KF 
 957 
 Z9 
 Iv137 
 
(5nrn?U ICaui ^rlynol ffiibrata 
 
 O^ift of 
 
 ALFEED H. MARTIN 
 
KF 957.Z9M37""""""">"-"'™n' 
 'fS2J,S!.!S^n9Pses Of negotiabie in 
 
 '6 
 
 r-m' 
 
 iRegotiable ITnstrumenfe 
 
 pfteb lb. martin, a* B;, m. i©^, 
 
 ^ ©t tbe istttfalo 3Bar. 
 
 „' ..,1 . i?t^k^ski ,1909 / ,; , . 
 
 ' ■■'■ ■;■>■ ''.'.BY'*- , f ■ -'- '' - :' 
 
 ^, ALFRED H. MiRTHf.;; 
 
Cornell University 
 Library 
 
 The original of this book is in 
 the Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924018739791 
 

 This series of synopses, embracing the various subjects usually 
 found in a law school curriculum, is intended for the use of lavsr 
 students as a means of obtaining- a comprehensive mental grasp of 
 each subject as a connected and logical whole; of observing the 
 pattern of the fabric after having followed the individual threads 
 of the subject through the process of weaving, during w^hich, sight 
 of the relation of each to the other is apt to be lost. They will be 
 found especially valuable for review after completion of the subject. 
 
 They are intended for use in connection with any text books 
 although, of course, the general plan of one or a class of authors 
 has necessarily been followed. 
 
 In the preparation of the following pages the author has drav^rn 
 mainly from the English work of Judge Chambers and the very 
 excellent American production by Mr. Charles P. Norton, in connec- 
 tion with whose text book they are more especially intended to 
 be used, and to whom acknowledgment is hereby made for unex- 
 ipected kindness and words of encouragement. 
 
 ALFRED H. MARTIN. 
 iBuffklo, N. Y., Feb. 1900. 
 
Missing Page 
 
Q 
 
 As to negotiability. 
 
 As to place. 
 
 r Negotiable. 
 \ Non-negotiable. 
 
 f Foreign. 
 \ Inland. 
 
 CO 
 
 M 
 
 a 
 
 4 — To pay money only, 
 Except, ■{ 
 
 ' I — A written promise, if a note. 
 A written order, if a bill. 
 
 2 — Absence of conditions. 
 
 3-Payable at a time f ^^^ '^^°^^'^^{ fr^plTed.' 
 certain, ._._K^^.g^^^ 
 
 (^ On or before a day specified. 
 
 'Powers to cofess judgment, 
 Waivers of exemptions, 
 Stipulations to pay expense of collec- 
 tion and attorney's fees. 
 
 ^ Pledging collateral securites. 
 
 5 — Amount must be certain. 
 
 6 — Signature of maker or drawer. 
 
 7 — A designated and 
 
 definite drawee in be- ( i — When payable to bearer, 
 
 ing at time of issue, except, < 3 — In case payee is ficticious, 
 
 ( then it is payable to bearer, 
 r I— Actual, 
 2 — Constructive, 
 x — Absolute, , , 
 4-Conditional. [ J° ^^'^'^"^v 
 
 8 — Delivery, • 
 
 Oh 
 
 fTo bill,. 
 
 Necessary, - 
 
 Original, < 
 
 \ Upon condition. 
 
 I — Drawer, 
 2 — Drawee or 
 3 — Acceptor, 
 l_ 4 — -Payee. 
 
 ^ . ( Maker, 
 To note, jp^^^^' 
 
 ( Holder or 
 ^ Subsequent, to bill or note, -; Endorser and 
 
 I Endorsee. 
 
 4) 
 >^ 
 
 a <! 
 
 o 
 
 Who may make — Any one capable of contracting. 
 Who may negotiate — Only de facto holder or holders. 
 
 'Insane persons. 
 
 Infants, 
 
 Married women, 
 
 Coporations acting ultra vires. 
 
 Who may transfer with- 
 out personal liability, ' 
 
 . f Immediate — Governed by general rules of contract. 
 As to their j /• Qoverned by rules of negotiable instru- 
 
 relations,) Remote, | ^^^^^_ 
 
 ' Executors, 
 Who incur personal liability by indorse- Administrators, 
 ment although acting in a representa- < Guardians, 
 tive capacity. | Trustees, 
 
 l^ Agents. 
 
