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Effect of waiver.

how deemed.

Time allowed SEC. 109. Where a party receives notice of dishonor he has, party receiving notice.

after the receipt of such notice, the same time for giving notice

to antecedent parties that the holder has after the dishonor. Notice, where Sec. 110. Where a party has added an address to his signaaddressed.

ture, 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:

First, Either to the postoffice nearest to his place of residence, or to the postoffice where he is accustomed to receive his letters; or

Second, If he live in one place and have his place of business in another, notice may be sent to either place; or

Third, If he is sojourning in another place, notice may be . sent to the place where he is so 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 accord

ance with the requirements of this section. Waiver of notice. SEC. 111. 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.

Sec. 112. Where the waiver is embodied in the instrument itself, it is binding upon all parties; but where it is written

above the signature of the indorser, it binds him only. Waiver of protest, SEC. 113. A waiver of protest, whether in the case of a

foreign bill of exchange or other negotiable instrument, is deemed to be a waiver not only of a formal protest, but also of presentment and notice of dishonor.

Sec. 114. Notice of dishonor is dispensed with when, after dishonor, when dispensed with.

the exercise of reasonable diligence, it cannot be given to, or

does not reach, the parties sought to be charged. Delay of notice, SEC. 115. Delay in giving notice of dishonor is excused when 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. Notice of

SEC. 116. Notice of dishonor is not required to be given to dishonor to drawer, when

the drawer in either of the following cases : not required. First, where the drawer and drawee are the same person;

Second, Where the drawee is a fictitious person or a person not having capacity to contract;

Third, Where the drawer is the person to whom the instrument is presented for payment;

Fourth, Where the drawer has no right to expect or require that the drawee or acceptor will honor the instrument; or

Fifth, Where the drawer has countermanded payment. Notice of SEC. 117. Notice of dishonor is not required to be given to dishonor to indorser, when

an indorser in either of the following cases : not required.

First, 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;

Second, Where the indorser is the person to whom the instrument is presented for payment; or

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Third, Where the instrument was made or accepted for his accommodation.

Sec. 118. Where due notice of dishonor by non-acceptance Notice of, by has been given, notice of a subsequent dishonor by non-pay.

non-acceptance,

subsequent ment is not necessary, unless in the meantime the instrument notice not has been accepted.

SEC. 119. An omission to give notice of dishonor by non- Effect of acceptance does not prejudice the rights of a holder in due notice by course subsequent to the omission.

non-acceptance. Sec. 120. Where any negotiable instrument has been dis- When protest honored it may be protested for non-acceptance or non-pay

not required. ment, as the case may be; but protest is not required, except in the case of foreign bills of exchange.

Article VIII. Discharge of Vegotiable Instruments.

Sec. 121. A negotiable instrument is discharged:

How instrument First, By payment in due course by or on behalf of the discharged. principal debtor;

Second, By payment in due course by the party accommodated, where the instrument is made or accepted for accommodation;

Third. By the intentional cancellation thereof by the holder;

Fourth, By any other act which will discharge a simple contract for the payment of money ; • Fifth, When the principal debtor becomes the holder of the instrument at or after maturity in his own right. Sec. 122. A person secondarily liable on the instrument is When person

secondarily liable discharged:

is discharged. First, By any act which discharges the instrument;

Second, By the intentional cancellation of his signature by the holder;

Third, By the discharge of a prior party;

Fourth, By a valid tender of payment made by a prior party;

Fifth, By a release of the principal debtor, unless the holder's right of recourse against the party secondarily liable is expressly reserved;

Sixth, 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.

SEC. 123. Where the instrument is paid by a party secon- Instrument paid darily liable thereon it is not discharged; but the party so pay- secondarily liale, ing it is remitted to his former rights as regards all prior remits party to

. parties, and he may strike out his own and all subsequent endorsements, and again negotiate the instrument, except:

First, Where it is payable to the order of a third person and Exceptions. has been paid by the drawer; and

Second, Where it is made or accepted for accommodation, and has been paid by the party accommodated,

Renunciation of SEC. 124. The holder may expressly renounce his rights an instrument, effect of.

