Note also that under this Act payment for honor is limited to a bill. It does not extend to promissory notes. Such was the law originally. See the Gazzam case supra. § 172. Requisites of Payment For Honor.-"The payment for honor supra protest in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honor which may be appended to the protest or form an extension to it." See note to Section 171. § 173. Declaration Before Payment For Honor.—“The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays." See note to Section 171. § 174. Preference of Parties Offering to Pay For Honor.-"Where two or more persons offer to pay a bill for the honor of different parties, the person whose payment will discharge most parties to the bill is to be given the preference." § 175. Subrogation of Payer For Honor.-"Where a bill has been paid for honor all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor is subrogated for, and succeeds to, both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter." See note to Section 171. § 176. Rights of Holder Who Refuses Payment For Honor.-"Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourse against any party who would have been discharged by such payment." § 177. Rights of Payer For Honor.— "The payer for honor on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest." ARTICLE VII. Section 178. 179. BILLS IN A SET. Bills in a set constitute one bill. Rights of holder where different parts are negotiated. 180. Liability of indorsers of two or more parts. 181. Acceptance of bills in sets. 182. Payment of bills in sets. 183. When payment of one part discharges whole. § 178. Bills in a Set Constitute One Bill. "Where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other parts, the whole of the parts constitute one bill." § 179. Rights of Holder Where Different Parts Are Negotiated. “Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders the true owner of the bill. But nothing in this section affects the rights of a person who in due course accepts or pays the part first presented to him." § 180. Liability of Indorsers of Two or More Parts.-"Where the holder of a set indorses two or more parts to different persons he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed, as if such parts were separate bills." § 181. Acceptance of Bills in Sets."The acceptance may be written on any part and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts are negotiated to different holders in due course, he is liable on every such part as if it were a separate bill." In Johnson v. Offutt, 4 Met. 19, the acceptor of a bill, drawn in a set of two, was sued upon one part. He moved the Court to compel the plaintiff to file the other part. This motion was overruled by the trial Court and this ruling was affirmed by the Court of Appeals. § 182. Payment of Bills in Sets.-"When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereon." |