Negotiable instruments law

Application
• only applies to negotiable instruments or to those meet the requirement laid by section I
• if it is not provided by the act it shall be govern by existing legislation

Function and importance of negotiable instruments

• not a legal tender but act as substitute for money
negotiability - it allows to be passed from one hand to another. in commercial markets
.
• Section
• purpose of the law is to make negotiable instruments bee freely traded Form and the requisites
• negotiable instruments increase purchasing medium. • must be in writing and signed by the maker or drawer
• they are safe and convenient nears of business eliminating the risk of dealing each • must contain an unconditional promise or order to pay
• negotiable instruments serves as medium of credit transaction a sum certain in money
• checks are usually for immediate payment • must be payable en demand or at a fixed or
• promissory note and bills of exchange are intended for circulation of credit. determinable future time
• must be payable to order or bearer
Features of negotiable instruments • where the instrument is addressed to a drawee, must
Negotiability and accumulation be named on otherwise indicated therein with
• Negotiability - attribute of a bill where it may the pass from one person to another like reasonable certainty
money, it gives holder in due course the right to collect the sum payable.
• accommodation of secondary contracts - commercial papers
• Refers to a written or obligation that arises out of
Forms of negotiable instruments commercial transaction
• The common form of negotiable instruments is the promissory note and the bill of
exchange Negotiable defined
• promissory note issuer has promised to pay • negotiable instruments cannot be operational if
• bills of exchange issuer has ordered a third person to pay. requirements of sectioni is not followed.
Special type
• certificate of deposit, bank notes, due bills, bonds Formal requirement of negotiability
Types of bill of exchange • form and content - a contractual obligation to pay
• trade acceptance, banker's acceptance money. Negotiability depend on the form and content.
A valid instrument is not always negotiable
• matters to be considered - the whole instrument and
what appears on the face of the instrument, must meet
Doubt resolved in favor of negotiability. the requirement
Applicability of formal requirement
Instruments with limited negotiability • negotiable instruments one either promissory note or
• letter of credit bill of exchange
• trust receipt • the requirements prescribed by section I is all need for
• treasury warrant the instrument to work
• postal money order • maker - refers to the issuer of promissory note
• Bill of lading • drawer- refers to the person issuing the bill of
• certificate of stock exchange
• warehouse recipes
• pawn ticket Formal requirements explained
• instrument must be in writing and signed by the
drawer or maker
1. Must be in writing or in tangible form, can be
printed, there is no oral negotiable
2. Signature can appear any part of the [Link] is valid
as long as it appears that a person intends the
instrument his own
3. Signature is a prime facial evidence. If signature is
not clear on what capacity is the sign for he is deemed
to be the indonser. And not the maker or Draven
4. If there is contradiction of signature party must
provide evidence of its invalida otherwise considered
valid
• must contain an unconditional promise on order to
pay
• must be payable in on sum certain in money - money
is the standard of value in actual business, includes
all legal tender
• there must be a fixed date, on determinable future time
or an demand
• must be payable to order or to bearer
• drawee must be named

Non-negotiable defined.
• instruments that does not meet requirement of section
I.
Section 1
Form and the requisites
• must be in writing and signed by the Promissory note defined
maker or drawer • an unconditional promise in writing made by one person to another, signed by the maker s
• must contain an unconditional promise on engaging to pay on demand on at a fixed an determinable future time I a certain money to order
order to pay a sum certain of money on to bearer
• must be payable en demand on at a fixed Parties to a promissory note
en determinable future time • 2 original parties - maker and the party whom the promise is made on the instrument is payable
• must be payable to order or bearer is called the payee.
• the instrument must be addressed to a • payee must so named/ beaver
drawee, must be named on otherwise indicated • may seek payment on further negotiate the instrument.
they en with reasonable certainty • maker signature must be on the face so he can be liable.
commercial papers
• Refers to a written promise or obligation
that arises out of commercial transaction
Bills of exchange defined
Negotiable defined • an unconditional order in writing addressed by one person to another, signed by the person giving it, and
• negotiable instruments cannot be requiring the person whom it is addressed to pay upon demand...
operational if requirements of sectioni is not • it is an order made by one person to another to pay money to a third person.
followed. Parties of a bill of exchange
-At least 3 parties - the drawer, drawee, and the payee
Formal requirement of negotiability 1. Drawer- the person who issues and draws the order bill, he gives the order to pay money to a third partis, he
• form and content - a contractual does not pay directly.
obligation to pay money. Negotiability depend on 2. Drawee- the party upon whom the bill is drawn, who is ordered to pay, he is the acceptor who indicates his
the form and content. A valid instrument is not willingness to pay
always negotiable 3. Payee - the party whose favor the bill, Ang Bryan.
• matters to be considered - the whole Purpose of Bills of exchange
instrument and what appears on the face of the • drawers fines in the hands of drawee
instrument, must meet the requirement • liability of drawee for non payment
Applicability of formal requirement
• negotiable instruments one either
promissory note or bill of exchange Section 2,
• the requirements prescribed by section I is Certainty as to sum; what constitutes- the sum payable is a sum certain within meaning of this act,
all need for the instrument to work atthoran it is to be paid
• maker - refers to the issuer of promissory 1. With interest
note 2. Stated installments
• drawer- refers to the person issuing the bill 3. If stated installment is not followed it becomes due
of exchange 4. If exchange. Be it fixed or current
5. With most of collection or an attoney'S fee in once payment is made not at maturity
Formal requirements explained
• instrument must be in writing and signed Certainty of sum payable
by the drawer or maker • the promise Er Oder must call for the payment of a cum certain in money
1. Must be in writing or in tangible form, 1. Payment of fixed amount of money - the amount to be paid should be stated on the face of
can be printed, there is no oral negotiable the instrument
2. Signature can appear any part of the 2. Permissible clause on stipulations
[Link] is valid as long as it appears that a Summ to be paid with interest
person intends the instrument his own I. Interest at fixed rate-
3. Signature is a prime facial evidence. If 2. Interest at increased rate-
signature is not clear on what capacity is the sign 3, accrual interest not specified - if there is a stipulation but no specified rate then 6% shall apply
for he is deemed to be the indonser. And not the Sum passable by stated instrument
maker or Draven • does not affect negotiability
4. If there is contradiction of signature party Som to be paid by stated installment with acceleration clause
must provide evidence of its invalida otherwise 1. Acceleration dependent on the maker- payee can't accelerate the payment unless the matter
considered valid fails to pay
• must contain an unconditional promise on 2. Acceleration at option of holder - if there is a dangethet the holder can accelerate. The
order to pay instrument is not negotiable.
• must be payable in on sum certain in Sum to be paid with exchange
money - money is the standard of value in actual 1. Refers to the instrument that has the promise to pay
business, includes all legal tender 2. Payment in foreign currency..- does not impare negotiability
• there must be a fixed date, on 3. Payment with exchange Nate- applicable only to foreign bills,
determinable future time or an demand Sum to he paid with lost of collection or an attorney's fee
• must be payable to order or to bearer 1. Takes place after maturity.
• drawee must be named

