201 NEGOTIABLE INSTRUMENTS LAW | ARELLANO UNIVERSITY

SCHOOL OF LAW
3
holder
Sec.
o
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d
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rade
2
shonored
herw
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rumen
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c
67.
or
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or
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Liability
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due
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When
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o
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ded
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hough
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n
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o
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ay
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her
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ega
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ed
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ance
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sha
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to
payable
having
at
bearer.
bar,
promised
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in
As
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long
currency.
considering
to
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make
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commercial
Also,
two
things.
should
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Petitioner
conforms
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failed
with
in
later
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establishing
appellee
a
par
Where
es
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and
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where
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sum
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apresen
wr
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en
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in
of
words
ure
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o
[R]espondent
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is
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the
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e)
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brance
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o
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Read:
Great
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nvestment
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GR
105774
vs
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13
3
g
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oou
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p
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ypre
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ethat
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rt
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ce
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n
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gned
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nce
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own
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gence
ndorsers
definition
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raudu
96
for
en
s
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such
rregu
gna
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ac
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aure
discharged.
claim
execu
ar
of
of
large
no
ance
exchange,
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by
accep
appears
that
amount
ed
the
o
he
The
pr
reimbursement
ance
acceptor
-or
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that
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aperson
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P100,000
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drawn
paper
ce
mu
secondarily
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inand
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n
amade.
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aneous
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se
n
va
course
wr
used
snot
on
made
yliable
ng
have
aw
The
and
the
on
bill
or
h
years.
[instrument
G.Rtime
.PARTIES
N181
orumen
.Form
115410.
Feb
rw
ua
ra
y
27,
1988]
b)
d)
Bills
notice
o
fven
of
E
xc
infirmity
hARE
ng
e
or
defect
10.
S
om
e
N
onNe
got
ia
b
le
Iholder
nor
spresumed
this
rdependent
um
e
nt
sbe
ATTY.
V.
V
ENFORCEMENT
MARY
WHO
ANN
L.
OF
REYES
LIABLE
L
AB
L
TY
delivery.
Every
contract

Where
aahe
negotiable
person
places
instrument
indorsement
is
incomplete
on
on
Sec
mere
accep
n
heen
the
comm
134
yona
ance
instrument
ora
fulfillment
some
Accep
ss
may
de
on
and
oon
very
or
o
ance
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her
is
may
of
discharged:
wr
ground
particular
by
a10
by
raud
be
condition
en
hsepara
g
m
on
ven
any
account
shave
eby
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npar
ns
any
rumen
to
and
stated;
erms
be
un
debited
mus
Where
wh
ch
he
be
of
been
for
exchange.
consideration
issued
to
The
Ramos
or
nature
value
in
his
of
as
acceptance
private
shown
capacity
the
is
important
established
but
rather
only
in
facts
his
in
Sec.40,
see
III
(5)
page
The
act
of
assignment
could
not
operated
to
efface
Sec
161
120
When
When
b
persons
may
be
accep
secondar
ed
or
y
honor
ab
e
on
When
he
a
Read:
i.revocable
Where
the
sum
payable
ishe
expressed
BSP
CIRCULAR
NO.
537
NIL

Sundays
and
instrument
negotiable
until
delivery
by
of
the
instrument
incurs
all
the
x
x(a)
xdetermination
con
an
su
wr
accep
rary
c
en
(b)
en
on
Partial;
sy
ance
proved
one
den
with
spar
that
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y9:00AM-12:00PM
the
he
on
is
en
amount;
yns
to
on
rumen
say,
adelivery,
he
paper
or
an
drawee
and
acceptance
ored
her
nd
accep
han
ca
esfor
to
he
ha
more
pay
bin
the
capacity
of
Sec
the
80
case.
By
as
When
any
disbursing
Admittedly,
act
presen
which
of
the
officer
men
petitioner
discharges
kind
of
no
the
of
became
requ
USAFFE,
liabilities
the
instrument;
the
and
of
oholder
charge
the
that
parties
of
at
he
liens
or
restrictions
burdening
the
right
assigned,
because
an
f)
J
o
i
n
t
I
ndo
r
se
m
e
n
t
7.
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h
e
r
e
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ndo
r
se
m
e
n
t
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hou
ld
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e
P
l
aced
Exceptions:
11
Pro
b
es
Requ
Those
s
es
who
or
Su
do
c
not
ency
o
in
Paymen
their
ns rumen
are
dsee
scharged
A
person
secondar
yown
abby
e
b
o
exchange
has
been
pro
es sign
ed
or
d
shonor
Sec.
126.
Bill
of
Exchange,
defined.
A
bill
of
exchange
is
Secs.54,
55,
56,
IV
(2)
page
14
Series
of
2006
a)
D
o
c
um
e
nt
s
o
f
T
i
t
le
PC
B
vs
CA
350
446
purpose
liability
of
of
words
an
giving
indorser.
and
effect
also
thereto.
in
figures
As
between
and
immediate
there
is
(b)
A
of
the
transaction
which
involved,
time
cashier's
ndorser
d
(b)By
that
pos
Ramos
check
part
but
Presen
only
not
as
sold
ng
endorsed
men
of
in
aSCRA
apart
check
srand
no
of
amount
by
determination
the
requ
Alexander
or
check
red
for
ssu
to
which
n
Lim
ng
him,
order
who
whether
the
check
o
stole
charge
bill
the
is
n
a
has
han
se
been
By
does
the
par
difda
no
shonored
intentional
bstatement
nd
such
he
by
cancellation
accep
accep
non
ed
par
excep
sen
ance
his
signature
avor
or
ae
ed
non
owas
o
1.
1
Primary
Par
es
Pr
and
mar
Secondary
ythe
Secondar
Liability
yofnego
LanRamos
ab
assignee
cannot
acquire
a
greater
right
than
that
pertaining
23.
E
ff
ect
Vand
al
uNon-Accep
e
Pthe
ein
v
iwriting
ou
lor
yaccep
G
iof
v
9
Done
shonor
by
ance
(Sec
149
non
accep
ance
ors
pro
es
ed
ors
be
er
secur
yby
andone
s
on
he
ns
rumen
d scharged
names
or
(Sec
whose
72
signatures
N
L)
do
not
appear
in
an
unconditional
addressed
parties
and
as
regards
a
remote
party
other
than
a
an
ndorser
where
ns
rumen
was
made
or
accep
ed
drawn;
paymen
an
ob
gives
rise
when
to
the
he
o
instrument.
ender
here
But
n
were
an
no
check.
person
d
longer
eren
He
by
oo
ho
connected
the
refused
whom
may
ders
holder;
tonga
norder
with
say
abill
due
son
how
cases
the
shown
course
USAFFE
and
be
why
and
g
he
ven
itbut
who
was
s
already
by
ab
passed
on
de
eJan
on
ver
a
he
civilian
toevery
ng
him.
a
h
commercial
paper
is
ahe
of
exchange
or
not.
Papa
vs
AU
Va
enc
a
284
SCRA
643
23
Any
discrepancy
written
instrument,
between
the
such
two,
as
the
a
bill
sum
of
to
the
assignor.
At
most,
an
assignee
can
only
acquire
no
overdue
d
iv.
Fraud
any
Irregular
n
person
Fac
Indorser
um
no
(vs
be
ng
Fraud
a
par
y
n
a
ready
ab
e
a
By
any
ac
wh
ch
d
scharges
he
ns
rumen
Distinguished
Pursuant
to
Section
52
of
Republic
Act
No.
7653
and
I.hereo
INTRODUCTION
150
151
N
L)
person
Sec.
31.
to
Indorsement;
another,
signed
how
made.
by
the
-o
person
The
indorsement
giving
it,
Sec.41,
see
III
(9)
page
10
or
h
s
accommoda
on
and
he
has
no
reason
o
expec
holder
a
in
by
due
whom
course,
made
the
delivery,
in
order
to
be
instrument
itself
order
but
or
are
promise
still
liable
to
pay
out
of
a
He
had
therefore
notice
the
defect
of
his
title
over
the
no
su
(c)
By
c
Local;
the
en
discharge
o
that
cover
is
to
of
he
say,
a
prior
amoun
an
acceptance
party;
he
check
to
pay
only
The
persona
such
(c)
par
y
as
or
rece
hrough
were
ves
a
he
separa
ma
he
s
e
b
b
or
va
ue
who
needed
the
money
only
for
himself
and
his
family.
e)
good
faith
rights
duplicating
those
his862
assignor
is
by
law
hereon
may
wo
hen
he
consen
oisreceipt,
he
ho
der
ngna
ervene
1998
denoted
by
the
words
the
sum
lading,
atender
warehouse
an
order
bbe
By
he
n
en
ona
cance
adated
on
o
hor
spresen
s2006,
ure
Monetary
Board
Resolution
No.
6is
July
the
Sec.
26.
constitutes
holder
value.
-entitled
Where
value
requiring
the
person
towhich
whom
it
addressed
to
pay
on
nducemen
must
written
on
the
itself
or
upon
paper
how
pr
mary
ab
ythe
ha
he
rumen
w
be
pa
d
ed
effectual,
must
be
made
either
byfor
or
under
authority
particular
fund
is
unconditional.
check
from
start.
The
holder
of
anot
cashier's
check
who
is
a
ure
o What
he
drawer
oorce
he
check
o
depos
he
amoun
at
ans
particular
place;
Sec
(d)
72
By
Wha
athe
valid
cons
u)instrument
es
or
a
payment
su
c
en
made
presen
by
aa
men
to
exercise.
In
the
case
at
bar,
the
Casabuenas
merely
and
accep
he
bof
supra
pro
es
or
he
honor
oprior
any
by
ho
der
3.
maximum
Re
qu
amount
isi
t
es
of
o
f
coins
Ne
got
to
be
ia
b
considered
ili
t
y
as
legal
tender
has
at
any
time
been
given
for
the
instrument,
the
holder
demand
or
the
fixed
or
determinable
future
time
a
sum
payable;
but
if
the
words
are
ambiguous
for
the
delivery
of
goods,
that
in
the
Sec.
64.
Liability
irregular
indorser.
Where
a
person,
attached
thereto.
The
signature
of
the
indorser,
without
60.
Liability
of
maker.
The
maker
of
a
negotiable
of
the
party
making,
drawing,
accepting,
or
indorsing,
as
not
a
holder
in
due
course
cannot
enforce
such
check
(d)
Qualified
as
to
time;
necessary
o
cover
h
s
check
w
h
n
hree
3
days
rom
Sec
182
party;
Paymen
by
accep
or
o
b
s
drawn
n
se
s
Presen
149
135
men
When
Prom
or
d
se
shonored
paymen
o
accep
by
o
nonaccep
be
when
su
c
ance
equ
en
va
mus
A
en
b
be
o
s
g)
I
rr
e
gu
l
ar
I
nd
o
r
se
m
e
n
t
Sec
154
Pro
es
by
whom
made
Pro
es
may
be
stepped
into
Benin's
shoes,
who
not
an
1.
His
to
y
,be;
Go
vassumed
eor
iit,
na
golian
L
aname
w
swas
A
ct
20
3parties
1,much
C
od
ebe
par
yotherwise
ab
ewords,
hereon
or
he
honor
oto
heso
person
or
(1)
trade
By
o
whom
he
or
d
scharge
no
g
aven
pr
or
(Sec
par
ydelivery
97-101
Nthe
L)
cca
is
adjusted
as
follows:
is
deemed
airega
holder
for
value
in
respect
all
who
certain
in
money
to
order
or
to
bearer.
A
n
gcase
kthe
L
aissuing
n
v
..course
C
ou
rt
o
fance
A
ppeal
s(one
additional
not
anon
party
is
to
an
instrument,
indorsement.
places
thereon
instrument,
by
engages
that
he
will
pay
it
De
O
mp
o
v
G
a
trasufficient
cnin
hce
the
may
and,
such
case,
may
against
bank
which
dishonors
the
same.
If
a
Sec
81
When
de
ay
n
mak
presen
men
s
hpTe
yhe
When
he
or
accep
uncertain,
or
o
b
reference
drawn
nng
athe
may
se
pays
be
had
w
hou
to
accep
rece
ance
oL
usual
no
An
ce
uncond
rom
he
of
ona
business
bank
prom
and
or
se
or
financing
he
n
wr
payee
ng
or
is
o
(e)
By
The
aab
release
acceptance
of
the
of
principal
some,
debtor
or
unless
of
the
made
d
shonored
(e)
by
accep
60
ymaking
o
maker
The
maker
o
amore
nego
ab
e
Read:
Sec.
39.
Conditional
indorsement.

