When Notice May be Given.

541. [Sec. 102.] Notice may be given as soon as the instrument is dishonored; and unless delay is excused, as hereinafter provided, must be given within the times fixed by this act. When All Parties Reside in Same Place.

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

1. 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;

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

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

When Parties Reside in Different Places.

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

1. If sent by mail, it must be deposited in the postoffice 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 thereafter;

2. If given otherwise than through the postoffice, then within the time that notice would have been received in due course by mail, if it had been deposited in the postoffice within the time specified in the last subdivision.

Notice by Mail.

544. [Sec. 105.] Where notice of dishonor is duly addressed and deposited in the postoffice, the sender is deemed to have given due notice, notwithstanding any miscarriage in the mails.

Notice mailed to postoffice nearest residence of drawer suffices, Lallande vs. Hope, 18 A. 188.

What is Mailing.

545. [Sec. 106.] Notice is deemed to have been deposited in the postoffice when deposit in any branch postoffice or in any letter-box under the control of the Postoffice Department.

Delay Allowed Party Receiving Notice to Give Notice.

546. [Sec. 107.] Where a 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.

To What Address Notice to be Sent.

547.

[Sec. 108.] Where a party has added an address to his signature, 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:

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

or,

2. If he live 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 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.

Waiver.

548. [Sec. 109.] 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.

549. [Sec. 110.] Where the waiver is embodied in the instrument itself, it is binding upon all parties; but when it is written above the signature of an indorser, it binds him only. Atkins vs. Dixie, 135 La. 65 S. 762.

Waiver of Protest is Waiver of Presentment and Notice.

550. [Sec. 111.] 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.

Notice Dispensed With When.

551. [Sec. 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.

Delay of Notice When Excusable.

552. [Sec. 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 negligence. When the cause of delay ceases to iperate, notice must be given with reasonable diligence.

Notice Need Not be to Drawer When.

553. [Sec. 114.] Notice of dishonor is not required to be given to the drawer in either of the following cases:

1. Where the drawer and 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 the 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.

Notice Need Not be to Indorser When.

554. [Sec. 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 instrument was made or accepted for his ac

commodation.

Notice of Dishonor by Non-Acceptance.

555. [Sec. 116.] Where due notice of dishonor by nonacceptance has been given notice of a subsequent dishonor by nonpayment is not necessary, unless in the meantime the instrument has been accepted.

Effect of Omission to Give Notice.

556. [Sec. 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.

Only Foreign Bills Need to be Protested.

557. [Sec. 118.] Where any negotiable instrument has been dishonored it may be protested for non-acceptance or non-pay

ment, 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.

When Instrument Discharged.

[Sec. 119.]

558. [Sec. 119.] A negotiable instrument is discharged: 1. By payment, in due course, by or on 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.

Discharge of Secondary Party.

559. [Sec. 120.] A person secondarily liable on the instrument is discharged:

1. By an act which discharges the instrument;

2. By the intentional 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 the release of the principal debtor, unless the holder's 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.

Effect of Payment by Secondary Party.

560. [Sec. 121.] Where 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:

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, and has been paid by the party accommodated.

Renunciation by Holder.

561. [Sec. 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 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.

Unintentional or Unauthorized Cancellation.

562. [Sec. 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.

Alteration of Instrument.

563. [Sec. 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.

What is a Material Alteration.

564.

[Sec. 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 material alteration.