Non-negotiable defined.
• instruments that does not meet requirement
of section I.
Section 3.
When promise is unconditional
1, an indication of a particular fund out of which reimbursement is to he made or a Sections 5
particular account to be debuted with the amount Additional provisions that donut affect
2. A statement of the transaction which gives nice to the instrument negotiability.- an instrument which contains an
But an order or promise to pay out of a particular fund is not unconditional order to do any out additional to payment is non-
negotiable. But the negotiable character of an
When provisions note contains a promise to pay instrument otherwise negotiable is not affected by
1. Implied promise to pay- it must contain an unconditional promise, to pay, it should 1. Authorize sale of collateral encase not paid
contain the word promise on any mond equivalent ho it. at maturity
2. Bare acknowledgement of -. Indebtedness -acknowledgement of indebtedness alone does 2. Authorize a confession of sidament if not
not make the instrument be negotiable however if words of negotiability is added the paid at de
instrument becomes negotiable 3. Waiver
When bill of exchange contains an order to pay 4. Gives holder to do something in lieu of
1. Words equivalent to an order to pay - there must be unconditional under to buy by one payment of money
party. The word "order" is not necessarily need as long as its equivalent word is there
2. Were request to pay- the drawer is not asking but demanding the drawee to pay., the use
of polite words does not constitute a request. Acts in addition to payment of money
. liability of, drawer - The drawer has liability under the law 1. General rule - if there is additional order
When promise or order to pay unconditional. aside from payment of money then it is
1. Instrument payable absolutely- promise or order is not enough it must contain an non-negotiable
unconditional
2. Reason for requisites- unconditional promise enhaveees negotiabilit.
• no one accepts instruments that has no absolute was of recovery Section 6
• conditions make it non-negotiable Omission; seal particular money - validity of instrument is not affected if:
3. Terms affecting unconditional liability 1. Not dated
Indication of a particular andant of which reimbursement is to be made 2. Does not specify the value given
• an instrument that mentions a particular fund out of reimbursement does not render the 3. Does not specify the place
instrument non-negotiable 4. Bears a seal
Indication of a Particular out of which payment is to be made 5. Designates a particular kind of currency
• an instrument payable out of a specified find is non - negotiable
Indication of a particular accent to be debited with the amount Effect of emission of date
• negotiable the promise is not conditional 1. Date is not necessary- if there is no date then the instrument will he dated as of the
Statement of transaction that gives vise to interment time it was issued
1. The mere recital of the consideration does not make it conditional. 2. Date is necessary - when date is tied to the date at issuance, where interest is stipulated,
2. Terms and conditions on another paper - 3. Date stated not in calendar - nearest date will be used.
Effect of omission of value

• consideration is presumeD this the value maybe omitted

Effect of omission of place
• payable at residence
Effect of seal

Effect of designated particular currency '

Section 7
Section 4 When instrument is payable by demand
Determinable future time • where it is expressed to be payable en demand on at sight or on presentation
1. at fixed period after date or sight • ia which no time for payment is expressed
2. On or before fixed on determinable future time specified There An instrument payable on demand is due and payable after delivery.
in
3. On on at fixed period after the occurrence of a specifically event Section 8
which is certain to happen, the the time of happening bs When payable to order - the instrument is payable to order where it is drawn parable to the order of a
uncertain specified person on to him on his [Link] may it may be to the drawn to the order of:
4. An instrument payable on carting envy is non-negotiable 1. A payer who is not maker, drawer, drawee
2. The drawer or maker
Certainty of time payment 3. The drawee
1. Instrument payable an all events - payment should be certain 4. Two or more jointly or
and be demandable 5. One or more several payees
. When time of payment is certain - must by payable on demand 6. The holder of an office for the time being
or at fixed or determinable time
3. Reason why time must be certain- know when the instrument Standardize words of negotiability
he entered, the maker, or drawee know when they will pas • "to the order of"
When instrumen payable to order
When instrument payable at determinable future time • 1. An instrument is payable to order where it is drawn payable
• to the order of specific person
• or to him or his orders
 Section 14.
Section 9
Blanks when many be filled
Payable to beaver
1. Expressed to be payable
Steps in issuance a negotiable instrument
. Payable to a person name there in or bearer
1. The writings should follow section I
1. When payable to a non -existing person
2. The delivery of the complete instrument should here the intention
2. When the name of the party does not purport to
be the name of any person
Rules where instrument incomplete but delivered
3. When the only last endorsement is in blank
1. Authority to fill up blanks - The holder has prime face authority to complete
by filling up the banks, The authority to complete is not an authority to alter.
When instrument payable to bearer
2. Authority to put any amount - The holder may fill it up but must be able to
• bearer means the person in possession of a bill
show, without showing there cannot be arise a prime face
which is payable to bearer
3. Rights against party prior to completion - only enforceable strictly if followed
• delivery alone is enough to effect negotiation of
the given authority.
the instrument
4. Rights of holder in due course - he can get what is in the face of instrument.
• if name is fictitious or non existing the instrument
turns to a beaver instrument

Section 15
Section 10 Incomplete instruments not delivered.
Terms, when sufficient - The instrument may not follow all 1, defense against a holder in due course- an incomplete and completed without
the act as long as terms is enough to show intention authority and has not beenddliver is a real defense
1. Clear intention of the parties- as long as the clear 2. Defense available prior delivery - the invalidity is only with reference to the
intention of the parties to make the instrument negotiable parties whose signature appear on instrument before and not after delivery
then the law will give force and effect
2. Use of foreign language - any instrument can be written
through foreign language
3. Wrong in the grammar - does mot walling the valid ditty Section 16.
of the instrument Delivery; when effectual; amen presumed.