Where
an
made
by
owner
as
a
mere
assignee
of
the
rights
of
her
debtors.
Not
whose
accoun
b
s
drawn
The
accep
ance
or
By
a
va
d
ender
or
paymen
made
by
a
pr
or
d
o
f
C
omm
e
r
c
e,
New
Ci
v
il
C
od
e)
become
prior
time.
1.
Form
of
negotiable
instruments.
-and
An
[ns
G.R
.Section
Nof
oa
.such
L
-to
2516.
S
ep
tthat
enot
m
ber
25,
1950]
his
signature
in
blank
before
delivery,
he
is
liable
as
according
its
tenor,
and
admits
the
existence
of
the
shown
to
have
been
conditional,
or
for
a
special
payee
aBy
cashier's
check
itsperson
from
the
issuing
bank
excused
De
ay
nbut
mak
ng
presen
men
or
paymen
requ
ra
ng
he
par
bear
ng
h
s
accep
ance
o
be
de
vered
accep
b
be
ore
sobtained
drawn
deemed
an
ac
ua
ho
der
holder's
ha
drawees
sa
dor
right
check
of
has
recourse
of
been
all.
dsum
shonored
against
the
or
party
ack
oos
When
he
ho
sto
der
du
or
y
presen
by
some
ed
or
accep
au
hor
ance
zed
rumen
by
mak
ng
engages
ha
he
w
pay
[G
.R.
N
o
.
L15
1
26.
N
o
v
e
mb
er
3
0,
1
961]
figures
to
fix
the
amount;
considered
sufficient
proof
that
the
indorsement
a
A
no
is
ary
conditional,
pub
c
or
the
party
required
to
pay
the
having
acquired
any
right
over
the
land
in
question,
it
follows
honor
may
be
par
on
y
o
he
or
wh
ch
he
b
Sa
as
vs
CA
GR
76788
January
22
1990
par
ythere
Sec.
64.
Liability
of
irregular
indorser.
-of
Where
atrade
person,
1.
One
thousand
pesos
(P1,000.00)
instrument
to
be
negotiable
must
conform
to
Where
ang
check
made
payable
of
"cash",
indorser,
Sec.
Sec
185.
97
18.
To
in
Check,
Liability
accordance
whom
defined.
no
of
with
ce
person
A
may
check
the
following
be
signing
gorder
aby
ven
bill
rules:
in
of
No
exchange
ce
o
or
payee
and
his
then
capacity
to
indorse.
purpose
only,
and
not
for
the
purpose
transferring
the
by
fraud,
or
is
some
other
reason
why
the
payee
is
excused
when
he
de
ay
caused
cwith
rcums
ances
up
oBenin
hc
m
and
he
par
a
ma
ur
y
she
ou
s
ng
n athe
he
accep
ance
n
avor
o
every
person
who
upon
he
h
secondarily
liable
is
expressly
reserved;
nsu
ency
such
ove
an
unds
accep
sha
ance
be
as
pr
ma
sis
prescr
ac
esand
bed
ev
dence
by
hfor
oto
s
rece
paymen
on
h
sto
beha
accord
oif
sis
enor
and
adm
sthe
ex
ence
o
In
the
at
bar
as
the
payee
acquired
the
check
under
Allonge

separate
paper
for
indorsement.
instrument
b
By
may
any
respec
disregard
ab
es
res
the
condition
o
he
p
and
ace
where
make
that
conveyed
nothing
to
defendants
respect
s shonor
drawn
and
here
has
been
an
accep
ance
or
3
ii.
Persona
De
enses
Where
By
a
re
ease
the
o
instrument
he
pr
nc
pa
provides
or
un
for
ess
the
he
person
who
possesses
itdeb
is
entitled
to
not
otherwise
ecase
awhere
party
to
an
instrument,
places
thereon
1den
denominations
1-Piso,
5-Piso
10-Piso
following
requirements:
Prudenc
o
vs
CA
143
SCRA
7
Ju
y
14
1986
word
assumed
cash
"does
not
purport
to
be
the
name
of
any
person",
drawn
d
(a)
on
If
may
a
the
bank
be
instrument
g
payable
ven
eof
on
her
is
demand.
payable
o
he
par
to
Except
ythe
the
hand
mse
order
as
herein
or
of
oo
a
property
in
the
instrument.
But
where
the
instrument
is
not
entitled
to
collect
the
check,
the
respondent
bank
would,
beyond
he
con
ro
o
he
ho
der
and
no
mpu
ab
e
hands
o
ho
der
n
due
course
he
s
ab
e
o
he
hereo
rece
ves
he
b
or
va
ue
Ac
s
re
used
or
can
no
be
ob
a
ned
or
dece
cons
A
a
u
reasonab
ng
a
se
e
pre
hour
ense
on
a
or
bus
raudu
ness
en
day
ac
As
(f)
By
any
agreement
binding
upon
holder
to
b
payee
and
h
s
hen
capac
y
o
ndorse
24.
H
o
l
d
er
fo
r
Val
u
e
circumstances
which
should
have
put
it
to
inquiry,
why
the
History
of
Law
Merchant
he
b in
sblank
dgh
shonored
n
he
presence
o
wo
or
payment
Sec.
143.
to
When
the
indorsee
presentment
or
his
for
transferee
acceptance
whether
must
the
be
the
property.
honor
or
one
par
y
here
may
be
a
ur
her
accep
ance
his
signature
ho
der
s
r
before
o
recourse
delivery,
aga
he
ns
is
he
liable
par
as
y
coins;
and
payment
of
interest,
without
specifying
and
name.
hence
-hands
No
the
person
instrument
is
liable
is
payable
on
the
to
bearer.
instrument
The
drawee
whose
receive,
hold,
and
dispose
of
the
otherwise
h
s
third
provided,
agen
person,
the
he
provisions
is
n
liable
to
of
the
ha
this
payee
Act
applicable
and
beha
to
all
in
the
of
a
holder
in
due
course,
a
valid
delivery
de
au
m
sconduc
or
neg
gence
When
he
cause
ho
der
hereon
b
When
presen
men
or
accep
ance
s
excused
amended
A
by
a
R
proper
A
4885
p
ace
approved
as
here
June
n
de
17
ned
1967
c
extend
the
time
of
payment
or
to
postpone
the
of
course,
have
the
right
to
refuse
payment
of
the
check
Sec.
66.
Liability
of
general
indorser.
Every
indorser
holder
the
check
and
ithonor
pay
his
own
personal
more
cred
eab
w
nesses
condition
made.
has
been
fulfilled
for
acceptance
or
not.
must
But
any
be
made:
person
Medieval
period
the
merchants
adopted
the
by
aW
d-had
eren
person
or
he
o
ano
her
par
yto
indorser,
secondar
in
accordance
yb
ee
s
express
following
yrthe
reserved
rules:
One
hundred
pesos
(P100.00)
for
denominations
(a)
It
must
be
in
writing
and
signed
by
the
8.
hPresentment
en
P
e
rby
s
odevolved
n
D
ewith
eused
m
ed
Iton
do
ser
bank
signature
need
not
does
obtain
not
any
appear
indorsement
thereon,
of
except
check,
as
but
herein
may
to
a 2.
bill
subsequent
of
exchange
parties.
payable
on
demand
apply
to
a
thereof
by
all
parties
prior
to
him
so
as
to
make
them
o
de
ay
ceases
omen
opera
presen
men
mus
be
made
when
presented
the
payee,
since
respondent
bank
was
the
date
from
which
interest
to
run,
and
he
b
s
no
accep
ed
a
An
e-da
ng
or
pos
ng
(Sec
12
N
L)
instrument
To
he
person
and
the
pr
goods
mar
y
that
ab
e
itis
covers.
on
he
Sec
145
Presen
how
made
Presen
men
or
d
right
to
enforce
instrument
unless
who
indorses
without
qualification,
warrants
to
all
account,
the
duty
upon
it,
plaintiff-appellee,
to
e
Forgery
and
Wan
o-da
Au
hor
y any
Cu
-o
whom
anWhen
instrument
so
indorsed
is
negotiated
will
hold
(a)
Where
the
is
payable
after
sight,
or
in
any
While
itholder's
is
true
the
duplex
isthe
owned
by
Benin,
the
Sec
62
L
ab
ythat
obill
accep
or
The
accep
or
by
Sec.
27.
plan
lien
of
transferring
on
instrument
credit
constitutes
through
holder
paper
for
(a
If
the
instrument
is
payable
to
the
order
of
of
1-sentimo,
5-sentimo,
10-sentimo,
and
25maker
or
drawer;
Sec
98
No
ce
where
par
y
s
dead
When
par
y
s.a
pay
otherwise
it
to
the
expressly
person
presenting
provided.
it
without
But
one
any
who
indorsement.
signs
in
.ein
a
check.
If
the
instrument
is
payable
to
the
order
of
the
(b)
liable
to
him
is
conclusively
presumed.
And
where
w
h
reasonab
e
d
gence
183
E
ec
o
d
scharg
ng
one
o
a
se
Excep
as
ns
rumen
or
he
s
absen
or
naccess
b
accep
ance
mus
be
made
by
or
on
beha
o
he
ho
der
made
with
the
assent
of
the
party
secondarily
aware
of
the
facts
surrounding
the
loss
of
the
check
subsequent
holders
in
due
course:
the
interest
runs
from
the
date
of
the
prove
that
it
actually
acquired
said
check
in
good
faith.
The
the
same,
or
the
proceeds
thereof,
subject
to
the
rights
other
case,
where
presentment
for
acceptance
Casabuenas
Sec
162
Accep
mistakenly
ance
believed
or
honor
that
how
the
deed
made
included
An
accep
ng
he
ns
rumen
engages
ha
he
w
pay
value.

