rights as regards all prior parties, and he may strike out his own and all subsequent indorsements, and again negotiate the instrument, except (1) where it is payable to the order of the third person and has been paid by the drawer; and (2) where it was made or accepted for accommodation and has been paid by the party accommodated.

1899, c. 733, s. 121.

2272. Holder may renounce in writing his rights against any party. The holder may expressly renounce his rights against any party to the instrument before, at or after its maturity. An absolute and unconditional renunciation of his rights against the principal debtor made at or after the maturity of the instrument discharges the instrument. But a renunciation does not affect the rights of a holder in due course without notice. A renunciation must be in writing, unless the instrument is delivered up to the person primarily liable thereon.

1899, c. 733, s. 122.

2273. Cancellation by mistake inoperative. A cancellation made unintentionally or under a mistake or without the authority of the holder is inoperative, but where an instrument or any signature thereon appears to have been cancelled the burden of proof lies on the party who alleges that the cancellation was made unintentionally or under a mistake or without authority.

1899, c. 733, s. 123.

2274. Material alteration without assent avoids. Where a negotiable instrument is materially altered without the assent of all parties liable thereon, it is avoided except as against a party who has himself made, authorized or assented to the alteration and subsequent indorsers. But when an instrument has been materially altered and is in the hands of a holder in due course not a party to the alteration he may enforce payment thereof according to its original tenor.

1899, c. 733, s. 124.

2275. Material alteration defined. Any alteration which changes (1) the date; (2) the sum payable either for principal or interest; (3) the time or place of payment; (4) the number or the relation of the parties; (5) the medium or currency in which payment is to be made; or which adds a place of payment where no place of payment is specified, or any other change or addition which alters the effect of the instrument in any respect, is a material alteration. 1899, c. 733, s. 125.

XII. BILLS, FORM AND INTERPRETATION.

2276. Bills defined. A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer.

1899, c. 733, s. 126.

2277. Not assignment of fund. A bill of itself does not operate as an assignment of the funds in the hands of the drawce available for the payment thereof, and the drawee is not liable on the bill unless and until he accepts the same.

1899, c. 733, s. 127.

2278. May be addressed to two or more drawees jointly but not in alternative. A bill may be addressed to two or more drawees jointly, whether they are partners or not, but not to two or more drawees in the alternative or in succession.

1899, c. 733, s. 128.

2279. Inland bill defined. An inland bill of exchange is a bill which is or on its face purports to be both drawn and payable within this state. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill the holder may treat it as an inland bill.

1899, c. 733, s. 129.

2280. When holder may treat as bill or note. Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument at his option, either as a bill of exchange or a promissory note.

1899, c. 733, s. 130.

2281. Referee in case of need. The drawer of a bill and any endorser may insert thereon the name of a person to whom the holder may resort in case of need: that is to say, in case the bill is dishonored by nonacceptance or nonpayment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not, as he may see fit. 1899, c. 733, s. 131.

XIII. ACCEPTANCE.

2282. Defined. The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. The acceptance

must be in writing and signed by the drawer. It must not express that the drawee will perform his promise by any other means than the payment of money.

1899, c. 733, s. 132.

2283. Must be written on bill. The holder of a bill presenting the same for acceptance may require that the acceptance be written on the bill, and if such request is refused, may treat the bill as dishonored.

1899, c. 733, s. 133.

2284. Effect of, on paper other than bill. Where an acceptance is written on a paper other than the bill itself it does not bind the acceptor except in favor of a person to whom it is shown and who, on the faith thereof, receives the bill for value.

1899, c. 733, s. 134.

2285. Unconditional promise in writing to accept valid, when. An unconditional promise in writing to accept a bill before it is drawn is deemed an actual acceptance in favor of every person who, upon the faith thereof, receives the bill for value.

1899, c. 733, s. 135.

2286. Twenty-four hours allowed drawee to accept. The drawee is allowed twenty-four hours after presentment in which to decide whether or not he will accept the bill, but the acceptance, if given, dates as of the day of presentation.

1899, c. 733, s. 136.