Complete instrument but undelivered,

Section 11
Date, presumption As to .- where the instrument is dated, Rules where instrument is mechanically complete
such date is deemed prime face to be the true date of the 1. Undelivered - delivery - transfer of possession from one person to another. Issue-
making first delivery of the complete instrument. Holder - means the payee or indorsern or
• generally date is not essentially needed to make an the bearer
instrument negotiable however there are instance 2. Delivered - The place where the instrument was written, signed on dated does not
when it is needed such as knowing the maturity date determine where it was executed The important part is the delivery. Delivery may he
' setting at interest rate and others made by maker on drawer
Date instrument payable on demand 3. in possession of a party other than a holder in due course - it instrument is not in
1. Date of issue or last negotiation - promissory note the hands of the holder in due course but in the hand of the remote party. There is
should be presented for payment within 9 reasonable prime face presumption of delivers but can be questioned.
time after its issue and encase of Bills of exchange, 4. Delivered conditionally on for special purpose-
within a reasonable time after last negotiation. 5. in the hands of holder in due course- if compel instrument then delivers is assumed
2. Importance of date-

Section 17.
Section 12
Construction where instrument is ambiguous
Ante-dated and post dated
• dated instruments are valid until there is fraud
Rules of construction in care of ambiguity or omission
• ante-dated is when it contains a date earlier than the true date of its issuance
1. Sum expressed in words and figures is different- words shall be followed as figures can be
• post-elated when it contains a date later them its true date of issuance
easily change
2. Words ambiguous or uncertain- if this is the case then the figure can act as the the
amount
3. Date when stipulated interest to run not specified. - the date that will be used is the
issuance date.
4. Instrument undated. - considered date is the issuance
Section i3
5. Written and printed words in conflict - written will be followed
When date may be inserted
6. When instrument bill or note in doubt. - holder has the choice on what todo.
7. Capacity in which person signed in doubt. - deemed as indorcer - only applies when there
1. Where an instrument is payable at a fixed period after date but is
is confusion on location of the signature
issued undated
8. Instrument signed by two or more - there might be solidarity on joint.
2. Where an instrument is payable at fixed period after sight but the
acceptance is undated

Effect of insertion of wrong date

1. Holder with knowledge. - not holder in due course
2. As to subsequent holder in due course - regarded as true date
 Sect 18
Liability of person signing in trade or assumed name

1. General rule- only person whose signature appear on the

instrument is liable.
2. Exception - person signs in a made on assumed name, agents Forged signature
sign, forgery, acceptor accepted and sign on another paper,
written premise • forgery is meant the fatting or alteration of any writing of an instrument
3. • fake agent
• agent but no authority
• effect of forged signature real defense for HIDC
Sect 19.
• proof of forgery- must provide evidence
Signature by agent
• maker or drawer can sign instrument on the
Cases of forgery in general
assigned authorized agent.
1. Promissory notes - forgery of an inclorsement and forgery of makers
signature
2. Bills of exchange- forgery of endorsement of bill ,and forgery on
Sect 20. drawer's signature either: with acceptance by dance; without acceptance
Liability of person signing as agent. but bill is paid by the drawee
• if there are march stating that the Extent of the effect of the forgery
sign is only on behalf or • section does not declare that the instrument is void, The forged or
authorization then he is not unauthorized signature that is declared to be inoperative
liable.
When agent may escape personal lability Exception to the general rule
1. He is authorized 1. If the party against atom it is sought to enforreceven right is precluded
2. He adds the word. "On behalf" from eating up the forgery on want of authority
3. He discloses the principal 2. When forged signature is not needed for the instrument

Disclosure by assent of principal Person precluded from setting up the defense affordery
• signed on his name without 1. Those who act, silence, or negligence, one stopped from setting up the
disclosure then he is bound. defense of forgery
2. Those also warrant on admit the gaminess of the signature in question,
of namely: endorsers, acceptors; and person negotiating by delivery,
Section 21. .
Signature by procreation Rights of parties in cases of forged endorsement
1. Where note payable to order - the party whose indorsèrent is force is mot
• procreation is the act by which principal gives power to another to act on his liable to holder.
place as he could himself or proxy 2. Where note payable to beaver - if instrument is mechanically complete,
the party whose inclorsement is forged is liable to a holder in due any
Should inquire to what extent as it has limited authority holdcourse but not to a nhidc
3. Where bill payable to order- The party whose endorsement is forged is
not liable to any holder .
4. Where bill is payable to bearer-
SOC 22.
Effects of indoregement by infant or corporation.
1. Minors, - contracts with minors avoidable
2. Other incapacitated person - voidable
3.
Chapter 2
Section za.
Sec 24. Liability of accommodation party. -
Presumption of consideration - every instrument is deemed to have
been issued for a valuable consideration. Every person who signs Definition of terms
the instrument becomes a party. 1. Accommodation note or bill - one in which on accommodation has put his name
2. Accomodation party - one who signed the instrument as the drawer, maker,
• consideration/cause is the direct reason which induces a acceptor or endorser without accepting value , the purpose is just to end the
party to enter a contract. name.
3. Accommodated party- the one who borrowed the name
Presumption of consideration
• an instrument must have a, consideration on [Link] is not Liability of accommodation party
necessary, however the consideration should be stated in 1. Absence of consideration not a defenses - not a defense this liable
the instrument. 2. Accommodation party, in effect la surety- after paying the accommodation party
• every person who signed is a party can ask for reimbursement from the accommodated party.
• The presumption is only prime fail it can be disputed.
Meaning of" without recede value therefor "
• one of the requisites in order that a person may be considered as accommodation
kinds of party. Accommodation
• means wo value received after lending his name
Section 25.
Value. What constitute. Value is a consideration enough to Kinds of accommodation party
support a simple contract. An antecedent or pre-existing debt • accommodation makes
constitutes a value; and is deemed whether the instrument is • accommodation drawer
payable on demand on a future time • accommodation acceptor
• a valuable consideration need not to be [Link] is • accommodation endorser
enough it it is a valuable one

Antecedent or pre-existing debt.

• is a valuable consideration

Sec 26.
What constitute holder for value. _ where value has at any time been
given for the instrument. The holder is deemed to a holder for vale in
respect to all parties who become such prior to that time

What constitutes a holder for value

Holder- is the one who gave a valuable consideration for the
instrument

Sec 27.
When lien on instrument constitutes holder for value - where the holder has a lien
on the instrument arising either from contract or by implication of law, he is
deemed a holder for. Value to the extent of his lien

Where Holden has lien on instrument.