Where
the
holder
has
apayable
lien
on
the
instrument
BP
22
Ru
e
)b
third
person,
he
is
liable
to
the
payee
and
to
all
rather
than
physical
transfer
sentimo
coins.
Must
contain
an
unconditional
promise
or
(b)
trade
or
assumed
name
will
be
liable
to
the
same
extent
b
when
requ
red
maker
or
drawer,
or
is
to
bearer,
he
is
instrument
is
no
longer
in
the
possession
of
a
party
dead
and
h
s
dea
h
s
known
o
he
par
y
g
v
ng
no
ce
question.
Moreover,
there
is
no
similarity
in
the
cases
cited
here
n
o
herw
se
prov
ded
where
any
one
par
o
a
b
4
D
scharge
o
Pr
or
Par
y
o
any
person
ound
a
he
p
ace
where
he
Sec.
a
Sec
a
reasonab
150
63.
When
Du
y
e
o
a
hour
ho
person
der
on
where
a
deemed
bus
b
ness
no
indorser.
day
accep
and
ed
be
A
person
ore
Where
he
liable
or
unless
the
right
of
recourse
against
(a)
The
matters
and
things
mentioned
in
stipulation
ofe
facts
contains
no
statement
of
such
good
faith,
of theb)
person
indorsing
Sec
12
An
ett
da
ed
and
da
The
ns
rumen
s
is
in
order
toed
fix
the
maturity
the
cession
accep
ance
of
rights
or
honor
of
ownership
supra
pro
over
es
the
mus
land
be
as
n
well.
wr
The
ng
accord
ng
onecessary
he
enor
o
hown
accep
and
adm
sof
instrument;
arising
either
from
contract
or
by
implication
of
he
L
e
rpresen
smen
oin
frespondent
C
rconditionally.
epos
d
itasum
subsequent
parties.
The
order
to
pay
merchant
certain
ance
originated
in
money;
from
as
he
had
signed
his
name.
whose
hebifpetitioner
no
ce
signature
be
g
appears
ven
oasan
persona
represen
anot
alaw,
ve
and
liable
to
parties
subsequent
to
the
maker
or
Sec
82
When
or
paymen
sand
excused
by
since
bank
did
issue
the
drawn
n
aare
se
s
dhe
by
or
o
herw
se
presen
stmen
b
sKi
overdue
o
drawee
or
some
person
au
hor
zed
placing
such
signature
party
is
expressly
upon
instrument
reserved.
otherwise
than
a
shis
du
y
presen
ed
or
accep
ance
sed
no
10.
nd
subdivisions
smus
oof
fforced
ndo
ror
s
e
(a),
m
econclusion
(b),
npayable
tythereon,
and
(c)
of
the
next
hence
we
to
the
that
plaintiff
payee
i.
p
aILaw
rtake
tall
ies
oomade
aismay
b
ill
o
fdemand,
e
xc
h
aan
n
gvalid
e
no
nva
instrument;
d
or
he
reason
on
ha
sthe
e
da
or
encumbrance
and
nd
ca
ha
the
property
sscharged
an
accep
ance
be
deemed
or
honor
as
an
and
exercise
mus
abe
The
ex
s
ence
he
drawer
he
genu
neness
is
deemed
aethe
holder
for
value
to
the
extent
of
his
lien.
If
instrument
to
order
of
the
(b
Where
the
instrument
is
not
dated
it
will
This
Circular
shall
effect
after
fifteen
(15)
days
following
Must
be
payable
on
or
at
a
fixed
(c)
intentional
delivery
by
him
is
presumed
until
the
iii.
A
drawer.
written
instrument
from
a
bank
or
Sec
AN
ACT
23
Forged
PENAL
s
Z
gna
NG
ure
THE
e
MAK
ec
NG
o
OR
When
DRAW
a
s
NG
gna
ure
here
one
and
w
h
reasonab
e
d
gence
he
can
be
Presen
men
unwritten
or
paymen
customs
s
excused
of
merchants;
based
on
cashier's
check
in
payment
of
its
obligation.
Jose
Go
bought
he
who
eWhere
b
suse
dthe
scharged
o their
accep
or
re
accep
h
s beha
and
accep
Sec
152
ed
nwof
wha
hownership
cases
he
prescr
pro
es
bed
necessary
me
he
Where
person
ay
as
maker,
drawer,
or
acceptor,
is
deemed
to
be
indorser
preceding
and
has
not
proved
that
itsection;
acquired
the
check
in
good
faith
and
(2)
agent/authorized
representative
(b)
bill
expressly
stipulates
that
ithor
shall
pos
da
ed
prov
ded
hor
scance
srGazette
no
done
or
an
ega
or
of
be
s
gned
right
by
he
accep
over
or
the
honor
property
considering
that,
o
hhe
s4.
snsigns
gna
ure
and
hon
spayable
capac
yve
and
au
5
o
Paymen
maker
or
drawer,
or
is
to
bearer,
is
)Tender
its
publication
the
Official
or
newspaper
of
or
determinable
future
time;
contrary
is
proved.
u
m
e
tpurposes
ain
in
mon
y
AND
ound
here
be
no
persona
represen
ayas
no
ce
may
If
for
the
accommodation
ofhe
the
s
orged
(c)
or
made
w
hou
he
au
hor
oe
he
person
it
from
bank
for
of
transferring
his
be
considered
to
be
dated
ofreasonab
the
time
usages
of
trade
presen
ng
merchant
mus
in
rea
one
location
band
asin
that
daproperties
shonored
requests
by
Where
arespondent
b
sin
addressed
ohe
wo
or
more
drawees
who
unless
ore
gn
a the
he
b
Where
clearly
appear
asaindicates
er
ng
on
he
by
exerc
s
appropriate
ace
se
o
o
be
words
such
his
es
(b)
That
the
instrument
is,
at
the
time
of
his
may
not
be
deemed
holder
in
due
course
thereof.
be
presented
for
acceptance;
or
raudu
en
purpose
The
person
o
whom
an
ns
rumen
o
draw
he
ns
rumen
under
law,
only
owners
of
certain
may
Sec.
33.
Kinds
of
indorsement.
An
indorsement
may
be
c
Da
e
o
Presen
men
(Sec
71
N
L)
liable
to
all
parties
subsequent
to
the
maker
or
M
e
tr
opo
l
i
t
a
n
B
a
n
k
a
n
d
T
r
us
t
C
o
.
v
.
C
.
A
.
general
circulation.
be
payable
to
order
or
to
bearer;
and
(d)
payee,
he
is
liable
to
all
parties
subsequent
SSUANCE
OF
A
CHECK
W
THOUT
SUFF
Cholder
ENT
FUNDS
whose
be
sen
sod
gna
he
ure
as
res
dence
purpor
orto
s
as
o
p
ace
o
bus
ness
who
(c)
Drawer
ence
the
party
who
orders
another
funds
from
respondent
bank
another
bank
near
his
25.
E
ff
ect
oMust
fsame.
W
a
n
tblank;
o
fmortgaging
C
on
si
d
e
roaebe
tbe
oAance
n
nonaccep
ance
or
he
oses
he
rcourse.
gh
recourse
aga
d
shonored
by
nonaccep
ance
mus
du
yothosbe
pro
es
ed
Sec.
are
no
57.
par
Rights
ners
of
presen
holder
in
men
due
mus
be
made
-ihere
hem
in
due
aoto
intention
to
be
gence
bound
presen
in
some
men
other
as
capacity.
requ
red
by
hns
sy
Merchant
courts
began
in
the
century
it
indorsement,
was
issued;
valid
and
subsisting;
that
anyone
or
a
specifically
named
so
da
ed
Where
s
de
vered
the
bill
acqu
is
drawn
res
he
payable
elsewhere
as
o
than
he
Sec
163
When
deemed
be
an
accep
or
honor
mortgage
the
By
a
piece
of
property,
b
The
ex
s
o
he
payee
and
h
s
hen
either
special
or
in
and
it
may
also
either
13
drawer.
Sec.
19.
byrrua
agent;
authority;
how
shown.
-or
The
[6nopera
G
.RCRED
.Re
No
.Signature
88866.
Feb
rypa
18,
1991]
V
D
SCHARGE
OF
NSTRUMENTS
Where
the
instrument
addressed
to
a
(e)
the
payee.
he
deceased
OR
Tand
AND
FOR
OTHER
PURPOSES
ve
and
no
gh
ocarrying
re
an
heis
ns
rumen
o
establishment
realizing
that
money
this
form
is
he
drawer
ndorsers
or
nonaccep
ease
ance
o
Pr
nc
by
nonaccep
Deb
or
ance
sin
d
shonored
Ac
canno
be
Sec.
course
un
ess
one
What
holds
has
constitutes
the
au
instrument
hor
ymade
certainty
o
accep
free
from
as
or
to
re
any
sum.
use
defect
accep
-on
The
of
ance
sum
title
to
pay
the
third
party
And,
indrawer
addition,
he
engages
that,
on
due
presentment,
which
jurisdiction
over
maritime
and
da
ehe
o2.
de
at
very
the
residence
or
place
of
business
of
the
o
Where
an
accep
ance
or
honor
does
no
a
debtor
merely
subjects
itconditional.
to
lien
but
ownership
thereof
capac
yhad
o
ndorse
Where
there
is
aaons
conflict
between
the
restrictive
or
qualified
or
party
advance
money
or
items
credit
iv.
If
he
signs
for
the
accommodation
the
signature
of
any
party
may
becheck
made
by
ayof
duly
(c)
Metrobank
cannot
contend
that
by
indorsing
warrants
in
drawee,
he
must
be
named
or
otherwise
Sec
71
Presen
men
where
rumen
sthe
no
payab
e
g
ve
ab
dv
scharge
here
or
or
en
orce
paymen
hereo
safer
than
if
it
were
in
cash.
The
was
Jose
Go's
and
where
such
a
b
wh
ch
has
no
prev
ous
been
Y
a
n
g
.
C
ou
r
t
o
f
A
pp
e
a
ls
or
a
n
Where
wh
ch
case
he
drawee
presen
s
men
a
c
may
ous
be
person
made
o
h
m
payable
of
prior
parties,
is
a
sum
and
certain
free
from
within
defenses
the
meaning
available
of
this
to
prior
Act,
it
shall
be
accepted
or
paid,
or
both,
as
the
case
may
be,
Sec.
28.
Effect
of
want
of
consideration.
Absence
or
Read:
Domagsang
vs
CA
347
SCRA
75
drawee.
express
yNo
commercial
s agent.
aR
e
or
whose
cases
honor
sor
made
ses
deemed
is
notOth
parted
As
ato
result,
notwithstanding
99 when
Drawee

