Chap. 866.—An ACT to revise, arrange and consolidate into one act the laws
lating to negotiable instruments (being an act to establish a law uniform w
the laws of other states on that subject).

Approved March 3, 1598.

Whereas it is expedient to consolidate in one act the law relating
negotiable instruments in general, and to arrange it in appropriate tit]
chapters, and sections: therefore,

Be it enacted by the general assembly of Virginia, in the manner f
lowing, that is to say:

TITLE I.

NEGOTIABLE INSTRUMENTS IN GENERAL.
ARTICLE I.
Form and Interpretation.

Section 1. An instrument to be negotiable must conform to the follo
Ing requirements:

1. It must be in writing and signed by the maker or drawer;

2. Must contain an unconditional promise or order to pay asum c
tain in money;

3. Must be payable on demand, or at a fixed or determinable fut
time;

4. Must be payable to order or to bearer; and
5. Where the instrument is addressed to a drawee, he must. be named
or otherwise indicated therein with reasonable certainty.

Sec. 2. The sum payable is asum certain within the meaning of this
act, although it is to be paid: |

1. With interest; or

2. By stated instalments; or

3. By stated instalments, with a provision that upon default in pay-
ment of any instalment or of interest, the whole shall become due; or

4. With exchange, whether at a fixed rate or at the current rate; or

5. With costa of collection or an attorney’s fee, in case payment shall
not be made at maturity.

Sec. 38. An unqualified order or promise to pay is unconditional within
the meaning of this act, though coupled with:

1. An indication of a particular fund out of which reimbursement is
to be made, or a particular account to be debited with the amount; or

2. A statement of the transaction which gives rise to the instrument.

But an order or promise to pay out of a particular fund is not uncon-
ditional.

Sec. 4. An instrument is payable at a determinable future time,
within the meaning of this act, which is expressed to be payable:

1. At afixed period after date or sight; or

2. On or before a fixed or determinable future time specified therein; or

8. On or at a fixed period after the occurrence of a specified event,
which is certain to happen, though the time of happening be uncertain.

An instrument payable upon a contingency is not negotiable, and the
happening of the event does not cure the defect.

Sec. 5. An instrument which contains an order or promise to do any
act in addition to the payment of money is not negotiable. But the
negotiable character of an instrument otherwise negotiable is not affected
by a provision which:

1. Authorizes the sale of collateral securities in case the instrument be
not paid at maturity; or

2. Authorizes a confession of judgment if the instrument be not paid
at maturity; or

3. Waives the benefit of any law intended for the advantage or pro-
tection of the obligor; or

4. Gives the holder an election to require something to be done in lieu
of payment of money.

But nothing in this section shall validate any provision or stipulation
otherwise illegal.

Sec. 6. The validity and negotiable character of an instrument are not
affected by the fact that:

1. It is not dated; or

2. Does not specify the value given, or that any value has been given
therefor; or ]

3. Does not specify the place where it is drawn or the place whicre it
is payable; or

4. Bears a seal; or

5. Designates a particular kind of current money in which payment

is to be made.
But nothing in this section shall alter or repeal any statute requiring
certain cases the nature of the consideration to be stated in the instrv
ent.

Sec. 7. An instrument is payable on demand:

1. Where it is expressed to be payable on demand, or at sight, or o
‘esentation; or

2. In which no time for payment is expressed.

Where an instrument is issued, accepted or indorsed when overdue, 1
, as regards the person so issuing, accepting or indorsing it, payable o1
mand.

Sec. 8. The instrument is payable to order where it is drawn payab]
the order of a specified person or to him or his order. It may b
‘awn payable to the order of:

1. A payee who is not maker, drawer or drawee; or

2. The drawer or maker; or

3. The drawee; or

4. Two or more payees jointly; or

5. One or some of several payees; or

6. The holder of an office for the time being.

Where the instrument is payable to order the payee must be namec
otherwise indicated therein with reasonable certainty.

Sec. 9. The instrument is payable to bearer:

1. When it is expressed to be so payable; or

2. When it is payable to a person named therein or bearer; or

3. When it is payable to the order of a fictitious or non-existing per
n, and such fact was known to the person making it so payable; or
4. When the name of the payee does not purport to be the name o
1y person; or

5. When the only or last indorsement is an indorsement in blank.
See. 10. The instrument need not follow the language of this act, bu
yy terms are sufficient which clearly indicate an intention to conforn
the requirements hereof.

See. 11. Where the instrument or an acceptance or any indorsemen’
ereon is dated, such date is deemed prima facie to be the true date o
e making, drawing, acceptance or indorsement as the case may be.
Sec. 12. The instrument is not invalid for the reason only that it i:
te-dated or post-dated, provided this is not done for an illegal o:
udulent purpose. The person to whom an instrument so dated 1:
livered acquires the title thereto as of the date of delivery.