'AST0MAN.E.,{f^PJS; 
 
 Oral, 
 
 As TO Form, { 
 
 Accept- 
 ance, 
 
 Written, ^ 
 
 'Mnst be addressed to drawer or holder. 
 
 Must be assented to by holder. 
 
 Must relate to an existing bill. 
 ^Must be unequivocal. 
 
 fOn the bill itself. 
 
 Of bill already drawn, 
 
 I — Holder must 
 take upon credit 
 of the promise, 
 
 2 — Bill must be 
 drawn in reason- 
 able time after 
 
 On 
 
 separate 
 paper, 
 
 Of 
 bill to 
 
 be 
 drawn 
 
 { 
 
 promise, 
 3 — Bill must be 
 described and ac- 
 ceptance proved. 
 
 {Absolute, or according to terms of bill, 
 Qualified, / Valid as to subsequent parties 
 
 Conditional, \ and all prior parties who assent. 
 
 Who May 
 Accept, 
 
 Supra 
 Protest, 
 
 f One to whom the bill is addressed, 
 \ One who accepts for honor. 
 
 {After protest for non-payment. 
 After protest for better security after acceptance. 
 
 Rights 
 
 and 
 Liabili- 
 ties OP 
 Acceptor 
 
 AND 
 
 Maker, 
 
 I — Primary liability for payment, 
 
 2 — Not entitled to demand, protest, or notice of protest. 
 
 '^ Drawer's signature, 
 3 — Acceptance Existence of drawer, 
 
 is an I Capacity of drawer to make the draft, 
 admission | Liability for the sum named, 
 
 of When payable to payee, that payee 
 
 was competent to indorse. 
 
 4 — Acceptance C Of genuineness of payee's or subse- 
 is not an < quent indorsements, 
 
 Admission t That all terms of the bill are genuine, 
 
 ^5 — Liable for damages upon dishonor. 
 
Eh 
 Pi 
 
 O 
 Q 
 
 Purpose 
 
 f As evidence of transfer, 
 
 Kinds, 
 
 As a promise of payment or indemnity and warranty. 
 
 I — In bknk, 
 
 3— In full, 
 
 3 — Without recourse, 
 
 4-Conditional, | Condition precedent, 
 ' ( Condition subsequent, 
 
 'For collection or deposit only, (destroys 
 negotiability), 
 For use of another, (does not destroy 
 negotiability), 
 
 6 — Facultative — one in express terms enlarging rights or 
 waiving duties of holder. 
 
 5 — Restrictive, 
 
 Requi- 
 sites. 
 
 Must follow the terms of the instrument, 
 Must be by the payee or subsequent 
 
 exceptions). 
 Must be delivery. 
 
 holder, (some 
 
 I\^oie. — Instrument payable tobeareror indorsed in blank is still payable 
 to bearer notwithstanding a subsequent special indorsement. 
 
 Steps to 
 Consummate 
 Liability of 
 
 Acceptor 
 Supra 
 
 Protest, 
 
 Primary, 
 
 (Maker of 
 
 Note and 
 
 Acceptor 
 
 of Bill), 
 
 t — Presentation at maturity to drawee, for payment, 
 2 — Protest for non-payment, 
 3 — Presentation for payment 
 
 to acceptor supra protest, 
 
 and, if he refuse payment— ' 
 
 Pi 
 < 
 
 O 
 CO 
 
 i-( 
 
 m 
 
 < 
 t— ( 
 
 ■a 
 
 When Liable- 
 
 FoR What 
 liable. 
 
 Secondary 
 
 (Of Drawer 
 
 and 
 
 Indorser), 
 
 ' I — Protest, stating foregoing 
 steps, 
 2 — Notice of such protest to 
 the drawer and indorsers. 
 
 from inception of instrument. 
 
 ' I — Amount of instrument, save as between 
 immediate parties, then for amount of 
 consideration, 
 2 — Interest, 
 
 1^3 — Notary's fees, where allowed by law. 
 
 ^To Whom liable — to all parties and holders. 
 To Whom — all subsequent parties. 
 
 I — After failure of maker, drawer, 
 or acceptor to pay, 
 
 2 — After demand of payment on 
 drawee and maker or acceptor, 
 
 3 — After protest for non-payment, 
 
 4 — After notice of presentation, de- 
 mand, non-payment and protest. 
 
