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1,52,23,185,14
Section 1. Form of negotiable instruments. - An instrument to be negotiable must
conform to the following requirements:chanroblesvirtuallawlibrary
(a) It must be in writing
and signed by the maker
or drawer;
(b) Must contain an unconditional promise or order to pay a sum
certain in money;
(c) Must be payable on demand, or at a fixed or determinable fut
ure time;
(d) Must be payable to order or to bearer; and
(e) Where the instrument is addressed to a drawee, he must be na
med or otherwise indicated therein with reasonable certainty.
Sec. 52. What constitutes a holder in due course. - A holder in due course is a
holder who has taken the instrument under the following conditions:chanroblesvir
tuallawlibrary
(a) That it is complete and regular upon its face;
(b) That he became the holder of it before it was overdue, and w
ithout notice that it has been previously dishonored, if such was the fact;
(c) That he took it in good faith and for value;
(d) That at the time it was negotiated to him, he had no notice
of any infirmity in the instrument or defect in the title of the person negotiat
ing it.
Sec. 23. Forged signature; effect of. - When a signature is forged or made witho
ut the authority of the person whose signature it purports to be, it is wholly i
noperative, and no right to retain the instrument, or to give a discharge theref
or, or to enforce payment thereof against any party thereto, can be acquired thr
ough or under such signature, unless the party against whom it is sought to enfo
rce such right is precluded from setting up the forgery or want of authority.
Sec. 185. Check, defined. - A check is a bill of exchange drawn on a bank payabl
e on demand. Except as herein otherwise provided, the provisions of this Act app
licable to a bill of exchange payable on demand apply to a check.
Sec. 15. Incomplete instrument not delivered. - Where an incomplete instrument h
as not been delivered, it will not, if completed and negotiated without authorit
y, be a valid contract in the hands of any holder, as against any person whose s
ignature was placed thereon before delivery.
Sec. 14. Blanks; when may be filled. - Where the instrument is wanting in any ma
terial particular, the person in possession thereof has a prima facie authority
to complete it by filling up the blanks therein. And a signature on a blank pape
r delivered by the person making the signature in order that the paper may be co
nverted into a negotiable instrument operates as a prima facie authority to fill
it up as such for any amount. In order, however, that any such instrument when
completed may be enforced against any person who became a party thereto prior to
its completion, it must be filled up strictly in accordance with the authority
given and within a reasonable time. But if any such instrument, after completion
, is negotiated to a holder in due course, it is valid and effectual for all pur
poses in his hands, and he may enforce it as if it had been filled up strictly i
n accordance with the authority given and within a reasonable time.