next mail thereafter. 2. If given otherwise than through the post office, then within the time that notice would have been received in due course of mail, if it had been deposited in the post office within the time specified in the last subdivision. Section 105. Where notice of dishonor is duly Placing in addressed and deposited in the post office, the post office sufsender is deemed to have given due notice, not- ficient. withstanding any miscarriage in the mails.

Section 106. Notice is deemed to have been Branch post deposited in the post office when deposited in any office or mail branch post office or in any letter box under the box. control of the post office department.

Section 107. Where a party receives notice of Notice to antedishonor, he has, after the receipt of such notice, cedent parties, the same time for giving notice to antecedent parties that the holder has after the dishonor.

time allowed.

Notice of dis

Section 108. Where a party has added an address to his signature, notice of dishonor must honor, how be sent to that address; but if he is not given sent. such address, then the notice must be sent as follows: 1, Either to the post office nearest to his place of residence, or to the post office 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, tho not sent in accordance with the requirements of this section.

Section 109. Notice of dishonor may be Notice may be waived, either before the time of giving notice waived. has arrived, or after the omission to give due notice, and the waiver may be express or implied. Section 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.

Who bound by waiver.

Section 111. A waiver of protest, whether in Effect of waivthe case of a foreign bill of exchange or other ne-er of protest.

When notice dispensed with.

Delay, when executed.

When notice

not required to be given drawee.

When notice not required to be given indorser.

Notice of dis

honor by non

gotiable instrument, it is deemed to be a waiver not only of a formal protest but also a presentment and notice of dishonor.

Section 112. Notice of dishonor is dispensed with, when after the exercise of reasonable diligence, it cannot be given to or does not reach the parties sought to be charged.

Section 113. 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 negli gence. When the causes of delay cease to operate, notice must be given with reasonable diligence.

Section 114. 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 a 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.

Section 115. 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 instru ment was made or accepted for his accommodation.

Section 116. Where due notice of dishonor by non-acceptance has been given, notice of a subse quent dishonor by non-payment is not necessary notice not nec- unless in the mean time the instrument has been

acceptance. Subsequent

essary; excep

tion.

Effect of omission.

accepted.

Section 117. 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.

after dis

Section 118. Where any negotiable instru- Protest for ment has been dishonored it may be protested for non-payment non-acceptance or non-payment as the case may honor. be; but protest is not required, except in the case

of foreign bills of exchange.

ment dis

Section 119. A negotiable instrument is dis- When instrucharged: 1. By payment in due course by or on charged. 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.

Section 120. A person secondarily liable on When person secondarily the instrument is discharged: 1. By an act which liable disdischarges the instrument. 2. By intentional charged. 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 holders 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.

party secon

Section 121. Where the instrument is paid by a party secondarily liable thereon, it is not dis. Payment by charged, but the party so paying it is remitted to darily liable, his former rights as regards all prior parties, and effect of. 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, it has been paid by the party accommodated.

Renunciation of rights.

Cancellation by mistake, etc.

Material alteration.

Material alteration, what constitutes.

Bill of exchange.

Section 122. 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 instru ment. 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.

Section 123. 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.

Section 124. 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 where 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.

Section 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.

Section 126. A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requir ing 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.

Section 127. A bill of itself does not operate. Does not operas an assignment of the funds in the hands of the ate as assigndrawee available for the payment thereof and the ment until acdrawee is not liable on the bill unless and until cepted.

he accepts the same.

Section 128. A bill may be addressed to two Addressed to or more drawees jointly, whether they are part-two parties. ners or not; but not to two or more drawees in

the alternative or in succession.

Section 129. An inland bill of exchange is a Inland bill. 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 ap- Foreign bill. pears on the face of the bill, the holder may treat it as an inland bill.

person; how treated.

Section 130. Where in a bill drawer and Drawer and drawee are the same person or where the drawee drawee same 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.

Section 131. 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 non-acceptance 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.

Referee.

Acceptance of

Section 132. The acceptance of a bill is the signification by the drawee of his assent to the bill. 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. Section 133. The holder of a bill presenting the same for acceptance may require that the ac-written on ceptance be written on the bill, and if such re-bill. quest is refused, may treat the bill as dishonored.

Acceptance