Sec. 13. Where an instrument expressed to be payable at a fixed
riod after date is issued undated, or where the acceptance of an instru:
ent payable at a fixed period after sight is undated, any holder may
sert therein the true date of issue or acceptance, and the instrument
all be payable accordingly. The insertion of a wrong date does no!
oid the instrument in the hands of a subsequent holder in due course
tas to him, the date so inserted isto be regarded as the true date.
Sec. 14. Where the instrument is wanting in any material particular,
e person in possession thereof has a prima facie authority to complete
by filling up the blanks therein. And a signature on a blank paper
livered by the person making the signature in order that the paper
iv he converted into a negotiable instrument operates as a prima facie
thority to fill it up as such for any amount. In order, however, that
any such instrument when completed, may be enforced against any
person who became a party thereto prior to its completion, it must be filled
up strictly in accordance with the authority given and within a reasona-
ble time. But if any such instrument, after completion, is negotiated
to a holder in due course, it is valid and effectual for all purposes in his
hands, and he may enforce it as if it had been filled up strictly in ac-
cordance with the authority given and within a reasonaLle time.

Sec. 15. Where an incomplete instrument has not been delivered it
will not, if completed and negotiated without authority, be a valid con-
tract in the hands of any holder as against any person whose signature
was placed thereon before delivery.

Sec. 16. Every contract on a negotiable instrument is incomplete and
revocable until delivery of the instrument for the purpose of giving
effect thereto. As between immediate parties, and as regards a remote
party other than a holder in due course, the delivery, in order to be
effectual, must be made either by or under the authority of the party
making, drawing, accepting or indorsing, as the case may be; and in
such case the delivery may be shown to have been conditional, or for a
special purpose only, and not for the purpose of transferring the pro-
perty in the instrument. But where the instrument is in the hands of
a holder in due course a valid delivery thereof by all parties prior to
him so as to make them liable to him is conclusively presumed. And
where the instrument is no longer in the possession of a party whose
signature appears thereon a valid and intentional delivery by him is
presumed until the contrary is proved.

Sec. 17. Where the language of the instrument is ambiguous, or
there are omissions therein, the following rules of construction apply:

1. Where the sum payable is expressed in words and also in figures,
and there is a discrepancy between the two, the sum denoted by the
word is the sum payable; but if the words are ambiguous or uncertain
references may be had to the figures to fix the amount;

2. Where the instrument provides for the payment of interest, with-
out specifying the date from which interest is to run, the interest runs
from the date of the instrument, and if the instrument is undated, from
the issue thereof ;

3. Where the instrument is not dead it will be considered to be dated
as of the time it was issued;

4. Where there is a conflict between the written and printed provis-
ions of the instrument the written provisions prevail;

5. Where the instrument is so ambiguous that there is doubt whether
it is a bill or note, the holder may treat it as either at his election;

6. Where a signature is so placed upon the instrument that it is not
clear in what capacity the person making the same intended to sign, he
is to be deemed an indorser;

7. Where an instrument containing the words ‘‘I promise to pay’? is
signed by tio or more persons, they are deemed to be jointly and seve-
rally liable thereon.

Sec. 18. No person is liable on the instrument whose signature does
not appear thereon, except as herein otherwise expressly provided. But
one who signs in a trade or assumed name will be liable to the same
extent as if he had signed in his own name.
Sec. 19. The signature of any party may be made by a duly author-
ized agent. No particular form of appointment is necessary for this
purpose; and the authority of the agent may be established as.in other
cases of agency.

Sec. 20. Where the instrument contains or a person adds to his sig-
nature words indicating that he signs for or on behalf of a principal, or
in a representative capacity without disclosing his principal, he is not
liable on the instrument if he was duly authorized; but the mere addi-
tion of words describing him as an agent, or as filling a representative
character, without disclosing his principal, does not exempt him _from
personal liability.

Sec. 21. A signature by ‘procuration’’ operates as notice that the
agent has but a limited authority to sign, and the principal is bound
onlv in case the agent in so signing acted within the actual limits of his
authority.

Sec. 22. The indorsement or assignment of the instrument by‘a cor-
poration or by an infant passes the property therein, notwithstanding
that from want of capacity the corporation or infant} may incur no
liability thereon.

Sec. 23. Where a signature is forged or made without the authority
of the person whose signature it purports to be, it is wholly inoperative,
and no right to retain the instrument, or to give a discharge therefor, or
to enforce payment thereof against any party thereto, can be ac-
quired through or under such signature, unless the party against whom
it is sought to enforce such right is precluded from setting up the forgery
or want of authority.

ARTICLE II.

Consideration.

Sec, 24. Every negotiable instrument is deemed prima facie to have
been issued for a valuable conside ‘ration; and every person whose signa-
ture appears thereon to have become a party thereto for value.

Sec. 25. Value is any consideration sullicient to support a simple
contract. An antecedent or pre-existing debt constitutes value, and is
deemed such whether the instrument is payable on demand or ata
future time.

Sec. 26. Where value has at any time been given for the instrument,
the holder is deemed a holder for value in respect to all parties who he-
came such prior to that time.

Sec. 27. Where the holder has a hen on the instrument, arising either
from contract or by implication of law, he is deemed a holder for value
to the extent of his len.

Sec. 28. Absence or failure of consideration is matter of defence as
against any person nota holder in due course; and partial failure of con-
sideration ix a defenee pro tanto, whether the failure is an ascertained
and liquidated amount or otherwise.