party
who
is
ordered
to
9.
er
uswas
les
oho
n
Iassumed
ndo
reor
sWhere
e
m
ebwith
n
the
payee,
he
is
liable
all
parties
subsequent
to
authorized
No
particular
form
of
appointment
is
general,
Golden
Savings
that
they
were
"genuine
to
the
party
holding
named
ines
the
therein
Sec
ce
owith.
par
ners
par
opay
be
written
and
printed
provisions
of
the
aga
on
ns
any
and
par
where
ytenor,
here
payab
o
can
on
be
demand
red
Where
hrough
he
or
property
itindicated
misplaced
stolen,
hence
he
stopped
d
by
nonpaymen
mus
be
du
yreasonable
ed
Sec
Raccep
gh
o
der
where
no
accep
on
ydemand
although
parties
c151
among
it
is
wa
to
themselves,
ver
be
paid:
o
presen
and
men
may
express
enforce
or
payment
mp
ed
of
according
its
and
that
if lot
it
be
dishonored
and
failure
of
consideration
is
aAccommodation
matter
of
defense
as
against
[G
.R.
N
oBy
3
80
7ance
4.
A
ugu
st
15,
2acqu
003]
v.
Liability
of
Party
In
no
other
case
is
presentment
for
acceptance
oishonored
be
an
or
he
honor
o
he
drawer
1
the
encumbrance
Concep
othis
D
of
scharge
Bulacan
through
apro
deed
of
Uniformity
of
Negotiable
Instruments
Law
the
7
(2000)
Ex
ens
on
o
Term
T
ba
jied
asuch
Jare
rinstrument,
..bto
v1
.payee.
C
ou
rt
othe
fS
A
ppea
l
s
necessary
for
purpose;
and
the
authority
of
the
and
in
all
respects
what
they
purport
to
be,"
in
accordance
the
third
party
certainty.
b
nser
on
o
Wrong
Da
e
(Sec
13
N
L)
under
no
ns
rumen
s
par
s
no
gna
ners
payab
ure
no
un
e
ce
on
ess
o
demand
any
he
par
one
y
presen
par
aga
ner
ns
men
whom
no
mus
ce
2
Genera
S
eps
n
En
orc
ng
Secondary
a)
Bla
n
k
a
n
d
p
e
cial
I
ndo
r
s
e
m
e
nt
s
document.
or
nonpaymen
s
no
so
pro
es
ed
he
drawer
and
When
a
s
d
shonored
by
nonaccep
ance
an
the
written
provisions
Where
he drawee
dead
presen
men
may
be
made
o
(a)
with
interest;
or
instrument
for
the
full
amount
thereof
against
all
its
payment.
At
the
outset,
respondent
bank
knew
ittaken,
was
the
necessary
proceedings
on
dishonor
beof
duly
any
person
not
as
holder
in
due
course;
and
partial
necessary
in
order
to
render
any
party
to
the
bill
The
Negotiable
Instruments
Law
is
silent
with
respect
to
assignment
in
favor
of
Benin,
the
spouses
Urdaneta
remain
[s
G
.
R
.
N
o
.
100290.
June
4,
1993]
agent
may
be
established
as
in
other
cases
agency.
was
adopted
by
every
state
(U.S.
and
with
Section
66
of
the
Negotiable
Instruments
Law.
The
o
he
rm
even
hough
here
has
been
a
d
sso
u
on
Sec.
32.
Indorsement
must
be
of
entire
instrument.
The
be
sough
made
on
o
en
he
orce
day
such
a
r
s
gh
due
s
Where
prec
uded
s
rom
payab
se
e
on
ng
Jose
Go's
check
and
no
one
else
since
Go
had
not
paid
or
ndorsers
are
d amount
scharged
Where
b
does
noor
appear
mmed
a
eprevail;
gh
recourse
ns
he
drawer
and
D164
Payee
third
party
who
will
receive
h
s(b)
persona
represen
a is
ve
by
stated
installments;
oraga
parties
liable
thereon.
L
ab
yab
he
will
pay
thereof
toa or
the
holder,
to
any
failure
of
consideration
apetitioner.
defense
tanto,
whether
liable.
crossed
checks,
although
the
Code
oforpro
Commerce
makes
Sec
Lrthe
yaoNon-Paymen
oof
he
accep
or
honor
The
its
owners,
to
the
exclusion
of
5
shonor
by
Sec.
29.
Liability
accommodation
party.
An
A
check,
whether
manager's
check
ordinary
check,
is
simple
reason
is
that
this
law
is
not
applicable
to
the
nonEngland)
indorsement
up
demand
orgery
presen
must
or
men
be
mus
ow
an
au
be
hor
indorsement
made
yes
w
hy
nof
a119
reasonab
the
entire
e
2
How
ns
rumen
D
(Sec
120
on
sa)
ace
oindorser
be
awan
ore
gn
pro
es
hereo
n
case
o
ndorsers
accrues
o
he
ho
der
and
no
presen
men
or
11.
8
W
cPaymen
h
en
Check
Irndo
K
rthe
se
Honor
m
e
Ar
n
(Sec
N
315
ec
171-177
(1b)
sa
RPC)
N
L)
Where
he
drawee
has
been
ad
udged
bankrup
or
an
Sec
(c)he
13
by
When
stated
da
installments,
eng
may
be
with
nser
a
ed
provision
Where
an
that,
indorsed
itmu
to
anyone.
The
bank
was
therefore
liable
to
subsequent
who
be
compelled
to
pay
it.
Sec.
35.
Blank
how
changed
to
st
bor
e
in
ischarged
tbtS
iThe
n
g
a
n
d
s
iarhas
gn
ed
bCourt
ymade
th
ethe
the
failure
payment
is
an
ascertained
and
liquidated
amount
or
reference
to
such
this
accep
or
or
honor
e
o
he
ho
der
and
o
a
c)
Ce
tce
issue
fand
ica
tindorsement;
es
oisrab
fmay
to
cindorsement
kGo.
v.
Where
instrument
is
so
ambiguous
accommodation
party
one
who
signed
not
legal
tender,
an
of
aNonetheless,
check
inThe
payment
debt
negotiable
warrants.
was
by
Sec
100
No
oinstruments.
persons
oha
ngnmen
y
ab
ce
o
ohas
n
instrument.
me
a upon
er
s
An
indorsement
excep
which
n any
purports
he
case
oto
aof
transfer
baor
o
Law
soffer
the
custom
of
nobody
on
the
check
but
Jose
bank
had
no
d
shonor
streasury
unnecessary
paymen
smerchant
necessary
(3)
incapacitated
persons
signing
through
nso
ven
or
has
made
an
ass
or
he
bene
o
ns
rumen
expressed
default
in
payment
oof
be
payab
of
e merchants
aeinstallment
aNo
xed
per
od
of
N
L)
special
otherwise.
Sec.
165.
Agreement
of
acceptor
for
honor.
The
taken
judicial
cognizance
the
practice
that
a
check
with
par
es
o
he
b
subsequen
o
he
par
y
or
whose
m
ak
e
r
o
r
d
r
a
w
er
When
Subject
to
Original
Defense
instrument
maker,
drawer,
or
indorser,
is
not
ao
valid
tender
of
payment
and
may
be
receipt
a
Prom
ssory
No
es
Gloria
Castillo
not
for
the
purpose
of
guaranteeing
the
persons
who
par
ners
mus
be
g
ven
oa
o
A
printed
document
which
states
the
that
there
is
doubt
ithrefused
is
or
Sec
83
ns
rumen
dle
shonored
by
non
paymen
to
the
indorsee
aitno
part
only
of
the
amount
payable,
or
exchange
presen
men
or
paymen
w
be
cbill
en
4.
H
w
a
ras
e
Ne
got
ia
b
Ibe
n
sowhether
tacceptor,
rcon
um
nt
sengages
asu
n
deach
cred
ors
presen
men
may
made
o
m
o
h
interest,
the
whole
shall
become
due;
or
a
er
da
eWhen
s
ssued
unda
ed
or
where
he
accep
ance
o
intention
to
to
petitioner
but
to
buyer
Go.
indorsement.
-are
The
holder
may
convert
aJose
3or
(1)
Forgery
o
Maker
sonly
S
gna
ure
legal
guardians
1W
hobligee
un
aissue
h
u
ness
or
abuse
dence
name
y
acceptor
for
honor,
by
such
acceptance,
that
Sec.
two
parallel
30.
What
lines
constitutes
in
the
upper
negotiation.
left
hand
corner
-e
An
instrument
means
that
iss
it
honor
he
has
accep
ed
192.
Persons
primarily
liable
on
-blank
The
without
receiving
value
therefor,
and
for
the
purpose
of
by
the
or
creditor.
genuineness
of
the
warrants
but
merely
to
deposit
them
with
hem
un
ess
one
hem
has
au
hor
yinstrument.
o
rece
ve
such
made
w
hnote,
nexchange,
ainto
reasonab
e
me
aat
er
he
as
nego
a
on
The
ns
rumen
ii.
ki
nd
so
d
s
shonored
o
f
b
ills
by
o
f
non
exc
paymen
h
a
ng
e
when
which
purports
to
transfer
the
instrument
to
two
or
more
When
payment
on
it
was
therefore
stopped,
respondent
the
holder
may
treat
it
as
either
at
rus
ee
or
ass
gnee
name,
incorporation
state,
and
date
of
Sec
161
with
When
b
may
whether
be
accep
ed
a
fixed
or
honor
rate
or
When
at
the
a
an
(d)
ns
rumen
payab
e
a
a
xed
per
od
er
s
gh
s
indorsement
a
special
indorsement
by
writing
over
N
onNe
got
ia
b
le
I
n
s
t
r
um
e
nt
s
T
r
a
n
s
f
e
rr
ed
2.
A
p
p
l
i
ca
b
ili
t
y
o
f
th
e
Ne
go
t
ia
b
le
he
X
x
will,
x
on
due
presentment,
pay
the
bill
according
to
could
only
be
deposited
and
not
converted
into
cash.
The
negotiated
when
it
is
transferred
from
one
person
Sec
119
ns
rumen
how
d
scharged
A
nego
ab
e
person
"primarily"liable
on
an
instrument
is
the
person
10
No
ce
o
D
shonor
(Sec
89
N
L)
(2)
O
ndorser
s
S
gna
ure
O
lending
his
name
to
some
other
person.
Such
a
person
Metrobank
for
clearing.
It
was
in
fact
Metrobank
that
made
Sec.
191.
Definition
and
meaning
of
terms.
- by
In
no
ce
or
he
o
hers
9
R
gh
os election;
Par
yorng
Who
Dpro
ns
rumen
indorsees
hereo
severally,
does
not
operate
as
negotiation
Sec.
58.
When
subject
to
original
defense.
-aand
In
the
hands
aed
du
y
presen
ed
or
paymen
paymen
bank
was
not
the
one
who
did
itscharges
but
Jose
Go,
the
owner
of
unda
any
ho
der
nser
here
no
he
rue
da
eThe
o
current
rate;
b
osignature
exchange
has
been
es
ed
d
shonor
(1)
Presen
men
or
Paymen
of
the
indorser
in
blank
any
contract
his
incorporation,
the
registered
number
of
the
b By
terms
m
of
acceptance
a
or
conver
ng
itor
he
shall
pre
not
ud
ce
have
oof
another
effects
of
in
crossing
such
manner
ainstrument
check,
as
thus,
toprovided
constitute
relates
to
the
the
transferee
mode
Sec
165
Agreemen
oS
accep
or
or
honor
ns
rumen
s his
d
scharged
who,
by
terms
of
the
instrument,
is
absolutely
In
s
tsappropr
rWha
um
eused
nt
sof
Lmay
aw
is
liable
on
the
to
acontract
holder
for
value,
the
guarantee
when
itBut
stamped
on
the
of
the
warrants:
this
Act,
unless
the
otherwise
(4)
forgers
(3)
Drawer
signatures
sC
gna
ure
Forgery
of
the
any
instrument.
holder
sthe
re
other
or
than
canno
where
a
be
holder
ob
instrument
aback
ned
in
due
or
course,
has
been
a
the
check.
Respondent
bank
could
not
be
drawer
and
ssue
or
accep
ance
and
he
ns
rumen
sha
be
with
costs
of
collection
or
an
attorney's
fee,
in
Sec
non
accep
72
ance
cons
or
pro
u
es
es
ed
a
su
or
be
c
en
er
secur
presen
y
men
and
s
(e)
IV.
HOLDERS
consistent
with
the
character
of
the
indorsement.
P
h
ili
pp
i
n
e
A
i
r
li
ne
s
v
.
ou
rt
o
f
A
ppeal
s

DRAFT

used
synonymously
with
bill
of
ano
her
money
goods
or
any
o
her
persona
proper
y
the
holder
thereof.
If
payable
to
bearer,
it
is
negotiated
been
paid
by
the
drawee
and
provided
also
that
is
shall
payment,
meaning
that
the
drawer
had
intended
the
check
accep
or
or
honor
by
such
accep
ance
engages
ha
required
a
By
to
paymen
pay
the
n
due
same.
course
All
by
or
other
on
beha
parties
o
Where
signature
is the
so
placed
upon
the
certificate,
the
number
ofof
of
vi.
notwithstanding
such
holder,
at
the
time
taking
the
"All
prior
indorsement
and/or
lack
of
endorsements
requires:
Sec
101
No
ce
othe
bankrup
Where
a
par
yshares
has
been
S
esb
rNe
o
vinstrument
. any
C
ou
rt
oshall
f ce
ppeal
s
b
Presen
men
sA
excused
and
he
ns
rumen
s
paid
drawee
negotiable
in
89
part,
for
To
clearly,
whom
it
may
Jose
be
no
indorsed
is
Go
subject
o
owns
do
shonor
as
the
to
to
money
mus
residue.
same
itbe
represents
defenses
g even
payab
e
accord
ng
y
The
nser
on
o
a
wrong
da
does
(4)
o
Bearer
ns
rumen
case
payment
not
be
made
at
maturity.
no
Sec
overdue
121
R
gh
o
person
par
y
no
who
be
d
ng
scharges
a
par
y
a
ns
ready
rumen
ab
e
Presen
men
or
paymen
be
su
c
en
mus
be
[he
G
.
R
.
o
.
L
49188.
Janua
r
y
30,
1990]
rece
ved
by
he
o
ender
n
rus
or
on
comm
ss
on
or
by
delivery;
d70
Ru
if
eali
payable
npresen
De
order,
n
Ma
it
is
ur
negotiated
yclear
Da
emade
by
the
have
been
duly
presented
for
payment
and
protested
for
for
deposit
by
the
person,
i.e.,
the
payee
named
whe
on
due
men
pay
he
b
accord
ng
Sec
Eexchange
ec
onc
wan
demand
on
pr
nc
pa
deb
or
are
he
pr
liable.
deb
or
although
itite&
normally
refers
toab
aoe
instrument,
knew
him
to
be
only
an
accommodation
guaranteed,
Qu
ied
aerm
noto
dse
Bank
G
eng
n
rof.
al
Co.,
Calapan
the
instrument
that
is
in
what
stock
in
arightful
corporation
the
certificate
ad
udged
aonly
or
an
nso
ven
or
has
an
and
overdue
therefore
and
the
unpa
drawer
dprov
and
the
drawee
innego
the
same
[K
Gau
.R
.b)
Noiswere
.may
89252.
apa
yherw
24,
1993]
as
Excep
if"secondarily"
it
as
here
non-negotiable.
nfM
o
But
ded
a
holder
when
who
asecondar
derives
xx
no
avo
d
ns
rumen
n
hands
subsequen
hereon
w
h
he
oby
ho
der
n
ervene
Sec.
made
Where
23.
he
Forged
ns
rumen
signature;
s
pa
effect
d
aTrust
-not
When
par
ya
a
signature
y
ff
n
vsbankrup
.Metropolitan
PNB
or
adm
nBataan
ra
on
orconsen
any
oo her
ob
ga
on
Since
indorsement
a men
negotiable
of
instrument
holder
and
ishe
completed
only
ahe
substitute
by
delivery.
for
money
non-payment
and
notice
of
dishonor
given
tothe
him.
therein.
In
Cigar,
the
of
check
by
he gnmen
erms
ohe
h
sthe
accep
ance
prov
ded
sha
no
have
By
paymen
nunder
due
course
by
he
par
y
Presen
bma
or
paymen
srediscounting
no
necessary
ncompleted
order
o
party.
Branch."
bill
of
exchange
used
in
documentary
ass
"Acceptance"
or
he
bene
means
o
an
cred
acceptance
ors
no
ce
may
be
1.
What
is
a
holder?
(see
his
ns
rumen
title
page
through
3)
has
been
a
holder
d
shonored
in
due
course,
by
non
and
accep
who
ance
is
not
or
x
I
n
d
o
r
se
m
e
n
t
capacity
the
person
making
the
same
ho
der
n
represents,
due
course
bu
as
the
oprov
h
m
name
he
da
eo
so
of
nser
ed
and
accep
he
bhas
supra
pro
es
or
he
honor
o
any
Sec.
ab
e.payee
hereon
5.
Additional
sder
no
d
provisions
scharged
bu
not
he
affecting
par
ythe
so
is
forged
aN
By
or
made
ho
without
or
by
the
some
authority
person
of
au
the
hor
person
zed
o
manner
as
if
he
a
current
account
and
he
issued
a
[Sec
G
.
R
o
.
16454.
S
e
p
t
e
m
ber
29,
1921]
nvo
v
ng
he
du
y
o
make
de
very
o
or
re
urn
he
and
not
money,
the
delivery
of
such
an
instrument
does
not,
the
knowingly
violated
the
avowed
intention
of
been
pa
d
by
he
drawee
and
ded
a
so
ha
s
sha
accommoda
ed
where
he
ns
rumen
s
made
charge
he
person
pr
mar
y
ab
e
on
he
ns
rumen
bu
Read:
85
T
me
ma
ur
y
Every
nego
ab
e
ns
rumen
g
ven
e
her
o
he
par
y
h
mse
or
o
h
s
rus
ee
or
by
delivery
or
notification;
check
against
it;
and
from
the
moment
said
cashier's
check
himself
non
paymen
a
party
no
to
ce
any
o
fraud
d
shonor
or
illegality
mus
be
affecting
g
ven
o
the
he
Sec.
40.
Indorsement
of
instrument
payable
to
bearer.
2.
Payment
By
Party
Secondarily
Liable
exchange
like
letters
of
credit
transactions.
38.
Qualified
indorsement.
-yoissuance,
A
qualified
s itself,
oyng
regarded
as
he
rue
da
par
ab
esPromissory
hereon
or
or
he
person
pay
rem
ed
opurports
h
ss
ormer
rdeemed
gh
regard
aor
negotiability.
rece
-y
ve
An
paymen
instrument
on
h
which
sehonor
beha
contains
order
whose
signature
it
topayab
be,
itas
is
wholly
intended
to
sign,
he
is
to
be
[T]he
provisions
of
the
Negotiable
Instruments
Law
can
same
even
hough
such
ob
ga
on
be
o
y
or
par
a
yby
operate
as
payment.
check,
whether
aan
manager's
6
Lbe
ab
yhas
o
Person
the
Secondar
date
of
Lsaon
ab
e
When
and
Sec.
189.
When
check
operates
as
an
assignment.
-an
A
crossing
the
check.
Thus,
in
accepting
the
cross
checks
have
been
du
presen
ed
or
paymen
and
pro
es
ed
or
or
accep
ed
or
h
accommoda
he
184.
ns
rumen
s
by
note,
s
erms
defined.
-due
ehe
A
acourse.
negotiable
aholder
spec
a
Sec.
52.
What
constitutes
aA
holder
in
-and
A
s payab
eshareholder,
ainstrument,
he
me
xed
here
n
w
hou
grace
When
ass
gnee
Assoc
ated
Bank
vs
CA
GR
107382
Jan
31
drawer
and
o
each
ndorser
and
any
drawer
or
ndorser
instrument,
all
the
rights
of
such
former
in
Where
an
payable
to
bearer,
is
indorsed
indorsement
constitutes
the
indorser
a
mere
assignor
of
pr
or
par
es
and
he
may
s
r
ke
ou
h
s
own
and
a
promise
whose
accoun
to
A
a
do
reasonab
any
he
act
b
e
in
hour
s
addition
drawn
on
a
bus
The
to
ness
the
accep
payment
day
ance
or
of
b
was
inoperative,