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. Cancellation. SEC. 125. 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. Instrument SEC. 126. Where a negotiable instrument is materially almaterially altered, tered 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. Material

SEC. 127. Any alteration which changes: alteration,

First, The date; what deemed.

Second, The sum payable, either for principal or interest;
Third, The time or place of payment;
Fourth, The number or the relations of the parties;

Fifth, The medium of 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.

TITLE II. BILLS OF EXCHANGE.

Article 1. Form and Interpretation.

Bill of exchange Sec. 128. A bill of exchange is an unconditional order in defined.

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. Not to operate as Sec. 129. A bill of itself does not operate as an assignment funds of drawee. of the funds in the hands of the drawee available for the pay

ment thereof, and the drawee is not liable on the bill unless

and until he accepts the same. How addressed. SEC. 130. 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. Inland bill of

An inland bill of exchange is a bill which is, or exchange.

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.

Sec. 132. Where, in a bill, drawer and drawee are the same When holder may person, or where the drawee is a fictitious person, or a person exchange or note. not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or a promissory note.

SEC. 133. The drawer of a bill and any endorser may insert When name of thereon the name of a person to whom the holder may resort be inserted. 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.

Article II. Acceptance.

SEC. 134. The acceptance of a bill is the signification by Acceptance. the drawee of his assent to the order of the drawer. The acceptance must be in writing and signed by the drawee. It must not express that the drawee will perform his promise by any other means than the payment of money.

Sec. 135. The holder of a bill presenting the same for ac- May require ceptance may require that the acceptance be written on the acceptance bill, and if such request is refused, may treat the bill as dishonored.

Sec. 136. Where an acceptance is written on a paper other Effect of written than the bill itself, it does not bind the acceptor except in papeptather on favor of a person to whom it is shown and who, on the faith than bill. thereof, receives the bill for value.

Sec. 137. An unconditional promise in writing to accept a Unconditional bill before it is drawn is deemed an actual acceptance in favor how deemed. of every person who, upon the faith thereof, receives the bill for value. SEC. 138. The drawee is allowed twenty-four hours after Time allowed to

drawee to accept, presentment in which to decide whether or not he will accept etc. the bill; but the acceptance, if given, dates as of the day of presentation.

Sec. 139. Where a drawee to whom a bill is delivered for When bill acceptance destroys the same, or refuses within twenty-four deemed accepted. hours after such delivery, or within such other period as the holder may allow, to return the bill accepted or non-accepted to the holder, he will be deemed to have accepted the same.

Sec. 140. A bill may be accepted before it has been signed Acceptance before by the drawer, or while otherwise incomplete or when it is signed by drawer. overdue, or after it has been dishonored by a previous refusal to accept, or by non-payment. But when a bill payable after sight is dishonored by non-acceptance and the drawee subse. quently 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.

SEC. 141. An acceptance is either general or qualified. A General and general acceptance assents without qualification to the order acceptance.

General acreptance defined.

Qualified acceptance defined.

of the drawer. A qualified acceptance in express termis varies the effect of the bill as drawn.

Sec. 142. 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.

Sec. 143. An acceptance is qualified, which is:

First, Conditional; that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated;

Second, Partial; that is to say, an acceptance to pay part only of the amount for which the bill is drawn;

Third, Local; that is to say, an acceptance to pay only at a particular place;

Fourth, Qualified as to time;

Fifth, The acceptance of some one or more of the drawees, but not of all.

Sec. 144. 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 non-acceptance. Where 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 endorser 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.

Qualified acceptance, effect of.

Article III. Presentment for Acceptance.

How made.

Discharge of drawer and indorsers.

Sec. 145. Presentment for acceptance must be made:

First, 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

Second, Where the bill expressly stipulates that it shall be presented for acceptance; or

Third, 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.

Sec. 146. 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 drawer and all endorsers are discharged.

Sec. 147. 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

First, 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;

When made, etc.

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