1. Amount of instrument more than debt secured. ~ if the amount of the
instrument is more then debt secured. By such instrument, the pledge is a
holder for value to the extent of his lien.
2. Amount of the instrument loss them on the same as debt secured- the
pledge is holder for taco for the full amount and man, therefore, recover all.
3. Party has liable defense - please can collect to the extent amount of debt.
If there is real defense pledges can't collect.,

Section 28.
Effect of want of consideration; absence an failure of consideration is a matter of defense as
against any person nhidc; and partial consideration is a defense pro tanto whether the failure
is ascertained and liquidated amount on otherwise

Meaning of absence or want of consideration

• absence of consideration means lack of any valid consideration fur the contract.
Moaning of failure of consideration
• failure or refusal of one parties to do ( in bad faith )
Chapter 3 Section 31
Inclorsement, must be written on instrument itself on upon a paper attached there of.
Signature of indorser, without additional novels, is enough to be indorsement

Indorsement
• the writing of the name of the payee on the instrument with the intent either to Fraser
or strengthen the security of the holder.
Sec 30
What constitute negotiation 1. The payee by signing the instrument and delivering it to another person becomes the
• instrument is negotiated one it is transferred from one person to endorser, the person who received the endorsed instrument becomes the indorsee
another 2. Endorsement without delivery conveys no title and creates no holder
• if payable to bearer mere delivery is enough
• if payable to order, endorsement plus delivery. Nature of endorsement
1. Needed for execution of an instrument payable to the order of the maker or drawEr
Methods of transfer of negotiable instruments 2. Needed for order instrument
1. Issue- TheFirst delivery of instrument complete inform, to a
person who take it as holder Form of endorsement
2. Negotiation - operates to make the transfer of instrument the • no required exclusive form but must be written or printed.
holder there of ordinarily involves endorsement.. Negotiation • assign" does not make a negotiation but mere assignment
and endorsement can be used interchangeably. • No signature of endorser without additional words is a blank endorsement
3. Assignment - transfer of right under a contract. The transfer of • the name of endorser is specified is a special endorsement. Additional words limits
non- negotiable always constitute an assignment. Transfer is negotiability of instrument
also an assignment. When negotiation takes place, the transfer
becomes the holder Place of endorsement
1. On the instrument itself - indorsa = writing on the back
Negotiation 2. Upon a paper attached there to. - endorsement on another attached paper is called
• The transfer of instrument from one person to another in A allonge
manner as constitute the transfer the holder there of

Methods of negotiation
1. Instrument payable to order - indorse meet plus delivery of the
payee.
Section 32.
2. Instrument payable to bearer - delivery is enough
Endorsement must be the entire instrument
• there cannot be partial endorsement

Endorsement to multiple payees or endorser

Effect of delivery of order instrument without endorsement
1. Joint payee - negotiation is valid where endorseEs are joint
2. Alternative payee- instrument sometimes are payable to two on more. The negotiation of the
1. Transfer operate as normal assignment - askance is merely
endorsement of either of the payer
placed in the position of the assignor. All defense are available
2. Transferee does not become the holder of instrument- without
endorsement, the transferee would not become the holder of the
instrument Section 33,
3. Where endorsement subsequently obtained. - when endorsement Kinds of endorsement.
subsequently obtained, the transfer operates as a negotiation • endorsement maybe special or blank
only as of the the time the endorsement is made. • maybe restrictive or qualified or conditional

Negotiation and assignment Distinguished

1. Negotiation only refers to the instrument assignment while Sec 34.
assignment refers generally to contracts Special endorsement; endorsement in blank
2. Negotiation the transferee becomes the holder while assignment • A special endorsement specifies the person to whom or to whose order, the instrument is to be
becomes assignee payable, and the endorsement of such indorsee is needed to the further negotiation of the
3. An HIDC is only subject to real defense while assigned is instrument
subject o to all defense • A blank specifies no indorsee, and an instrument so endorsed is payable to bearer and may he
4. HIDC can get better tittle while assignee merely steps shoes the negotiated by delivery.
the assignor
5. An endorser is not liable unless there is presentment and notice Special endorsement.
of w dishonor • one where the name of the payee is specified.
6. Negotiation is governed by NIL while assignment is civil code • also known as specific endorsement or endorsement in full.
• special and blank endorsement are "unqualified" endorsement
Can there be negotiation to payee • form - one that specifies the person to whom the endorsement is to be paid and one that
1. First delivery of instrument to payee - as the first holder, title specifies the person whose order the instrument is to be payable
acquired by issuance • negotiation of order and bearer instrument - if payable to order endorsement is need to
2. First deliver of instrument to other them payee - payee acquires further the negotiation. If payable to bearer only delivery.
little by negotiation Blank endorsement
3. Delivery of instrument to the payee by last holder • no particular indorsee
• such an endorsement ordinarily consist of only signature of the payee or endorsers.
• an instrument payable to beaver only needs delivers.
 Sec 39.
Sec 35.
Conditional endorsement - where an endorsement is conditional, a party
Blank endorsement; how changed to special endorsement. - The holder may
required to pay may disregard the condition and make payment to endorses.
convert a blank endorsement into a special by writing over the signature of
Whether the condition has been fulfilled or not. But any person to whom an
the endorser in the blank any contract consistent with the character of the
instrument so endorsed is negotiated will hold the same. Or the proceeds there
endorsement
of, subjet to the rights of the person endorsing conditional.
• a beaver instrument is always a bearer instrument wether the last
Conditional and absolute endorsement
indoneement is special on blank.
1. Absolute endorsement- one which indonders bind himself to pay and no
other condition
2. Conditional endorsement- imposes indorSer's some other condition to his
Sec 36. liability, ore indorse e right to collect . Conditional does prohibit negotiation
When endorsement restrictive regardless it has been fulfilled or not. Conditional does not destroys
An restrictive is either; negotiability. But a condition on the face of instruments destroys
• prohibits further negotiation negotiability
• constitute the indorsee the agent of the endorser
• vests the title in the indorsee in trust for or to the use of other person
but mere absence of words imposing power to negotiable does not make an inclorsement Sec 40.
restrictive Endorsement payable to beaver - where an instrument is payable to [Link] may
negotiated delivery. But the person endorsing specially is liable as indorser to only
Restrictive explained such holder as make title through his endorsement
• one worded that is either restricts or prohibits further negotiation, or modifies the
right of the holder or liabilities of the endorser
1. Limits rights of endorser - an endorser notify all prospective holders that the indorse Sec 41
was the only authority to deal with the instrument there by directed and that indorsee
has restrictive title. This, by such endorsement. An endorser can safeguard his Endorsement where payable to two or more persons - when instrument is payable
interest by limiting the rights of the indorsee whenever he should find it need to to two or more who one are not partners, all must indorse unless one has the
entrust the negotiable paper to another authority to endorse.
2. Destroys negotiability of instrument - it destroys negotiability and bars further
negotiation. 1. Joint - one or some of several payees
3. 3 classes - prohibit further negotiation, constitute indorsee agent of endorser, vest title 2. Two or more payees severally - anyone of such party in possession is the
in indorsee for the benefit of the endorser or a third party holder
3. Inclorsement by all of the payee- all must indorse in order for the
Effect of absence of words of negotiability transaction to operate as negotiation
• mere absence of words implying power to negotiate does not make an inducement
restrictive. When there is restrictive moves it makes the instrument restrictive Instrument payable to partners
• business under a firm name must by in the name such firm and not in the
name as joint payed

