Article 11p. 11

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

of his principal and the fact that he is acting only as

agent.

CHAPTER VI Presentment for Payment

SECTION 70. Effect of Want of Demand on Principal

Debtor . — Presentment for payment is not necessary in

order

to

charge

the

person primarily liable on the

instrument; but if the instrument is, by its terms, payable

at a special place, and he is able and willing to pay it there

at maturity, such ability and willingness are equivalent to

a tender of payment upon his part. But, except as herein

otherwise

provided,

presentment

for

payment

is

necessary in order to charge the drawer and indorsers.

SECTION

71. Presentment

Where

Instrument

is

Not

Payable on Demand and Where Payable on Demand .

— Where the instrument is not payable on demand,

presentment must be made on the day it falls due.

Where it is payable on demand, presentment must be

made within a reasonable time after its issue, except that

in

the

case of a bill of exchange, presentment for

payment will be sufficient if made within a reasonable

time after the last negotiation thereof.

SECTION 72. What Constitutes a Sufficient Presentment .

— Presentment for payment, to be sufficient, must be

made —

(a)By the holder, or by some person authorized to receive

payment on his behalf;

(b)At a reasonable hour on a business day;

(c)At a proper place as herein defined;

(d)To the person primarily liable on the instrument, or if

he is absent or inaccessible, to any person found at the

place where the presentment is made. cdasia

SECTION 73. Place of Presentment . — Presentment for

payment is made at the proper place —

(a)Where

a

place

of

payment

is

specified

in

the

instrument and it is there presented;

(b)Where no place of payment is specified, but the

address of the person to make payment is given in the

instrument and it is there presented;

(c)Where no place of payment is specified and no address

is given and the instrument is presented at the usual

place of business or residence of the person to make

payment;

(d)In any other case if presented to the person to make

payment wherever he can be found, or if presented at his

last known place of business or residence.

SECTION

74. Instrument

Must

Be

Exhibited .

—

The

instrument must be exhibited to the person from whom

payment is demanded, and when it is paid must be

delivered up to the party paying it.

SECTION 75. Presentment Where Instrument Payable at

Bank . — Where the instrument is payable at a bank,

presentment for payment must be made during banking

hours, unless the person to make payment has no funds

there to meet it at any time during the day, in which case

presentment at any hour before the bank is closed on

that day is sufficient.

SECTION 76. Presentment Where Principal Debtor is

Dead .

— Where the person primarily liable on the

instrument is dead, and no place of payment is specified,

presentment for payment must be made to his personal

representative, if such there be, and if, with the exercise of

reasonable diligence, he can be found.

SECTION 77. Presentment to Persons Liable as Partners .

— Where the persons primarily liable on the instrument

are

liable as partners, and no place of payment is

specified, presentment for payment may be made to any

one of them, even though there has been a dissolution of

the firm.

SECTION 78. Presentment to Joint Debtors . — Where

there are several persons, not partners, primarily liable on

the instrument, and no place of payment is specified,

presentment must be made to them all.

SECTION

79. When

Presentment

Not

Required

to

Charge the Drawer . — Presentment for payment is not

required in order to charge the drawer where he has no

right to expect or require that the drawee or acceptor will

pay the instrument.

SECTION

80. When

Presentment

Not

Required

to

Charge the Indorser . — Presentment for payment is not

required

in

order to charge an indorser where the

instrument

was

made

or

accepted

for

his

accommodation and he has no reason to expect that the

instrument will be paid if presented.

SECTION 81. When Delay in Making Presentment is

Excused . — Delay in making presentment for payment is

excused when the delay is caused by circumstances

beyond the control of the holder, and not imputable to

his default, misconduct, or negligence. When the cause

of delay ceases to operate, presentment must be made

with reasonable diligence.

SECTION

82. When Presentment May Be Dispensed

With . — Presentment for payment is dispensed with —

(a)Where

after

the

exercise

of

reasonable

diligence

presentment as required by this Act can not be made;

(b)Where the drawee is a fictitious person;

(c)By waiver of presentment, express or implied.

SECTION

83. When

Instrument

Dishonored

by

Non-payment .

—

The instrument is dishonored by

non-payment when —

(a)It is duly presented for payment and payment is

refused or can not be obtained; or

(b)Presentment is excused and the instrument is overdue

and unpaid.

SECTION

84. Liability

of

Person

Secondarily

Liable ,

When

Instrument

Dishonored .

—

Subject

to

the

provisions of this Act, when the instrument is dishonored

by non-payment, an immediate right of recourse to all

parties secondarily liable thereon accrues to the holder.

SECTION

85. Time

of

Maturity .

—

Every

negotiable

instrument is payable at the time fixed therein without

grace. When the day of maturity falls upon Sunday, or a

holiday, the instrument is payable on the next succeeding

business

day.

Instruments

falling

due

or

becoming

payable on Saturday are to be presented for payment on

the

next

succeeding

business

day,

except

that

instruments payable on demand may, at the option of

the holder, be presented for payment before twelve

o'clock noon on Saturday when that entire day is not a

holiday.

SECTION

86. Time ;

How

Computed .

—

When

the

instrument is payable at a fixed period after date, after

sight, or after that happening of a specified event, the

time of payment is determined by excluding the day

from which the time is to begin to run, and by including

the date of payment.

SECTION 87. Rule Where Instrument Payable at Bank . —

Where the instrument is made payable at a bank it is

equivalent to an order to the bank to pay the same for the

account of the principal debtor thereon.

SECTION 88. What Constitutes Payment in Due Course .

— Payment is made in due course when it is made at or

after the maturity of the instrument to the holder thereof

in good faith and without notice that his title is defective.

CHAPTER VII Notice of Dishonor

SECTION 89. To Whom Notice of Dishonor Must Be

Given . — Except as herein otherwise provided, when a

negotiable

instrument

has

been

dishonored

by

non-acceptance

or

non-payment,

notice of dishonor

must be given to the drawer and to each indorser, and

any drawer or indorser to whom such notice is not given

is discharged.

© Compiled by RGL

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