Article 15p. 15

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

otherwise a holiday, presentment for acceptance may be

made before twelve o'clock, noon, on that day.

SECTION 147. Presentment Where Time is Insufficient . —

Where the holder of a bill drawn payable elsewhere than

at the place of business or the residence of the drawee

has no time with the exercise of reasonable diligence to

present the bill for acceptance before presenting it for

payment on the day that it falls due, the delay caused by

presenting the bill for acceptance before presenting it for

payment is excused, and does not discharge the drawers

and indorsers.

SECTION

148. Where

Presentment

is

Excused .

—

Presentment for acceptance is excused, and a bill may be

treated as dishonored by non-acceptance, in either of the

following cases:

(a)Where the drawee is dead, or has absconded, or is a

fictitious person or a person not having capacity to

contract by bill.

(b)Where,

after

the exercise of reasonable diligence,

presentment can not be made.

(c)Where,

although

presentment

has

been irregular,

acceptance has been refused on some other ground.

SECTION 149. When Dishonored by Non-acceptance . —

A bill is dishonored by non-acceptance —

(a)When it is duly presented for acceptance and such an

acceptance as is prescribed by this Act is refused or can

not be obtained; or

(b)When presentment for acceptance is excused, and the

bill is not accepted.

SECTION 150. Duty of Holder Where Bill Not Accepted . —

Where a bill is duly presented for acceptance and is not

accepted

within

the

prescribed

time,

the

person

presenting

it

must

treat

the

bill

as dishonored by

non-acceptance or he loses the right of recourse against

the drawer and indorsers.

SECTION 151. Right of Holder Where Bill Not Accepted . —

When

a

bill

is

dishonored

by

non-acceptance,

an

immediate right of recourse against the drawer and

indorsers accrues to the holder and no presentment for

payment is necessary.

CHAPTER XII Protest

SECTION 152. In What Cases Protest Necessary . — Where

a

foreign

bill

appearing

on

its

face

to be such is

dishonored by non-acceptance, it must be duly protested

for non-acceptance, and where such bill which has not

previously

been

dishonored

by

non-acceptance

is

dishonored by non-payment, it must be duly protested

for non-payment. If it is not so protested, the drawer and

indorsers are discharged. Where a bill does not appear on

its face to be a foreign bill, protest thereof in case of

dishonor is unnecessary.

SECTION 153. Protest ; How Made . — The protest must be

annexed to the bill, or must contain a copy thereof, and

must be under the hand and seal of the notary making

it, and must specify —

(a)The time and place of presentment;

(b)The fact that presentment was made and the manner

thereof;

(c)The cause or reason for protesting the bill;

(d)The demand made and the answer given, if any, or the

fact that the drawee or acceptor could not be found.

SECTION 154. Protest ; By Whom Made . — Protest may be

made by —

(a)A notary public; or

(b)By any respectable resident of the place where the bill

is dishonored, in the presence of two or more credible

witnesses.

SECTION 155. Protest ; When to Be Made . — When a bill is

protested, such protest must be made on the day of its

dishonor, unless delay is excused as herein provided.

When a bill has been duly noted, the protest may be

subsequently extended as of the date of the noting.

SECTION 156. Protest ; Where Made . — A bill must be

protested at the place where it is dishonored, except that

when a bill drawn payable at the place of business or

residence of some person other than the drawee has

been

dishonored

by

non-acceptance,

it

must

be

protested for non-payment at the place where it is

expressed to be payable, and no further presentment for

payment to, or demand on, the drawee is necessary.

SECTION

157. Protest

Both

for

Non-acceptance and

Non-payment . — A bill which has been protested for

non-acceptance

may

be

subsequently

protested

for

non-payment.

SECTION 158. Protest Before Maturity Where Acceptor

Insolvent . — Where the acceptor has been adjudged a

bankrupt or an insolvent, or has made an assignment for

the benefit of creditors before the bill matures, the holder

may cause the bill to be protested for better security

against the drawer and indorsers.

SECTION 159. When Protest Dispensed With . — Protest is

dispensed

with

by

any

circumstances

which

would

dispense with notice of dishonor. Delay in noting or

protesting

is

excused

when

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, the bill must

be noted or protested with reasonable diligence.

SECTION 160. Protest Where Bill is Lost , and So Forth . —

When a bill is lost or destroyed or is wrongly detained

from the person entitled to hold it, protest may be made

on a copy or written particulars thereof.

CHAPTER XIII Acceptance for Honor

SECTION 161. When Bill May Be Accepted for Honor . —

Where a bill of exchange has been protested for dishonor

by non-acceptance or protested for better security, and is

not overdue, any person not being a party already liable

thereon may, with the consent of the holder, intervene

and accept the bill supra protest for the honor of any

party liable thereon, or for the honor of the person for

whose account the bill is drawn. The acceptance for

honor may be for part only of the sum for which the bill is

drawn; and where there has been an acceptance for

honor for one party, there may be a further acceptance by

a different person for the honor of another party.

SECTION 162. Acceptance for Honor ; How Made . — An

acceptance for honor supra protest must be in writing,

and indicate that it is an acceptance for honor, and must

be signed by the acceptor for honor.

SECTION 163. When Deemed to Be an Acceptance for

Honor of the Drawer . — Where an acceptance for honor

does not expressly state for whose honor it is made, it is

deemed to be an acceptance for the honor of the drawer.

SECTION 164. Liability of the Acceptor for Honor . — The

acceptor for honor is liable to the holder and to all parties

to the bill subsequent to the party for whose honor he

has accepted.

SECTION 165. Agreement of Acceptor for Honor . — The

acceptor for honor, by such acceptance engages that he

will on due presentment pay the bill according to the

terms of his acceptance, provided it shall not have been

paid by the drawee, and provided also that it shall have

been duly presented for payment and protested for

non-payment and notice of dishonor given to him.

SECTION

166. Maturity

of

Bill

Payable

After

Sight ;

Accepted for Honor . — Where a bill payable after sight is

accepted for honor, its maturity is calculated from the

date of the noting for non-acceptance and not from the

date of the acceptance for honor.

© Compiled by RGL

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