2287. Destruction of, or failure to return, bill deemed acceptance. Where a drawee to whom a bill is delivered for acceptance destroys the same or refuses within twenty-four hours after such delivery, or within such other period as the holder may allow, to return the bill accepted or nonaccepted to the holder, he will be deemed to have accepted the same.

1899, c. 733, s. 137.

2288. May be accepted before signed, when overdue, etc. A bill may be accepted before it has been signed by the drawer or while otherwise incomplete, or when it is overdue, or after it has been dishonored by a previous refusal to accept, or by nonpayment. But when a bill payable after sight is dishonored by nonacceptance and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of the first presentment.

1899, c. 733, s. 138.

2289. General and qualified. An acceptance is either general or qualified. A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

1899, c. 733, s. 139.

2290. What is general. An acceptance to pay at a particular place is a general acceptance unless it expressly states that the bill is to be paid there only and not elsewhere.

1899, c. 733, s. 140.

2291. What is qualified. An acceptance is qualified which is (1) conditional; that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated; (2) partial; that is to say, an acceptance to pay part only of the amount for which the bill is drawn; (3) local; that is to say, an acceptance to pay only at a particular place; (4) qualified as to time; (5) the acceptance of some one or more of the drawees, but not of all.

1899, c. 733, s. 141.

2292. Holder may refuse qualified acceptance and treat bill as dishonored. The holder may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance he may treat the bill as dishonored by nonacceptance. When a qualified acceptance is taken the drawer and endorsers are discharged from liability on the bill unless they have expressly or impliedly authorized the holder to take a qualified acceptance or subsequently assent thereto. When the drawer or an indorser receives notice of a qualified acceptance he must, within a reasonable time, express his dissent to the holder or he will be deemed to have assented thereto. 1899, c. 733, s. 142.

XIV. PRESENTMENT FOR ACCEPTANCE.

2293. Necessary, in what cases. Presentment for acceptance must be made (1) where the bill is payable after sight, or in any other case where presentment for acceptance is necessary in order to fix the maturity of the instrument; or (2) where the bill expressly stipulates that it shall be presented for acceptance; or (3) where the bill is drawn payable elsewhere than at the residence or place of business of the drawee. In no other case is presentment for acceptance necessary in order to render any party to the bill liable. 1899, c. 733, s. 143.

2294. Failure to present in reasonable time discharges drawee and indorsers. Except as herein otherwise provided the holder of a bill which is required by the next preceding section to be presented for acceptance must either present it for acceptance or negotiate it within a reasonable time. If he fail to do so the drawee and all indorsers are discharged.

1899, c. 733, s. 144.

2295. How made. Presentment for acceptance must be made by or on behalf of the holder, at a reasonable hour on a business day and before the bill is overdue, to the drawee or some person authorized to accept or refuse acceptance on his behalf; and (1) where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all unless one has authority to accept or refuse acceptance for all, in which case presentment may be made to him only; (2) where the drawee is dead presentment may be made to his personal representative; (3) where the drawee has been adjudged a bankrupt or an insolvent or has made an assignment for the benefit of creditors presentment may be made to him or to his trustee or assignee.

1899, c. 733, s. 145.

2296. On what day presented. A bill may be presented for acceptance on any day on which negotiable instruments may be presented for payment under the provisions of this chapter. When Saturday is not a holiday presentment for acceptance may be made before twelve o'clock noon on that day.

1899, c. 733, s. 146.

2297. Excused, when; can not be made before due. Where the holder of a bill drawn payable elsewhere than at the place of business or the residence of the drawee has not time with the exercise of reasonable diligence to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused and does not discharge the drawers and indorsers. 1899, c. 733, s. 147.

2298. Excused and bill treated as dishonored. Presentment for acceptance is excused and a bill may be treated as dishonored by nonacceptance in either of the following cases: (1) Where the drawee is dead or has absconded or is a fictitious person or a person not having capacity to contract by bill; (2) where after the exercise of reasonable diligence presentment can not be made; (3) where, although presentment has been irregular, acceptance has been refused on some ground.

1899, c. 733, s. 148.