 Before ( Upon failure of drawer to accept, 
 acceptance, < After protest (in case of foreign bills), 
 ( After notice of such failure. 
 
 Character of liability — Several, (one or all may be sued 
 in one action). 
 
 ^ I — Amount of instrument to third parties 
 and amount of consideration to itame- 
 diate parties, 
 2 — Interest, 
 3 — Protest fees, 
 Re-exchange or damages in lieu thereof. 
 
 When 
 
 After 
 acceptance, 
 
 Extent of 
 Liability, 
 
Of 
 Acceptor, 
 
 I See item 3 under " liabilities of acceptor," page 4. 
 
 m 
 
 I— I 
 
 Pi 
 Pi 
 
 Of 
 
 Drawer, 
 
 <^ 
 
 I — The existence of the drawee, 
 2 — The capacity of the drawee to accept, 
 3 — Acceptance by the drawee, 
 1_^4 — That drawee can be found at place named in bill. 
 
 Of 
 Indorsbr, 
 
 I — Acceptance and payment, 
 2 — Genuineness of instrument,. 
 3 — Validity of the instrument, 
 4 — Competency of prior parties, 
 5 — Legality of his title, 
 6 — His right to transfer. 
 
 'As to contents, 
 As to signatures, 
 Existence of all prior 
 
 parties, 
 
 L 
 
 Of Indorser 
 Without Recourse, 
 (and in some jurisdictions 
 of simple transferrer), 
 
 ' r — Genuineness of instrument, 
 2 — Genuineness of signatures, 
 3 — Genuineness of title, 
 4 — No knowledge of defects, 
 5 — No acts by transferrer affecting validity. 
 
 <J 
 PL, 
 
 iz; 
 2 
 
 a 
 o 
 
 o 
 
 Contract 
 
 OF 
 
 Accommoda- 
 ted Party, 
 
 Liability 
 
 OF 
 
 Accommoda- 
 tion, 
 
 Legal 
 Holder, 
 (who is,) 
 
 I — To pay the instrument, 
 
 2 — To indemnify accommodating party. 
 
 Liable to all parties save the one accommodated. 
 Except in New York where note has been transferred after 
 maturity or there has been a material diversion,- 
 
 As When, < 
 
 '' I — Accommodator has an interest 
 in application of the proceeds, 
 2 — Instrument was made for some 
 specific purpose. 
 
 -One having legal title, 
 
 and 
 -Having right of possession. 
 
C/2 
 P 
 
 o 
 
 W 
 
 o 
 
 M 
 
 ^^ 
 
 07 
 
 to 
 
 >( O 
 M 
 
 
 Effect.— 
 
 -By mere de- ( i — Notes payable to bearer, 
 livery, as in \ 2 — After endorsement in blank. 
 Manner. ■{ 2 — By a writing on instrument, but not intened as 
 indorsement. 
 ^ 3 — By writing on a separate paper. 
 
 ' Conveys title of transferrer and prior paities,^sub3ect . 
 to equities, Xx<i>f»*V)4»«/vv'^a*joXliiL\t>ylTCiXAAA/| 
 
 Imposes no liability upon transferrer, save upon his 
 warranties before mentioned. 
 
 I — To personal representatives, upon death of 
 
 holder, 
 2 — To assignee or trustee upon bankruptcy of holder. 
 3 — To husband of female holder, upon her mar- 
 To Whom ) riage. (This is old common law rule.) 
 and When. 4_To husband, if note transferred to wife. (Old 
 common law rule.) 
 5 — To survivor or survivors upon death of a joint 
 payee or indorsee. 
 
 Vests only such title as was held by party from 
 whom it was tranf erred. 
 
 ' Conveys title free from equities. 
 
 NoU. — This is the only regular method of transferring 
 - - -^ instruments payable to order, although simple transfer will 
 
 vest the title. 
 
 As to indorsement as a promise of indemnity see ante, 
 page 3k- S~^ 
 f Indorsee takes subject only to all defenses available 
 
 Effect. 
 
 Effect - 
 
 Of Overdue 
 
 Kinds, 
 
 Paper. \ against his immediate indorser. 
 
 r I — Real (see subdivision), 
 \ 2-^Personal (see subdivision). 
 