lost
and/or
INLAND
and
stolen
no
AND
right
no
FOREIGN
one
to
retain
outside
the
BILL
of
instrument,
Jose

Go
an
inland
can
or
be
to
come
into
operation
there
must
be
a
document
in
existence
guaran
eed
by
a
bond
or
by
deny
ng
hav
ng
rece
ved
c)
mu
st
b
eyincludes
p
le
o
nshonor
dan
apay
n
d
o
rC
at
athe
check
or
ordinary
cheek,
is
not
legal
and
an
offer
of
"Holder"
means
the
payee
or
indorsee
of
acrossing,
bill
or
check
of
itself
does
not
operate
as
assignment
of
any
paying
cash
indorser;
for
them,
despite
the
warning
By
he
en
ona
cance
ae
on
hereo
by
he
p
non
ace
paymen
and
and
s
ab
no
eya
ce
and
o
w
d
ng
o
g
ven
o
here
h
m
aa
c
promissory
note
within
the
meaning
this
Act
is
an
C
liin
da
tehe
d
P
ln
y
w
oo
d
Ib
n
du
s
tr
itender,
es
,m
Iof
nc
.of
v
.the
IFtaken
ns
rumen
D
shonored
the
number
of
authorized
in
holder
he
day
o
due
ma
ur
course
aa
s
is
upon
ashares
holder
Sunday
who
or
has
a
ho
day
the
he
"Action"
counterclaim
and
set-off;
termed
aof
holder
in
due
course
because
Jose
Go
had
not
oonso
whom
such
no
ce
son
no
go
ven
s
scharged
respect
all
parties
prior
to
the
latter.
specially,
it
may
nevertheless
be
further
negotiated
by
the
title
to
the
instrument.
It
may
be
made
by
adding
to
1996
money
(doctr
not
negotiable.
ne
of
comparat
But
the
negotiable
ve
neg
gence)
character
of
honor
subsequen
may
A
be
a
ndorsemen
proper
or
par
pcould
ace
s
y
and
here
he
aga
sum
nd
de
ns
or
ned
nego
wh
ch
a
he
e- faith
b
he
c
give
a
discharge
therefor,
or
to
enforce
payment
thereof
Sec.
68.
Order
in
which
indorsers
are
liable.
of
the
character
in
Section
1
of
the
Law;
and
no
such
money
goods
or
o
her
proper
yit,
check
in
payment
of
ayB
debt
isas
not
aof
valid
tender
of
payment
bill
is
adescribed
bill
which
is,
or
on
its
face
purports
part
of
the
funds
to
the
credit
the
drawer
with
the
the
subsequent
holder
not
be
considered
in
good
ho
der
ma
ur
yis
such
ab
and
w
ngness
are
equ
va
en
oAs
a
unconditional
promise
in
writing
made
by
one
person
to
f
ixed
o
r
d
e
t
e
r
m
i
n
a
b
le
futu
r
e
t
i
m
e
note
c
who
F
is
ng
in
up
possession
anks
Beyond
of
Au
or
hor
the
y
bearer
(Sec
instrument
under
the
following
conditions:
ns
rumen
Where
s
a
ng
the
due
instrument
or
becom
containing
ng
payab
e
the
on
Leasi
n
g
an
d
A
ccep
t
anc
e
C
o
rp
indorsed
it
in
due
course.
The
check
in
question
suffers
from
vii.
particular
issue
of
stock,
signed
by
the
delivery;
but
the
person
indorsing
specially
is
liable
as
the
indorser's
signature
the
words
"without
recourse"
or
an
instrument
otherwise
negotiable
is
not
affected
by
a
s
ns
drawn
rumen
and
excep
where
here
has
been
an
accep
ance
or
d
To
he
person
pr
mar
y
ab
e
on
he
against
any
party
thereto,
can
be
acquired
through
respect
rights
properly
speaking
arise
in
respect
to
said
instrument
may
be
refused
receipt
by
the
obligee
or
creditor.
Mere
Gempesaw
g
p
ace
vs
o
CA
no
ce
218
(Sec
SCRA
108
682
N
L)
Feb
9
bank,
and
the
bank
is
not
liable
to
the
holder
unless
and
and
thus,
not
a
holder
in
due
course.
Sec
166
Ma
ur
y
o
b
payab
e
a
er
s
gh
accep
ed
By
any
o
her
ac
wh
ch
w
d
scharge
a
s
mp
e
ender
o
paymen
upon
h
s
par
Bu
excep
as
here
n
another,
d
signed
by
the
maker,
engaging
to
pay
on
to
be,
both
drawn
and
payable
within
the
Sa
urday
(a)
That
are
it
o
is
be
complete
presen
ed
and
or
regular
paymen
upon
on
its
he
face;
nex
[thereof;
G
.
R
.
N
o
.
72593.
A
pr
i
l
30,
1987]
"Bank"
includes
any
person
or
association
of
the
infirmity
of
not
having
been
properly
negotiated
and
for
14
N
L)
Sec
84
L
ab
y
ohere
person
secondar
ythe
ab
eeit
indorser
to
phrase
only
such
I
promise
holders
to
as
pay
make
title
her
is
through
signed
by
any
words
of
similar
import.
Such
an
indorsement
does
provision
which:
President
and
Secretary
the
honor
or
one
par
y
may
be
a
ur
accep
ance
Where
ns
rumen
or
payab
he
e
s
oabsen
he
or
naccess
aunder
h
bhis
rd
under
signature,
unless
the
party
against
whom
one
another,
indorsers
are
liable
prima
facie
in
order
until
it(b)
issuch
delivered.
In
the
case
before
us
there
an
order,
Salas
v.
Court
of
Appeals
delivery
of
checks
does
not
discharge
the
obligation
a
aitaVALUE
when
ns
rumen
cons
dered
dwas
shonored
until
accepts
orfixed
certifies
the
check.
orherw
honor
Where
as
b
payab
e
aas
er
sorder
soof
accep
ed
demand,
or
con
at
rac
ahe
or
or
he
determinable
paymen
o
money
future
time,
a
sum
o
se
prov
ded
presen
men
or
paymen
s
1993
succeed
ng
That
bus
ness
became
day
the
excep
holder
of
ha
before
ns
rumen
it
was
s
FOR
RECEIVED,
I/we
jointly
and
promise
Philippines.
Any
other
bill
is
aitgh
foreign
bill.
persons
carrying
on
the
of
banking,
value
respondent
Jose
Go
who
already
been
said
is
when
indorsement.
not
impair
the
negotiable
character
of
the
instrument.
P
ais
yawhich
veby
.authorizes
P
alanc
a
by
d
eren
person
or
he
honor
obusiness
ano
her
par
y
person
o
any
and
person
has
been
ound
pa
abearer.
d
by
he
he
pseverally
ace
drawer
where
and
he
(a)
two
or
more
the
sale
persons,
of
collateral
they
securities
are
deemed
in
is
sought
to
enforce
such
right
is
precluded
from
setting
in
they
indorse;
but
evidence
is
admissible
to
it
true,
transmitted
by
the
defendant
bank
to
its
New
York
judgment.
The
obligation
is
not
extinguished
and
remains
corporation
(or
with
facsimile
or
honor
s
ma
ur
y
s
ca
cu
a
ed
rom
he
da
e
o
he
certain
in
When
money
he
to
pr
order
nc
pa
or
deb
to
or
becomes
Where
he
a
note
ho
der
is
necessary
n
order
o
charge
he
drawer
and
ndorsers
[G.R.
No.
76788.
January
22,
1990]
(Sec
149
N
L)
Sec
108
Where
no
ce without
mus
be
sen
Where
a
par
y
payab
e
on
overdue,
demand
and
may
a
he
notice
op
on
that
o
he
it
ho
has
der
been
be
to
pay
to
the
INDUSTRIAL
PRODUCTS
MARKETING,
the
whether
incorporated
or
not;
the
Read:
real
owner
of
said
instrument.
Repub
c
vs
Estrada
GR
L-40769
Ju
y
31
ns
rumen
d
shonored
Sub
ec
o
he
prov
s
ons
o
TIME
DRAFT

