MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

NEGOTIABLE INSTRUMENTS LAW

NEGOTIABLE INSTRUMENT Written contract for the payment of money, by its form intended as substitute for money and intended to pass from hand to hand to give the holder in due course the right to hold the same and collect the sum due PROMISSORY NOTE unconditional promise in writing made by one person to another signed by the maker engaging to pay on demand, or at a fixed or determinable future time a sum certain in money to order or to bearer where a note is drawn to the makers own order, it is not complete until indorsed by him BILL OF EXCHANGE unconditional order in writing addressed by one person to another signed by the person giving it requiring the person to whom its addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer 1. 2. #. &. Check: bill of exchange drawn on a bank payable on demand. Kinds o checks: personal check managers cashiers check ! drawn by a bank on itself. "ssuance has the effect of acceptance memorandum check ! $memo% is written across its face, signifying that drawer will pay holder absolutely without need of presentment crossed check ! E ec!s: a. check may not be encashed but only deposited in bank b. may be negotiated only once, to one who has an acct. with a bank c. warning to holder that check has been issued for a definite purpose so that he must inquire if he received check pursuant to such purpose, otherwise not '() Kinds: a. general *no word between lines, or $co% between lines+ b. special *name of bank appearing between parallel lines+

BEARER ,erson in possession of a bill note payable to bearer HOL"ER ,ayee or indorsee of a bill or note who is in possession of it, or the bearer thereof. THE LIFE OF A NEGOTIABLE INSTRUMENT: 1. issue 2. negotiation #. presentment for acceptance in certain bills &. acceptance -. dishonor by on acceptance .. presentment for payment /. dishonor by nonpayment 0. notice of dishonor

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MLQU School of Law

2008
1. protest in certain cases 12. discharge 34567"89":"7; RE#UISITES $% in &'i!in( )nd si(ned *+ ,)ke' o' d')&e' no person liable on the instrument whose signature does not appear thereon * sub<ect to exceptions+ one who signs in a trade or assumed name liable to the same extent as if he had signed in his own name signature of any party may be made by a duly authori=ed agent, no particular form of appt. necessary -% .ncondi!ion)/ 0'o,ise o' o'de' !o 0)+ unqualified order or promise to pay is unconditional though coupled with a. an indication of a particular fund out of which reimbursement to be made, or a particular account to be debited with amount, or b. a statement of the transaction which gives rise to the instrument an order or promise to pay out of a particular fund is not unconditional ) s., ce'!)in in ,one+ even if stipulated to be paid>>> a. with interest, or b. by stated installments, or c. by stated installments with a provision that upon default in payment of any installment interest, the whole shall become due, or d. with exchange, whether at a fixed rate or at the current rate, or e. with costs of collection or an attorneys fee, in case payment not made at maturity *liquidated damages+ 1% 0)+)*/e on de,)nd2 when expressed to be payable on demand, or at sight, or on presentation? when no time for payment expressed, or where an instrument is issued, accepted or indorsed when overdue, it is, as regards the person so issuing, accepting, or indorsing it, payable on demand o' )! ) i3ed o' de!e',in)*/e .!.'e !i,e when its expressed to be payable at a fixed period after date or sight, or on or before a fixed or determinable future time fixed therein, or on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain an instrument payable upon a contingency not negotiable, and happening of event doesnt cure it @ relate to sec. 11 ( presumption as to date) and sec. 17 (construction where instrument ambiguous) * note effect of acceleration provisions, p. 30 Campos * note effect of provisions e tending time of pa!ment, p. "0 Campos 4% 0)+)*/e !o o'de' where it is drawn payable to the order of a specified person or to him or his order. Aay be drawn payable to order of >>>

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Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

a. a payee not the maker drawer drawee, or b. drawer or maker, or c. drawee, or d. two or more payees <ointly, or e. holder of an office for time being when the instrument is payable to order the payee must be named or otherwise indicated therein with reasonable certainty

o' *e)'e'2 when expressed to be so payable when payable to person named therein or bearer when payable to order or fictitious non>existent person, and such fact known to the person making it so payable, or when name of payee doesnt purport to be the name of any person, or when the only last indorsement is in blank
5.