 ' a — Are good defenses against everyone, 
 B — Attack legal existence of obligation. 
 
 a 
 
 P 
 
 el 
 
 .2 
 
 
 
 
 '^-» 
 
 -4-> 
 
 
 
 
 ■n 
 
 ■4-1 
 
 u 
 
 ui 
 
 <u 
 
 <U 
 
 ^ 
 
 l-i> 
 
 s 
 
 J—* 
 
 'Y-t 
 
 <s 
 
 tn 
 
 bo 
 
 .1^ 
 
 <u 
 
 u 
 
 
 CI 
 
 B 
 
 13 
 
 i 
 
 
 
 two 
 
 „ 
 
 c 
 
 § 
 
 ;s 
 
 02 
 
 n 
 
 Z 
 
 rt 
 
 w 
 
 -i-> 
 
 to 
 
 a 
 
 W 
 
 <U 
 
 Q 
 
 S 
 
 
 p 
 
 ij 
 
 vj 
 
 < 
 
 4^ 
 
 w 
 
 a 
 
 Pi 
 
 • TH 
 
 be 
 
 P< 
 
 C 
 o 
 
 .s 
 
 s 
 o 
 
 o 
 
 O 
 
 M 
 
 < 
 P 
 Z 
 to 
 to 
 W 
 Q 
 
 to 
 O 
 
 < 
 
 o 
 
 z 
 
 I — Infancy, 
 
 2 — Coverture,^ 
 (old com. law). 
 
 3 — Lack of 
 
 Mental 
 
 Capacity, 
 
 ' I — Renders obligation voidable, 
 
 not void, 
 2 — Available only to infant, 
 3 — Not good against instrument 
 
 given for necessities, in some 
 
 jurisdictions. 
 
 I — Renders obligation voidable 
 3 — Available to married woman 
 and all prior parties save 
 acceptor of bill payable to 
 her. 
 
 I — Available to such party only, 
 2 — At common law a real de- 
 fense in all cases of mental 
 incapacity, 
 3 — By statute, a real 
 defense only in 
 cases of persons 
 judicially de- 
 clared incom- 
 petent for , 
 
 Insanity, 
 
 Habitual 
 drunken- 
 ness. 
 
' Expressly so. 
 
 2 — Void by 
 Statute, 
 
 Inferentiai^lv, 
 
 by reason of 
 
 penalties as in 
 
 Usury — which is • 
 
 I — Receiving money, goods or .things in 
 action, by way of interest more than 
 law allows. 
 
 2 — With corrupt intent, 
 ^'3 — For a loan or forbearance of money. 
 
 JVoie. — Defense of Usury at inception of instrument is good' 
 defense against everyone when interposed by maker or acceptor. 
 Such defense by an indorser to action by indorsee is not good. 
 
 3 — Materi- 
 al, Altera- 
 tion, 
 (made with- 
 out consent 
 
 of 
 defendant,) 
 
 w 
 xn { 
 
 P 
 
 a 
 
 w 
 Pi 
 
 Made by a 
 
 party or 
 
 with his 
 
 knowledge 
 
 and consent 
 
 Party bringing action must prove the nega- 
 tive of this proposition if alteration is 
 shown. 
 
 " Material," 
 what is, 
 
 (A) 
 
 One which 
 
 enlarges or 
 
 diminishes the 
 
 obligation of 
 
 a party as — 
 
 'Change of date or time of 
 
 payment, ^ 
 Change of place of payment, 
 Changeofamounttobepaid, 
 Change of medium of pay- 
 ment, 
 ^ Change of rate of interest. 
 
 (B) . 
 
 One which 
 changes liabi- 
 lities or obli- 
 gation of a 
 party as — 
 
 (c) 
 One which 
 changes opera- 
 tion of instru- - 
 ment or its 
 effect in evi- 
 dence as — 
 
 Removal or addition of sig- 
 nature of a party. 
 
 I — Adding words of negoti- 
 ability or of special con- 
 sideration. 
 
 2 — Changing form of in- 
 dorsement. 
 
 3 — Changing liability from 
 joint to several or joint 
 and several. 
 
 Effect, ■ 
 
 ' Defense good as to all parties prior to altera- 
 tion, against everyone, except where one 
 executes instrument in such a negligeni 
 manner as to leave opportunity for change 
 he is liable to a bona fide holder for value 
 
a 
 w 
 a 
 & 
 a 
 o 
 
 o 
 o 
 
 en 
 to 
 
 Q 
 
 <J 
 P< 
 ft 
 
 o 
 
 P 
 M 
 
 Elements of, 
 
 Effect of, 
 
 4 — Forgery, • 
 
 ' False making or altering, 
 
 or 
 Making false signature 
 
 with 
 Intent to defraud, 
 ^Utterance or delivery of instrument. 
 
 'A good defense against all parties, even to 
 
 actions upon the consideration, 
 ' When an indorsement is forged, defense is 
 I good against all claiming through 
 
 (^ such indorsement. 
 
 How cured, < 
 
 Rights of 
 
 party who has 
 
 paid forged 
 
 instrument, 
 
 I — By ratification after notice, 
 
 2-By estoppel, | ^^ fPecific acts or words, 
 ^^ ' ( By implied warranties. 
 
 May recover on the 
 
 ground of pay- 
 ment under mis- 
 take of fact, ex- 
 cept against a 
 bona fide holder 
 for value in case 
 of 
 
 'i — Payment through 
 negligence result- 
 ing in loss, 
 — When drawee has 
 paid upon forged 
 signature of drawer, 
 on grounds of 
 estoppel. 
 
I — Good against parties to the act, and subsequent holders with notice, or 
 who did not give value, and against every one in case of instruments 
 executed by persons incapable of understanding their import, and 
 who were induced to sign by fraud; also, in some cases of execution 
 under duress. 
 
 P 
 iz; 
 
 l-t 
 
 I — Lack of 
 
 Intention 
 
 to make or 
 
 indorse by 
 
 reason of-- 
 
 Fraud 
 
 .{ 
 
 (For subdivisions of this subject see 
 synopsis of contracts). 
 
 Duress, 
 
 Undue influence. 
 
 Note. — In some instances fraud and duress are "real" 
 defenses, as in case of instruments executed by persons 
 incapable of understanding their import and who were 
 induced to sign by fraud ; also, in some cases of execation 
 under duress. 
 
 ''Rule — Consideration in Bills and Notes is presumed, 
 but presumption may be rebutted. 
 
 2 — Defect of 
 Consideration ' 
 
 Want or 
 
 Failure of 
 
 Consideration 
 
 Partial, 
 
 Is a defense pro tanto 
 against all except pur- 
 chasers for value with- 
 out notice. 
 
 3 — Illegality 
 
 OP 
 
 Consideration 
 
 to 
 
 {Complete defense against 
 all save purchasers for 
 value without notice. 
 
 Note. — Failure of consideration is a diminution in th^ 
 value of the consideration. For requisites of consideration 
 see synopsis of contracts. 
 
 I — Contrary to Statute., but not void, 
 
 2 — Contrary to Common Law as being evil or 
 
 immoral, as agreements to commit crimes 
 
 or torts. 
 
 I — Injurious to Public Service, 
 
 2 — Obstructing Public Justice, 
 
 3 — In Restraint of Trade (when 
 
 unlimited as to space). 
 
 ^ Effect — Defense good between immediate parties. 
 
 3 — Contrary to 
 Public Policy, 
 
 4 — Ultra Vires — Available only to corporation. 
 
 -Lack of 
 Mental 
 Capacity,. 
 
 ■ In cases where it would not be a " real " defense, as 
 where plaintiff had actual knowledge or cause 
 for inquiry. 
 
n 
 « 
 a 
 
 o 
 
 o 
 o 
 
 CO 
 
 til 
 
 m 
 % 
 
 ■Q 
 
 <^ 
 o 
 
 to 
 
 w 
 
 Oh 
 
 Discharge of 
 Instrument, 
 
 I — By Pay- 
 ment TO 
 Legai, 
 Holder, 
 
 At or after 
 maturity. 
 
 Before 
 
 Maturity, 
 
 ' I — By maker or acceptor 
 2 — By indorser or drawer 
 [is a discharge only as 
 to himself and subse- 
 quent parties.] 
 
 Good only against subse- 
 quent holders with 
 notice or who have not 
 given value. 
 
