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.

Sec. 125. Id.

I.

II.

III.

IV.

The date.

Any alteration which changes:

The sum payable, either for principal or interest.
The time or place of payment.

The number or the relations of the parties.

V. 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.

Title 2. Bills of Exchange.

ARTICLE I.

FORM AND INTERPRETATION.

Sec. 126. Bills of Exchange. 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 or determinable future time, a sum certain in money to order or to bearer.

Sec. 127. Effect of. 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.

Sec. 128. May Be Addressed to Whom. A bill may be addressed to two or more drawees jointly, whether they are partners or not; but not two or more drawees in the alternative or in succession.

Sec. 129. Inland Bill of Exchange. 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.

Sec. 130. When Bill or 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.

Sec. 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 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. 132. Acceptance of Bill. The acceptance of a bill is the signification by 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. 133. To Be Written on Bill. The holder of a bill presenting the same for acceptance may require that the acceptance be written on the bill, and if such request is refused, may treat the bill as dishonored.

Sec. 134. Where Not Written on Bill. Where an acceptance is written on a paper other than the bill itself, it does not bind the acceptor except in favor of a person to whom it is shown and who, on the faith thereof, receives the bill for value.

Sec. 135. Unconditional Promise to Accept Bill. An unconditional promise in writing to accept a bill before it is drawn is deemed an actual acceptance in favor of every person who, upon the faith thereof, receives the bill for value.

Sec. 136. 24 Hours Given for Acceptance. The drawee is allowed twenty-four hours after presentment in which to decide 'whether or not he will accept the bill; but the acceptance, if given, dates as of the day of presentation.

Sec. 137. When Acceptance Deemed. Where a drawee to whom a bill is delivered for acceptance destroys the same, or refuses within twenty-four hours after such delivery, or within such other period as the holder may allow, to return the bill accepted or nonaccepted to the holder, he will be deemed to have accepted the

same.

Sec. 138. May Be Accepted When. A bill may be accepted before it has been signed by the drawer, or while otherwise incomplete, or when it is 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 subsequently 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. 139. Acceptance General or Qualified. An acceptance is either general or qualified. A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

Sec. 140. General Acceptance. 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. 141.

which is:

Qualified Acceptance. An acceptance is qualified,

I.

Conditional, that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated. II. Partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn.

III. Local, that is to say, an acceptance to pay only at a particular place.

IV. Qualified as to time.

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

Sec. 142. Qualified Acceptance May be Refused. 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. When a qualified acceptance is taken, the drawer and indorsers 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 indorser 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.

ARTICLE III.

PRESENTMENT FOR ACCEPTANCE.

Sec. 143. Presentment for Acceptance, How Made. ment for acceptance must be made;

Present

I. 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

II. Where the bill expressly stipulates that it shall be presented for acceptance; or

III. 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. 144. Within Reasonable Time. 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 drawee and all indorsers are discharged.

Sec. 145. Presentment Before Overdue and to Whom Made. 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:

I. Where a bill is addressed to two or more drawees who are 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.

II. Where the drawee is dead, presentment may be made to his personal representative.

III. Where the drawee has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, presentment may be made to him or to his trustees or assignee.

Sec. 146. Day of Presentment. A bill may be presented for acceptance on any day on which negotiable instruments may be presented for payment under the provisions of sections seventy-two and eighty-five of this act. When Saturday is not otherwise a holiday, presentment for acceptance may be made before twelve o'clock noon on that day.

Sec. 147. When Delay Excused. Where the holder of a bill drawn payable elsewhere than at the place of business or the residence of the drawee has not time with the exercise of reasonable diligence to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawers and indorsers.

Sec. 148. Id. Presentment for acceptance is excused and a bill may be treated as dishonored by non-acceptance, in either of the following cases:

I. Where the drawee is dead, or has absconded, or is a fictitious person or a person not having capacity to contract by bill. II. Where after the exercise of reasonable diligence, presentment cannot be made.

III. Where although presentment has been irregular acceptance has been refused on some ground.

Sec. 149. Dishonored By Non-Acceptance. A bill is dishonored by non-acceptance:

I. When it is duly presented for acceptance and such an acceptance as is prescribed by this act is refused or cannot be obtained; or

II. When presentment for acceptance is executed and the bill is not accepted.

Where a

Sec. 150. Non-Acceptance Within Time, Effect of. bill is duly presented for acceptance and is not accepted within the prescribed time, the person presenting it must treat the bill as dishonored by non-acceptance or he loses the right of recourse against the drawer and indorsers.

Sec. 151. Dishonored By Non-Acceptance, Recourse Accrues. When a bill is dishonored by non-acceptance, an immediate right of recourse against the drawers and indorsers accrues to the holder and no presentment for payment is necessary.

ARTICLE IV.

PROTEST.

Sec. 152. Foreign Bill Dishonored Must Be Protested. Where a foreign bill appearing on its face to be such is dishonored by nonacceptance, it must be duly protested for non-acceptance, and where such a bill which has not previously been dishonored by non-accep

tance is dishonored by non-payment, it must be duly protested for non-payment. If it is not so protested, the drawer and indorsers are discharged. Where a bill does not appear on its face to be a foreign bill, protest thereof in case of dishonor is unnecessary.

Sec. 153. Protest, How Made. The protest must be annexed to the bill, or must contain a copy thereof, and must be under the hand and seal of the notary making it, and must specify:

I. The time and place of presentment.

II. The fact that presentment was made and the manner thereof.

III. The cause or reason for protesting the bill.

IV. The demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found.

Sec. 154. Protest, by Whom Made. Protest may be made by:
I. A notary public; or

II. By any respectable resident of the place where the bill is dishonored, in the presence of two or more credible witnesses:

Sec. 155. When Made. When a bill is protested, such protest must be made on the day of its dishonor, unless delay is excused as herein provided. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.

Sec. 156. Where Made. A bill must be protested at the place where it is dishonored, except that when a bill drawn payable at the place of business or residence of some person other than the drawee, has been dishonored by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary.

Sec. 157. If Protested for Non-Acceptance May Also be Protested for Non-Payment. A bill which has been protested for nonacceptance may be subsequently protested for non-payment.

Sec. 158. Where Acceptor Insolvent. Where the acceptor has been adjudged a bankrupt or an insolvent or has made an assignment for the benefit of creditors, before the bill matures, the holder may cause the bill to be protested for better security against the drawer and indorsers.

Sec. 159. Protest Dispensed With, When. Protest is dispensed with by any circumstances which would dispense with notice of dishonor. Delay in noting or protesting is excused when 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, the bill must be noted or protested with reasonable diligence.

Sec. 160.

Where Bill is Lost or Destroyed. Where a bill is lost or destroyed or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.