where addressed to draweeB such d')&ee n),ed5 indic)!ed !he'ein &i!h 'e)son)*/e ce'!)in!+ bill may be addressed to two or more drawees <ointly, whether partners or not, but not to two or more drawees in the alternative or in succession bill may be treated as a ,3, at option of holder, where a. drawer and drawee are same person b. drawee is fictitious incapacitated

EFFECT OF A""ITIONAL PRO6ISIONS #en. $ule% order promise to do any act in addition to the payment of money renders instrument non>negotiable. 4xceptionB negotiability not affected by provisions w c 1. authori=e sale of collateral security if instrument not paid at maturity 2. authori=e confession of <udgmentC #. waives benefit of any law intended for advantage protection of obligor &. give holder election to require something to be done in lieu of money CONTINUATION OF NEGOTIABLE CHARACTER Dntil 1. restrictively indorsed 2. discharged by payment or otherwise 7E83FG4E "ELI6ERY 3" incomplete and revocable until delivery for the purpose of giving effect thereto as between a. immediate parties b. a remote party other than holder in due course delivery, to be effectual, must be made by or under the authority of the party making drawing accepting indorsing in such case delivery may be shown to have been conditional, or for a special purpose only, and not for the purpose of transferring the property in the instrument
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PRESUMPTION OF "ELI6ERY

MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

Where the instrument is no longer in the possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved (*if in the hands of a &'C, presumption conclusive) NEGOTIATION When an instrument is transferred from one person to another as to constitute the transferee the holder thereof. "f payable to 948E4E, negotiated by delivery? if payable to 6E(4E, negotiated by indorsement of holder H delivery IN"ORSEMENT "ndorser generally enters into two contractsB 1. sale or assignment of instrument (. to pay instrument in case of default of maker Fec. #1 *how indorsement made+ Fec. &1 *where payable to two or more+ Fec. &# *indorsement where name misspelled+ Fec. &0 *cancellation of indorsement+ Fec. &-, &. *presumptions+ "ndorsement must be of entire instrument. *cant be indorsement of only part of amount payable, nor can it be to two or more indorsees severally. 9ut okay to indorse residue of partially paid instrument+ Fec. ./ *liability of indorser where paper negotiable by delivery+ Fec. .# *when person deemed indorser+ KIN"S OF IN"ORSEMENT A. 8s to manner of future method of negotiation 1. Fpecial ! specifies the person to whom to whose order the instrument is to be payable? indorsement of such indorsee is necessary to further negotiation. (. 9lank ! specifies no indorsee, instrument so indorsed is payable to bearer, and may be negotiated by delivery 7he holder may convert a blank indorsement into a special indorsement by writing over the signature of the indorser in blank any contract consistent with the character of the indorsement

B% as to kind of title transferred 1. restrictive prohibits further negotiation of instrument, constitutes indorsee as agent of indorser, or vests title in indorsee in trust for another rights of indorsee in restrictive ind.B Eeceive payment of inst. 9ring any action thereon that indorser could bring 7ransfer his rights as such indorsee, but all subsequent indorsees acquire only title of first indorsee under restrictive indorsement (. non>restrictive C% as to kind of liability assumed by indorser 1. Iualified>constitutes indorser as mere assignor of title *e.g. $without recourse%+ (. unqualified

