Article 16p. 16

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

SECTION 167. Protest of Bill Accepted for Honor , and So

Forth . — Where a dishonored bill has been accepted for

honor supra protest or contains a reference in case of

need, it must be protested for non-payment before it is

presented for payment to the acceptor for honor or

referee in case of need.

SECTION 168. Presentment for Payment to Acceptor for

Honor , How Made . — Presentment for payment to the

acceptor for honor must be made as follows:

(a)If it is to be presented in the place where the protest for

non-payment was made, it must be presented not later

than the day following its maturity.

(b)If it is to be presented in some other place than the

place where it was protested, then it must be forwarded

within the time specified in section one hundred and

four.

SECTION 169. When Delay in Making Presentment is

Excused . — The provisions of section eighty-one apply

where there is delay in making presentment to the

acceptor for honor or referee in case of need.

SECTION 170. Dishonor of Bill by Acceptor for Honor . —

When the bill is dishonored by the acceptor for honor it

must be protested for non-payment by him.

CHAPTER XIV Payment for Honor

SECTION 171. Who May Make Payment for Honor . —

Where a bill has been protested for non-payment, any

person may intervene and pay it supra protest for the

honor of any person liable thereon or for the honor of the

person for whose account it was drawn.

SECTION 172. Payment for Honor ; How Made . — The

payment for honor supra protest in order to operate as

such and not as a mere voluntary payment must be

attested

by

a

notarial

act of honor which may be

appended to the protest or form an extension to it.

SECTION 173. Declaration Before Payment for Honor . —

The

notarial

act

of

honor

must

be

founded

on

a

declaration made by the payer for honor or by his agent

in that behalf declaring his intention to pay the bill for

honor and for whose honor he pays.

SECTION 174. Preference of Parties Offering to Pay for

Honor . — Where two or more persons offer to pay a bill

for the honor of different parties, the person whose

payment will discharge most parties to the bill is to be

given the preference. cdasia

SECTION 175. Effect on Subsequent Parties Where Bill is

Paid for Honor . — Where a bill has been paid for honor,

all parties subsequent to the party for whose honor it is

paid

are

discharged,

but

the

payer

for

honor

is

subrogated for, and succeeds to, both the rights and

duties of the holder as regards the party for whose honor

he pays and all parties liable to the latter.

SECTION 176. Where Holder Refuses to Receive Payment

Supra Protest . — Where the holder of a bill refuses to

receive payment supra protest, he loses his right of

recourse

against

any

party

who

would

have

been

discharged by such payment.

SECTION 177. Rights of Payer for Honor . — The payer for

honor, on paying to the holder the amount of the bill and

the notarial expenses incidental to its dishonor, is entitled

to receive both the bill itself and the protest.

CHAPTER XV Bills in a Set

SECTION 178. Bills in Sets Constitute One Bill . — Where a

bill is drawn in a set, each part of the set being numbered

and containing a reference to the other parts, the whole

of the parts constitutes one bill.

SECTION 179. Rights of Holders Where Different Parts

are Negotiated . — Where two or more parts of a set are

negotiated to different holders in due course, the holder

whose title first accrues is as between such holders the

true owner of the bill. But nothing in this section affects

the rights of a person who in due course accepts or pays

the part first presented to him.

SECTION 180. Liability of Holder Who Indorses Two or

More Parts of a Set to Different Persons . — Where the

holder of a set indorses two or more parts to different

persons he is liable on every such part, and every indorser

subsequent to him is liable on the part he has himself

indorsed, as if such parts were separate bills.

SECTION 181. Acceptance of Bills Drawn in Sets . — The

acceptance may be written on any part and it must be

written on one part only. If the drawee accepts more than

one part, and such accepted parts are negotiated to

different holders in due course, he is liable on every such

part as if it were a separate bill.

SECTION 182. Payment by Acceptor of Bills Drawn in

Sets . — When the acceptor of a bill drawn in a set pays it

without requiring the part bearing his acceptance to be

delivered

up

to

him,

and

that

part

at

maturity

is

outstanding in the hands of a holder in due course, he is

liable to the holder thereon.

SECTION 183. Effect of Discharging One of a Set . —

Except as herein otherwise provided, where any one part

of a bill drawn in a set is discharged by payment or

otherwise the whole bill is discharged.

TITLE III Promissory Notes and Checks

CHAPTER XVI

SECTION 184. Promissory Note , Defined . — A negotiable

promissory note within the meaning of this Act is an

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 maker's own order, it is not complete until

indorsed by him.

SECTION 185. Check , Defined . — A check is a bill of

exchange drawn on a bank payable on demand. Except

as herein otherwise provided, the provisions of this Act

applicable to a bill of exchange payable on demand apply

to a check.

SECTION

186. Within

What Time a Check Must Be

Presented . — A check must be presented for payment

within a reasonable time after its issue or the drawer will

be discharged from liability thereon to the extent of the

loss caused by the delay.

SECTION 187. Certification of Check ; Effect of . — Where

a check is certified by the bank on which it is drawn, the

certification is equivalent to an acceptance.

SECTION 188. Effect Where the Holder of Check Procures

it to be Certified . — Where the holder of a check

procures it to be accepted or certified, the drawer and all

indorsers are discharged from liability thereon.

SECTION 189. When Check Operates as an Assignment .

— A check of itself does not operate as an assignment of

any part of the funds to the credit of the drawer with the

bank, and the bank is not liable to the holder, unless and

until it accepts or certifies the check.

TITLE IV General Provisions

CHAPTER XVII

SECTION 190. Short Title . — This Act shall be known as the

Negotiable Instruments Law.

SECTION 191. Definition and Meaning of Terms . — In this

Act, unless the context otherwise requires —

"Acceptance"

means

an

acceptance

completed

by

delivery or notification;

"Action" includes counterclaim and set-off;

© Compiled by RGL

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