Frederick Mortensen Hinch Edward Mills John.

American notary and commissioner of deeds manual: the general and statutory ... online

. (page 37 of 50)
Online LibraryFrederick Mortensen Hinch Edward Mills JohnAmerican notary and commissioner of deeds manual: the general and statutory ... → online text (page 37 of 50)
Font size
QR-code for this ebook


and an insuAeient written notice maj be supplemented and validated
bj verbal communication. A misdescription of the instrument doee not
vitiate the notice unless the party to whom the notice is given Is in
fact misled thereby:

Sec. 96. Form of notlca— The notice may be in writing or merely
oral and may be given in any terms which sufficiently identify the
instrument, and indicate that it has been dishonored by nonacceptanee
or nonpayment. It may in all cases be given by delivering it per-
sonally or through the mails.

See. 07. To whom notice may be given — Notice of dishonor may be
given either to the party himself or to his agent in that behalf.

Sec. 98. When any party is dead, and his death is known to the
party giving notice, the notice must be given to a personal representa-
tive, if there be one, and if, with reasonable diligence, he can be found.
If there be no personal representative, notice may be sent to the last
residence or last place of business of the deceased.

Sec. 99. Where the parties to be notified are partners, notice to
any one partner is notice to the firm, even though there has been a
dissolution.

Sec. 100. Kotioe to Joint parties who are not partners must be
given to each of them, unless one of them has authority to receive
such notice for the others.

Sec. 101. Where a party has been adjudged a bankrupt or an in-
solvent, or has made an assignment for the benefit of creditors, notice
may be given either to the party himself or to his trustee or assignee.

Sec. 102. Notice may be given as socm as the instrument is dis-
honored; and unless delay is excused as hereinafter provided, must
be given within the times fixed by this act.

Sec. 103. Where the person giving and the person to receive notice
reside in the same plac^ notice must be given within the following
times: (1) If given at the place of business of the person to receive
notice, it must be given before the close of business hours on the day
following; (2) if given at his residence, it must be given before the
usual hours of rest on the day following; (3) if sent by mail, it must
be deposited in the post office in time to reach him in usual course on
the day following.

Sec. 104. Where the person giving and the person to receive notice
reside in different places, the notice must be given within the follow-
ing times: (1) If sent by mail, it must be deposited in the post office
in time to go by mail the day following the day of dishonor, or if there
be no mail at a convenient hour on that day, by the next mail there-
after. (2) If given otherwise than through the post office, then within
the time that notice would have been received in due course of mail,
if it had been deposited in the post office within the time specified in
the last subdivision.

Sec. 105. Where notice of dishonor is duly addressed and deposited



Digitized by VjOOQIC



§ 450] KBGOTIABLB IK8XBUHBNT8. 305

in tbe post oifflce, the sender is deemsd to have given due notice^ not-
withstanding any miscarriage in the mails.

See. loe. Kotlc« is deemed to have been depoeited In the poet office
when deposited in any branch post office or in any letter box under
control of the post office department.

Bee. 107. Notice to gnbseanent party; tisie— Where a party receiyes
notice of dishonor, he has, after the receipt of sneh notice, the same
time for giving notice to antecedent parties that the holder has after
the dishonor.

Sec. 108. Where notice to be sent— Where a party has added an
address to his signature, notice of dishonor must be sent to that ad-
dress; but if he has not given such address, then the notice must be
sent as follows: (1) Either to the post office nearest to his place of
residence, or to the post office where he is accustomed to receive his
letters; or (2) if he live in one place, and have his place of business
in another, notice may be sent to either place; or (3) if he is so-
journing in another place, notice may be sent to the place where he
is sojourning. But where the notice is actually received by the party
within the time specified in this act, it wiU be sufficient, though not
sent in accordance with the requirements of this section.

Sec. 109. Notice of dishonor may be waived either before the time
of giving notice has arrived, or after the omission to give due notice,
and the waiver may be express or implied.

Sec 110. Who affected by waiyer— Where the waiver is embodied
in the instrument itself, it is binding upon all parties; but where it is
written above the signature of an indorser, it binds him only.

