§ 3139. WHEN SUBJECT TO ORIGINAL DEFENSES. In the hands of any holder other than a holder in due course, a negotiable instrument is subject to the same defenses as if it were nonnegotiable. But a holder who derives his title through a holder in due course, and who is not himself a party to any fraud or illegality affecting the instrument, has all the rights of such former holder in respect of all parties prior to the latter. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1541. In effect July 31, 1917. § 3140. WHO DEEMED HOLDER IN DUE COURSE. Every holder is deemed prima facie to be a holder in due course; but when it is shown that the title of any person who has negotiated the instrument was defective, the burden is on the holder to prove that he or some person under whom he claims acquired the title as holder in due course. But the last-mentioned rule does not apply in favor of a party who became bound on the instrument prior to the acquisition of such defective title. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1541. In effect July 31, 1917. ARTICLE V. LIABILITY OF PARTIES. § 3141. Liability of maker. § 3142. Liability of drawer. § 3143. Liability of acceptor, § 3144. When person deemed indorser. § 3145. Liability of irregular indorser. § 3146. Warranty where negotiation by delivery, etc. § 3147. Liability of general indorser. § 3148. Liability of indorser where paper negotiable by delivery. § 3149. Order in which indorsers are liable. § 3150. Liability of an agent or broker. § 3141. LIABILITY OF MAKER. The maker of a negotiable instrument by making it engages that he will pay it according to its tenor, and admits the existence of the payee and his then capacity to indorse. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1541. In effect July 31, 1917. 1. Notice of dishonor - Sufficiency. — An oral notification given by a notary public at 4:30 P. M. of the day the note fell due that the maker had absconded, is not a sufficient notice of dishonor.-Smith v. Hirst, 32 Cal. App. 507, 163 Pac. 334. § 3142. LIABILITY OF DRAWER. The drawer by drawing the instrument admits the existence of the payee and his then capacity to indorse; and engages that on due presentment the instrument will be accepted or paid, or both, according to its tenor, and that if it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder, or to any subsequent indorser who may be compelled to pay it. But the drawer may insert in the instrument an express stipulation negativing or limiting his own liability to the holder. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1541. In effect July 31, 1917. § 3143. LIABILITY OF ACCEPTOR. The acceptor by accepting the instrument engages that he will pay it according to the tenor of his acceptance; and admits 1. The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument; and 2. The existence of the payee and his then capacity to indorse. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1542. In effect July 31, 1917. § 3144. WHEN PERSON DEEMED INDORSER. A person placing his signature upon an instrument otherwise than as maker, drawer, or acceptor, is deemed to be an indorser, unless he clearly indicates by appropriate words his intention to be bound in some other capacity. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1542. In effect July 31, 1917. § 3145. LIABILITY OF IRREGULAR INDORSER. Where a person, not otherwise a party to an instrument, places thereon his signature in blank before delivery he is liable as indorser, in accordance with the following rules: 1. If the instrument is payable to the order of a third person, he is liable to the payee and to all subsequent parties. 2. If the instrument is payable to the order of the maker or drawer, or is payable to bearer, he is liable to all parties subsequent to the maker or drawer. 3. If he signs for the accommodation of the payee, he is liable to all parties subsequent to the payee. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1542. In effect July 31, 1917. § 3146. WARRANTY WHERE NEGOTIATION BY DELIVERY, ETC. Every person negotiating an instrument by delivery or by a qualified indorsement, warrants 1. That the instrument is genuine and in all respects what it purports to be; 2. That he has a good title to it; 3. That all prior parties had capacity to contract; 4. That he has no knowledge of any fact which would impair the validity of the instrument or render it valueless. But when the negotiation is by delivery only, the warranty extends in favor of no holder other than the immediate transferee. The provisions of subdivision three of this section do not apply to persons negotiating public or corporation securities, other than bills and notes. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1542. In effect July 31, 1917. § 3147. LIABILITY OF GENERAL INDORSER. Every indorser who indorses without qualification, warrants to all subsequent holders in due course1. The matters and things mentioned in subdivision[s] one, two and three of the next preceding section; and 2. That the instrument is at the time of his indorsement valid and subsisting. And, in addition, he engages that on due presentment, it shall be accepted or paid, or both, as the case may be, according to its tenor, and that if it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder, or to any subsequent indorser who may be compelled to pay it. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1542. In effect July 31, 1917. § 3148. LIABILITY OF INDORSER WHERE PAPER NEGOTIABLE BY DELIVERY. Where a person places his indorsement on an instrument negotiable by delivery he incurs all the liabilities of an indorser. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1543. In effect July 31, 1917. § 3149. ORDER IN WHICH INDORSERS ARE LIABLE. As respects one another indorsers are liable prima facie in the order in which they indorse; but evidence is admissible to show that as between or among themselves they have agreed otherwise. Joint payees or joint indorsers who indorse are deemed to indorse jointly and severally. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1543. In effect July 31, 1917. § 3150. LIABILITY OF AN AGENT OR BROKER. Where a broker or other agent negotiates an instrument without indorsement he incurs all the liabilities prescribed by section three thousand one hundred forty-seven, unless he discloses the name of his principal, and the fact that he is acting only as agent. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1543. In effect July 31, 1917. ARTICLE VI. PRESENTMENT FOR PAYMENT. § 3151. Effect of want of demand on principal debtor. § 3152. Presentment where instrument is not payable on demand and where payable on demand. § 3153. What constitutes a sufficient presentment. § 3154. Place of presentment. § 3155. Instrument must be exhibited. § 3156. Presentment where instrument payable at bank. § 3157. Presentment where principal debtor is dead. § 3158. Presentment to persons liable as partners. § 3159. Presentment to joint debtors. § 3160. When presentment not required to charge the drawer. § 3161. When presentment not required to charge the indorser. § 3162. When delay in making presentment is excused. § 3163. When presentment may be dispensed with. § 3164. When instrument dishonored by nonpayment. § 3165. Liability of person secondarily liable, when instrument dishonored. § 3166. Time of maturity. § 3167. Time; how computed. § 3168. Rule where instrument payable at bank. § 3169. What constitutes payment in due course. § 3151. EFFECT OF WANT OF DEMAND ON PRINCIPAL DEBTOR. Presentment for payment is not necessary in order to charge the person primarily liable on the instrument; but if the instrument is, by its terms, payable at a special place, and he is able and willing to pay it there at maturity, such ability and willingness are equivalent to a tender of payment upon his part. But except as herein otherwise provided, presentment for payment is necessary in order to charge the drawer and indorsers. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1543. In effect July 31, 1917. § 3152. PRESENTMENT WHERE INSTRUMENT IS NOT PAYABLE ON DEMAND AND WHERE PAYABLE ON DEMAND. Where the instrument is not payable on demand, presentment must be made on the day it falls due. Where it is payable on demand, presentment must be made within a reasonable time after its issue, except that in the case of a bill of exchange, presentment for payment will be sufficient if made within a reasonable time after the last negotiation thereof. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1543. In effect July 31, 1917. § 3153. WHAT CONSTITUTES A SUFFICIENT PRESENTMENT. Presentment for payment, to be sufficient, must be made 1. By the holder, or by some person authorized to receive payment on his behalf; 2. At a reasonable hour on a business day; 3. At a proper place as herein defined; 4. To the person primarily liable on the instrument or if he is absent or inaccessible, to any person found at the place where the presentment is made. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. §3154. PLACE OF PRESENTMENT. Presentment for payment is made at the proper place 1. Where a place of payment is specified in the instrument and it is there presented; 2. Where no place of payment is specified, but the address of the person to make payment is given in the instrument and it is there presented; 3. Where no place of payment is specified and no address is given and the instrument is presented at the usual place of business or residence of the person to make payment; 4. In any other case if presented to the person to make payment wherever he can be found, or if presented at his last known place of business or residence. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3155. INSTRUMENT MUST BE EXHIBITED. The instrument must be exhibited to the person from whom payment is demanded, and when it is paid must be delivered up to the party paying it. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. 1. Notice of dishonor excused, when.Giving the notice of dishonor is sufficiently excused where the evidence showed that on the day the note fell due the agent of the plaintiff after demanding payment of the note of the corporation maker and being refused, called upon the other indorser and presented him with written notice of dishonor and demand for payment, and asked for and obtained from him the residence address of his co-indorser, and on the following day called at the address and was unable to find the co-indorser in or ascertain his whereabouts, whereupon he proceeded to his office and on the same day mailed a notice of dishonor.-Seeley v. Stoltz's, Inc., 32 Cal. App. 458, 163 Pac. 681. § 3156. PRESENTMENT WHERE INSTRUMENT PAYABLE AT BANK. Where the instrument is payable at a bank, presentment for payment must be made during banking hours, unless the person to make payment has no funds there to meet it at any time during the day, in which case presentment at any hour before the bank is closed on that day is sufficient. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3157. PRESENTMENT WHERE PRINCIPAL DEBTOR IS DEAD. Where a person primarily liable on the instrument is dead, and no place of payment is specified, presentment for payment must be made to his personal representative if such there be, and if, with the exercise of reasonable diligence, he can be found. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3158. PRESENTMENT TO PERSONS LIABLE AS PARTNERS. Where the persons primarily liable on the instrument are liable as partners, and no place of payment is specified, presentment for payment may be made to any one of them, even though there has been a dissolution of the firm. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3159. PRESENTMENT TO JOINT DEBTORS. Where there are several persons, not partners, primarily liable on the instrument, and no place of payment is specified, presentment must be made to them all. 1. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. Waiver of presentation and notice.— Where a promissory note recites on its face that "the makers and indorsers of this note hereby waive diligence, demand, protest and notice," the indorsement by the indorsers on the back thereof constitutes a waiver without any separate statement thereof.-White v. Standard Lumber & Wrecking Co., 29 Cal. App. 646, 157 Pac. 544. § 3160. WHEN PRESENTMENT NOT REQUIRED TO CHARGE THE DRAWER. Presentment for payment is not required in order to charge the drawer where he has no right to expect or require that the drawee or acceptor will pay the instrument. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3161. WHEN PRESENTMENT NOT REQUIRED TO CHARGE THE INDORSER. Presentment for payment is not required in order to charge an indorser where the instrument was made or accepted for his accommodation and he has no reason to expect that the instrument will be paid if presented. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1544. In effect July 31, 1917. § 3162. WHEN DELAY IN MAKING PRESENTMENT IS EXCUSED. Delay in making presentment for payment 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, presentment must be made with reasonable diligence. History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1545. In effect July 31, 1917. § 3163. WHEN PRESENTMENT MAY BE DISPENSED WITH. Presentment for payment is dispensed with 1. Where after the exercise of reasonable diligence presentment as required by this title can not be made; 2. Where the drawee is a fictitious person; 3. By waiver of presentment, express or implied. History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1545. In effect July 31, 1917. |