Sec 37.
Effect of restrictive endorsement; rights of indorsee - A restrictive endorsement confers Sec 42.
upon the endorsee rights: Effect of instrument drawn on endorsed to a person as cashier- it is deemed prime
• to receive payment of the instrument face to be payable to bank on corporation of which he is such officer and maybe
• to bring any action thereon that the endorser could bring negotiated by either the enclorsement of the bank or corporation on the endorsement of
my Authorized
the officer n n
• to transfer his rights as such indorsee where the form of the endorsement workers
the
of company
or

accept
authorize him to do so
But all subsequent indorsees acquire only the title of the first indorsee under the
restrictive endorsement Sec 43.
-
Endorsement where name is misspelled. - where the name
is misspelled,ne may indorse the instrument as there in
The indorsee may receive payment from the instrument and sue there on in this name. described adding, if think fit, his proper signature.
He may also negotiate if further the instrument restriction allows it.
1. Adding his signature
2. And the proper name then signs,
Sec 38. 3.

Qualified endorsement. - A qualified endorsement constitute the endorser a mere assignor of the
title to the instrument. it may be made by adding the indorSer's signature the words "without Sec 44.
recourse" or any novels similar. Such an inclorsement does not impair negotiabily Endorsement in representative capacity. - where any person is under obligation to
indorse in a representative capacity, he may indorse in such terms as to negative
Qualified endorsement explained personal liability.
1. How made. - an endorsement qualified by adding to the indorSeer's signature the word
"without recourse" or similar bonds live " San recourse" to either blank or special
endorsement Sec 45.
2. Meaning of recourse - secondary liable after default. Time of endorsement; presumption. - except where indonemento boors a date
after the maturity of the instruments every negotiation is deemed prime face to
Effect of qualified inducement have been effective before the instrument was overdue.
1. Endorser, a were assignor- both endorsement indicates endorsers, in addition to transfer
of title, guaranteeing payment. Making indorseer a mere assigner of the instrument. HIDC must home taken instrument before it was overdue.
2. Indonser liability limited - endorsers in incurs no liability at all, - endorsement limits
his lability. Secondary liable
3. Negotiability of instrument not affected -
 Sec 46.
Place of endorsement i presumption - except when the contrary appears, every endorsement is
presumed prime face to have been radiate the place where the instrument is dated

Sec 47.
Continuation of negotiable characters.- an instrument negotiable in its origin continues to
be negotiable until it has been restrictively endorsed or discharged by payment on otherwise

1. General rule - instrument in its is always negotiable instrument can always be negotiable
2. Exception - has been restricted , discharged by payment disclasses restricted
unless ,

Sec 48,
Striking out inclorsement - The holder may at any time strike out any inclorsèrent which is
not necessary to his title. The endorser whose endorsement has been struck out and all
subsequent to him are all relieved from liability can relive people and those after

Sec 49.
Transfer without endorsement; - effect of - where the holder of the instrument payable to
his order transfer it for value without indoors in it, The transfer vests it the transferee such
title as the transferor had there in; and the transfer [Link] addition the right to have
the endorsement of the transferor, but for the purpose of deterring whether the transferee is
HIDC, The negotiation takes effect as of the time when the inclorsement is actually
made,

Effect of transfer without endorsement

1. The transaction is like assignment
2. Can't he negotiated
3. Before endorsement he is not a holder,

Sec 50

When prior Party may negotiate instrument. - when instrument is

negotiated back to a prior party, subject to the provision of his act. Reissue
and further the same but he is not entitled to enforce payment there of
against and intervening party to whom he was personally liable

Refers to a reacquirer who negotiated and subsequently reacquire the

[Link] acquired before maturity he may negotiate it.
 Chapter 5 Sec 53 '
When person not deemed HIDC - where an
instrument payable on demand is negotiated an
unreasonable length of time after it is issue, the holder
Sec 51 is not deemed a holder in due course.
Rights of holder to sue - The holder of a negotiable instrument
may sue thereon in his name; and payment to him in due course
discharges the instrument
Sec 54
Classes of holder Notice before full amount paid - where the transfer received notice of any
1. Holder simply infirmity in defects in the title the of person negotiating the same before he had
2.
3.
Holder for value
Holder in due course iflatetrona a paid the fill amount agree to be paid, he will he deemed holder in due only to the
extent the amount there. To for paid by him
Holder - qualifies as holder but does not meet all condition to 1. No about here been paid - relieved from obligation
be holder in Che course. 2. An amount has been paid- not obligated to say for the aged amount if he
said then he is HIDC
1. The instrument of any holder is subject to all defenses
but does not mean the instrument is non negotiable
2. Holder may not own the instrument.
Sec 55
Rights of holder in general When title is defective - The title of a person who negotiates an instrument is
1. Mais sue on the instrument in his name defective within the meaning of this act when he obtained the instrument, Ar
2. Many rectiere payment any signature there to, by fraud, duress, or force and Fear, or other unlawful
-