Sec. 111. A waiver of protest, whether in the case of a foreign
bill of exchange or other negotiable instrument, is deemed to be a
waiver not only of a formal protest, but also of presentment and notice
of dishonor.

Sec. 112. Notice of dishonor Is dispensed with when, after the exer-
cise of reasonable diligence, it cannot be given to or does not reach the
parties sought to be charged.

Sec. 113. Delay in giving notice of dishonor 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, notice must be given with reasonable
diligence.

Sec. 114. Notice of dishonor is not regnired to be given to the
drawer in either of the following cases: (1) Where the drawer and
drawee are the same person; (2) where the drawee is a fictitious
person or a person not having capacity to contract; (3) where the
drawer is the person to whom the instrument is presented for pay-
ment; (4) where the drawer has no right to expect or require that the
drawee or acceptor will honor the instrument; (6) where the drawer
has countermanded payment.

Sec. 115. Notice of dishonor is not required to be given to an in-
doiser in either of the following cases: (1) Where the drawee is a
20



Digitized by VjOOQIC



306 NOTAEira PUBLIO. [§ 450

fietitioofl person or a person not having eapaeitj to contract, and the
indorser was aware of the fact at the time he indorsed the instrument;
(2) where the indorser is the person to whom the instroment is pre-
sented for pa3rment; (3) where the instrument was made or accepted
for his accommodation.

8ec. 116. Wliere due notice of distaonor by nonacc^ptaace liai been
given, notice of gabeequent disbonor by nonpayment is not necessary,
unless in the meantime the instrument has been accepted.

Sec. 117. An omission to give notice of dishonor by nonacceptance
does not prejudice the rights of a holder in due course subsequent to
the omission.

Sec. 118. Protest — ^Where anj negotiable instrument has been dis-
honored it may be protested for nonacceptance or nonpayment as the
case may be; but protest is not required, except in the case of foreign
bills of exchange.

ABTICLB Vin.
DISCHABGE OP NEGOTIABLE INSTEUMENTS.

Sec 119. How — A negotiable instrument is discharged: (1) By
payment in due course by or on behalf of the principal debtor; (2) by
payment in due course by the party accommodated, where the instru-
ment is made or accepted for accommodation; (3) by the intentional
cancellation thereof by the holder; (4) by any other act which will
discharge a simple contract for the pa3rment of money; (5) when the
principal debtor becomes the holder of the instrument at or after ma-
turity in his own right.

Sec. 120. A penon secondarily liable on the instnunent Is dis-
charged: (1) By any act which discharges the instrument; (2) by
the intentional cancellation of his signature by the holder; (3) by
the discharge of a prior party; (4) by a valid tender of payment
made by a prior party; (5) by a release of the principal debtor, un-
less the holder's right of recourse against the party secondarily liable
is expressly reserved; (6) by any agreement binding upon the holder
to extend the time of payment, or to postpone the holder's right to
enforce the instrument, unless made with the assent of the party
secondarily liable, or unless the right of recourse against such party
is expressly reserved.

See. 121. Wliere the instmmsnt is paid by a party secondarily
liable tbereon, it is not discharged; but the party so paying it is
remitted to his former rights as regards all prior parties, and he may
strike out his own and all subsequent indorsements, and again nego-
tiate the instrument, except (1) where it is payable to the order of a
third person, and has been paid by the drawer; and (2) where it was
made or accepted for accommodation, and has been paid by the party
accommodated.

Sec. 122. The bolder may expressly renounce his rights sgainst
any party to the instrument, before, at, or after its maturity. An



Digitized by VjOOQIC



§ 450] NBQOTIABLE INSTBUMSNTS. 807

absolute and unconditional renunciation of bis rigbts against tbe prin-
cipal debtor made at or after tbe maturity of tbe instrument dis-
cbarges tbe instrument. But a renunciation does not affect tbe rigbts
of a bolder in due course witbout notice. A renunciation must be in
writing, unless tbe instrument is delivered up to tbe person primarily
liable tbereon.

Sec. 123. A cancellation made unintentionally, or under a mistake
or witbout tbe autbority of tbe bolder, is inoperative; but wbere an
instrument or any signature tbereon appears to bave been canceled
tbe burden of proof lies on tbe party wbo alleges tbat tbe canceUation
was made unintentionally, or under a mistake or witbout autbority.

Sec. 124. Wbere a negotiable Instrument is materially altered witb-
out tbe assent of all parties liable tbereon, it is avoided, except as
against a party wbo bas bimself made, autborized, or assented to tbe
alteration and subsequent indorsers. But wben an instrument bas
been materially altered and is in the bands of a bolder in due course,
not a party to tbe alteration, be may enforce payment tbereof according
to its original tenor.

Sec. 125. Wbat constitatee alteration — Any alteration wbicb cbanges
(1) tbe date, (2)- tbe sum payable, eitber for principal or interest,
(3) tbe time or place of payment, (4) the number or the relations of tbe
parties, (5) tbe medium or currency in wbicb payment is to be made,
or wbicb adds a place of payment . wbere no place of payment is
specified, or any other change or addition wbicb alters tbe effect of
tbe instrument in any respect, is a material alteration.

TITLE n.

BILLS OF EXCHANaB.

AETICLE L

FORM AND INTERPBETATION.

See. 126. Definition of bill of exchange — A bill of exchange is an un-
conditional order in writing addressed by one person to another, signed
by tbe person giving it, requiring tbe person to whom it is addressed
to pay on demand or at a fixed or determinable future time a sum
certain in money to order or to bearer.

Sec. 127. A bill of Iteelf does not operate as an aeslgnmant of the
funds In the hands of the drawee available for tbe payment tbereof,
and tbe drawee is not liable on tbe bill unless and until be accepts
the same.

Sec. 128. A bin may be addressed to two or more drawees Jointly,
whether they are partners or not; but not to two or more drawees in
the alternative or in succession.

Sec. 129. An Inland bill of ezchaage is a bill which is, or on its
face purports to be, both drawn and payable within this state. Anj
other bill is a foreign bill. Unless tbe contrary appears on tbe face of
the bill, tbe holder may treat it as an inland bilL



Digitized by VjOOQIC



308 N0TABIE8 PUBLIC. [§ 450

See. 180. Whrni MU mftj be treated m a promlaiOTy note— Where in

a bin drawer and drawee are the same person, or where the drawee
ia a fictitious person, or a person not having capacity to contract, the
holder maj treat the instroment, at his option, either as a bOl of
exchange or a promissory note.

Sec. 131. Beferee In case of need— The drawer of a bill and any
indorser may insert thereon the name of a person to whom the holder
may resort in case of need, that is to say, in case the bill is dishon-
ored by nonacceptance or nonpayment. Such person is called the referee
in case of need. It is in the option of the holder to resort to the
T%t9Xt% in ease of need or not as he may see fit.

ABTIOLE n.
AOCBPTANCB.

See. 182. How made— The acceptance of a bill is the signifieation
by the drawee of his assent to the order of the drawer. The acceptance
mnst be in writing and signed by the drawee. It mnst not expreas that
the drawee will perform his promise by any other means than the pay-
ment of money.

See. 183. The holder of a bin preasnting the same for acceptance
may reanlre that the acceptance be written on the bin, and if sneh a
request is refused, may treat the bill as dishonored.

See. 134. An acceptance on aeparate paper— Where an acceptance
is written on a paper other than the biU itself, it does not bind the
acceptor except in favor of a person to whom it is shown and who,
on the faith thereof, receives the biU for value.

Sec. 135. Promise to accept — An unconditional promise in writing
to accept a bill before it is drawn is deemed an actual acceptance in
favor of every person who, upon the faith thereof, receivee the biU
for value.

Sec. 136. The drawee iM allowed twenty-four hours after present-
ment in which to decide whether or not he will accept the biU; but
the acceptance if given dates as of the day of presentation.

Sec. 137. Uabnity of drawee for deetroylng biU— Where a drawee
to whom a bin is delivered for acceptance destroys the same, or refuses
within twenty-four hours after such delivery, or within such other
period aa the holder may allow, to return the biU accepted or nonac-
cepted to the holder, he will be deemed to have accepted the same.