Sec. 29. An accommodation party is one who has signed the metrit-
ment as maker, drawer, acceptor or indorser, without receiving value
therefor, and for the purpose of lending his name to some other person.
Such a person is Hable on the instrument toa holder for value, notwith-
standing such holder at the time of taking the instrument knew him to
be only anzaccommodation party.

ARTICLE III.

Negotiation.

Sec. 30. An instrument is negotiated when it 1s transferred from one
person to another in such manner as to constitute the transferee the holder
thereof. » If payable to bearer it is negotiated by delivery; if payable to
order itis negotiated by the indorsement of the holder completed by de-
livery.

Sec. 381. The indorsement must be written on the instrument itself or
upon a’ paper attached thereto. The signature of the indorser, without
addition: 1 words, 1s a sufficient Indorsement.

Sec. o2. The indorsement must bean indorsement of the entire instru-
ment. An indorsement which purports to transfer to the indorsee a part
only of the amount payable, or which purports to transfer the instrument
to two or more indorsces severally, does not operate as a negotiation of
the instrument. ¢ But where the instrument has been paid in part, it may
be indorsed as to the residue.

Sec. 33. An indorsement may be either special or in blank; and it may
also be either restrictive or qualified, or conditional.

sec. 34. A special indorsement specities the person to whom, or to
whose order, the instrument is to be payable, and the indorsement of
such indorsee is necessary to the further negotiation of the instrument.
An indorsement in blank specifies no indorsee, and an instrument so
indorsed is payable to bearer, and may be negoti: ated by delivery.

Sec. 85. The holder may convert a blank indorsement into a special
Indorsement by writing over the signature of the indorser in blank any
contract consistent with the character of the indorsement.

sec. 06. An indorsement is restrictive, which either:

1. Prohibits the further negotiation of the instrument; or

2. Constitutes the indorsee the agent of the indorser; or

3. Vests the title in the indorsee in trust for or to the use of some
other person.

But the mere absence of words implying power to negotiate does not

make an indorsement restrictive.

Sec. 37. A restrictive Indorsement confers upon the indorsee the right:

1. To receive payment of the instrument;

2. To bring any action thereon that the indorser could bring;

8. To transfer his rights as such indorsee, where the form of the in-
dorsement authorizes him to do so.

But all subsequent indorsees acquire only the title of the first indorsee
under the restrictive indorsement.

Sec. 38. A qualified indorsement constitutes the indorser a mere
assignor of the title to the instrument. It may be made by adding to
the indorser’s signature the words ‘‘ without recourse’’ or any words of
similar import. “Such an indorsement does not impair the negotiable
character of the instrument.
Sec. 39. Where an indorsement is conditional, a party required to pay
the instrument may disregard the condition, and make payment to the
indorsce or his transferee, whether the condition has been fulfilled or not.
But any person to whom an instrument so indorsed is negotiated, will
hold the same, or the proceeds thereof, subject to the rights of the person
indorsing conditionally.

mec. 40. Where an instrument, payable to bearer, is indorsed specially,
it may nevertheless be further negotiated by delivery; but the person in-
dorsing specially is liable as indorser to only such holders as make title
through his indorsement.

nec. 41. Where an instrument is payable to the order of two or more
payees or indorsees who are not partners, all must indorse, unless the
one indorsing has authority to indorse for the others.

sec. 42. Where an instrument is drawn or indorsed to a person as
‘cashier’? or other fiseal officer of a bank or corporation, it is deemed
prima facie to be payable to the bank or corporation of which he is such
oflicer; and may be negotiated by either the indorsement of the bank or
corporation, or the indorsement of the officer.

Sec. 43. Where the name of a payee or indorsee is wrongly designated
or misspelled, he may indorse the instrument as therein described,
adding, if he think fit, his proper signature.

Sec. 44. Where any person is under obligation to indorse in a repre-
sentative capacity, he may indorse in such terms as to negative personal
hhability.

Sec. 45. Except where an indorsement bears date after the maturity of
the instrument, every negotiation is deemed prima facie to have been
effected before the instrument was overdue.

Sec. 46. Except where the contrary appears every indorsement is pre-
sumed prima facie to have been made at the place where the instrument
is dated.

Sec. 47. An instrument negotiable in its origin continues to be nego-
tiable until it has been restrictively indorsed or discharged by payment
or otherwise.

Sec. 48. The holder may at any time strike out any indorsement
which is not necessary to his title. The indorser whose indorsement is
struck out, and all indorsers subsequent to him, are thereby relieved
from hability on the instrument.

Sec. 49. Where the holder of an instrument payable to his order trans-
fers it for value without indorsing it, the transfer vests in the transferee
such title as the transferer had therein, and the transferee acquires, in
addition, the right to have the indorsement of the transferer. But for
the purpose of determining whether the transferee is a holder in due
course, the negotiation takes effect as of the time when the indorsement
is actually made.

Sec. 50. Where an instrument is negotiated back to a prior party,
such party may, subject to the provisions of this act, reissue and further
negotiate the sume. But he is not entitled to enforce payment thereof
against any intervening party to whom he was personally liable.
ARTICLE IV.

Rights of the Holder.