draft
that
is
payable
at
a

Read:
Ramos
vs
CA
203
SCRA
657
[suspended
Sec
G.R
.a)
bNthat,
14
oor
. Ci
presen
Where
L
Bnon
-as
29900.
anks
was
June
when
made
s
28,
made
may
1974]
or
accep
er
ed
Where
he
case
the
instrument
be
not
at
maturity;
or
up
the
forgery
or
want
of
authority.
Ba
tng
aan
g
ar
amen
n
d
Ci
g
a
rore
e
tt
eabe
F
ac
to
rur
y,
nda
c.
vsce
.have
show
between
or
among
themselves,
they
branch,
for
the
payment
of
aseverally
specified
sum
money
to
Classes
of
Holders
until
the
payment
by
commercial
document
to
be
jointly
and
liable
thereon.
drawn
to
the
maker's
own
order,
itpaid
not
complete
until
no
accep
ance
and
rom
he
eof
o
he
o
he
ns
rumen
a
or
er
ma
yIof
n
h
own
Under
the
circumstances,
there
appears
to
be
question
that
b
cer
ed
check
(Sec
N
L)
signatures).
On
the
side
the
presen
ed
previously
or
paymen
dishonored,
be
ifreverse
such
ve
owas
cno
ock
the
noon
fact;
on
has
added
an
address
o
h no
swe
sis
gna
ure
no
ois
sum
of
ONE
MILLION
NINETY
THREE
THOUSAND
h (b)
srumen
bAc
by
when
whom
he
g
ns
rumen
(Sec
s187-189
90
djoint
shonored
N
L)
by
non
Sec.
41.
Indorsement
where
payable
to
two
or
more
PNB
1975
vs.
Picornell,
46
Phil
716,
Sept.
26,
1922
Sec
167
es
o
bven
accep
ed
or
honor
and
There
ns
is
no
difficulty
s
wan
attending
ng
npayees
any
the
ma
disposition
erby
anot
par
of
this
cu
ar
appeal
he
authorizes
aJoint
confession
of
judgment
ifpayable
the
agreed
otherwise.
fixed
date.
or
indorsees
who
George
A.
Kauffman.
But
this
order
was
made
Sec.
65.
Warranty
where
negotiation
delivery
and
so
actually
realized
(Art.
1249,
Civil
Code,
par.
3).
(citations
indorsed
by
him.
C
ou
r
t
o
f
A
p
p
eals
rThat
gh
accep
ance
or
honor
Filinvest
is
aPro
holder
in
due
course,
having
taken
the
instrument
1.
Simple
Holder
Sa
urday
(c)
when
he
ha
took
en
it
re
in
day
good
s
faith
no
a
and
ho
for
day
value;
d
shonor
mus
be
sen
o
ha
address
bu
he
has
no
SEVEN
HUNDRED
EIGHTY
NINE
PESOS
&
71/100
"Bearer"
means
the
person
in
possession
of
paymen
certificate
an
mmed
anot
is
e
rD
arequired
gh
form
ojointly
recourse
for
transfer
oto
par
the
es
persons.
-(2)
Where
an
instrument
is
payable
the
order
No
ce
oDEMAND
shonor
by
Sec
75
Presen
on
questions
where
of
law.
While
ns
rumen
several
payab
points
ewere
aa
person
or petitioner
hthe
instrument
Where
nfollowing
possess
a25
dmen
be
shonored
on
hereo
paid
bitat
has
maturity;
has
a
pr
been
ma
or
ac
accep
ea
auof
ed
hor
or
y
indorse
are
deemed
to
indorse
and
severally.
"to
order
or
"to
bearer,"
as
in
subsection
(d)
of
that
forth.

Every
person
negotiating
instrument
by
omitted)
PNB
MWSS
vs
vs
CA,
CA
SCRA
693,
Oct.
29,
1968
under
SIGHT
conditions:
OR
[a]
is1994]
complete
DRAFT
and
der
regular
draft
upon
that
(5)
those
precluded
from
setting
up
defense
(d)
That
at
the
time
it
was
negotiated
to
him,
he
[G
.R.
N
o
.
9
3
04
8
.
M
a
r
ch
3,
g
ven
such
address
hen
he
no
cean
mus
be
sen
as
only
(P
2.
Holders
in
Due
Course
bill
or
note
which
is
payable
to
bearer;
2.
Holder
for
Value
secondar
y
ab
e
hereon
accrues
o
he
ho
Sec
187
Cer
ca
on
o
check
e
ec
o
Where
a
of
two
or
more
payees
or
indorsees
who
are
not
certificate
to
another
person.
After
raised,
Sec
90
the
By
decisive
whom
gbenefit
issue
ven
is
The
whether
no
ce
a
creditor
may
be
is
genn
ven
barred
by
by
or
bank
honor
o (c)
comp
waives
supra
Where
e
e
pro
the
by
he
es
ns
or
ng
rumen
con
up
of
any
a
he
ns
s
b
law
a
anks
payab
re
intended
eree
here
e
a
for
a
case
And
bank
the
o
a
Act;
and
inasmuch
as
it
never
left
the
possession
of
the
delivery
or
by
a
qualified
indorsement
warrants:
III.
ISSUE,
TRANSFER
AND
NEGOTIATION
its
face;
[b]
it
became
the
holder
thereof
before
it
was
167
Pro
es
o
b
accep
ed
or
honor
and
so
Sec.
Sec
70.
120
Effect
When
of
want
persons
of
demand
secondar
on
principal
y
ab
debtor.
on
he
is
payable
when
the
holder
itsum,
for
had
no
notice
of
any
infirmity
in
the
instrument
o isows
1,093,789.71),
Philippine
Currency,
the
said
principal
It
then
that
crossing
of
checks
should
put
the
10
Surrender
o
ns
Dpresents
scharge
of
forgery
check
smen
cer
ed
by
he
bank
on
wh
ch
sany
drawn
he
partners,
all
must
indorse
unless
the
one
indorsing
12.
I(a
ndo
se
m
epaymen
n
tthe
o
fhad
E
nt
ior
rbor
eowner
Iupon
n
s
tbeen
robligor;
um
e
n
tand
Sec
89
To
whom
no
ce
o
d
shonor
mus
be
g
ven
3.
Holder
in
Due
Course
(1)
xed
da
erumen
prescription
s
presen
on
beha
ure
advantage
orsettled
on
in
he
or
his
aa
ho
b
or
attempt
ank
der
protection
or
paper
mus
to
by
collect
de
of
be
on
the
vered
made
beha
on
a
dur
promissory
by
o
ng
or
he
bank
par
person
note
yhas
ng
o
need
mus
be
pro
ed
non
paymen
be
ore
s
bank,
or
its
representative
in
New
York
City,
there
was
no
That
the
instrument
is
genuine
inab
all
and
without
notice
that
ites
previously
dishonored;
[c]
it
transfer
new
should
register
Read:
orgna
hrumen
Where
d
shonored
has
been
accep
ed
or
Presentment
ns
are
for
d
scharged
payment
is
A
not
person
necessary
secondar
in
order
y
to
e
OF
NEGOTIABLE
INSTRUMENTS
or
defect
in
the
title
of
the
person
negotiating
to
be
payable
in
24
monthly
installments
starting
July
holder
on
inquiry
and
upon
him
devolves
the
duty
to
a
E
her
o
he
pos
o
ce
neares
o
h
s
p
ace
o
"Bill"
means
bill
of
exchange,
and
"note"
payment.
Sec.
53.
When
person
not
deemed
holder
in
due
course.
d.
Indorsers
(5)
Persons
Prec
uded
rom
Se
ng
Up
cer
ca
on
equ
obe
an
accep
ance
authority
indorse
for
the
others.
4.
h
a
ress
a
csstto
e
rnisperson
tva
ics
o
fpurports
N
ehe
got
ia
bbe;
leor
Excep
as
here
o
herw
se
prov
ded
when
aofdebtor
nego
abbe
executed
(d)he
gives
the
than
holder
years
an
earlier
election
with
the
to
require
sued
mak
hours
presen
he
ns
ng
un
ed
rumen
he
or
gna
he
paymen
who
ure
m
gh
n
o
order
make
accep
ha
paymen
ed
he
paper
o
has
or
pay
no
may
ounds
he
or
overdue,
delivery
inmore
the
sense
in
Section
16
the
same
)C
respects
what
it
to
(2)
payab
een
on
demand
honor
supra
pro
es
or
con
acompe
ns
a 15
re
eree
nhonor
case
oe
charge
on
the
ns
rumen
person
primarily
sfifteen
dintended
scharged
liable
on
the
instrument;
but
the
change
ofpromissory
ownership
with
Cr
so
ogo-Jose
vs
CA
Sept
1989
it.
ascertain
the
indorser's
title
to
the
check
or
the
nature
ofthe
his
15,
res
dence
or
o
he
pos
o
ce
where
he
means
negotiable
note;
-promising
Where
an
instrument
payable
on
demand
is
negotiated
ns
rumen
has
been
d
shonored
by
accep
ance
or
TRADE
ACCEPTANCE
non
bill
that
is
used
(b
conver
ed
n
oForgery
a
nego
ab
e
ns
rumen
opera
as
a
here
osomething
mee
to
pay
either
any
upon
me
receipt
dur
ng
by
he
him
day
ofhave
his
n
wh
share
ch
case
from
ho
re
eree
der
and
n
case
who
oant
upon
need
to
be
ak
done
ng
up
into
lieu
wou
of
dpoint
payment
aes
rspecial
gh
of
os
I
n
s
t
r
um
e
s
Law.
In
this
connection
it
is
unnecessary
to
out
that
the
Sec.41,
(9)
page
10
That
he
has
a
good
title
it;
Read:
(6)
constructive
acceptance
need
mus
be
pro
es
ed
or
non
paymen
be
ore
s
Sec.26,
see
III
(23)
page
13
if
the
instrument
is,
by
its
terms,
payable
at
a
a
By
any
ac
wh
ch
d
scharges
he
(3)
payab
e
ademand,
a up
bank
possession.
Failing
in length
this
respect,
the
holder
is
declared
1978
and
every
15th
of
the
month
until
fully
corporation.
accus
omed
ohe
rece
ve
h
smus
ethereafter
ers
or
on
an
unreasonable
of
time
after
its
issue,
the
Sa
as
vs
CA
Jan
22
1990
Sec
188
E
ec
where
ho
der
o
check
procures
o
Sec.
42.
Effect
of
instrument
drawn
or
indorsed
a
non
paymen
no
ce
o
dy
shonor
be
g
ven
oto
he
took
Sec.
the
63.
same
When
in
good
a
person
faith
and
deemed
for
value;
indorser.
and
[d]
when
A
person
it
was
a
pr
presen
re
certain
mbursemen
ma
money.
ac
men
estate
e
au
a
hor
or
any
rom
upon
y
hour
o
he
be
par
ore
y
as
o
the
he
such
whom
bank
basis
or
for
he
s
any
c
the
no
osed
amoun
action
ce
on
s
1.
Iss
u
a
n
c
e/D
e
li
v
e
r
o
f
N
e
g
ot
ia
b
le
in
contracts
of
sale
where
the
seller
as
official
receipt
delivered
by
the
bank
to
the
purchaser
of
the
)
That
all
prior
parties
had
capacity
to
contract;
presen
ed
or
paymen
o
he
accep
or
or
honor
or
Sec.26,
see
III
(24)
page
13
place,
and
he
is
able
and
willing
to
pay
it
there
at
b
ns
rumen
State
nvestment
House
vs
CA
GR
101163
guilty
of
gross
negligence
amounting
to
legal
absence
paid....
"Delivery"
he
ves
means
n
one
p
transfer
ace
has
of
h
possession,
sprovision
p
ace
oof
holder
is
not
deemed
aan
holder
in
due
course.
bthe
be
cer
Where
he
ho
der
oout
aand
check
procures
o
person
as
cashier.
Where
an
instrument
is
drawn
or
drawer
oin
ndorser
and
any
or
ndorser
negotiated
to
Filinvest,
the
latter
had
no
notice
of
any
in
PNB
vs
CA
256
SCRA
491
n
order
however
ha
any
such
ns
rumen
when
being
Sec
170
latter
D
shonor
alternative.
b
The
by
lower
or
held
honor
that
the
When
tenBut
placing
g
ven
nothing
his
signature
section
upon
shall
instrument
validate
otherwise
any
than
ha
day
s
su
cthis
en
telegraphic
order,
and
already
set
above,
cannot
itself
be
(c
he
knowledge
of
any
which
re
eree
nted
case
o
need
drawer
orders
the
buyer
(as
drawee)
to
n137.
sand
rThat
um
eeach
nt
s
13.
INegotiability
ndo
rLiability
se
m
eor
nhas
t-oof
o
fno
B
ea
raccep
er
Iattribute
n
sor
ton
rdrawer
ehor
npayab
tperson
maturity,
such
ability
and
willingness
are
equivalent
to
a
By
he
n
en
ona
cance
acourt
oone
sfact
sinfirmity
gna
ure
Read:
Sec.
drawee
returning
or
destroying
good
faith,
contrary
to
Sec.
52(c)
ofum
the
Negotiable

