8900 (106). Notice to subsequent party-Time of.

Where a party receives notice of dishonor, he has, after the receipt of such notice, the same time for giving notice to antecedent parties that the holder has after the dishonor.

8900 (107). Where notice must be sent..

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 postoffice 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.

8900 (108). Waiver of notice.

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.

8900 (109). Who affected by waiver.

Where the waiver is embodied in the instrument itself it is binding upon all parties; but where it is written above the signature of an indorser, it binds him only.

8900 (110). Waiver of protest.

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

8900 (111). When notice is dispensed with.

Notice of dishonor is dispensed with when, after the exercise of reasonable diligence, it can not be given to or does not reach the parties sought to be charged.

8900 (112). Delay in giving notice-How excused.

Delay in giving notice of dishonor is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, notice must be given with reasonable diligence.

8900 (113). When notice need not be given to drawer.

2.

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; Where the drawee is a fictitious person or a person not having capacity to contract; 3. Where the drawer is the person to whom the instrument is presented for 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;

8900 (114). When notice need not be given to indorser.

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 capacity 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 presented for payment; 3. Where the instrument was made or accepted for his accoinmodation.

8900 (115). Notice of non-payment where acceptance refused.

Where due notice of dishonor by nonacceptance has been given, notice of a subsequent dishonor by nonpayment is not necessary, unless in the meantime the instrument has been accepted.

8900 (116). Effect of omission to give notice of non-acceptance.

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.

8900 (117). When protest need not be made-When must be made.

Where any negotiable instrument has been dishonored it may be protested for nonacceptance or nonpayment as the case may be; but the protest is not required except in the case of foreign bills of exchange.

ARTICLE 8.

DISCHARGE OF NEGOTIABLE INSTRUMENTS.

8300 (118). How instrument discharged.

A negotiable instrument is discharged: 1. By payment in due course by or on behalf of the principal debtor; 2. By payment in due course by the party · accommodated, where the 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 the payment of money; 5. When the principal debtor becomes the holder of the instrument at or after maturity in his own right.

8900 (119). When person secondarily liable on, discharged.

A person secondarily liable on the instrument is discharged: 1. By any act which discharged the instrument; 2. By the intentional cancellation of s signature by the holder; 3. By the discharge of a prior party; 4. By a valid tender of payment made by a prior party; 5. By a release of the principal debtor, unless the holder's right of recourse against the party secondarily liable is expressly reserved; 6. By any agreement binding upon the holder to extend the time of payment, or to postpone the holder's right to enforce the instrument, unless made. with the assent of the person secondarily liable, or unless the right of recourse against such party is expressly reserved.

8900 (120). Right of party who discharges instrument.

Where the instrument is paid by a party secondarily liable thereon, it is not discharged; but the pary so paying it is remitted to his former rights as regards all prior parties, and he may strike out his own and all subsequent indorsements, and again negotiate the instrument except: 1. Where it is payable to the order of a third person, and has been paid by the drawer; and, 2. Where it was made or accepted for accommodation, and has been paid by the party accommodated. 8900 (121). Renunciation by holder.

The holder may expressly renounce his rights against any party to the instrument, before, at or after its maturity. An absolute and unconditional renunciation of his rights against the principal debtor made at or after the maturity of the instrument discharges the instrument. But a renunciation does not affect the rights of a holder in due course without notice. A renunciation must

be in writing, unless the instrument is delivered up to the person primarily liable thereon.

8900 (122). Cancellation-Unintentional-Burden of proof.

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

8900 (123). Alteration of instrument-Effect of.

Where a negotiable instrument is materially altered without the assent of all parties liable thereon, it is avoided, except as against a party who has himself made, authorized or assented to the alteration 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.

8900 (124). What constitutes a material alteration.

Any alteration which changes: 1. The date; 2. The sum payable, either for principal or interest; 3. The time or place of payment; 4. The number or the relations of the parties; 5. The medium or currency in which payment is to be made; or which adds a place of payment where no place of payment is specified; or any other change or addition which alters the effect of the instrument in any respect, is a material alteration.

ARTICLE 9.

BILLS OF EXCHANGE-FORM AND INTERPRETATION.

8900 (125). Bill of exchange defined.

A bill of exchange is an unconditional order in writing addressed by one. person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer.

8900 (126). Bill not an assignment of funds in hands of drawee.

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 drawee is not liable on the bill unless and until he accepts the same.

8900 (127). Bill addressed to more than one drawee.

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. 8900 (128). Inland and foreign bills of exchange.

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. 8900 (129). When bill may be treated as promissory note.

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.

8900 (130). Referee in case of need.

The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonored by nonacceptance or nonpayment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may see fit.

ARTICLE IO.

ACCEPTANCE.

8900 (131). Acceptance-How made, etc.

The acceptance of a bill is the signification by the drawee of his 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.

8900 (132). Holder entitled to acceptance on face of bill.

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

8900 (133). Acceptance by separate instrument.

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.

8900 (134). Promise to accept-When equivalent to acceptance.

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.

8900 (135). Time allowed drawee to accept.

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

8900 (136). Liability of drawee retaining or destroying bill.

Where a drawee to whom a bill is delivered for acceptance destroys the same, or refuses within twenty-four hours after such delivery, 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.

8900 (137). Acceptance of incomplete bill.

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 nonpayment. But when a bill payable after sight is dishonored by non-acceptance and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment.

8900 (138). Kinds of acceptance.

An acceptance is either general or qualified. A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

8900 (139). What constitutes a general acceptance.

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

8900 (140). Qualified acceptance.

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; 3. Local, that is to say, an acceptance to pay only at a particular place; 4. Qualified as to time; 5. The acceptance of some one or more of the drawees but not of all.

3900 (141). Rights of parties as to qualified acceptance.

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 nonacceptance. Where a qualified acceptance is taken, the drawer and indorsers are discharged from liability on the bill, unless they have expressly or impliedly authorized the holder to take a qualified 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 II.

PRESENTMENT FOR ACCEPTANCE.

8900 (142). When presentment for acceptance must be made.

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 acceptance; or, 3. Where the bill is drawn payable elsewhere than at the residence or place of business of the drawee. In no other case is presentment for acceptance necessary in order to render any party to the bill liable.

8900 (143). When failure to present releases drawer and indorser.

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

8900 (144). Presentment-How made.

Presentment for acceptance must be made by or on behalf of the holder at a reasonable hour, on a business day and before the bill is overdue, to the drawee or some person authorized to accept or refuse acceptance on his behalf; and, 1. Where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all, unless one has authority to accept or refuse acceptance for all, in which case presentment may be made to him only. 2. Where the drawee is dead, presentment may be made to his personal representative. 3. Where the drawee has been adjudged a bankrupt or an insolvent or has made an assignment for the benefit of creditors, presentment may be made to him or to his trustee or assignee.

8900 (145). On what days presentment may be made.

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