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The People of the State of Michigan enact :

SECTION 1. Any person, firm or corporation authorized by Use of highways the laws of this State to conduct the business of producing mission of and supplying electricity for purposes of lighting, heating electricity. and power, and which shall be engaged or which shall here. after desire to engage in the business of the transmission of such electricity, shall have the right to construct and maintain lines of poles and wires for use in the transmission and distribution of electricity on, along or across any public streets, alleys and highways and over, under or across any of the waters of this State, and to construct and maintain in any such public streets, alleys or highways all such erections and appliances as shall be necessary to transform, convert and apply such electricity to the purposes of lighting, heating and power, and to distribute and deliver the same to the persons, firms and public or private corporations using the same: Provided, That the same shall not injuriously interfere with Proviso, not to other public uses of such streets, alleys or highways, or with other public the navigation of said waters, and that the designation and uses. location of all lines of poles and wires shall be subject to the Location, by regulation, direction and approval of the common council of

whom granted. cities, the village council of villages, and the township board of townships, as the case may be: Provided, That this act Proviso as to shall not apply to the county of Wayne: Provided further, Further proviso. That nothing herein shall deprive cities, villages or townships of the power and control over their streets and highways, which they have by the general laws of this State.

This act is ordered to take immediate effect.
Approved June 16, 1905.

[No. 265.]

AN ACT relating to negotiable instruments.

The People of the State of Michigan enact:

SECTION 1. This act shall be known as the “Negotiable "Negotiable

Instruments instruments law."

Law."

GENERAL PROVISIONS.

SEC. 2. In this act, unless the context otherwise requires : Certain words "Acceptance" means an acceptance completed by delivery or

defined notification. “Action” includes counterclaim 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 per-
son to another. “Holder" means the payee or endorsee 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. The person "primarily” liable on
an instrument is the person who by the terms of the instru-
ment is absolutely required to pay the same. All other par-
ties are "secondarily” liable. In determining what is
“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. 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. The provisions of
this act do not apply to negotiable instruments made and
delivered prior to the passage hereof. In any case not pro-
vided for in this act the rules of the law merchant shall gov-
ern.

a

Act, when not applicable.

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Instrument,

Sec. 3. An instrument, to be negotiable, must conform to when negotiablethe following requirements:

First, It must be in writing and signed by the maker or drawer;

Second, It must contain an unconditional promise or order to pay a certain sum in mouey ;

Third, It must be payable on demand or at a fixed or determinable future time;

Fourth, It must be payable to order or to bearer; and

Fifth, Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reason

able certainty. Sum payable. SEC. 4. The sum payable is a sum certain within the mean

ing of this act, although it is to be paid:

First, With interest; or
Second, By stated installments; or

Third, By stated installments, with a provision that upon default in payment of any installment or of interest the whole shall become due; or

Fourth, With exchange, whether at a fixed rate or at the current rate; or

Fifth, With costs of collection or an attorney's fee, in case payment shall not be made at maturity.

Sec. 5. An unqualified order or promise to pay is uncon- When promise to ditional within the meaning of this act, though coupled with : Piomis. uncondi

First, An indication of a particular fund out of which reimbursement is to be made, or a particular account to be debited with the amount; or

Second, A statement of the transaction which gives rise to the instrument.

But an order or promise to pay out of a particular fund is not unconditional.

Sec. 6. An instrument is payable at a determinable future Instrument, time, within the meaning of this act, which is expressed to when payablo. be payable:

First, At a fixed period after date or sight; or

Second, On or before a fixed or determinable future time specified therein; or

Third, On or at a fixed period after the occurrence of a specified event, which is certain to happen, though the time of happening be uncertain.

An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the defect. Sec. 7. An instrument which contains an order or promise when not

negotiable. to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which :

First, Authorizes the sale of collateral securities in case the instrument be not paid at maturity; or

Second, Authorizes a confession of judgment if the instrument be not paid at maturity; or

Third, Waives the benefit of any law intended for the advantage or protection of the obligor; or

Fourth, Gives the holder an election to require something to be done in lieu of payment of money.

But nothing in this section shall validate any provision or stipulation otherwise illegal. Sec. 8. The validity and negotiable character of an in- When validity.

etc., not affected. strument are not affected by the fact that:

First, It is not dated; or

Second, Does not specify the value given, or that any value has been given therefor; or

Third, Does not specify the place where it is drawn or the place where it is payable; or

Fourth, Bears a seal; or Fifth, Designates a particular kind of current money in which payment is to be made.