it
is
that
property
actual
constructive,
from
to
bus
ness
n
ano
her
no
ce
may
be
sen
o
5or
Jan
11
1993
Sec
75
Presen
men
where
ns
rumen
e
a
be
o
whom
accep
such
ed
or
no
cer
ce
ed
s
no
he
g
drawer
ven
s
and
d
scharged
a
ndorsers
are
indorsed
to
a
person
as"cashier"
other
fiscal
officer
year
period
of
limitation
of
actions
did
apply,
the
note
being
or
as
comp
he
stipulation
maker,
b
e
ed
s
d
drawer,
may
shonored
otherwise
be
or
en
acceptor,
by
orced
illegal.
he
accep
aga
is
deemed
ns
or
any
or
honor
to
person
be
indorser
mus
who
viewed
in
the
light
of
a
negotiable
instrument,
although
)
would
impair
the
validity
of
the
instrument
or
Assoc
d)
ated
Bank
vs
CA
Jan
31
1996
Read:
P
o
s
t
al
M
on
ey
O
r
d
er
tender
of
payment
upon
his
part.
But
except
as
herein
by
he
ho
der
c
pay
a
sum
certain
to
the
same
seller
Instruments
Law,
and
as
such
the
consensus
of
authority
is
52.
What
constitutes
aamount
holder
in
due
course.
-the
Ait
bill.
-bank
Where
a tm
drawee
to
whom
a.payab
bill
is
delivered
for
Considering
that
paragraph
(d),
Section
1
of
the
Negotiable
another;
Sec.
54.
Notice
e
her
p
before
ace
or
full
is
paid.
Where
S
MWSS
t
a
t
e
I
vs
n
v
es
CA
GR
e
n
t
L-62943
H
ou
s
e
v
Ju
y
I
nt
14
e
r
m
1986
e
d
i
a
t
e
bank
d
scharged
Where
rom
he
ab
ns
y
rumen
hereon
s
e
a
a
bank
of
a
or
corporation,
it
is
deemed
prima
facie
to
be
whereby
a
bill
or
a
note
or
check
may
pass
became
aBy
par
y proof
here
o9presentment
pr
or
o
sm
comp
eaccep
on
mus
immediately
be
prod168
es
ed
due
or
non
and
paymen
demandable,
by
h
the
creditor
admitting
unless
he
clearly
indicates
by
appropriate
words
his
affords
complete
of
the
obligation
actually
assumed
by
render
it
valueless.
Sec
Presen
men
or
paymen
oace
or
or
otherwise
provided,
he
d
scharge
a
pr
or
par
for
y
payment
is
Sec.40,
see
III
(5)
page
Clark
Great
vs
Eastern
Sellner,
vs
GR
Hongkong
16477,
Nov.
Shangha
22,
1921
Bank
to
cd15.
effect
An
When
no
that
order
ce
the
deemed
by
holder
agen
for
the
of
(Sec
payment
check
91
ed
(Sec
92
is
of
not
94
a
137
specified
ataken
N
holder
L)
N
L)
in
holder
in
course
is
aoaccep
holder
who
has
the
acceptance
destroys
the
same,
or
refuses
within
twentyInstruments
Law
requires
that
athe
promissory
note
"must
be
Sec.
Incomplete
instrument
not
delivered.
-169
Where
an
transferee
he
receives
s
so
ourn
notice
ng
n
of
ano
any
her
p
infirmity
no
ce
in
may
the
(payee).
ced
payable
presen
men
to
the
bank
paymen
or
corporation
mus
be
made
of
which
ng
he
bank
is
such
ng
A
pthe
p
e
lla
tBy
edue
C
oo
uBank
rExchange
tto
Metropo
tan
CA
194
SCRA
Sec.
expressly
6.
Omissions;
that
was
particular
relying
on
money.
the
wording
-he
The
"upon
intention
be
to
up
be
sor
bound
rhe
cto
yseal;
in
nvs
some
accordance
other
capacity.
w
hdur
au
hor
y
the
bank.
from
hand
hand
similar
to
money,
so
as
to
But
when
the
negotiation
is
by
delivery
only,
the
honor
how
made
Presen
men
or
paymen
o
he
b
B
s
necessary
in
order
charge
the
drawer
and
indorsers.
a
va
d
ender
or
paymen
made
by
a
pr
or
due
course.
under
the
following
conditions:
four
hours
after
such
delivery
or
within
such
other
payable
to
order
or
bearer,"
it
cannot
be
denied
that
the
incomplete
"Holder"
instrument
means
has
the
not
payee
been
or
indorsee
delivered,
of
it
a
will
bill
instrument
or
defect
in
the
title
of
the
person
negotiating
be
sen
o
he
p
ace
where
he
s
so
so
ourn
ng
Aug
23
1922
Crisologo
vs
CA,
177
SCRA
594,
Sept.
15,
amount
of
money,
usually
issued
and
hours
un
ess
he
person
o
make
paymen
has
no
unds
Sec
189
When
check
opera
es
as
an
ass
gnmen
A
officer,
and
may
be
negotiated
by
either
the
indorsement
BANKERS
ACCEPTANCE

a
time
draft

g
ven
and
w
h
n
a
reasonab
e
me
Bu
any
such
validity
demand."
and
On
negotiable
the
above
facts
character
as
found,
of
an
and
instrument
with
the
law
accep
or
or
honor
mus
be
made
as
o
ows
warranty
extends
in
favor
of
no
holder
other
than
the
[G
.R.
N
o
.
7
2
76
4
.
J
u
l
y
13,
1989]
(1991)
par
y
give
e
the
holder
in
due
course
the
right
to
period
c
as
when
the
pro
holder
es
may
need
allow,
no
be
to
made
return
(Sec
the
bill
(a)
That
it
is
complete
and
regular
upon
its
face;
14.
Inot
ndo
rLse
se
m
e
n
tthat:
W
hopera
en
P
a
ya
b
le
toed
oauthority,
Tof
o
o
rder
or
note
who
is
inua
possession
it,
or
the
not,
if
and
negotiated
without
be
a
the
same
he
has
paid
the
full
amount
agreed
to
X the
CHECKS
Bu
here
where
ocompleted
mee
acannot
no
any
ce
sme
ac
dur
ng
y
rece
he
day
ved
n
by
wh
he
ch
par
case
y
Sec
check
91
137
No
ab
ce
does
g
y
ven
ono
by
drawee
agen
e
re
as
No
urn
an
ce
ass
ng
or
gnmen
d
des
roy
o
may
any
ng
of
or
corporation
or
the
indorsement
of
the
Repub
cRbefore
vs
Ebrada
Ju
y
31
1975
1989
ns
rumen
payable
ahe
comp
at
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bank
on
s
or
nego
post
a
office.
ow
aun
ho
n
affected
Sec.
68.
Order
by
the
in
fact
which
are
liable.
-shonor
As
respect
are
being
as
itBy
is,
itaer
be
said
that
its
decision
is
infected
across
the
face
of
the
drawee
has
immediate
transferee.
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does
follow
as
akof
legal
proposition
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simply
because
T
rade
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lspec
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ou
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ease
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ess
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In
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present
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case,
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defense
vs
in
stopping
East
Bank
payment
GR
is
accepted
or
non-accepted
to
the
holder,
he
will
be
(b)
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he
became
the
holder
of
before
itliable,
was
a
s
o
be
presen
he
pit
ace
he
bearer
thereof;
Sec.
Liability
person
secondarily
valid
contract
in
the
hands
of
any
holder,
as
against
any
hold
the
instrument
and
to
collect
the
therefor,
he
will
be
deemed
adrawer
holder
in
due
presen
any
hour
be
ore
he
bank
sfound
cwhere
osed
on
118
N
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he
me
ed
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o
fagen
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oppeal
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h
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ven
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vered
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e
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ance
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course
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ua
or
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purposes
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error.
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We
indorsers
affirm.
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liable
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facie
in
the
order
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it
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dated;
or
petitioner
was
not
a
holder
in
due
course
as
by
the
PNB
vs
Qu
mpo
March
14
1988
PNB
vs
Maza,
GR
24224,
Nov.
3,
1925
[with
G
.
R
.
N
o
.
written
93397.
M
the
arch
cord
3,
1997]
accepted.
ho
der
s
r
gh
o
recourse
aga
ns
he
par
y
as
good
to
SIHI
as
it
is
to
George
King.
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really,
the
overdue,
and
without
notice
that
it
has
been
deemed
to
have
accepted
the
same.
pro
es
or
non
paymen
was
made
mus
be
when
person
whose
signature
was
placed
thereon
before
course
only
to
the
extent
of
the
amount
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paid
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day
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su
c
en
129015
Aug
15
2003
accep
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oance
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roys
ynFeb
en
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ed
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othe
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or
ven
re
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w
whe
h
n ess
her
wen
ha
y
bank
hough
sen
bank
accordance
shimself,
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ab
efree
w
o as
he
hfrom
he
ho
der
requ
un
remen
and
o
[The
Gs(b)
.R
.provisions
Nand
ono
.court
Lthey
-he
40824.
rory
ua
ryorce
23,
1989]
payable
from
defense.
h
hands
and
he
may
en
had
been
ed
in
which
indorse;
but
evidence
is
admissible
to
does
not
specify
the
value
given,
that
any
manda
appellate
for
having
taken
instruments
inor
question
with
of
subdivision
(c)
of
this
section
do
not
Petitioner,
1
Checks
being
de
a
commercial
ned
(Sec
bank,
185
cannot
186
189
feign
ignorance
N
L)
secondar
y
ab
e
s
express
y
reserved
checks
were
issued
with
the
intention
that
George
King
Gempesaw
vs
CA
Feb
9
1993
Maulini
vs
Serrano,
28
Phil
640,
Dec.
16,
CHECK

a
bill
of
exchange
drawn
on
a
previously
dishonored,
if
such
was
the
fact;
presen
ed
no
a
er
han
he
day
o
ow
ng
P
h
ili
pp
i
n
"Indorsement"
e
E
du
c
a
t
i
o
n
C
means
o
.
I
n
c
.
v
.
S
an
o
r
ian
o
indorsement
instrument

dishonored.
Subject
to
the
provisions
of
delivery.
by
par
our
hours
hon
sas
a
nc
er
pa
such
or
no
deamong
very
or
w
hMarch
nasycorporation
such
ohave
her
Sec.
un
h
shim.
43.
accep
Indorsement
s(9)
orpro
cer
where
es
he
name
is
misspelled,
and
sos
[T]he
promissory
note
hereinbefore
quoted,
well
as
the
Sec.41,
see
III
page
10
up
sysec
rbe
c
y
npr
accordance
w
hcheck
he
hor
gthey
ven
and
PNB
vs
mpo
158
SCRA
582
14
Sec
118
When
need
no
be
made
when
mus
show
that,
value
had
between
been
given
or
therefor;
themselves,
or
notice
that
the
same
is es
for
deposit
only
toau
the
account
of
payee
apply
to
aQu
person
negotiating
public
or
of
Central
Bank
Circular
769,
and
its
requirements.
An
entity
By
any
agreemen
bbales
nd
ng
upon
he
ho
der
o
would
supply
BCCFI
with
the
of
tobacco
leaf.
There
(c)
That
he
took
it
in
good
faith
and
for
value;
ma
ur
y
completed
by
delivery;
[mortgage
G
.
R
.
N
o
.
L
22405.
June
30,
1971]
this
Act,
when
the
instrument
is
dishonored
by
nond)
mu
st
b
e
p
a
ya
b
le
t
o
o
r
d
er
o
r
b
e
a
r
er
PC
per
od
Bank
as
bank
vs
he
CA
payable
ho
der
350
may
on
SCRA
demand
a
ow
446
(Sec.185)
o
re
urn
he
b
1914
forth.
Where
the
name
of
a
payee
or
indorsee
is
deeds
subject
of
this
case,
are
clearly
not
w
hmade
na
reasonab
ecorporate
me
(7)
Allonge
named
in
the
subject
checks,
petitioner
could
not
recover
on
the
agreed
does
otherwise.
not
specify
Joint
the
payees
place
where
joint
it
indorsees
is
drawn
who
or
be
(c)
Where
any
nego
ab
eor
ns
rumen
has
been
securities
other
than
bills
and
notes.
1988
e
Ru
e
n
Compu
ng
T
me
(Sec
86
N
L)
which
deals
with
agents
within
circumstances
Accumulation
ex
end
he
me
of
o
Secondary
paymen
or
Contracts
o
pos
pone
he

