Section 1. form of negotiable instrument.

In order for the negotiable instrument to be negotiable, the following requirements must concur: a. b. c. d. e. It must be in writing and signed by the maker or drawer It must contain an unconditional promise to pay or order a sum certain money It must be payable on demand or on or at fixed determinable future time It must be payable to order or bearer Where the instrument is addressed to the drawee, it must be name therein with reasonable certainty

Section 4. a negotiable instrument is payable on determinable future time within the meaning of this act, when it is expressly made so payable a. On a fixed period after date or sight b. On or before the fixe determinable future time specified therein c. On or on a fixed period after the occurrence of a specified event which is certain to happen, though the time of the happening is uncertain An instrument payable on contingency is not negotiable and the happening of the event does not cure the defect. Section. 7. When an instrument is payable on demand. An instrument is payable on demand when a. It is expressly so payable on demand, at sight, or on presentation b. But which no time for payment is expressed Where the instrument is issued, accepted, or indorsed when overdue, as regards to the person issuing, accepting, or indorsing it payable on demand. Section 8. when an instrument is payable to order. An instrument is payable to order when it is rawn to be payable to the order of the specified person, or to him or his order. It may be drawn payable to the order of: a. b. c. d. e. f. The payee, who is not the maker, drawer, or drawee The maker or drawee The drawee Two or more payees jointly One or some of the several payees The holder of an office at the time being

Where an instrument is payable to order, the payee must be named therein or otherwise indicated therein with reasonable certainty. Section 9. when an instrument is payable to bearer. An instrument is payable to bearer a. When it is expressly so payable

b. When it is payable to a person named therein or bearer c. When it is payable to the order of the fictitious or non-existent person and such fact was known to the person making it so payable d. When the name of the payee does not purport to any name of a person e. When or if only the last indorsement is in blank Section 14. where the written instrument is wanting of any material particular, the person in possession thereof shall have the prima facie authority to fill the blanks therein. An the signature of the blank paper in order for that paper may be converted into negotiable instrument operates as prima facie authority to fill as such of any amount. In order however, that any such instrument when completed maybe enforced against any persons, whom maybe a party prior to its completion, it must be strictly filled up in accordance with the authority given and within a reasonable time. But any of such instrument, after completion is negotiated to a holder in due course, it is valid an effectual for all purposes in his hands, and he may enforced it as if it has been filled out strictly in accordance with the authority given and within a reasonable time. Section 15. an incomplete written instrument which had not been delivered, shall not, when comleted and negotiated without authority, be a valid contract in the hands of any holder as against any persons whose signature was placed before its delivery. Section 16.every negotiable instrument is incomplete an revocable until delivery of the instrument for purposes of giving effect thereto. As between immediate parties, an as regards to remote party, other than a holder in due course, the deliver in order for it to be effectual must be by or under the authority of the party making, drawing, accepting or indorsing as the case maybe. An in such a case the delivery may have been shown to be conditional or for special purpose only and not for the purpose of transferring the property to the instrument. An where the instrument is in the hands of the holder in due course, the deliver thereof by the prior parties, so as to make them liable to him is conclusively presumed. And where the instrument is no longer in the hands of the party whose signature appears thereto, a valid an intentional delivery is presumed until the contrary is proved. Seton 17. Where the language of the instrument is ambiguous or there are omissions therein, the following rules of construction apply. a. When the sum payable is expressed in words or in figures, and there is discrepancy between the two, the sum denoted in words is the sum payable. If the words are ambiguous and uncertain, reference may have been made to the figure to fix the amount. b. When the instrument provides for the payment of interest without specifying the date as to which the interest is to run, the interest runs from the date of the instrument, if the instrument is undated, from the time of its issue c. Where the instrument is not dated, it is considered dated as of the time it was issued d. Where there is conflict between the written or printed provisions the written provisions prevail e. Where the instrument is so ambiguous that there is doubt whether it is a bill or a note, the holer may treat it either at his election

f.