Sec. 51. The holder of a negotiable instrument may sue thereon in
his own name; and payment to him in due course discharges the instru-
ment.

Sec. 52. A holder in due course‘is a holder who has taken the instru-
ment under following conditions:

1. That it is complete and regular upon its face;

2. That he became the holder of it before it was overdue, and with-
out notice that it had been previously dishonored, if such was the fact;

3. That he took it in good faith and for value;

4, That at the time it was negotiated to him he had no notice of
any infirmity in the instrument or defect in the title of the person nego-
tiating it.

Sec. 53. Where an instrument payable on demand is negotiated an
unreasonable length of time after its issue, the holder is not deemed a
holder in due course.

Sec. 54. Where the transferee receives notice of any infirmity in the
instrument or defect in the title of the person negotiating the same)before
he has paid the full amount agreed to be paid therefor, he will be
deemed a holder in due course only to the extent of the amount thereto-
fore paid by him.

Sec. 55. The title of a person who negotiates an instrument is defec-
tive within the meaning of this act when he obtained the instrument, or
any signature thereto, by fraud, duress, or force and fear, or other un-
lawful means, or for an illegal consideration, or when be negotiates it in
breach of faith, or under such circumstances as amount to a fraud.

Sec. 56. To constitute notice of aninfirmity in the instrument or de-
fect in the title of the person negotiating the same, the person to whom
it is negotiated must have had actual knowledge of the infirmity or de-
fect, or knowledge of such facts that his action in taking the instrument
amounted to bad faith.

Sec. 57. A holder in due course holds the instrument free from any
defect of title of prior parties, and free from defences available to prior
parties among themselves, and may enforce payment of the instrument
for the full amount thereof against all parties liable thereon.

Sec. 58. Inthe hands of any holder other than a holder in due course,
a negotiable instrument is subject to the same defences as if it were non-
negotiable. But a holder who derives his title through a holder in due
course, and who is not himself a party to any fraud or ‘illegality affecting
the instrument, has all the rights of such former holder in respect of all
parties prior to the latter.

Sec. 59. Every holder is deemed prima facie to be a holder in due
course; but when it is shown that the title of any person who has nego-
tiated the instrument was defective, the burden is on the holder to prove
that he or some person under whom he claims acquired the title as a
holder in due course. But the last-mentioned rule docs not apply in
favor of a party who became bound on the instrument prior to the acqui-
sition of such defective title.
ARTICLE V.
Liabilitics of Purttes.

sec. GO. The maker of a negotiable instrument by making it engages
that he will pay it according to its tenor, and admits the existence of the
payee and his then capacity” to indorse.

Sec. 61. The drawer by drawing the instrument admits the existence
of the payee and his then capacity to indorse; and engages that on due
presentment the instrument will be accepted or paid, or both, according
to its tenor, and that if it be dishonored, and the necessary proceedings
on dishonor be duly taken, he will pay the amount thereof to the holder,
or to any subsequent indorser who may be compelled to pay it. But
the drawer may insert in the instrament an express stipulation negativ-
ing or limiting his own Nability to the holder.

Sec. 62. The acceptor by accepting the instrument engages that he
will pay it according to the tenor of his acceptance; and admits:

1. The existence of the draw er, the genuineness of his signature, and
his capacity and authority to draw the instrument; and

2. The existence of the payee and his then capacity to indorse.

See. 63. A person placing his signature upon an instrument otherwise
than as maker, drawer or acceptor is deemed to be an indorser, unless he

clearly indicates by appropriate words his intention to be bound in some
other capacity.

See. 64. Where a person, not otherwise a party to an instrument,
places thereon hig signature in blank before delivery, he is liable as in-
dorserin accordance with the following rules:

1. If the instrument is pavable to the order of a third person, he is
liable to the payee and to all subsequent parties;

2. Ifthe instrument is payable to the order of the maker or drawer,
oris payable to bearer, he is hable to all parties subsequent to the maker
or drawer.

d. If he signs for the accommodation of the payee, he is liable to all
parties subsequent to the payee.

See. 65. Every person negotiating an instrument by delivery or by a
qualified indorsement, warrants:

1. That the instrument is genuine and in all respects what it purports
to be;

2. That he has a good title to it;

& That all prior parties had capacity to contract;

4. That he has no knowledge of any fact which would impair the
validity of the instrument or render it valueless.

cut when the negotiation is by delivery only, the warranty extends in
favor of no holder other than the immediate transferee.

The provisions of subdivision three of this section do not apply to
persons negotiating pubhe or corporate securities, other than bills and
hotes,

See. 66. Every indorser who indorses without qualification, warrants
to all subsequent holders in due course:

1. The matters and things mentioned in subdivisions one, two and
three of the next preceding section; and
That the instrument is at the time of his indorsement valid and
subsisting.

And, in addition, he engages that on due presentment, it shall be ac-
cepted or paid, or both, as the case may be, according to its tenor, and
that if it be dishonored, and the necessary proceedings on dishonor be
duly taken, he will pay the amount thereof to the holder, or to any sub-
sequent indorser who may be compelled to pay it.

sec. 67. Where a person places his indorsement on an instrument
negotiable by delivery he incurs all the liabilities of an indorser.