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

"% as to presence absence of express limitations put by indorser upon primary obligors privileges of paying the holder 1. )onditional ! additional condition annexed to indorsers liability. Where an indorsement is conditional, a party required to pay the instrument may disregard the condition, and make payment to the indorsee or his transferee, whether condition has been fulfilled or not 8ny person to whom an instrument so indorsed is negotiated will hold the same proceeds sub<ect to rights of person indorsing conditionally (. unconditional IN"ORSEMENT OF BEARER INSTRUMENT Where an instrument payable to bearer is indorsed specially, it may nevertheless be further negotiated by delivery ,erson indorsing specially liable as indorser to only such holders as make title through his indorsement UNIN"ORSE" INSTRUMENTS Where holder of instrument payable to his order transfers it for value without indorsing, transfer vests in transferee 1. such title as transferor had therein (. right of transferee to have indorsement of transferor for purposes of determining '() negotiation effective upon actual indorsement '6:(4E "3 (D4 )6DEF4 HOL"ER Fec. 111 RIGHTS OF HOL"ER 1. sue thereon in his own name (. payment to him in due course discharges instrument HOL"ER IN "UE COURSE: RE#UISITIES 1. complete and regular upon its face sec. 12& *effect of alteration+ sec. 12- *what constitute material alterations+ 2. holder became such before it was overdue, without notice of any previous dishonor sec. -# *demand inst. nego after unreasonable length of timeB not '()+ sec. 12 *effect antedating postdating+ #. taken in good faith and for value sec. 2& *presumption of consideration+ sec 2- *definition. of value+ sec. 2. *definition. holder for value+ sec. 2/ *lien as value+ &. at time negotiated to him, he had no notice *sec. -.>def? -&>notice before full amt. paid+ of >>> a. infirmity in instrument b. defect in title of person negotiating *1+ instrument signature obtained through fraud, etc., illegal consideration means, or *2+ instrument negotiated in breach of faith, or fraudulent circumstances

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

RIGHTS OF HOL"ER IN "UE COURSE 1. holds instrument free of any defect of title of prior parties 2. free from defenses available to prior parties among themselves #. may enforce payment of instrument for full amount, against all parties liable * )f in the hand of an! holder (note definition of holder) other than a &'C, vulnerable to same defenses as if non*negotiable RIGHTS OF PURCHASER FROM HOL"ER IN "UE COURSE #eneral $uleB in the hands of any holder other than a '(), 3" is sub<ect to same defenses as if it were non>negotiable. + ceptionB holder who derives title through '() and who is not himself a party to any fraud or illegality has all rights of such former holder in respect to all parties prior to the latter. 7HO "EEME" H"C prima facie presumption in favor of holder but when shown that title of any person who has negotiated instrument was defective *sec. --Jwhen title defective+B burden reversed *now with holder+ but no reversal if party being made liable became bound prior to acquisition of defective title *i.e., where defense is not his own+ (4G43F4F 83( 4ID"7"4F KIN"S OF "EFENSES 1. real defense ! attaches to instrument? on the principle that the right sought to be enforced never existed there was no contract at all 2. personal defense ! growing out of agreement? renders it inequitable to be enforced vs. defendant "EFENSES 1. INCAPACITYB real? indorsement assign by corp infant no liability corp infantB passes property but

2. ILLEGALITYB personal, even if no K because void under )) 1&21 3. FORGERYB real *lack of consent+B a. forged b. made without authority of person whose signature it purports to be General Rule: a. wholly inoperative b. no right to retain instrument, or give discharge, or enforce payment vs. any party, can be acquired through or under such signature *unless forged signature unnecessary to holders title+ 4xceptionB Dnless the party against whom it is sought to enforce such right is precluded from setting up forgery want of authority ,recludedB a. parties who make certain warranties, like a general indorser or acceptor b. estopped negligent parties
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* ,ote rules on -cceptance./a!ment under 0ista1e as applied to% 1. overdraft

MLQU School of Law

2008
(. stop pa!ment order 3. forged indorsements

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Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

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4% MATERIAL ALTERATION Where 3" materially altered w o assent of all parties liable thereon, avoided, except as vs. a 1. party who has himself made, authori=ed or assented to alteration (. and subsequent indorsers. 9ut when an instrument has been materially altered and is in the hands of a '() not a party to the alteration, '() may enforce payment thereof according to orig. tenor Aaterial 8lteration 1. change date 2. sum payable, either for principal or interest #. time of payment &. number relations of parties -. medium currency of payment, adds place of payment where none specified, other change addition altering effect of instrument in any respect *material alteration a personal defense when used to den! liabilit! according to org. tenor of instrument, but real defense when relied on to den! liabilit! according to altered terms. 8% FRAU" a. fraud in executionB real defense *didnt know it was 3"+ b. fraud in inducementB personal defense *knows its 3" but deceived as to value terms+ 9% "URESS ,ersonal, unless so serious as to give rise to a real defense for lack of contractual intent :% COMPLETE2 UN"ELI6ERE" INSTRUMENT ,ersonal defense *sec. 1.+ "f instrument not in poss. 6f party who signed, delivery prima facie presumed "f holder is '(), delivery conclusively presumed ;% INCOMPLETE2 UN"ELI6ERE" INSTRUMENT Eeal defense *sec. 1-+ "nstrument will not, if completed and negotiated without authority, be a valid contract in the hands of any holder, as against any person whose signature was placed thereon before delivery <% INCOMPLETE2 "ELI6ERE" ,ersonal defense *sec. 1&+ 2 Kinds of WritingsB 1. Where instrument is wanting in any material particularB person in possession has prima facie authority to complete it by filing up blanks therein

