Presentment for Payment.

SS 131-136

§ 131. Presentment where instrument is not 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.

§ 132. What constitutes a sufficient presentment.-Presentment for payment, to be sufficient, must be made:

1. By the holder, or by some person authorized to receive payment on his behalf;

2. At a reasonable hour on a business day;

3. At a proper place as herein defined;

4. 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.

§ 133. Place of presentment.-Presentment for payment is made at the proper place :

1. Where a place of payment is specified in the instrument and it is there presented;

2. 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;

3. 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;

4. 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. (As amended by chap. 336 of 1898, § 12.)

§ 134. 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.

§ 135. 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.

136. 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.

§ 137. Presentment to persons liable as partners.-Where the persons primarily liable on the instrument are liable as part ners, 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.

$138. 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.

§ 139. 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.

§ 140. 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.

8 141. 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.

142. When presentment may be dispensed with.-Presentment for payment is dispensed with:

1. Where after the exercise of reasonable diligence presentment as required by this act can not be made;

2. Where the drawee is a fictitious person;

3. By waiver of presentment express or implied.

§ 143. When instrument dishonored by non-payment.-The instrument is dishonored by non-payment when:

1. It is duly presented for payment and payment is refused or can not be obtained; or

2. Presentment is excused and the instrument is overdue and unpaid.

§ 144. Liability of person secondarily liable, when instrument dishonored.-Subject to the provisions of this act, when the in

Notice of Dishonor.

SS 145-148 strument is dishonored by non-payment, an immediate right of recourse to all parties secondarily liable thereon, accrues to the holder.

§ 145. 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. (As amended by chap. 336 of 1898, § 13.)

146. Time; how computed. Where the instrument is payable at a fixed period after date, after sight, or after the 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.

§ 147. 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.

$148. 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.

ARTICLE VIII.

NOTICE OF DISHONOR.

SECTION 160. To whom notice of dishonor must be given.

161. By whom given.

162. Notice given by agent.

163. Effect of notice given on behalf of holder.

164. Effect where notice is given by party entitled thereto.

165. When agent may give notice.

166. When notice sufficient.

167. Form of notice.

168. To whom notice may be given.

169. Notice where party is dead.

170. Notice to partners.

171. Notice to persons jointly liable.
172. Notice to bankrupt.

SECTION 173. Time within which notice must be given, 174. Where parties reside in same place.

175. Where parties reside in different places.

176. When sender deemed to have given due notice.

177. Deposit in post-office, what constitutes.

178. Notice to subsequent parties, time of.

179. Where notice must be sent.

180. Waiver of notice.

181. Whom affected by waiver.
182. Waiver of protest.

183. When notice dispensed with.

184. Delay in giving notice; how excused.
185. When notice need not be given to drawer.

186. When notice need not be given to indorser.

187. Notice of non-payment where acceptance refused.

188. Effect of omission to give notice of non-acceptance.

189. When protest need not be made; when must be made.

160. 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.

§ 161. By whom given.-The notice may be given by or on behalf of the holder, or by or on behalf of any party to the instrument who might be compelled to pay it to the holder, and who, upon taking it up would have a right to reimbursement from the party to whom the notice is given.

§ 162. Notice given by agent.-Notice of dishonor may be given by an agent either in his own name or in the name of any party entitled to give notice, whether that party be his principal

or not.

§ 163. Effect of notice given on behalf of holder. Where notice is given by or on behalf of the holder, it enures for the benefit of all subsequent holders and all prior parties who have a right of recourse against the party to whom it is given.

§ 164. Effect where notice is given by party entitled thereto. -Where notice is given by or on behalf of a party entitled to give notice, it enures for the benefit of the holder and all parties subsequent to the party to whom notice is given.

165. When agent may give notice.--Where the instrument has been dishonored in the hands of an agent, he may either himself give notice to the parties liable thereon, or he may give

notice to his principal. If he give notice to his principal, he must do so within the same time as if he were the holder, and the principal upon the receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder.

$166. When notice sufficient.--A written notice need not be signed and an insufficient written notice may be supplemented and validated by verbal communication. A misdescription of the instrument does not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.

§ 167. Form of notice.-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 non-acceptance or non-payment. It may in all cases be given by delivering it personally or through the mails.

§ 168. To whom notice may be given.-Notice of dishonor may be given either to the party himself or to his agent in that behalf.

§ 169. Notice where party is dead. When any party is dead, and his death is known to the party giving notice, the notice must be given to a personal representative, 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.

§ 170. Notice to partners.-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.

§ 171. Notice to persons jointly liable.-Notice 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.

§ 172. Notice to bankrupt.-Where a party has been adjudged a bankrupt or an insolvent, 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.

173. Time within which notice must be given.-Notice may be given as soon as the instrument is dishonored; and unless delay is excused as hereinafter provided, must be given within the times fixed by this act.

$174. Where parties reside in the same place. Where the person giving and the person to receive notice reside in the same place, notice must be given within the following times: