The holder of overdue negotiable paper always takes it subject to all equities existing between the original parties. The mere fact that the bill or note was not paid when due constitutes sufficient notice to put the holder on his guard."

" Down vs. Halling, 4 B. & C., 330; 10 E. C. L., 347; Morgan v8. United States, 113 U. S., 476; Towner vs. McClelland, 110

Ill., 542; Hinckley vs. Union Pac. R. Co., 129 Mass. 52; 37 Am. Rep., 297.

Vol. IX.-4

CHAPTER VII.

PRESENTMENT AND PROTEST.*

SECTION 34. PRESENTMENT IN GENERAL.

There are two presentments to be made by the holder of a bill of exchange, the presentment for acceptance and the presentment for payment. The former is properly made any day before the day of maturity of the bill is reached; the latter, the presentment for payment, is properly made on the day of the maturity of the bill. Where the right of presentment for acceptance is delayed until the day of maturity, then the right to present for acceptance is merged in the right to demand payment. The only presentment to be made of a promissory note is the presentment for payment. Presentment for acceptance and payment is a prerequisite to charge the persons secondarily liable on the bill of exchange, and presentment of a note at maturity for the payment of the same is necessary to charge those secondarily liable on the note.

SECTION 35. ESSENTIALS OF PRESENTMENT FOR AC

CEPTANCE.

In connection with the subject of presentment for acceptance it is necessary to consider by whom and to whom presentment should be made; the place of presentment; and the manner of presentment; the time of presentment; and when presentment would be necessary. It may be said, then, that presentment should be made by the holder in person or by his duly authorized agent. The presentment should be made

• Chapter VII is written by Shelley B. Neltnor.

to the drawee or his duly authorized agent. A bill drawn against a partnership firm may be presented to any one of the partners, but a bill drawn against several persons not doing business as partners should be presented to them all, but if the first person to whom it is presented refuses to accept, this would render the acceptance by the other of no avail; so it would seem that the dishonor by the first presentment and demand would give the holder the right to treat it as a dishonor.' Where the presentment and demand are made to the agent of the drawee care should be exercised by the drawer in determining whether the agent's authority extends to the acceptance or non-acceptance of the paper.

As to place of presentment for acceptance; it may be made either at the drawee's place of business, if he has a place of business, or at his domicile. As to the manner of presentment, it may be said the holder on making presentment should have the bill in his possession and should exhibit it and should demand the acceptance of the same. This is only fair to the drawee, as he may then determine whether under the circumstances of the matter he will choose to elect to accept or not to accept the paper as drawn. If, however, the drawee does not ask to see the bill, a failure to exhibit it would not on that account discharge the drawer and indorsers on the bill having been protested for dishonor.3

When a bill is made payable at a stated number of days after sight, or at sight, it should be presented within a reasonable time or without unreasonable delay. A bill of exchange payable on demand does not require Story on Bills and Notes, Sec.

229.

Fall River Union Bank vs. Wil

lard, 5 Metc., 216.

Fisher vs. Beckwith, 19 Vt., 31.

presentment for acceptance. Presentment for acceptance should be made when presented at the place of business of the drawee during business hours. Presentment at a bank should be during banking hours. If presentment is made at the house, then a presentment made any time before bed time, the hour of retiring, is good.

The hour of presentment is only material where no answer is received. If an answer is actually received at any hour, the presentment will then be good."

Bills payable on demand, or those instruments which are made payable a number of days after date, or bills payable on a day certain, need not be presented for acceptance; a presentment for payment alone is required.'

It is, however, the better practice to present a bill for acceptance even though it is payable at a future day certain, as in this way it can be easily ascertained whether it will be honored, and also to secure the acceptor's liability.

SECTION 36.

PRESENTMENT FOR PAYMENT.

Anyone who is a bona fide holder of a promissory note, or a bill of exchange, may present it for payment on the maturity of the paper. But the possession of paper by one person which is unindorsed, where it is made payable to the order of another, would not give the holder a right to demand payment as a bona fide holder.'

Where the holder can, however, show by extraneous evidence his ownership of the paper, as for instance

• Townsley vs. Sumrall, 2 Pet., 170. • Skelton vs. Dustin, 92 Ill., 49. Story on Bills, Sec. 237. Batchellor vs. Priest, 12 Pick., 399.

• Daniels on Negotiable Instruments, Vol. 1, Sec. 454.

• Doubleday vs. Kress, 50 N. Y., 413; Barnett vs. Ringgold, 80 Ky., 289.