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

(. Fignature on blank paper delivered by person making the signature in order that the paper may be converted into a 3"B prima facie authority to fill up as such for any amount "n order that any such instrument, when completed, ma be enforced vs. any person who became a party thereto prior to its completionB 1. must be filled up strictly in accordance w authority given (. within a reasonable time but if any such instrument after completion is negotiated to '(), itLs valid for all purposes in his hands, he may enforce it as if it had been filled up properly

:"89":"7"4F 6G ,8E7"4F A% PRIMARY PARTIES ,erson primarily liableB person who by the terms of the instrument is absolutely required to pay the same. Fec. /2 *effect of want of demand on principal debtor+ $% Li)*i/i!+ o M)ke' a. ,romises to pay it according to its tenor b. admits existence of payee and his then capacity to indorse -% S!)!.s o d')&ee 0'io' !o )cce0!)nce o' 0)+,en! sec. 12/ *bill not an assignment of funds in hands of drawee+ sec. 101 *when check operates as assignment+ 1% Li)*i/i!+ o Acce0!o' ,romises to pay inst according to its tenor 8dmits the followingB a. existence of drawer b. genuineness of his signature c. his capacity and authority to draw the instrument d. existence of payee and his then capacity to endorse sec. 111, 1#2, 1##, 1#0 >>> formal requisites of acceptance sec. 1#., 1#/, 1-2 >>> constructive acceptance sec. 1#&, 1#- >>> acceptance on a separate instrument Kinds of 8cceptanceB 1. general (. qualified a. conditional b. partial c. local d. qualified as to time e. not all drawees * sec. 1"( (rights of parties as to 2ualified acceptance) )ertificationB ,rinciples 1. when check certified by bank on which its drawn, equivalent to acceptance (. where holder of check procures it to be accepted certified, drawer and all indorsers discharged from al liability

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

3. check not operate as assignment of any part of funds to credit of drawer with bank, and bank is not liable to holder, unless and until it accepts or certifies check ". certification obtained at request of drawerB secondary parties not released 3. bank which certifies liable as an acceptor 4. checks cannot be certified before payable B% SECON"ARY PARTIES $% Li)*i/i!+ o "')&e' a. 8dmits existence of payee and his then capacity to endorse b. 4ngages that on due presentment instrument will be accepted, or paid, or both, according to its tenor and that c. "f it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder or to an subsequent indorser who may be compelled to pay it drawer may insert in the instrument an express stipulation negativing limiting his own liability to holder

-% Li)*i/i!+ o Indo'se's: #.)/i ied Indo'se' )nd one Ne(o!i)!in( *+ "e/i=e'+ a. "nstrument genuine, in all respects what it purports to be b. good title c. all prior parties had capacity to contract d. he had no knowledge of any fact w c would impair validity of instrument or render it valueless in case of negotiation by delivery only, warranty only extends in favor of immediate transferee Li)*i/i!+ o ) Gene')/ o' Un>.)/i ied Indo'se' a. instrument genuine, good title, capacity of prior parties b. instrument is at time of indorsement valid and subsisting c. on due presentment, it shall be accepted or paid, or both, according to tenor d. if it be dishonored, and necessary proceedings on dishonor be duly taken, he will pay the amt. 7o holder, or to any subsequent indorser who may be compelled to pay it O'de' o Li)*i/i!+ ),on( Indo'se's 1. among themselvesB liable prima facie in the order they indorse, but proof of another agreement admissible (. but holder may sue any of the indorsers, regardless of order of indorsement 3. <oint payees indorsees deemed to indorse <ointly and severally