means, on for an illegal consideration, or when he negotiates it in breach of

faith, or under circumstance as amount to a friend.
Sec 52
What constitute HIDC - A HIDC is a holder who h as taken the instrument under the following condition When the title of a person defective
1. Complete and regular on its face 1. in the acquisition
2. Became holder before due and without notice that it has been previously dishonored 2. in the negotiation
3. He took it in goal faith and for vale Sec 56.
4. at the time of negotiation he had no notice of any infirmity in the instrument an defect that the of What constitute notice of defect - to constitute notice of an
of the person negotiations it. infirmity in the instrument or defect in the title of the person
negotiating the same, the person to whom it is negotiated must
Condition to qualify have had knowledge of the defect such facts that his action in
HIDC met follow all requisites. taking the instrument amounted to bad faith.
1. Presence of all condition
2. Status as men assignee - holder of non-negotiable cannot be hide What constitute notice of defect
3. Rights - has all the rights • the transferee must have knowledge of the defect or
knowledge of such facts.
Payee as holder due course 1. Mere negligence to make inquires not sufficient-
1. Can be HIDC negligence in itself is not enough to constitute notice
Drawee as HIDC since it is not equivalent of either knowledge or bad
• drawee can't be HIDC faith.
2. Knowledge amounting to bad faith- intentional
Instrument complete and regular ignorance may amount to bad faith
• instrument is incomplete when any particular must inserted, the instrument must have a regular 3. Effect of notice of defect. - knowledge law of defect,
face. at the time of taking an instrument which destroys
status of HIDC opens all defense . Holder with tenon
Holders before instrument is overdue ledge of defect is subject to the defense of note was
1. Maturity. -, overdue after maturity obtained by frond.
2. Acquisition on or after maturity- strong indication that it has been dished
Holder without notice of dishonor Sec 57
1. Ways and time of dishonor - can be dishonor by non-acceptance or non-payment Rights of HIDC - free from any defects of title of prior parties and
2. Negotiation after maturity or dishonor- holder cannot be HIDC free from defense available to prior parties among themselves, and
Holder in good faith may enforce payment of the instrument for the full amount against
1. Good faith - honesty in the transaction concerned all parties liable
2. Bad faith - dichorest
1. Proof of bad faith- to show knowledge of such facts that the takings would amout to bad faith Rights of HIDC
1. May sue on the instrument in his own name
Holder for value 2. May receive full payment
• enough to support a simple contract. 3. Holds the instrument free from any defects of title of prior
parties
Holder without notice of infirmity's in instrument 4. Holds the instrument free from defense available to prior
1. Lack of bad faith- can be HIDC parties
2. Bad faith agent - knowing there is wrong 5. He may enforce payment of of the instrument for the fill
amount against liable
Sec 58
When subject to original defense - In the hands of holder other than HIDC, A
instrument is subject to defense as if it were a non-negotiable. But a holder who
derives his title through a HIDC , and who is not himself a party to any fraud
has all the rights of such former holder in respect of all parties prior to the latter.

Defense - are grounds or reasons pleaded or offered by the. Defendant in a case,

showing the plaintiff

Kinds of defense
1. Real defense- those that are assertable against all parties both immediate
and remote, including HIDC, they ore called real because they attach to
the res, that is, the instrument itself regardless of merits of the holder.
2. Personal defense- those available to prior parties among themselves but are
not. Good defense against HIDC

Fraud in fact and fraud in inducement

1. Fraud in the execution or fraud factum- exist in case which a person,
without negligence , has signed the instrument. This kind of defense is a
real defense.
2. Fraud in inducement or simple fraud. - it implies that the signer knows
what he is signing but he was induced by fraud to gain. Only a personal
defense

Rights of holder not in due course

1. He may sue on the instrument in his own name
2. May receive payment and if payment is in due course, the instrument is
discharge
3. He is entitled to the instrument but holds it subject to the same defense as
if it were non-negotiable
4. He has the same rights as HIDC assuming there is no unlawful thing

Rights of purchaser from holder in due course

1. Rights of a mere transferee - his rights are those of a transferee of a non-
negotiable so that he is not free from personal defense
2. Rights of transfer from a holder in due course- can enforce the same
rights, a holder through a holder in due course

Sec 59.
Who is deemed HIDC - every border is deemed prime facie to be
HIDC ; but when it is shows 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 acquired the title as holder
in due course. But the last mentioned note does not apply in favor of a
party who became bound on the instrument prior to the accession of such
defective title

When holder is presumed a holder in due course

1. Proof of being a holder- once it shows that he is HIDC in the
instrument then he may no need to prove it.
2. Burden of proof on holder where indorSer's title defective - when
shown defective The burden of proof is with the holder
3. Exception -
 Chapter 5

Sec 60 Sec 62.

Liability of acceptor
Liability of maker • the acceptor by accepting the instruments engage that he will pay it according
• the maker of negotiable instrument by making it engages that he will pay it according to to the terror of his acceptance, and admits:
its tenor, and admits the existence of the payer and his capacity to indorse • existence of the drawer, the genuine of his signature and his capacity and
• authority to draw the instrument
Classification of parties according to liability • the existence of the payee and his capacity to indorsee
Liability - refers to the obligation of a party to a negotiable instrument to pay the same
according to its term Liability of acceptor
1. Primary liable - maker of note, acceptor of bill of exchange , the certified of a check 1. Liability of drawee before acceptance - not liable before acceptance
2. Secondarily (conditionally) liable- drawer of a bill, endorser of bill 2. Liability of drawee after acceptance- he becomes the acceptor he has the
3. Not liable - the drawee until he accepts the instrument in which case he becomes status of maker
acceptore. 3. Liability of acceptor primary - bound to instrument for he engages to pay it
A person becomes a party to an instrument when he signs it with his name. according No the term of his acceptance - acceptor can't retract his
General rule- not liable if name and signs not in the instrument acceptance, liable

