Who may give.-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, taking it up would have a right to reimbursement from the party to whom the notice is given.

By agent.-Notice of dishonor may be given by an agent either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not.

Subsequent holders.--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 parties to whom it is given.

Notice on behalf of entitled party.---Where notice is given by or on behalf of a party entitled to give notice, it enures for the benefit of the holders and all parties subsequent to the party to whom notice is given.

NOTE.-The holder of a bill or note may rely, if he choose, on the responsibility of his immediate indorser, and need not give notice of protest for non-acceptance or non-payment to any previous party.

In hands of an agent.--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.

Character of notice.--The notice may be in writing or merely oral and may be given in any terms which sufficiently identify the instrument, and indicate that it has been dishonored by non-acceptance or non-payment. It may in all cases be given by delivering it personally or through the mails.

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

NOTE.-BY MAIL. Is valid. But not where the indorser lives only two miles from the residence of the notary protesting it.

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

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

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

Joint parties.---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.

Bankrupt.---Where a party has been adjuged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, notice may be given either to the party himself or to his trustees or assignee.

When given.--Notice may be given as soon as the instrument is dishonored; and unless delay is excused as hereinafter provided, must be given within the times fixed by this chapter.

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

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 send by mail, it must be deposited in the post-office in time to reach him in usual course on the day following.

Where parties reside in different places.--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 post-office in time to go by mail the day following the day of dishonor, or if there be no mail at a convenient hour on that day, by the next mail thereafter.

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

By mail.--Where notice of dishonor is duly addressed and deposited in the post-office the sender is deemed to have given due notice, notwithstanding any miscarriage in the mails.

When mailed---Notice is deemed to have been deposited in the post-office when deposited in any branch post-office or in any letter box under the control of the post-office department.

Notice to antecedent parties.---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.

Where to 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 post-office nearest to his place of residence, or to the post office where he is accustomed to receive his letters; or

2. If he live in one place, and have his place of business in another, notice may be sent to either place; or

3. If he is 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 send in accordance with the requirements of this section.

ence.

NOTE.-Notice may be served either at place of business or resid

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.

Waiver in instrument.---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.

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.

Notice, when dispensed with.--Notice of dishonor is

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

NOTE. -As where the place of residence or business of the maker or indorser cannot be found after reasonable diligence. The burden of proof is upon the holder.

Delay, when 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.

Notice to drawer, when not required.-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 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.

NOTE.-Notice of non-acceptance or non-payment is not required in order to charge the drawer, if he has no funds or effects in the drawee's hands; but the burden of proving that fact is upon the holder.

Notice to indorser, when not required. —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 accommodation.

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

Omission to give notice.---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, but this shall not be construed to revive any liability discharged by such omission.

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

SECTION XI.

DISCHARGE OF NEGOTIABLE INSTRUMENTS.

When discharged.---A negotiable instrument is discharged:

1. By the 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. Where the principal debtor becomes the holder of the instrument at or after maturity in his own right.

Discharge from secondary liability.---A person secondarily liable on the instrument is discharged:

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; 4a. By giving up or applying to other purposes collateral security applicable to the debt, or, there being in the holder's hands or within his control the means of complete or partial satisfaction, the same are applied to other purposes.

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 an 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, prior or subsequent, of the party secondarily liable, unless the right of recourse against such party is expressly reserved, or unless he is fully indemnified.