§ 105. Notice by mail; sufficiency. Where notice of dishonor is duly addressed and deposited in the post office, the sender is deemed to have given due notice, notwithstanding any miscarriage in the mails. (Acts 1907, Reg. Sess., c. 81.)

§ 106. Notice is deemed to have been deposited in the post office when deposited in any branch post office or in any letter box under the control of the post office department. (Acts 1907, Reg. Sess., c. 81.)

§ 107. Time for notice by party receiving notice of dishonor.— Where a party receives notice of dishonor, he has, after the receipt of such notice, the same time for giving notice to antecedent parties that the holder has after the dishonor. (Acts 1907, Reg. Sess., c. 81.)

§ 108. Address to which notice sent.--Where a party has added an address to his signature, notice of dishonor must be sent to that address; but if he has not given such address, then the notice must be sent as follows: (1) either to the postoffice nearest to his place of residence or to the postoffice where he is accustomed to receive his letters; or (2) if he lives in one place, and have his place of business in another, notice may be sent to either place; or (3) if he is sojourning in another place, notice ! may be sent to the place where he is sojourning; but where the notice is actually received by the party within the time specified in this act, it will be sufficient, though not sent in accordance with the requirements of this section. (Acts 1907, Reg. Sess., c. 81.)

§ 109. Waiver of notice. Notice of dishonor may be waived, either before the time of giving notice has arrived, or after the omission to give due notice, and the waiver may be express or implied. (Acts 1907, Reg. Sess., c. 81.)

§ 110. Where the waiver is embodied in the instrument itself, it is binding upon all parties; but where it is written above the signature of an indorser it binds him only. (Acts 1907, Reg. Sess., c. 81.)

§ 111. A waiver of protest whether in the case of a foreign bill of exchange or, other negotiable instrument, is deemed to be

waiver not only of the formal protest, but also of a presentment and notice of dishonor. (Acts 1907, Reg. Sess., c. 81.)

§ 112. When notice dispensed with.-Notice of dishonor is dispensed with when, after the exercise of reasonable diligence, it can not be given to or does not reach the parties sought to be charged. (Acts 1907, Reg. Sess., c. 81.)

§ 113. When delay in giving notice excused.-Delay in giving notice of dishonor is excused when the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, notice must be given with reasonable diligence. (Acts 1907, Reg. Sess., c. 81.)

§ 114. When notice to drawer not required.-Notice of dishonor is not required to be given to the drawer in either of the following cases: (1) Where the drawer and the drawee are the same person; (2) where the drawee is a fictitious person or a person not having capacity to contract; (3) where the drawer is the person to whom the instrument is presented for payment; (4) where the drawer has no right to expect or require that the drawee or acceptor will honor the instrument; (5) where the drawer has countermanded payment. (Acts 1907, Reg. Sess., c. 81.)

§ 115. When notice to indorser not required.-Notice of dishonor is not required to be given to an indorser in either of the following cases: (1) where the drawee is a fictitious person or a person not having capacity to contract and the indorser was aware of the fact at the time he indorsed the instrument; (2) where the indorser is the person to whom the instrument is presented for payment; (3) where the instrument was made or accepted for his accommodation. (Acts 1907, Reg. Sess., c. 81.)

§ 116. Dishonor by non-acceptance; notice of subsequent dishonor by non-payment unnecessary.-Where due notice of dishonor by non-acceptance has been given, notice of a subsequent dishonor by non-payment is not necessary, unless in the meantime the instrument has been accepted. (Acts 1907, Reg. Sess., c. 81.)

117. Same: omission to give notice.-An omission to give notice of dishonor by non-acceptance does not prejudice the rights of a holder in due course subsequent to the omission. (Acts 1907, Reg. Sess., c. 81.)

118. Protest for non-acceptance or non-payment. Where any negotiable instrument has been dishonored it may be protested for non-acceptance, or non-payment as the case may be; but protest is not required except in the case of foreign bills of exchange; and where protest of any negotiable instrument is made, the certificate of protest shall be prima facie evidence of what is stated therein or on the foot or on the back thereof in relation to the presentment, dishonor and notice thereof. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE VIII.-DISCHARGE OF NEGOTIABLE INSTRUMENTS.

$119. How instruments discharged.-A negotiable instrument is discharged (1) by payment in due course by or on behalf of the principal debtor; (2) by payment in due course by the party accommodated, where the instrument is made or accepted for accommodation; (3) by the intentional cancellation thereof by the holder; (4) by any other act which will discharge a simple contract for the payment of money; (5) when the principal debtor becomes the holder of the instrument at or after maturity in his own right. (Acts 1907, Reg. Sess., c. 81.)

§ 120. How persons secondarily liable discharged. A person secondarily liable on the instrument is discharged (1) by any act which discharges the instrument; (2) by the intentional cancellation of his signature by the holder; (3) by the discharge of a prior party; (4) by a valid tender of payment made by a prior party; (5) by a release of the principal debtor, unless the holder's right of recourse against the party secondarily liable is expressly reserved; (6) by any agreement binding upon the holder to extend the time of payment, or to postpone the holder's right to enforce the instrument, unless made with the assent of the party secondarily liable or unless the right of recourse against such party is expressly reserved. (Acts 1907, Reg Sess., c. 81.)

§ 121. Payment by party secondarily liable.--When the instrument is paid by a party secondarily liable thereon, it is not

discharged; but the party so paying it is remitted to his former 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 a 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. (Acts 1907, Reg. Sess., c. 81.)

§ 122. Renunciation of rights by holder. 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. (Acts 1907, Reg. Sess., c. 81.)

§ 123. Cancellation. 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. (Acts 1907, Reg. Sess., c. 81.)

§ 124. Material alteration. Where a negotiable instrument is materially altered without the assent of all parties liable thereon, it is avoided except as against the 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 the holder in due course, not a party to the alteration, he may enforce payment thereof according to its original tenor. (Acts 1907, Reg. Sess., c. 81.)

§ 125. 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 relations 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. (Acts 1907, Reg. Sess., c. 81.)

Title II.-Bills of Exchange.

ARTICLE I.-FORM AND INTERPRETATION.

§ 126. Definition. 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, determinable future time, a sum certain in money to order or to bearer. (Acts 1907, Sess., c. 81.)

§ 127. Bill not assignment of fund.-A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for the payment thereof, and the drawee is not liable on the bill unless and until he accepts the same. (Acts 1907, Reg. Sess., c. 81.)

§ 128. Bill addressed to several drawees. 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. (Acts 1907, Reg. Sess., c. 81.)

§ 129. What are inland and foreign bills.-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. (Acts 1907, Reg. Sess., c. 81.)

§ 130. When bill may be treated as promissory 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. (Acts 1907, Reg. Sess., c. 81.)

§ 131. Referee in case of need. The drawer of a bill and any indorser 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 non-payment: 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. (Acts 1907, Reg. Sess., c. 81.)