Sec. 84. Recourse to Parties Secondarily Liable. Subject to the provisions of this act, when the instrument is dishonored by nonpayment, an immediate right of recourse to all parties secondarily liable thereon accrues to the holder.

Sec. 85. Time of Payment. Every negotiable instrument is payable at the time fixed therein without grace. When the day of maturity falls upon Sunday, or a holiday, the instrument is payable on the next succeeding business day. Instruments falling due on Saturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment before twelve o'clock noon on Saturday when that entire day is not a holiday.

Sec. 86. Id. Where the instrument is payable at a fixed period after date, after sight, or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run, and by including the date of payment.

Sec. 87. Instrument Made Payable at a Bank, Effect of. Where the instrument is made payable at a bank it is equivalent to an order to the bank to pay the same for the account of the principal debtor thereon.

Sec. 88. Payment in Due Course. Payment is made in due course when it is made at or after the maturity of the instrument to the holder thereof in good faith and without notice that his title is defective.

ARTICLE VII.

NOTICE OF DISHONOR.

Sec. 89. Notice of Dishonor. Except as herein otherwise provided, when a negotiable instrument has been dishonored by nonacceptance or non-payment, notice of dishonor must be given to the drawer and to each indorser, and any drawer or indorser to whom such notice is not given is discharged.

Sec. 90. By Whom Given. The notice may be given by or on behalf of the holder, or by or on behalf of any party to the instrument who might be compelled to pay it to the holder, and who, upon taking it up would have a right to reimbursement from the party to whom the notice is given.

Sec. 91. Id. Notice of dishonor may be given by an agent either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not.

Sec. 92. Effect of. Where notice is given by or on behalf of the holder, it inures for the benefit of all subsequent holders and all prior parties who have a right of recourse against the party to whom it is given.

Sec. 93. Id. Where notice is given by or on behalf of a party entitled to give notice, it inures for the benefit of the holder and all parties subsequent to the party to whom notice is given.

Sec. 94. Dishonored in the Hands of an Agent, Notice, How Given. Where the instrument has been dishonored in the hands of an agent, he may either himself give notice to the parties liable thereon, or he may give notice to his principal. If he give notice to his principal, he must do so within the same time as if he were the holder, and the principal upon the receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder.

Sec. 95. Defective Notice, How Cured. A written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication. A misdescription of the instrument does not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.

The notice may

Sec. 96. Notice, Form of and How Served. be in writing or merely oral and may be given in any terms which sufficiently identify the instrument and indicate that it has been dishonored by non-acceptance or non-payment. It may in all cases be given by delivering it personally or through the mails.

Sec. 97. May Be Served on Principal or Agent. Notice of dishonor may be given either to the party himself or to his agent in that behalf.

When any party

Sec. 98. When Party Is Dead, How Served. is dead, and his death is known to the party giving notice, the notice must be given to a personal representative, if there be one, and if with reasonable diligence, he can be found. If there be no personal representative, notice may be sent to the last residence or last place of business of the deceased.

Sec. 99. When Parties Are Partners. Where the parties to be notified are partners, notice to any one partner is notice to the firm even though there has been a dissolution.

Sec. 100. Where Parties Are Joint. Notice to joint parties who are not partners, must be given to each of them unless one of them has authority to receive such notice for the others.

Sec. 101. Where Party is Bankrupt. Where a party has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, notice may be given either to the party himself or to his trustees or assignee.

Sec. 102. Time of Service. Notice may be given as soon as the instrument is dishonored and unless delay is excused as herein before provided, must be given within the time fixed by this act.

Sec. 103. Id. Where the person giving and the person to receive notice reside in the same place, notice must be given within the following times:

I. If given at the place of business of the person to receive notice, it must be given before the close of business hours on the day following.

II. If given at his residence, it must be given before the usual hours of rest on the day following.

III. If sent by mail, it must be deposited in the post office in time to reach him in usual course on the day following.

Sec. 104. Id. Where the person giving and the person to receive notice reside in different places, the notice must be given within the following times:

I. If sent by mail, it must be deposited in the post office in time to go by mail the day following the day of dishonor, or if there be no mail at a convenient hour on that day, by the next mail thereafter.

II. 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.

Sec. 105. Where Notice Deposited in the Post Office. 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.

Sec. 106. Id. 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.

Where a

Sec. 107. Time for Notice of Antecedent Parties. 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.

Sec. 108. Place of Serving Notice. Where a party has added an address to his signature, notice of dishonor must be sent to that address: but if he is not given such address, then the notice must be sent as follows:

I. 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 II. If he lives in one place, and have his place of business in another, notice may be sent to either place; or

III. 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 accordance with the requirements of this section.

Sec. 109. Notice of Dishonor Waived. 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. 110. Waiver in Instrument. 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.

Sec. 111. Waiver of Protest, Effect of. 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 a presentment and notice of dishonor.

Notice

Sec. 112. Notice of Dishonor Dispensed With, When. 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.

Sec. 113. Delay in Giving Notice, Excused When. 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.

Sec. 114. Notice Not Required of Drawer, When. Notice of dishonor is not required to be given to the drawer in either of the following cases:

I. Where the drawer and the drawee are the same person. II. Where the drawee is a fictitious person or a person not having capacity to contract.

III. Where the drawer is the person to whom the instrument is presented for payment.

IV. Where the drawer has no right to expect or require that the drawee or acceptor will honor the instrument.

V. Where the drawer has countermanded payment.

Sec. 115. Notice Not Required of Indorser, When. Notice of dishonor is not required to be given to an indorser in either of the following cases:

I. 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.

II. Where the indorser is the person to whom the instrument is presented for payment.

III. Where the instrument was made or accepted for his accommodation.

Sec. 116. Notice of Dishonor, When Excused. 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.

Sec. 117. Id. An omission to give notice of dishonor by nonacceptance does not prejudice the rights of a holder in due course subsequent to the omission.

Where

Sec. 118. Protest Not Required Except Foreign Bills. 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.

ARTICLE VIII.

DISCHARGE OF NEGOTIABLE INSTRUMENTS.

Sec. 119. Negotiable Instrument Discharged. instrument is discharged:

A negotiable

I. By payment in due course by or on behalf of the principal

debtor.

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

III. By the intentional cancellation thereof by the holder. IV. By any other act which will discharge a single contract for the payment of money.

V. When the principal debtor becomes the holder of the instrument at or after maturity in his own right.

Sec. 120. Persons Secondarily Liable Discharged. secondarily liable on the instrument is discharged:

A person

I. By any act which discharges the instrument.
II. By the intentional cancellation of his signature by the

holder.

III.

By the discharge of a prior party.

IV. By a valid tender of payment made by a prior party.

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

VI. 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.

Where

Sec. 121. Paid by Party Secondarily Liable, Effect of. 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: I. Where it is payable to the order of a third person, and has been paid by the drawer; and

II. Where it was made or accepted for accommodation and has been paid by the party accommodated.

Sec. 122. Renunciation of Right Against Party, Effect of. 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.

Sec. 123. Cancellation by Mistake. 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.

Sec. 124. Alteration, Effect of. 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.