Sec. 68. As respects one another, Indorsers are Hable prima facie in
the order in which they indorse; but evidence is admissible to show that
as between or among themselves they have agreed otherwise. Joint
payees or joint indorsees who indorse are deemed to indorse jointly and
severally.

See. 69. Where a broker or other agent negotiates an instrument with-
out indorsement, he incurs all the liabilities prescribed by section sixty-
five of this act, unless he discloses the name of his principal, and the fact
that he is acting only as agent.

ARTICLE VJ,

Presentment for Payment.

Sec. 70. Presentment for payment is not necessary in order to charge
the person primarily lable on the instrument; but if the instrument is,
by its terms, pavable 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.

Sec. 71. Where the instrument is not pavable on demand, present-
ment must be made on the day it falls due. “Where it is payable on
demand, presentinent 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 sutficient if made within a reasonable time after the
last negotiation thereof.

Sec. 72. 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. Ata reasonable hour on a business day;

3. Ata proper place as herein defined;

4. To the person primarily liable on the instrument, or if he is ab-
sent or inaccessible, to any person found at the place where the present-
ment is made.

Sec. 73. 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 pre-
sented:

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 resi-
dence 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.

Sec. 74. The instrument must be exhibited to the person from whom
payment 1s demanded, and when it is paid must be delivered up to the
party paying it.

Sec. 75. 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 suflicient.

Sec. 76. 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 exer-
cise of reasonable diligence he can be found.

Sec. 77. 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.

sec. 78. Where there are several persons, not partners, primarily
hhable on the instrument, and no place of payment is’specified, present-
ment must be made to them all.

Sec. 79. 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.

Sec. 80. Presentment for payment is not required in order to charge
an indorser where the instrument was made or accepted for his accom-
modation, and he has no reason to expect that the instrument will be
paid if presented.

Sec. $1. 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 reason-
able diligence.

Sec. 82. Presentment for payment is dispensed with:

1. Where after the exercise of reasonable diligence presentment as re-
quired by this act cannot be made;

2. Where the drawee is a fictitious person;

3. By waiver of presentment express or implied.

See. 83. The instrument is dishonored by non-payment when:

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

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

See. 84. Subject to the provisions of this act, when the instrument 1s
dishonored by non-payment, an immediate right of recourse to all par-
ties secondarily Hable thereon, accrues to the holder.

Sec. 85. 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 on Saturday are to be presented for pay-
ment on the next succeeding business day, except that instruments pay-
able 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.

Sec. 86. Where the instrument is payable at a fixed period after date,
after sight, or after the happening of a specified event, the time of pay-
ment is determined by excluding the day from which the time is to
begin to run, and by including the date of payment.

Sec. 87. Where the instrument is made payable at a bank it is equiv-
alent to an order to the bank to pay the same for the account of the prin-
cipal debtor thereon.

Sec. 88. 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 VII.

Notice of Dishonor.

Sec. 89. Except as herein otherwise provided, when a negotiable in-
strument 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.

Sec. 90. 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.

Sec. 91. 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.

Sec. 92. 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.

Sec. 93. 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 subse-
quent to the party to whom notice is given.

Sec. 94. 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.

Sec. 95. A written notice need not be signed and an insufficient writ-
ten 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.

Sec. 96. The notice may be in writing or merely oral and may be
given in any terms which sufficiently identify the instrument, and indi-
cate 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.

>? a
Sec. 97. 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 dissolu-
tion.

Sec. 100. 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.

Sec. 101. Where a party has been adjudged a bankrupt or an insol-
vent, 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. 1U2. Notice may be given as soon as the instrument is dishon-
ored; 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 place, 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 inust be deposited in the postoffice 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 following
times:

1. If sent by mail, it must be deposited in the postofliee 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 thereafter;

2. If given otherwise than through the postoflice, then within the time
that notice would have been received in due course of mail, if it had
been deposited in the postotlice within the time specified in the last sub-
division.

Sec. 105. Where notice of dishonor is duly addressed and deposited in
the postoflice, the sender is deemed to have given due notice, notwith-
shieloy } any miscarriage in the mails.

Sec. 106. Notice is deemed to have been deposited in the postottice
when deposited in any branch postoflice or in any letter-box under the
control of the postoflice department.

Sec. 107. Where a party receives notice of dishonor, he has, after the
receipt of such notice, the same time for giving notice to antecedent par-
ties that the holder has after the dishonor.

sec. 108. Where a party has added an address to his signature, notice
of dishonor must be sent to that address; but if he has not given such
address, then the notice must be sent as follows:

1. Either to the postoffice nearest to his place of residence, or to the
postoflice 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 sojourning 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 will be sufficient, though not sent in accordance
with the requirements of this section.

See. 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. Where the waiver is embodied in the instrument itself, itis
binding upon all parties, but where it is written above the siynature of
an indorser, 1t binds him only.

See. 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 dis-
honor.

Sec. 112. Notice of dishonor is dispensed with when after the exercise
of reasonable diligence, it cannot be given to or does not reach the par-
ties sought to be charged.