See. 138. Acceptance of incomplete bin— A bill may be accepted
before it has been signed by the drawer, or while otherwise incom-
plete, or when it is overdue, or after it has been dishonored by a
previous refusal to accept, or by nonpayment. But when a biU payable
after sight is dishondred by nonacceptance and the drawee subsequently
accepts it, the holder, in the absence of any diiferent agreement, is
entitled to have the biU accepted as of the date of the firat preeent-
ment.

See. 189. An acceptance le either general or qoaUfled— A general



Digitized by VjOOQIC



§ 450] KBQOTIABLB INSTRUICBNTS. 309

aeo«ptanee Maente without quAliileatioii to the order of tho drawer. A
qnaliiled aeeeptanee in ezpreet termt ysries the eifeet of the bill as
drawn.

Sec 140. Oeneral acceptance— An acceptance to paj at a particular
place is a general acceptance onless it expressly states that the bill ia
to be paid there only and not elsewhere.

Sec. 141. Qnalifled acceptance— An acceptance is qualified, which is:
(1) Conditional, that is to saj, which makes payment by the acceptor
dependent on the fulfillment of a condition therein stated; (2) partial,
that is to say, an acceptance to pay part only of the amount for which
the bill is drawn; (3) local, that is to say, an acceptance to pay only
at a particular place; (4) qualified as to time; (5) the acceptance of
some one or more of the drawees, but not of all.

Sec. 142. Bights of parties as to auAUfi^d acceptance— The holder
may refuse to take a qualified acceptance, and if he does not obtain
an unqualified acceptance, he may treat the bUl as dishonored by
nonacceptance. Where a qualified acceptance is taken, the drawer
and indorsers are discharged from liability on the bill unless they haye
expressly or impliedly authorized the holder to take a qualified accept-
ance, or subsequently assent thereto. When the drawer or an indorser
receives notice of a qualified acceptance, he must within a reasonable
time express his dissent to the holder, or he will be deemed to have
assented thereto.

ABTICLB UL
PBE8ENTMBNT FOR ACCEPTANCE.

Sec. 148. Preeentment for acceptance moat be made: (1) Where
the bill is payable after sight, or in any other case where present-
ment for acceptance is necessary in order to fix the maturity of the
instrument; or (2) where the bill expressly stipulates that it shall
be presented for acceptance; or (3) where the bill is drawn payable
elsewhere than at the residence or place of business of the drawee.
In no other case is presentment for acceptance necessary in order to
render any party to the bill liable.

Sec. 144. Failure to present releases drawer and indorsers— Except
as herein otherwise provided, the holder of a bill, which is required
by the next preceding section to be presented for acceptance, must
either present it for acceptance or negotiate it within a reasonable time.
If he fail to do so the drawer and all indorsers are discharged.

Sec. 145. Presentment; how made— Presentment for acceptance must
be made by or on behalf of the holder at a reasonable hour, on a
business day and before the bill is overdue, to the drawee or some
person authorized to accept or refuse acceptance on his behalf; and
(1) where a bill is addressed to two or more drawees who are not
partners, presentment must be made to them all, unless one has au-
thority to accept or refuse acceptance for all, in which case present-
ment may be made to him only. (2) Where the drawee is dead.



Digitized by VjOOQIC



310 NOTARIES PUBUO. [§ 450

presentment maj be made to his personal representative. (3) Where
the drawee has been adjudged a bankrupt or an insolvent, or has made
an assignment for the benefit of creditors, presentment may be made
to him or to his trustee or assignee.

Sec. 146. Dayi for presentation — A bill may be presented for ae-
ceptance on any day on which negotiable instruments may be presented
for payment under the provisions of sections seventy-two and eighty-five
of this act. When Saturday is not otherwise a holiday, presentment
for acceptance may be made before twelve o'clock noon on that day.

Sec. 147. Time Inimfflclmit — ^Where the holder of a bill drawn pay-
able elsewhere than at the place of business or the residence of the
drawee has not 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.