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3. Li)*i/i!+ o Acco,od)!ion P)'!+ (efinitionB one who signed instrument as maker drawer acceptor indorser w o receiving value thereof, for the purpose of lending his name to some other person 8, liable on the instrument to holder for value even if holder, at time of taking instrument, knew he was only an 8, :iability of I''e(./)' Indo'se'

MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

Where a person not otherwise a party to an instrument, places thereon his signature in blank before delivery, hes liable as an indorser, in accordance w these rulesB 1. "nstrument payable to order of #rd personB liable to payee and to all subsequent parties (. "nstrument payable to the order of maker drawer, or payable to bearerB liable to all parties subsequent to maker drawer 3. Figns for accommodation of payee, liable to all parties subsequent to payee

Sadaya v Sevilla Rules: 1. a <oint and several accommodation maker of a negotiable promissory note may demand from the principal debtor reimbursement for the amt. 7hat he paid to the payee (. a <oint and several accommodation maker who pays on the said promissory note may directly demand reimbursement from his co>accommodation maker without first directing his action vs. the principal debtor providedB a. he made the payment by virtue of a <udicial demand b. or the principal debtor is insolvent 4. Li)*i/i!+ o )n A(en! Fignature of any party may be made by duly authori=ed agent, establish as in ordinary agency Where instrument contains or a person adds to his signature words indicating that he signs for or on behalf of a principal, he is not liable on the instrument if he was duly authori=ed, but the mere addition of words describing him as an agent without disclosing his principal, does not exempt from personal liability. Fignature per procuration operates as notice that the agent has but a limited authority to sign, and the principal is bound on ly in case the agent in so signing acted within the actual limits of his authority Where a broker or agent negotiates an instrument without indorsement, he incurs all liabilities in Fec. .-, unless he discloses name of principal and fact that hes only acting as agent I% P'esen!,en! Fo' Acce0!)nce 7hen 0'esen!,en! o' )cce0!)nce ,.s! *e ,)de 1. bill payable after sight, or in other cases where presentment for acceptance necessary to fix maturity 2. where bill expressly stipulates that it shall be presented for acceptance #. where bill is drawn payable elsewhere than at residence place of business of drawee 7hen )i/.'e !o 0'esen! 'e/e)ses d')&e'5indo'se' Gailure to present for acceptance of negotiate bill of exchange within reasonable time Re)son)*/e Ti,e Aust consider 1. nature of instrument 2. usage of trade or business with respect to instrument #. facts of each case 'ow and When Aade Fec. 1&-, 1&., 1&/

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MLQU School of Law

2008
When 4xcused Fec. 1&0 "ishono' )nd E ec!s sec. 1&1 *when dishonored by non>acceptance+ sec. 1-2 *duty of holder where bill not accepted+ sec. 1-1 *rights of holder where bill not accepted+ sec. 01 *to whom notice of dishonor must be given+ sec. 11/ *effect of omission to give notice of non>acceptance+ II% Fo' P)+,en! Where necessary Fec. /2 Where not necessary Fec. /1, 02, 02, 1-1, 111 (ate and time of presentment of instrument bearing fixed maturity Fec. /1, 0-, 0., 11& ")!e o 0'esen!,en! Where instrument not payable on demandB presentment must be made on date it falls due Where payable on demandB presentment must be made within reasonable time after issue, except that in case of a bill of exchange, presentment for payment will be sufficient if made within a reasonable time after last negotiation *but note% though reasonable time from last negotiation, it ma! be unreasonable time from issuance thus holder ma! not be &'C under sec. 71+ )heck must be presented for payment within reasonable time after its issue or drawer will be discharged from liability thereon to extent of loss caused by delay (elay excused Fec. 01 Aanner Fec. /&, /2, /,lace Fec. /# 7o Whom Fec. /2, /., //, /0 (ishonor by nonpayment Fec. 0#, 0& No!ice o "ishono' 5eneral ruleB to drawer and to each indorser, and any drawer or indorser to whom such notice is not given is discharged Fo',2 Con!en!s2 Ti,e Fec. 1-, 1., 122, 12#, 12&, 12-, 12., 120, 11# B+ 7ho, Gi=en 9y or on behalf of the holder or any party to the instrument who may be compelled to pay it to the holder, and who, upon taking it up, would have a right to reimbursement from the party to whom the notice is given 3otice of dishonor may be given by an agent either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not Where instrument has been dishonored in hands of agent, he may either himself give notice to the parties liable thereon, or he may give notice to his principal *as if agent an independent holder+ In &hose )=o' no!ice o0e')!es 1. when given by on behalf of holderB insures to benefit of a. all subsequent holders and b. all prior parties who have a right of recourse vs. the party to whom its given 2. Where notice given by on behalf of a party entitled to give noticeB insures for benefit of a. holder , and