Sec. 113. Delay in giving notice of dishonor is excused when the de-
lay is caused by circumstances beyond control of the holder and not im-
putable to his default, misconduct or negligence. When the cause of
delay ceases to ope rate, notice must be given with reasonable diligence.

Sec. 114. Notice of dishonor is not required 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 ca-
pacity to contract;

3. Where the drawer is the person to whom the instrument is_pre-
sented for payment;

4. Where the drawer has no right to expect or require that the
drawee or acceptor will honor the instrument;

5. Where the drawer has countermanded payment.

Sec. 115. Notice of dishonor is not required to be given to an indorser
in either of the following cases:

1. Where the drawee is a fictitious person or a person not having ca-
pacity 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 instrument is pre-
sented for payment;

Where the instrument was made or accepted for his acecommoda-
tion.

Sec. 116. Where due notice of dishonor by non-acceptance has been
given, notice of a subsequent dishonor by non-payment is not neces-
sary, unless in the meantime the instrument has been accepted.

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

Sac. 118. Where any negotiable instrament his been dishonered it
miy be protested for non- accaptance or non-piyment, as the case miy

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be; but protest 1s not required, except in the case of foreign bills
exchange.

ArTIcLE VIII.

Discharge of Negotiable Instruments.

Sec. 119. A negotiable instrument is discharged:

1. By payment in due course by or on behalf of the principal debt

2: By payment in due course by the party accommodated, where |
instrument 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 {
payment of money;

5. When the principal debtor becomes the holder of the instrum:
at or after maturity in his own right.

Sec. 120. A person secondarily liable on the instrument is discharg

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 arelease of the principal debtor, unless the holder’s right
recourse against the party secondarily liable is expressly reserved;

6. By any agreement binding upon the holder to extend the time
payment, or to postpone the holder’s right to enforce the instrume
unless made with the assent of the party secondarily liable, or unl
the right of recourse against such party is expressly reserved.

Sec. 121. Where the instrument is paid by a party secondarily lia
thereon, it is not discharged; but the party so paying it is remitted
his former rights as regards all prior parties, and he may strike out |
own and all subsequent indorsements, and again negotiate the inst
ment, except:

1. Where it is payable to the order of a third person, and has be
paid by the drawer; and

2. Where it was made or accepted for accommodation, and has be
paid by the party accommodated.

Sec. 122. The holder may expressly renounce his rights against a
party to the instrument, before, at or after its maturity. An absolt
and unconditional renunciation of his rights against the principal debt
made at or after the maturity of the instrument discharges the inst
ment. Buta renunciation does not affect the rights of a holder in d
course without notice. A renunciation must be in writing, unless t
instrument is delivered up to the person primarily liable thereon.

Sec. 123. A cancellation made unintentionally, or under a mistak
or without the authority of the holder, is inoperative; but where :
instrument or any signature thereon appears to have been cancelled tl
burden of proof lies on the party who alleges that the cancellation w
made unintentionally, or under a mistake or without authority.

Sec. 124. Where a negotiable instrument is materially altered witho
the assent of all parties liable thereon, it is avoided, except as against
party who has himeelf made, authorized or assented to the alteratic
and subsequent indorsers.
But when an instrument has been materially altered and is in the hands
of a holder in due course, not a party to the alteration, he may enforce
payment thereof according to its original tenor.

Sec. 125. Any alteration which changes:

1. The date;

2. Thesum payable, either for principal or interest;

3. The time or place of payment;

4. The number or the relations of the parties;

®. The medium or currency in which payment is to be made;

Or which adds a place of payment where no place of payment is
specitied, or any other change or addition which alters the effect of the
instrument in any respect, is a material alteration.

TITLE II.
BILLS OF EXCHANGE.

ARTICLE IL.

Form and Interpretation.

See. 126. A bill of exchange is an unconditional order in writing ad-
dressed by one person to another, signed by the person giving it, requir-
ing the person to whom it 1s 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 itself does not operate as an assignment of the funds
in the hands of the drawee available for the payment thereof and the
drawce is not Hable on the bill unless and until he accepts the same.

Sec, 128. A bill 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.

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

Sec. 130. Where in a bill drawer and drawee are the same person, or
where the drawee is a fictitious person, or a person not having capacity
to contract, the holder may treat the instrument, at his option, either as
a bill of exchange or a promissory note.

Sec. 131. 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 dishonored by non-acceptance or non-
payment. Such person is called the referee in case of need. It isin the
option of the holder to resort to the referee in case of need or not, as he
may ece fit.

ARTICLE IT,

Acceptance.

Sec. 132. The acceptance of a bill is the signification by the drawee
of hig assent to the order of the drawer. The acceptance must be in
writing and signed by the drawee. It must not express that the drawee
will perform his promise by any other means than the payment of money.

Sec. 135. The holder of a bill presenting the same for acceptance may
require that the acceptance be written on the bill, and if such request 1s
refused, may treat the bill as dishonored.

Sec. 184. Where an acceptance is written on a paper other than the
bill 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 bill for value.

Sec. 135. 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, receives the bill for value.

Sec. 136. The drawee is allowed twenty-four hours after presentment
in which to decide whether or not he will accept the bill; but the accept-
ance, if given, dates as of the day of presentation.