 Discharge of 
 
 Drawer and 
 
 Indorsers. 
 
 Note. — CWhen full amount is given in 
 above instances it is presumed to be a payment. ) 
 
 'Bankruptcy of party liable, 
 2 — By Opera- J Merger in judgment on instrument, 
 TION OP Law, | When party liable is appointed executor 
 of estate of holder (at common law.) 
 
 3 — By Agreement or act of parties, as in case of gift to 
 party liable. 
 
 f I — By act of holder which discharges maker, acceptor or 
 I prior indorsers, 
 2 — By holder releasing collateral securities against which 
 
 drawer or indorser would have had recourse, 
 3 — By holder agreeing for value, to extend time to prior 
 parties or forbear suit against them, without consent of 
 drawer or indorser and without reservation as to them. 
 
Valuable 
 Consideration 
 
 I. — Such as will support an ordinary contract, 
 2. — An antecedent debt (in most jurisdictions,) 
 ■{ 3. — Money advanced at the time, or previously, (to the extent of 
 such advance,) for which the instrument is held as col- 
 lateral security. 
 
 C I. — Knowledge, 
 Actual < 2. — Means of knowledge wilfully disregard- 
 ( ed, amounting to rnala fides. 
 
 Kinds. 
 
 Notice 
 
 (of defenses.) 
 
 Legal 
 Presumptions i 
 
 What Must be 
 
 Proved in 
 
 Actions on 
 
 Bills & Notes. 
 
 Constructive 
 
 I. — By reason of matters appearing 
 
 on face of instrument, 
 2. — By legal inference from conceded 
 facts. 
 
 Time oe, — Must exist at time paper was acquired for value. 
 
 When Not f When holder is transferee of purchaser 
 
 Available. \ for value without notice. 
 
 I. — A valid consideration. 
 
 2. — A sufficient delivery. 
 
 3. — That written statements in instruments are true. 
 
 4. — That holder is a bona fide holder for value without notice, 
 when instrument is payable to bearer, or indorsed in 
 blank, or in possession of indorsee in full ; except after 
 fraud or illegality of consideration has been shown. 
 
 5. — That instrument is unpaid. 
 
 6. — That undated instrument or transfer was before maturity. 
 
 Note. — These presumptions are not conclusive. 
 
 ' By payee against maker or acceptor,^ — signature of defendant. 
 By indorsee against acceptor, — signature of acceptor and payee. 
 Against indorser or drawer, his signature, presentation, non- 
 payment, protest and notice thereof. 
 
( By exhibition and request for acceptance or payment or having 
 How, < it for exhibition, if exhibition and request cannot be made or is 
 (. waived. 
 
 For Ace nt f '^'^°^^ payable after demand, sight or other uncertain 
 ^ < event — within a reasonable time, 
 ( All others at any time before maturity. 
 
 When t 
 
 ance. 
 
 For Pay- 
 ment. 
 
 Hours, 
 
 On day it is due. 
 
 In case of instruments payable at sight or demand — 
 within a reasonable time. 
 
 ' Personally, at any time, 
 At place of business or bank, during business hours, 
 
 or later upon a proper person. 
 At residence, between hours of rising and retiring. 
 
 C At place specified, 
 
 [r - 
 
 „, , -,.j. , - . '-J- J f At residence or place of business. 
 
 Where { If no place is specified, | ^^ ^^^ ^^^^^^^ anywhere. 
 
 r Lawful holder, or 
 By Whom, < His duly authorized agent, 
 
 t A notary public, — in case of foreign bills. 
 
 T W o / Maker, acceptor or drawee, or 
 
 ' \ Their duly authorized agents, or administrators. 
 
 Result of Failure 
 TO Present, 
 
 For Accept- ^ 
 ance. 
 
 For Pay- 
 ment, 
 
 \ 
 
 In case of bills payable at or after 
 sight — releases prior indorsers and 
 drawer. 
 
 'As to drawer and indorsers, — is a dis- 
 charge. 
 As to acceptor or maker, — he is not 
 j liable for interest or costs of suit 
 (^ until after demand. 
 
 Protest, 
 (Contents of Manifest of,) 
 
 T — A copy of the instrument, 
 
 2 — Names of parties for and against whom protest 
 
 is made, 
 3 — Date and place of protest, 
 4 — Statement of demand and its result, 
 5 — Reservation of rights agaipst parties liable, 
 ^ 6 — Subscription and seal of notary. 
 