Sec. 148. Presentment for acceptance ia ezcvsed, and a bill may be
treated as dishonored by nonacceptance, in either of the following
cases: (1) Where the drawee is dead, or has absconded, or is a ficti-
tious person, or a person not having capacity to contract by bill; (2)
where, after the exercise of reasonable diligence, presentment cannot
be made; (3) where, although presentment has been irregular, accept-
ance has been refused on some other ground.

See. 149. A bill Is dtelionored by nonacceptance: (1) When it is
duly presented for acceptance and such an acceptance as is prescribed
by this act is refused or cannot be obtained, or (2) when presentment
for acceptance is excused and the bill is not accepted.

Sec. 150. Duty of holder when not accepted— When 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 nonaccept-
ance or he loses the right of recourse against the drawer and indorsers.

Sec 151. Blghta of holder when not accepted— When a bill is dis-
honored by nonacceptance, an immediate right of recourse against the
drawers and indorsers accrues to the holder, and no presentment for
payment is necessary.

ABTICLE IV.
PROTEST.

Sec. 152. Protest necessary— Where a foreign bin appearing on its
face to be such is dishonored by nonacceptance, it must be duly pro-
tested for nonacceptance, and where such a bill has not previously been
dishonored by nonacceptance is dishonored by nonpayment, it must
be duly protested for nonpayment. 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 unnee-
cssary.

Sec. 168. How made— The protest must be annexed to the bill, or



Digitized by VjOOQIC



§ 450] NBGOTIABLE INSTRUMENTS, 311

miui eontain a copj thereof, and must be under the hand and seal
of the notary making it, and mnst specify (1) the time and plaee of
presentment; (2) the fact that presentment was made and the manner
thereof; (3) the eanse or reason for protesting the bill; (4) the de-
mand made and the answer given, if any, or the faet that the drawee
or acceptor could not be found.

Sec. 154. Bj whom — ^Protest may be made by (1) a notary public;
or (2) by any respectable resident of the place where the bill Is dis-
honored, in the presence of two or more credible witnesses.

Sec. 155. Wlien 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.

Sec. 156. 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 nonacceptance, it must be protested for nonpayment
at the place where it is expressed to be payable, and no further pre-
sentment for payment to, or demand on, the drawee it necessary.

Sec. 157. Nonacceptance and nonpayment — A bill which has been
protested for nonacceptance may be subsequently protested for nonpay-
ment.

Sec. 158. Protest before maturity; insolTency— Where the acceptor
has been adjudged a bankrupt or an insolvent, or has made an assign-
ment 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.

Sec. 159. Protest is dlq>ensed 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 negli-
gence. When the cause of delay ceases to operate, the bill must be
noted or protested with reasonable diligence.

Sec. 160. Where 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.

ABTICLB V.

ACCEPTANCE FOB HONOB.

Sec. 161. Wlien may be— Where a bill of exchange has been pro-
tested for dishonor by nonacceptance 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 accept-
ance 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



Digitized by VjOOQIC



312 NOTARIES PUBUO. [§ 460

party, there maj be a farther aeeeptaaee bj a different person fer
the honor of another party.

See. 102. How — ^An aeceptanee for honor enpra protest mnet be in
writing and indicate that it is an aeceptanee for honor, and nrast be
signed by the acceptor for honor.

Sec. 163. When de«nied for drawar—- 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.

Sec. 164. 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.

Sec. 165. The acceptor for honor by soch aocoptance engages that
he will on due presentment pay the bin 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 nonpayment and notice of dishonor given to him.

Sec. 166. Matoxlty when payable after sight— Where a bill payable
after sight is accepted for honor, its maturity is calculated from the
date of the noting for nonacceptance and not from the date of the
acceptance for honor.

Sec. 167. Protest wlMn accepted for honor— Where a dishonored
bill has been accepted for honor supra protest or contains a reference in
case of need, it must be protested for nonpayment before it is pre-
sented for payment to the acceptor for honor or referee in ease of
need.

Sec. 168. Presentment for payinent to the acceptor for honor must
be made as follows: (1) If it is to be presented in the place where
the protest for nonpayment was made, it must be presented not later



Online LibraryFrederick Mortensen Hinch Edward Mills JohnAmerican notary and commissioner of deeds manual: the general and statutory ... → online text (page 37 of 50)