Liability deters on terror of acceptance

Primary and secondary • the acceptor engages to pay according to the tenor of his acceptance
Primary - unconditionally bound, required to pay the instrument
Secondary ' conditionally bound, only here to pay if certain condition have been fulfilled. Like
dishonor Warranties of the Acceptor
Generally liability of secondary party ends when primary party pays the instrument. 1. Defense precluded -
2. Matters not admitted-
Liability of maker
• only applies to promissory note, includes accommodation maker and surety who signs as Sec 63.
maker When person deemed indorser
1. Liability of maker unconditional- the primarily liable • A person placing his signature upon an instrument otherwise than as
2. Admissions of maker- the maker admits the existence of the payee and his capacity to maker, drawer, or acceptor is deceived to be an endorser , unless he
embers, clearly indicates by appropriate words his intention to be bound in
3. Presumption arising from signature. ' a person placing his name on the face of a note is some other capacity
prime facie maker and liable as such.
When a person deemed as indorser
1. Signature on back of instrument- a person signing his name on the
Sec 61 back of instrument is a general endorsor
Liability of drawer 2. Evidence of intention to be bound in some other capacity - he
• The drawer by drawing the instrument admits the existence of the payee and his indicates appropriate, his intention to he bounded
capacity to endorse; and engages that on due presentment the instrument will be accepted
or paid, or both, according to its tenor, and that if dishonored, and the necessary When a person liable as guarantor
proceedings on dishonor be duly taken, he will pay the amount there of to the holder, or 1. Liability of guarantor- only liable as secondary
to any subsequent indorser who may be compelled to pay it. But the drawer may invent 2. Liable as surety- primarily and absolute liable
in the instrument an express stipulation negating or limiting his own liability to the
holder

Liability of drawer
• by merely signing his name on the bill as drawer, admits the existence of the payee and
his capacity to endorse instrument Sec 64
1. Liability of drawer conditional - drawer does not promise to pay, he may pay after Liability of irregulars endorser
conditions are full filled - the bill is presented for acceptance as the case member to the • where a person, not a party to the instrument place his signature in blank before
drawee, the bill is dishonor by non-acceptance or non- payment - process of dishor is delivery he is liable as endorser in accordance
. to the following:
made • if instrument is pay to order of a third person, he is liable to the payer and to all
2. Liability of drawer only secondary - intervening indorser subsequent party
3. Liability of a drawer of a check - represent that there is enough cash to pay • if the instrument is pay able to wander of the maker on drawers an is payable to
drawer she is liable to all parties subsequent to the maker or drawer
Braver distinguien from maker • if he signs for the accommodate on of the payee, he is liable to the subsequent
1. Issues bill of exchange payee
2. Only secondary liable
3. Can negate or limit liability. Irregular or anomalous endorsement
• an endorsement for some purpose other then transfer the instrumen or an
instrument endorsed by a stranger or by one not in the chain of title.
•
When a person an irregular Endorser '
• a person not a party to an instrument
• place his signature on blank
•
Sec 65 warranty where negotiation by delivery Sec 67
• every person negotiating an instrument by delivery warrants: Lability of endorser where paper negotiable by delivery
• the instrument is genuine and in all respect purports to be • where a person places his endorsement on an instrument negotiable by
• that he has a good title delivery he incurs all trabilities of an endorses
• that all prior parties had capacity to contract
• that he has no knowledge of facts which could impair the 1. Negotiation by delivery - payable to bearer, no need to endorse
validly of the instrument 2. Negotiation by endorsement - if endorsed then liable to holders who
• but when the negotiation is by delivery only the warranty mate tithe through his endorsement
extends in favor of the holder other than the immediate
transferee
Sec 68
Negotiation by delivers
Orders in which endorsers are liable
• as respect one another, indoneers are liable prima [Link] the order in which
• negotiation by delivery - endorsement is not required they indorse; but evidence is admissible to show that, as between among them,
• qualified endorses- by adding without recover to the they agreed. Joint payees or joint indorser who indonsed one deceived to
signature on the like terms endorsed jointly or severally

Warranty liability of one negotiating by delivers and qualified 1. Among themselves

endorser 2. To the holder
1. Liability as assignor of credit - the liability of a person
negotiating a beaver instrument by mere delivery is the same Liability of joint payees or endorsers who endorsed
as the person who negotiates by qualified indorsèrent 1. Solidarity liability - each one of them is liable for the entire amount
2. Person in whose favor warrants extends - 2. Joint liability-

Sec 66
Liability of general endorser Sec 69.
• every endorser who endorses without qualification warrants to all Liability of agent on broker
subsequent holders in due course • where a broken or other agent negotiates an instrument without endorsements he
• (a) The matters and things mentioned in subdivisions (a), (b), and (c) of incurs all liabilities prescribed by section 65 unless discloses the name of
the next preceding section and principal and fact that acting as agent
• (b) that the instrument is, at the time of his endorsement valid and
submitting
• and in addition, he engages that, on due presentment, it shall be accepted
or paid, or both, as the case maybe, according to its terror, and that if it
be dishonored and the necessary proceeding on dishonor be duly taken, he
will pay the amount there of to the holder or any subsequent indorser who
may compelled to pay it

Warranty liability of general endorser

1. Similar to that of qualified indonser and person negotiating by delivery
2. Warranty that instrument is valid and subsisting
3. Warranty that instrument will be honored.
4. Warranty that prior endorsement genius

Conditions precedent to make indorser liable

1. Due presentment for payment or acceptance, as the case maybe, must be
made
2. If instrument is dishonored

Endorser and drawer

1. Endorser is a party to either a note or bill, drawer only to bill
2. An endorser does not make any admission regarding the existence of the
payee and his capacity to indorse, whi l e drawer have to ad MIT
3. Endorsers hers warranties while drawer makes no warranties but engages
to pay after certain condition

General endorser and irregular

1. General makes both endorsement while irregular only blank
2. General endorses after delivery while irregular endorses before delivers
3. General liable to parties subsequent to him while invegular liable to payee
and subsequent parties under signs for the accommodation of the payee
 Chapter 6
Sec 73.
Place of presentment - presentment is made at a proper place
Sec 70. 1. Where a place is specified in the instrument and it is there
Effect of want of demand of principal debtor - presentment for payment is not necessary in presented
order to 2. Where no place of payment is specified, but the address of the
Change the person primary liable on the instrument; but if the instrument is, by its terms, person to make payment is given in the instrument and it is
payable at a special place, and he is able and willing to pay it there at maturity, such ability there presented
and willingness one equivalent to a tender of payment upon his part. But, except as herein 3. No place specified, and no address given and instrument is
otherwise provided, presentment for payment is necessary in order to change the drawer and presented at the usual place of business or residence of the
endorser person to make payment
4. in any other case if presented to the person to make payment
Presentment for payment - the presentation of an instrument to the person primarily liable for wherever he can befound, or if presented at his las known place
the purpose of demanding and receiving payment of business or residence

Presentment for payment to person liable not needed.

