TITLE II.

BILL OF EXCHANGE.

ARTICLE I.

FORM AND INTERPRETATION.

Bill of Exchange Defined.

565. [Sec. 126.] 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 or to order or to bearer.

Bill Is Not Assignment.

566. [Sec. 127.]] 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.

Drawees.

567. [Sec. 128.] 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"; "Foreign Bill."

568. [Sec. 129.] 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.

When Bill May be Treated as Note.

569. [Sec. 130.] 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.

"Referee in Cases of Need."

570. [Sec. 131.] 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.

Acceptance Defined.

571. [Sec. 132.]

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. (Amd. Act 189, 1908, p. 284.)

572.

[Sec. 133.] 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.

Acceptance on Paper Other Than Bill.

573. [Sec. 134.] 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.

Written Promise to Accept.

574. [Sec. 135.] 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.

Delay for Acceptance.

575. [Sec. 136.] The drawee is allowed twenty-four hours after presentment in which to decide whether or not he will accept the bill; but the acceptance is given dates as of the day of presentation.

When Drawee Will be Deemed to Have Accepted.

576. [Sec. 137.] 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 pe

riod as the holder may allow, to return the bill, accepted or nonaccepted, to the holder, he will be deemed to have accepted the

same.

When Acceptance May be Made.

577. [Sec. 138.] 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 accept 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.

General and Qualified Acceptance.

fied.

578.

[Sec. 139.] An acceptance is either general or quali

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.

General Acceptance.

579. [Sec. 140.] 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.

Qualified Acceptance.

580. [Sec. 141.] An acceptance is qualified which is:

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

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

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

4. Qualified as to time;

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

Qualified Acceptance May be Refused.

581.

[Sec. 142.] [Sec. 142.] 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 indorser 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.

1. 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,

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

3. 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.

Must be Within Reasonable Time.

583. [Sec. 144.] 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 indorsers are discharged.

How Must be Made.

584. [Sec. 145.] 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:

1. 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;

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

3. 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 trustee or assignee.

When May be Made.

585. [Sec. 146.] 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.

Excusable Delay.

586. [Sec. 147.] 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 or indorsers.

Non-presentment Excusable When.

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

1. Where the drawee is dead, or has absconded, or is a fictitious person, or a person not having capacity to contract by bill; 2. Where, after the exercise of reasonable diligence, presentment cannot be made;

3. Where, although presentment has been irregular, acceptance has been refused on some other ground.

A Bill is Dishonored by Non-acceptance When.

588.

[Sec. 149.] A bill is dishonored by non-acceptance: 1. When it is duly presented for acceptance and such an acceptance as is prescribed by this act is refused or cannot be obtained; or,

2. When presentment for acceptance is excused and the bill is not accepted.

Duty of Holder Upon Non-acceptance.

589. [Sec. 150.] Where a bill is duly presented for acceptance and is not accepted within the prescribed time, the per