But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the consideration to be stated in the instrument. Sec. 9. An instrument is payable on demand :

When payable First, When it is expressed to be payable on demand, or at on demand. sight, or on presentation; or

When payable to order.

When payable to bearer

Second, in which no time for payment is expressed.

Where an instrument is issued, accepted, or indorsed when overdue, it is, as regards the person so issuing, accepting, or indorsing it, payable on demand.

SEC. 10. The instrument is payable to order where it is drawn payable to the order of a specified person or to him or his order. It may be drawn payable to the order of:

First, A payee who is not maker, drawer, or drawee; or
Second, The drawer or maker; or
Third, The drawee; or
Fourth, Two or more payees jointly; or
Fifth, One or some of several payees; or
Sixth, The holder of an office for the time being.

Where the instrument is payable to order, the payee must be named or otherwise indicated therein with reasonable certainty.

Sec. 11. The instrument is payable to bearer:
First, When it is expressed to be so payable; or

Second, When it is payable to a person named therein or bearer; or

Third, When it is payable to the order of a fictitious or nonexisting person, and such fact was known to the person making it so payable; or

Fourth, When the name of the payee does not purport to be the name of any person; or

Fifth, When the only or last indorsement is an indorsement in blank.

SEC. 12. The instrument need not follow the language of this act, but any terms are sufficient which clearly indicate an intention to conform to the requirements hereof.

Sec. 13. Where the instrument or an acceptance or any indorsement thereon is dated, such date is deemed prima facie to be the true date of the making, drawing, acceptance, or indorsement, as the case may be.

SEC. 14. The instrument is not invalid for the reason only that it is antedated or postdated, provided this is not done for an illegal or fraudulent purpose. The person to whom an instrument so dated is delivered acquires the title thereto as of the date of delivery.

Sec. 15. Where an instrument expressed to be payable at a fixed period after date is issued undated, or where the acceptance of an instrument payable at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the instrument shall be payable accordingly. The insertion of a wrong date does not avoid the instrument in the hands of a subsequent holder in due course; but as to him, the date so inserted is to be regarded as the true date.

Sec. 16. Where the instrument is wanting in any material particular, the person in possession thereof has a prima facie authority to complete it by filling up the blanks therein.

Form of.

Evidence of indorse nent, etc.

Post and antedated instruments not invalid.

Dating of instrument.

Authority to complete.

paper.

,

And a signature on a blank paper delivered by the person Signature to making the signature, in order that the paper may be con

blank verted into a negotiable instrument, operates as a prima facie authority to fill it up as such for any amount. In order, Enforcement of

when completed. however, that any such instrument, when completed, may be enforced against any person who became a party thereto prior to its completion, it must be filled up strictly in accordance with the authority given, and within a reasonable time; but if any such instrument, after completion, is negotiated to a holder in due course, it is valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up strictly in accordance with the authority given, and within a reasonable time.

Sec. 17. Where an incomplete instrument has not been de- Incomplete livered it will not, if completed and negotiated, without when nota authority, be a valid contract in the hands of any holder, valid contract. as against any person whose signature was placed thereon before delivery.

SEC. 18. Every contract on a negotiable instrument is Delivery. incomplete and revocable until delivery of the instrument for the purpose of giving effect thereto. As between immediate parties, and as regards a remote party other than a holder in due course, the delivery, in order to be effectual, must be made either by or under the authority of the party making, drawing, accepting, or indorsing, as the case may be; and in such case the delivery may be shown to have been conditional, or for a special purpose only, and not for the purpose of transferring the property in the instrument. But where the instrument is in the hands of a holder in due course, a valid delivery thereof by all the parties prior to him, so as to make them liable to him, is conclusively presumed. And where the instrument is no longer in the possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved.

Sec. 19. Where the language of the instrument is an- Doubtful wording, biguous, or there are omissions therein, the following rules

construction on. of construction apply:

First, Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the sum payable; but if the words are ambiguous or uncertain, reference may be had to the figures to fix the amount;

Second, Where the instrument provides for the payment of interest, without specifying the date from which interest is to run, the interest runs from the date of the instrument, and if the instrument is undated, from the issue thereof;

Third, Where the instrument is not dated, it will be considered to be dated as of the time it was issued;

Fourth, Where there is conflict between the written and printed provisions of the instrument, the written provisions prevail;

rules of

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