1. Liability absolute on date for payment- presentment and demand is not needed to chase
primary liable, that is the maker and acceptor since his liability is absolute Sec 74
2. Where instrument is payable at a special place - the ability and willingness on the part Instrument must be exhibited - the instrument mut be exhibited to the person from
of the primary party to pay there at maturity are equivalent to a tender or offer of whom payment is demanded, and when it is paid must be delivered up to the
payment on his part party paying it
3. Where presentment required by terms of instrument-
Presentment - refers to the act of the Holden exhibiting a note to the matter and
demanding payment, or showing bill to the drawee for acceptance and payment
1. Valid presentment consist of something more than [Link] requires
Presentment for payment to person secondarily liable necessary personal face-to-face demand at a proper place, exhibiting the instrument
1. Presentment first to primary party required - secondary party only undertake to pay to the mater or acceptor from whom pay went is demanded
when if instrument is dishonored
2. Effect where presentment not made- secondary party is discharge when not presented to Exhibition of the instrument
the primary liable.. 1. Purpose of exhibit - to enable debtor to: determine if the instrument is
real
2. Presentment without exhibit. - presentment is ineffective as debtor has the
Sec 71. right to see instrument and demand its surrender
Presentment where instrument is not payable on demand ; and where payable on 3. Waiver of maker's right to exhibition- waived of meter chooses not to see
demand.- where the instrument is not payable on demand, presentment must be made on it.
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 Sec 75.
for payment will be enough if made within a reasonable time after the last negotiation of Presentment where instrument payable at bank - when instrument is payable at a
the instrument. bank, presentment for payment must be made during banking hours, unless the
person to make payment has no finds there to meet it any time during the day, in
The date of presentment of instrument which case presentment at any hour before bank closes is enough
1. If the instrument is payable at a fixed on determinable future time- presentment
must be done at due date without period of grace. Otherwise secondary party will
be discharge. Presentment before due date not effective Presentment where instrument payable at a bank
2. If the instrument payable on demand. - within a reasonable time after issue of 1. During banking hours - outside banking hours is not enough, secondary
note, within reasonable time after negotiation of bill liable is discharge
Last negotiation - means the last transfer of value 2. Any time during the day- if account has no money presentment in any
bank is close to enough making secondary party liable
3. Before close of banking hours- not considered dishonor
Sec 72.
What constitute enough presentment. - presentment for payments to be
sufficient much be made:
1. By the holder, on some person authorized to receive payment on his
behalf Sec 76.
2. at a reasonable hour on a business day Presentment where principal debtor is dead- presentment must be made to personal
3. at a proper place herein defined. representative, if seen there be, and if with the exercise of reasonable diligence, he can he
4. To the person liable on the instrument on if he is absent on found
inaccessible, to any person found at the place where the presentment is
made. Presentment for payment can be made to his executor on administrator if there is one , if
Requisites for enough presentment there is no ore liability is released, however holder not excused to give notice of dishonor.

1. Presentment for payment must be made to primary party

2. Presentment must be made to the drawee
3. If person cond be located, present to someone authorized at the special
location
 Sec 77 Sec 83.
Presentment to persons liable as partners- liable as partners, and no When instruments dishonored by non - payment
place of payment is specified, presentment may be made to any one of 1. it is duly presented for payment and payments
them, even though there has been dissolution of firms refused or cannot be obtained
2. Presentment is excused and the instrument is
Each partner is an agent thus they are both liable overdue and unpaid

1. Non-payment upon due presentation

2. Non payment without presentation
Sec 78 3.
Presentment to joint debtors - where there one several persons, not
partners, primarily liable on the instrument and no place of payment is Sec 84
specified ' presentment must se made to them all. Liability of person secondarily liable when instrument dishonored- subject to the provisions of
this act, when instrument is dishonored by non-payment, an immediate right of recourse to all
In a joint obligation there are as many debs as there as debtor. parties secondarily
Presentment must he made to all of them ,Liable there on an accrues to the holder.
1. Accrual of right of recourse against secondary parties. - immediate right of recourse
Sec 79. When presentmen not required in order to change the drawer- against secondary parties will acerve accrue only after the giving of notice of dishonor to
where he has no right to expect or require the drawee on acceptor will them
pay the instrument 2. Rights immediately available -
3.
1. Where drawer or acceptor not expected to pay-
2. Where drawer and drawee is the some person - Sec 85
Time of maturity -
Every negotiable instrument is payable at the time fixed there in without grace. When the day
Sec 80 of maturity falls upon Sunday or a holiday, the instrument is payable on the next succeeding
When presentment not required to change the indorser - business day, instrument falling. Due or payable on Sunday ore to be presented for payment on
presentment for payment is not required t change am the next succeeding business day, except instrument payable on demand, at the option at the
indorser where the instrument was made or accepted for holder he presented for payment before 12 o'clock noon an Saturday when that entire day is not
his accommodation and he has no reason to expect that a holiday
the instrument will be paid if presented.
1. on Sunday or holiday - next succeeding business day
2. .On a Saturday- next succeeding business day
3. On demand - can be presented for payment before 12
Sec 81
When delay in making presentment its excused-
when delay is caused by circumstances beyond the
control of the holder and immutable by his defaults , Sec 86
misconduct, negligence. When the cause of delay Time ; how computed - where the instrument is payable at a fixed period after date, after sight or after
ceases to operate, presentment must be made with the happening of a specific event, the time of payment is determined by excluding the day from which
reasonable diligence time to begin to run, and by including the date of payment.

After he event that caused the delay of presentment,

the presentment must be done Sec 87
Ride where instrument payable at bank- where the instrument is payable at bank it is equivalent on an order to
the bane to buy the same or the account of the principal debtor
Sec 82
When presentment may be dispensed: - presentment
For payment is dispensed with:
1. Where after the exercise of reasonable Sec 88.
diligence presentment by this act cannot be What constitute payment in due course - payment is made at or after
made:
2. Where the drawee is fictitious person Maturity fo the holder in good faith without his title being defective
3. By waiver afpresentment, express or
implied. Requisites
1. Payment must be made at on after the maturity
When presentment maybe dispensed with: 2. Payment must the made to the holders
1. Where reasonable diligence has been 3. Payment nt be made in good faith
exercised - where maker or residence is not
found
2. Where drawee is fictitious - no one can be
found and presentation can not be done
3. Where there is waiver - Mary be before or
after maturity, may he expressed or implied
" presentment waived" '

Summary of rules as to presentment for payment

1.