M 
 
 Pi 
 
 o 
 
 o 
 ffl 
 
 CD 
 
 O ^ 
 
 o 
 
 O 
 
 ' By Whom — Holder, or one on whom liability is fixed. 
 
 ,„ TTT r All prior parties secondarily liable on whom it is sought to fix 
 
 To Whom, | ^Uability. 
 
 / By holder within one day after dishonor, 
 
 \ By indorser within one day after receiving notice of dishonor 
 
 I — A sufficient description of instrument, 
 
 2 — Notification of presentment, demand and failure to pay or 
 
 accept, 
 3 — Notice that party notified is looked to for payment (this no^ 
 
 absolutely necessary). 
 
 i-Personally, { Jif'Sg"' 
 
 2 — By leaving written notice at place of business or last 
 known place of residence. 
 
 Whkn, 
 
 Contents, 
 
 w 
 
 a 
 
 
 
 o 
 
 S C/2 
 
 3— By mail, 
 when — 
 
 'i — Receipt of notice is proved, 
 2 — Protest is by notary not residing at same 
 
 place as party, 
 3 — Carrier system is in use, if in time to 
 
 reach party in due time, 
 4 — There are several post-offices in the place 
 
 between which there is regular postal 
 
 communication. 
 5 — There is a clear and definite custom of a 
 
 bank to mail notices, known to the 
 
 party. 
 
 2 — When parties reside in different places — By mailing. 
 Requisites of mailings 
 To Whose Benefit it Accrdes — All parties subsequent to one notified, 
 
 I — Addressed to party at last 
 
 known residence, 
 2 — Postage paid, 
 3 — Deposited in post-office. 
 
15 
 
 O . 
 
 a 
 m 
 
 2 M 
 r*^ Iz; 
 
 !? > 
 
 wo 
 
 CO 
 W 
 o 
 
 a 
 
 ' As Against / When, through his own fault, he has no reason to ex 
 Drawer, \ acceptance or payment. 
 
 As Against ( 
 
 ALL \ Impossibility, as by 
 
 Parties,--- ( 
 
 War, 
 
 Accident, 
 
 Superior force, 
 
 Sickness, 
 
 Pestilence, 
 
 Absence, 
 
 Death, &c. 
 
 In cases of persons secured against all loss. 
 
 ess, 
 
 In case of waiver, 
 
 Characteristics, < 
 
 ( Expri 
 ( Implied. 
 
 ' A quasi bill of exchange. 
 Drawn upon a bank. 
 Drawn by a customer of the bank. 
 Payable on demand, 
 Payable out of funds of drawer. 
 
 Wherein it Dif- 
 fers FROM Bill- 
 OF Exchange, 
 
 r I. — Presentation for, and acceptance, not necessary, 
 - I 2. — Notice of dishonor not necessary to drawer, unless 
 
 prejudiced thereby, 
 3. — Not entitled to grace, 
 4. — Drawer not discharged by failure to present, save to 
 
 extent of loss sustained. 
 
 Presentation 
 FOR Payment, 
 
 ' Must be made in resonable time, or it will be treated as 
 overdue paper. 
 Delay is not a discharge, but drawer may oflFset any 
 damages sustained thereby. 
 
 'When holder and banker live in the same 
 Reasonable place — The next business day. 
 
 Time, ^ When in different places — Holder must 
 forward it the day after its receipt and 
 agent to whom forwarded must present 
 it the day after he receives it. 
 
 I — To drawer when he has sufficient funds on deposit, 
 
 2 — To bona fide holder of certified check, 
 
 3 — To bona fide holder after verbal promise to pay if 
 
 it has funds of drawer at the time, 
 4 — To legal holder, for amount paid illegal holder, 
 5 — On payment 
 
 made after ( 1 — Death of drawer, 
 
 notice of, -I 2 — Bankruptcy of drawer, 
 
 ( 3 — Orders from drawer not to pay. 
 
 Certification ifhf Discharges liability of drawer and indorsers when 
 Check, ^\ done at instance of holder. 
 
 Bank — to Whom 
 Liable, 
 
 JVoie. — Checks are subject to rules relating to bills of 
 excliange with above exceptions.