and delivered pric: to October first, eighteen hundred and ninety-seven.

Formerly L. 1897, ch. 612, § 6.

87. Law merchant; when governs. In any case not provided for in this chapter the rules of the law merchant shall

govern.

Formerly L. 1897, ch. 612, § 7.

ARTICLE 3

Form and Interpretation

Section 20. Form of negotiable instrument.
21. Certainty as to sum; what constitutes.

22. When promise is unconditional.

23. Determinable future time; what constitutes.
24. Additional provisions not affecting negotiability.
25. Omissions; seal; particular money.

26. When payable on demand.

27. When payable to order.
28. When payable to bearer.
29. Terms, when sufficient.
30. Date, presumption as to.
31. Ante-dated and post-dated.
32. When date may be inserted.
33. Blanks; when may be filled.

34. Incomplete instrument not delivered.

35. Delivery; when effectual; when presumed.

36. Construction where instrument is ambiguous.

37. Liability of person signing in trade or assumed name.