Where the signature is so placed in the instrument, that it is not clear as to what capacity the person making the same intended to sign, he is deemed as indorser g. Where the instrument is containing the word, I promise to pay an is signed by two or more persons, they are deemed jointly and severally liable Section 23. when the instrument is forged or made without the authority of the person whose signature it purports to be, it is wholly inoperative an no right to retain title of the instrument, or gave discharge therefor, or enforce payment thereof, as against any parties thereto, can be acquired through or under such signature, unless the party against who it is sought to enforce such right is precluded from setting up forgery or want of authority. Section 24. every negotiable instrument is deemed to be prima facie been issued for valuable consideration. Every person whose signature appear thereon to have become a party there to for value. Section 26. a value, is at anytime, been given to the instrument, a holder is deemed a holder for value with respect to all parties to have become as such prior to that time. Section 29. an accomodation party is a person who signed as maker, drawer, acceptor or indorser, without receiving any value thereof or for purposes of lending his name for the benefit of some other persons. Such a person shall be liable to a holder for value, notwithstanding that the holder at the time of the taking of the instrument, knew already that he is only an accommodation party. Section 30. negotiation. The negotiable instrument is negotiate when it is transferred form one person to another in such a manner the transferee become a holder thereof. If it is payable to bearer it is negotiated by delivery, If it is payable to order it is negotiated by the indorsement of the indorsee completed by delivery. Section 31. indorsement must be written within the instrument or upon the paper attached thereto. A signature of the indorsee without additional words is sufficient indorsement. Section 34. special indorsement specifies the person to whom or to whose order the instrument is so payable. And the indorsement of the indorsee is necessary for the further negotiation of the instrument. An indorsement in blank specifies no indorsee, and the instrument so indorsed, may be negotiated by delivery. Section 37. restrictive indorsement confers the indorsee the right a. The right to receive payment of the instrument b. To bring action thereon that indorser could bring c. Transfer his rights as such indorsee, where the forms of inorsement authorizes him to do so All subsequent indorsees acquire only the title of the first indorsee uner the restrictive indorsement

Section 40. an instrument payable to bearer, was specially indorsed, may nevertheless be negotiated by delivery, but the person who indorsed it specially is liable as indorser, to the holder as make title of his indorsements. Section 49. where the holer of an instrument payable to his order transfers it for value without indorsing, the transfer vest the transferee such that title as the transferor had therein. And the transferee in addition, has the right to have indorsement of the transferor. In order to determine whether the transferee is a holder in due course negotiation takes effect at the time indorsemnt was actually made. Section 51. a holder of negotiable instrument may sue thereon in his own name, the payment to him in due course discharged the instrument. Section 52. a holder in due course is the holder who has taken the instrument under the following conditions. a. That it is complete and regular upon its face b. That he became the holder of it before it was overdue, and he has no notice that was previously dishonored if such was the fact c. That he took it in good faith and for value d. That at the time it was negotiated to him he has no notice of any infirmity of the instrument or defect of title of the person negotiating it. Section 58. in the hands of any holder other than a holder in due course, the negotiable instrument is subject to the same defenses as if it was not negotiable. But if the holder, derives his title from a holder in due course, and he himself was not a party to any fraud or illegality affecting the instrument, he shall be entitled to the rights of the prior holder with respect to the parties prior to the latter. Section 60. the maker of the negotiable instrument by making it, engages that he will pay it according to its tenor and he admits the existence of the payee and his then capacity to indorse. Section 61. the drawer by drawing the instrument admits the existence of the payee and his then capacity to indorse. He engages that, on due presentment, the instrument will be accepted or paid or both, according to its tenor, but if it be dishonored and the necessary proceedings on dishonor was duly taken he will pay the amount thereof to the holder and to all subsequent parties who may be compelled to pay it. Provided that, the drawer may insert on the instrument an express stipulation, negativing or limiting his own liability to the holder. Section 62. the acceptor by accepting the instrument engages to pay according to the tenor of its acceptance and admits: a. The existence of the drawer, the genuiness of his signature and his capacity and authority to draw the instrument. b. The existence of the payee and its capacity to indorse.

Section 64. a person, not otherwise a party to the instrument places thereon his signature in blank before delivery, he is liable as indorser in accordance to the following rules: a. When the instrument is payable to the order of specified person, he is liable to the payee, an all the subsequent parties b. When the instrument is payable to the order of the maker or drawer, or payable to bearer, he is liable to all subsequent parties of the maker or drawer. c. If he signed the instrument as accommodation party of the payee he shall be liable to all parties subsequent to the payee. Section 65. every person negotiation the instrument by deliver or qualified indorsement warrants: a. b. c. d. That the instrument is genuine and in all respect it purports to be That he has good title to it That the prior parties had the capacity to contract That he has no knowledge of any fact that will impair the validity of the instrument or render it valueless

Where the negotiation is only by delivery, warranty extends only to favor no holder other than the immediate transferee. The provisions of subsection of this section Is not available to person negotiating a public or corporation securities other than a bill or a note. Section 66. every indorsee who indorses without qualification warrants to all holders in due course: a. All matters and things mentions in subsection, a, b, and c in the preceding section. ( such as, the instrument is genuine and in all respects it purports to be, that he has goo title to it, that the prior parties had the capacity to indorse) b. That the instrument at the time of his indorsement is valid and subsisting Section 70. presentment for payment is not necessary in order to charge the person who is primarily liable, but if the instrument, by its terms, payable to a special place, and the person is able and willing to pay it there, such ability and willingness is equivalent to tender of payment on his part. But except however herein provided otherwise presentment of payment is necessary in order to charge the drawer or the indorsers. To be continued