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MLQU School of Law

2008 CENTRALIZED AR
Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

!PERATI!NS

b. all parties subsequent to party to whom notice given 7)i=e' Fec. 121, 112 7he'e no! necess)'+ !o ch)'(e d')&e' 1. drawer drawee same person 2. drawee fictitious, incapacitated #. drawer is person to whom instrument is presented for payment &. drawer has no right to expect require that drawee acceptor will honor instrument -. drawer countermanded payment

7he'e no! necess)'+ !o ch)'(e indo'se' 1. drawee fictitious, incapacitated, and indorser aware of the fact at time of indorsement 2. indorser is person to whom instrument presented for payment #. instrument made accepted for his accommodation P'o!es! 'efinitionB testimony of some proper person that the regular legal steps to fix the liability of drawer and indorsers have been taken When necessaryB sec. 1-2, Gorm and contentsB sec. 1-# 9y whom madeB sec. 1-& 7ime and ,laceB sec. 1--, 1-. Gor better securityB sec. 1-0 4xcusedB sec. 1-1 WaiverB sec. 111 Acce0!)nce o' Hono' Fec. 1.1, 1#1, 1/1 Bi//s in Se!: 1/0>10# ("F)'8E54 A% O !he Ins!'.,en! 1. payment in due course by or on behalf of principal debtor ,ayment in due courseB 1. made at or after maturity (. to the holder thereof 3. in good faith and without notice that his title is defective 2. payment in due course by party accommodated where party is made accepted for accommodation #. intentional cancellation by holder "f unintentional or under mistake or without authority of holder, inoperative. 9urden of proof on party which alleges it was unintentional, etc. &. any other act which discharges a simple contract -. principal debtor becomes holder of instrument at or after maturity in his own right .. renunciation of holderB holder may expressly renounce his rights vs. any party to the instrument, before or after its maturity

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MLQU School of Law

2008

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Arlegui St., Quiapo Manila LAW STUDENT COUNCIL

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absolute and unconditional renunciation of his rights vs. principal debtor made at or after maturity discharges the instrument Eenunciation does not affect rights of '() w o notice. Eenunciation must be in writing unless instrument delivered up to person primarily liable thereon /. material alteration *sec. 12&B material alteration w o assent of all parties liable avoids instrument except as against party to alteration and subsequent indorsers+ B% 1. 2. #. &. -. O second)'+ 0)'!ies any act which discharges the instrument intentional cancellation of signature by holder discharge of prior party valid tender of payment made by prior party release of principal debtor, unless holders right of recourse vs. 2ndary party reserved .. any agreement binding upon holder to extend time of payment, or to postpone holders right to enforce instrument, unless made with assent of party secondarily liable, or unless right of recourse reserved. 0. Gailure to make due presentment *sec. /2, 1&&+ 1. failure to give notice of dishonor 12. certification of check at instance of holder 11. reacquisition by prior party where instrument negotiated back to a prior party, such party may reissue and further negotiate, but not entitled to enforce payment vs. any intervening party to whom he was personally liable where instrument is paid by party secondarily liable, its not discharged, but a. the party so paying it is remitted to his former rights as regard to all prior parties b. and he may strike out his own and all subsequent indorsements, and again negotiate instrument, except where its payable to order of #rd party and has been paid by drawer where its made accepted for accommodation and has been paid by party accommodated

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