Sec. 137. Where a drawce to whom a bill is delivered for acceptance
destroys the same, or refuses within twenty-four hours after such deliv-
ery, or within such other period as the holder may allow, to return the
bill accepted or non-accepted to the holder, he will be deemed to have
accepted the same.

See. 158. A bill may be accepted before it has been signed by the
drawer, or while otherwise incomplete, or when it is overdue, or after it
has been dishonored by a previous refusal to accept, or by non-payment.
But when a bill payable after sight is dishonored by non-acceptance and
the drawee subsequently aceepts it, the holder, in the absence of any dif-
ferent agreement, is entitled to have the bill accepted as of the date of
the first presentment. |

Sec. 159. An acceptanceis either general or qualified. A general ac-
ceptance assents without qualification to the order of the drawer. A
qualified acceptance in express terms varies the effect of the bill as
drawn.

Sec. 140. An acceptance to pay at a particular place is a general ac-
ceptance unless it expressly states that the bill is to be paid there only
and not elsewhere.

Sec. 141. An acceptance is qualified, which is:

1. Conditional, that is to say, 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;

>. 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. The holder may refuse to take a qualified acceptance, and if
he does not obtain an unqualified acceptance, he may treat the bill as
dishonored by non-acceptance. Where a qualified acceptance is taken,
the drawer and indorsers are discharged from lability on the bill, unless
they have expressly or impliedly authorized the holder to take a quali-
fied acceptance, 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.
ARTICLE ITT.

Presentment for Acceptance.

Sec. 143. Presentment for acceptance must be made:

1. Where the bill is payable after sight, or in any other case where
presentment 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 ac-
ceptance; 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 Hable.

Sec. 144. Except as herein otherwise provided the holder of a bill
which is required by the next preceding section to be presented for ac-
ceptance must either present it for acceptance or negotiate it within a
reasonable time. If he fail to do s0 the drawer and all indorsers are
discharged.

Sec. 145. 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 drawer 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 author-
ity to accept or refuse acceptance for all, in which case presentment may
be made to him only;

2. Where the drawce is dead, presentment may be made to his per-
sonal 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 assienee.

Sec. 146. A bill may be presented for acceptance 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
Saturdav is not otherwise a holiday, presentment for acceptance may be
made before twelve o’clock noon on that day.

Sec. 147. Where the holder of a bill drawn payable 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 is excused and a bill mav be
treated as dishonored by non-acceptance, in either of the following
cases:

1. Where the drawee is dead, or has absconded, or is a fictitious per-
son or a person not having capacity to contract by bill;

2. Where after the exercise of reasonable diligence, presentment can-
not be made;
3. Where although presentment has been irregular, acceptance ha:
been refused on some other ground.

Sec. 149. A bill is dishonored by non-acceptance:

1. When it is duly presented for acceptance and such an acceptance
as 1s prescribed by this act is refused or cannot be obtained; or

2. ren presentment for acceptance is excused and the bill is not ac
cepted.

Sec. 150. Where a bill is duly presented for acceptance and is not ac
cepted within the prescribed time, the person presenting it must trea
the bill as dishonored by non-acceptance or he loses the right of recours
against the drawer and indorsers.

Sec. 151. When a bill is dishonored by non-acceptance, an immediat
right of recourse against the drawers and indorsers accrues to the holde
and no presentment for payment is necessary.

ARTICLE IV.

Protest.

Sec. 152. Where a foreign bill appearing on its face to be such is dis
honored by non-acceptance, it must be duly protested for non-acceptance
and where such a bill which has not previously been dishonored b)
non-acceptance is dishonored by non-payment, it must be duly proteste
for non-payment. Ifit isnot so protested, the drawer and indorsers ar
discharged. Where a bill does not appear on its face to be a foreign bil]
protest thereof in case of dishonor is unnecessary.

Sec. 153. The protest must be annexed to the bill, or must contain |
copy thereof, and must be under the hand and seal of the notary makin,
it, and must specify:

1. The time and place of presentment;

2. The fact that presentment was made and the manner thereof;

3. The cause or reason for protesting the bill;

4. The demand made and the answer given, if any, or the fact that th
drawee or acceptor could not be found.

Sec. 154. Protest may be made by:

1. A notary public; or

2. By any respectable resident of the place where the bill is dishonored
in the presence of two or more credible witnesses.

See. 155. When a bill is protested, such protest must be made on thi
dav of its dishonor, unless delay is excused as herein provided. Wher
a bill has been duly noted, the protest may be subsequently extended a:
of the date of the noting.

Sec. 156, 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 resi.
dence 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 1s
expressed to be payable, and no further presentment for payment to, o1
demand on, the drawee is necessary.

Sec. Lov. A bill which has been protested for non-acceptance may be
subseque ‘ntly protested for non-payment.

Sec. los. Where the acceptor has been adjudged a bankrupt or an in-
solvent 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.

Sec. 159. Protest 1s dispensed with by any circumstances which would
dispense with notice of dishonor. Delay in noting or protesting is ex-
cused 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 pro-
tested with reasonable diligence.

Sec. 160. Where a bill is lost or destroyed or 1s wrongly detained from
the person entitled to hold it, protest may be made on a copy or written
particulars thereof.

ARTICLE V.

Acceptance of ITonor.

Sec. 161. 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 Nable thereon, may, with the
consent of the holder, intervene and accept the bill supra protest forthe
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 ac-
ceptance by a different person for the honor of another party,

See, 162. An acceptance for honor supra protest must be in writing
and indicate that it is an acceptance for honor, and must be signcd by
the acceptor for honor.

See. 163. 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.

See. 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 ac-
cepted.

Sec. 165. The acceptor for honor by such acceptance engages that he
will on due presentment pay the bill aceording to the terms of his ac-
ceptance: provided it shall not have been paid by the drawee: and pro-
vided, also, that it shall have been dttv presented for payment and
protested for non-payment and notice of dishonor given to him.

Sec. 166. 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.

Sec. 167. Where a dishonored bill has been aceepted 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 ease of need.

See. 168. Presentment for payment to the acceptor for honor must
be made as follows:

1. If itis to be presented in the place where the protest for non-
payment was made, it must be presented not later than the day follow-
Ing its maturity;

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2. 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 10-4. .

Sec. 169. 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.

Sec. 170. When the billis dishonored by the acceptor for honor, it
must be protested for non-payment by him.

ARTICLE VI.

Payment for Honor.

Sec. 171. Where a bill has been protested for non-payment, any per-
son 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.

Sec. 172. The payment for honor supra protest in order to operate as
such and not as a mere voluntary payment must be attested by a nota-
rial act of honor which may be appended to the protest or form an ex-
tension to it.

Sec. 173. 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.

Sec. 174. Where two or more persons offer to pay a bill for the honor
of different parties, the person whose payment will discharge most par-
tics to the bill is to be given the preference.

Sec. 175. Where a bill has been paid for honor, all parties subsequent
to the party for whose honor it 1s 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
hable to the Iatter.

Sec. 176. 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.

Sec. 177. 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.

ArticLe VII.

Bills in a Set.

Sec. 178. 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 constitute one bill.

Sec. 179. 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.
Sec. 180. Where the holder of a set indorses two or more parts to dif-
ferent persons he is liable on every such part, and every indorser subse-
quent to him is liable on the part he has himself indorsed as if such
parts were separate bills.

Sec. 181. 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.

Sec. 182. 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.

Sec. 183. 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. |
ARTICLE I.

Sec. 184. 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 com-
plete till indorsed by him.

Sec. 185. A check is a bill of exchange drawn ona 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.

Sec, 186. A check must be presented for payment within a reasonable
time after its issue or the drawer will be discharged from lability thereon
to the extent of the loss caused by the delay.

Sec. 187. Where a check is certified by the bank on which it is drawn,
the certification is equivalent to an acceptance.

Sec. 188. Where the holder of a check procures it to be accepted or
certified the drawer and all indorsers are discharged from liability
thereon.

Sec. 189. 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 certities the check.

TITLE IV.
GENERAL PROVISIONS.

ARTICLE I.

Sec. 190. This act shall be known as the Negotiable instruments law.

Sec. 191. In this act, unless the context otherwise requires:

‘** Acceptance’’ means an acceptance completed by delivery or notifi-
cation.

‘‘ Action’’ includes counter-claim and set-off.
‘Bank’? includes any person or association of persons carrying on
the business of banking, whether incorporated or not.

‘‘ Bearer’? means the person in pcessession of a bill or note which is
payable to bearer.

‘* Bill’? means bill of exchange, and ‘‘note’’? means negotiable pro-
missory note.

‘« Delivery ’’ means transfer of possession, actual or constructive, from
one person to another.

‘¢ folder’? means the payee or indorsee of a bill or note, who is in pos-
session of it, or the bearer thereof.

‘Tndorsement’? means an indorsement completed by delivery.

‘€ Instrument’? means negotiable instrument.

‘‘Tssue’’? means the first delivery of the instrument, complete in
form to a person who takes it as a holder.

‘Person’? includes a body of persons, whether incorporated or not.

‘¢Walue’’? means valuable consideration.

‘Written’? includes printed, and ‘‘ writing’’ includes print.

Sec. 192. The person ‘primarily’? liable on an instrument is the
person who by the terms of the instrument is absolutely required to pay
the same. All other parties are ‘‘ secondarily ’’ hable.

Sec. 193. In determining what is a ‘‘ reasonable time’’ or an ‘‘un-
reasonable time’? regard is to be had to the nature of the instrument,
the usage of trade or business (if any) with respect to such instruments,
and the facts of the particular case.

Sec. 194. Where the day, or the last day, for doing any act herein
required or permitted to be done falls on Sunday or on a holiday, the
act may be done on the next sueceeding secular or business day.

See, 195. The provisions of this act do not apply to negotiable instru-
ments made and delivered prior to the passage hereof,

Sec. 106. In any case not provided for in this act the rules of the law
merchant shall govern,

Sec. 197. Of the lawsenumerated in the schedules hereto annexed
that portion specified in the last column is repealed.

All acts and parts of acts in conilict herewith are hereby to that extent
repealed.

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