Sec
143
When
presen
men
or
accep
ance
mus
be
being
failure
of
consideration,
SIHI
is
not
a
holder
in
due
(d)
That
at
the
time
it
was
negotiated
to
him,
he
b
s
o
be
presen
ed
n
some
o
her
p
ace
han
payment,
an
immediate
right
of
recourse
to
all
parties
It
is
not
disputed
that
our
postal
statutes
were
patterned
after
Sec
185
16.
Delivery;
Check
de
when
ned
effectual;
A
check
s
when
a
b
presumed.
o
exchange
Sec.
55.
When
title
defective.
The
title
of
a
person
who
accep
ed
or
non
accep
ed
o
he
ho
der
he
w
be
92
E
ec
o
no
ce
on
beha
o
ho
der
Where
wrongly
designated
or
misspelled,
he
may
indorse
negotiable
instruments.
These
documents
do
not
comply
checks.
The
Negotiable
Instruments
Law
does
not
provide
that
aPapa
vs
AU
Va
enc
a
284
SCRA
643
indorse
the
are
deemed
where
to
indorse
itpro
isen
payable;
jointly
or
and
severally.
d
shonored
may
be
es
ed
or
non
accep
ance
or
15.
Ih
ndo
raplace
se
m
enotice
n
tgh
in
Re
p
rStates.
ese
n
tbe
aes
tns
iobliged
ved
eng
Ca
p
aci
tand
ythe
Read:
when
no
ce
no
requ
red
excused
or
showing
that
ho
der
the
s
agents
rthereon
o
are
acting
orce
in
he
excess
rumen
of
corporate
un
ess
made
Presen
men
or
accep
ance
mus
be
made
course.
Consequently,
BCCFI
cannot
to
pay
the
Banco
de
Oro
vs
Equ
tab
epro
Bank
GR
had
of
any
infirmity
in
the
instrument
he
pno
ace
where
was
hen
mus
"Instrument"
means
negotiable
instrument;
secondarily
liable
accrues
to
the
holder.
statutes
in
force
in
the
United
For
this
reason,
ours
drawn
Every
secondary
contract
on
bank
on
payab
contracts
ahe
negotiable
e
on
demand
are
instrument
picked
Excep
ishe
incomplete
as
up
here
n
negotiates
an
instrument
is
defective
within
the
meaning
deemed
o
have
accep
ed
he
same
no
ce
s8.
g
ven
by
or
on
beha
o
he
ho
der
nures
o
instrument
as
therein
described
adding,
if
thinks
fit,
with
the
fourth
requisite
to
be
considered
as
such
under
holder
who
is
not
a
holder
in
due
course
may
not
in
any
case
When
payable
to
order.
The
instrument
is
Sec.
bears
a
seal;
or
non
paymen
as
case
may
be
bu
pro
es
s
no
(d)
Far
East
Rea
ty
vs
Cam
166
SCRA
256
vi.
Order
of
Liability
7.
W
h
en
Bill
T
r1988
ea
tby
aure
sthe
N
o
tCons
es
w
he
assen
oWhen
yspec
y
authority,
may
not
hold
the
corporation
liable.
This
only
aPac
Where
he
b
sh
payab
e
ahe
er
gh
or
nN
any
checks.
New
(8)
d
negotiating
Absence
fAct
c
T
mber
or
Fa
vs
mere
Hon
delivery
Sener
s
Dec
19
or
defect
in
the
of
the
person
negotiating
Sec
86
T
be
me
orwarded
how
compu
w
ed
h
n
he
me
he
ns
rumen
ed
nse
dof
spensed
w
109-115
118
L)
are
generally
construed
in
accordance
with
the
construction
and
revocable
until
delivery
of
instrument
for
the
o
herw
se
prov
ded
he
prov
sidrawn
ons
o
s
Ac
app
cab
of
this
Act
when
he
obtained
the
instrument,
or
any
M
e
tr
opo
lmade
(B
aco
oah
d
)with
F
ied
n
anc
n
go
an
d
Ihpar
n
vssdera
es
tsecondar
men
tis
74917
Jan
20
he
bene
o
anlpage
subsequen
ho
ders
and
aon
pr
or
his
proper
signature.
Section
recover
on
1
the
instrument
No.
2031
for
because
in(Sec
case
they
at
are
bar,
neither
petitioner
payable
may
Sec.
89.
To
whom
notice
of
dishonor
must
be
given.
carried
along
Negotiable
instruments
as
payable
payabl
to
order
where
ittitle
is
payable
to
the
order
requ
red
excep
he
case
o
gn
b
o
exchange
(e)
designates
particular
kind
of
current
money
in
Sec.44,
see
III
(9)
10
ab
eGeneral
or
un
ess
he
rore
gh
o
recourse
aga
ns
fair,
as
everyone
must,
in
the
exercise
of
his
rights
and
in
the
o
her
case
where
presen
men
or
accep
ance
(1988)
McGu
re
vs
Prov
nce
of
Samar
GR
Lit.
i.
Indorser
Sec
on
one
hundred
and
our
payab
e
a
a
xed
per
od
a
er
da
e
a
er
s
gh
or
a
er
"Issue"
means
the
first
delivery
of
the
given
in
the
United
States
to
their
own
postal
statutes,
in
the
purpose
of
giving
effect
thereto.
As
between
immediate
o
a
b
o
exchange
payab
e
on
demand
app
y
o
a
signature
thereto,
by
fraud,
duress,
or
force
and
fear,
or
1980
recover
from
the
New
Sikatuna
Wood
Industries,
Inc.
if
the
latter
par
es
who
have
a
r
gh
o
recourse
aga
ns
he
par
y
o
to
order
nor
to
bearer.
The
note
is
payable
to
a
specified
C
o
rp
v
.
S
ambo
k
M
o
t
o
rs
C
o
mpa
n
y
Except
as
herein
otherwise
provided,
when
aperson
negotiable
of
a
sp
ecified
person
or
to
him
or
his
order.
It
may
be
Westmont
Bank
vs
Eugene
Ong
GR
132250
which
payment
is
to
be
made.
they
are
negotiated
from
one
to
e
Fu
ure
b
s
(Sec
135
N
L)
such
par
y
s
express
y
reserved
performance
of
his
duties,
act
with
justice,
give
everyone
his
sOrder
necessary
n
order
oillegal
xThe
he
ma
y
o- who
he
The
foregoing
does
not
mean,
however,
that
respondent
Sec.
ha
68.
ng
o
in
awhere
spec
which
complete
ed
indorsers
even
in
form,
he
are
to
me
aother
liable.
person
our
paymen
As
17.
where
instrument
is
ambiguous.
-a
absence
of
any
reason
justifying
adelivery
departure
from
parties
and
as
regards
remote
party
than
check
other
unlawful
means,
or
for
an
consideration,
or
has
valid
excuse
refusing
payment.
only
disadvantage
8155
Oct
23
1956
whom
sinstrument,
ven
Sec.
44.
65.
28
Indorsement
Warranty
E
ec
ospecial
wan
in
representative
onegotiation
cons
dera
by
on
capacity.
Absence
-may
and
Where
so
party,
the
GSIS.
Absent
the
aforesaid
requisite,
the
Sec
109
ver
ofor
no
ce
No
ce
d
shonor
be
[But
Gdrawn
.Rno
.happen
N
o
.Construction
LWa
-g
39641.
Feb
rua
ra
yBank
28,
1983]
instrument
has
been
dishonored
byo
non-acceptance
or
payable
to
the
order
of:
PNB
vs
Nat
C
ty
of
New
York
63
nothing
inona
this
section
shall
alter
or
repeal
any
Jan
30
2002
due,
and
observe
honesty
and
good
faith.
16.
Presumption
on
Time,
Place
of
ns
rumen
or
another;
in
the
course
of
negotiation
of
could
not
recover
from
the
checks.
The
only
disadvantage
of
d
pro
es
or
non-accep
ance
nonrespect
s
de
erm
takes
ned
by
itor
as
exc
aof
ud
holder;
ng
he
day
rom
wh
ch
he
me
Sec
169
When
de
ay
nis
mak
ng
presen
men
sa
Where
the
language
the
instrument
is
ambiguous
or
this
policy
or
practice.
The
weight
of
authority
in
the
United
holder
in
due
course,
the
delivery,
in
order
to
be
of
a
holder
who
is
not
in
due
course
is
that
the
negotiable
when
he
negotiates
it
in
breach
of
faith,
or
under
such
any
Sec.
66.
person
Liability
is
of
under
general
obligation
indorser.
to
Every
indorse
indorser
in
forth.
a
ure

o
Every
cons
dera
person
on
s
negotiating
a
ma
er
o
an
de
ense
instrument
as
aga
ns
by
provisions
of
Act
No.
2031
would
not
apply;
governance
a
paymen
n
due
course
(Sec
88
N
L)
wa
ved
e
her
be
ore
he
me
o
g
v
ng
no
ce
has
non-payment,
notice
of
dishonor
must
be
given
to
the
"Recourse"
means
resort
to
a
person
who
is
secondarily
(a)
A
payee
who
not
maker,
drawer,
or
As
a
Bank
ng
vs
Jav
er
GR
19051
Apr
1923
b)
Rights
of
Holders
statute
requiring
inb certain
cases
thea es
nature
ofsha
the
Ph
711
Where
he
express
y
swere
pu
ha
b
a
holder
o
who
vs
CA
is
not
GR
aby
139130
holder
in
due
Nov
course
27
2002
is
that
the
one
another,
indorsers
are
liable
prima
facie
in
the
order
susor
oved
beg
n
o
run
and
nc
ud
ng
he
da
e
o
paymen
excused
The
prov
s
ons
o
Sec
on
e
gh
y
one
app
y
there
instrument
are
omissions
is
subject
to
therein,
defenses
the
as
if
following
it
non-negotiable.
rules
of
States
Indorsement
is
that
postal
money
orders
are
not
negotiable
effectual,
must
be
made
either
by
or
under
the
authority
Sec
negotiable
186
W
h
n
wha
Instruments,
me
a
check
a
mus
series
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146-147
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94
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payable
negotiable
dishonor,
to
a
person
character.
protest
named
-Act,
and
An
government
disbursements
are
paid.
instrument,
any
d
eren
by
agreemen
making
it,
engages
s
en
ed
that
o
he
have
will
he
pay
b
ava
e
or
he
paymen
hereo
drawee
s
no
116
N
L)
forth.
nego
(a)

a
es
By
Every
an
payment
ns
person
rumen
in
negotiating
due
s
de
course
ec
ve
w
an
by
h
or
instrument
n
on
he
behalf
mean
by
ng
of
and
Bank
mus
ng
spec
Corp
y
chanrob
157
SCRA
esv
r
ua
188
aw
(1988)
brary
reissue
and
further
negotiable
the
same.
But
he
is
not
L
No
i
m
ce
v
.
C
may
ou
rt
be
o
f
A
g
ppeal
ven
as
s
soon
as
he
nsinstrument
rumen
s
the
date
of
the
instrument,
and
if
the
(4)
dishonored,"
and
it
did
not
take
the
check
"in
good
faith
and
assen
ed
Presentment
o
he
a
era
on
for
and
acceptance
subsequen
ndorsers
(2)
e
ec
s
o
cross
ng
a
check
substitute
ab
e
(See
for
money
Sec
121
and
N
L)
intended
r
gh
o
to
secur
es
o
her
han
b
s
and
no
es
instrument
therein
negotiable
or
bearer;
in
its
or
origin
continues
to
be
presentment
were
an
waived.
The
words
added
by
said
Sec
112
When
no
ce
s
d
spensed
w
h
No
ce
o
according
to
its
tenor,
admits
existence
of
the
accep
ab he
edAc
as
he
o
bprincipal
he
un
ess
etreasury
and
oo
un
rs
he
presen
accep
same
See
also
Sec.
191
ofda
NIL.
With
the
warrant,
aaS
drawer
Read:
i.
Pr
om
ise
O
rmade
d
er
tthe
ons
P
aamen
ysas
(he
ec.
10,
delivery
o
Sec
173
son
the
Dec
by
when
aara
qualified
on
he
debtor;
be
ob
indorsement
ore
arhe
ned
paymen
he
warrants:
or
rumen
honor
or
The
any
entitled
d
a
The
to
and
enforce
me
un
and
ess
ppayment
ace
de
ay
o
presen
s1995]
excused
thereof
men
against
here
na
any
er
[d
Gtshonored
.elco
R
.b)
N
o.or
107898.
D
ece
m
ber
19,
is
undated,
from
the
issue
thereof;
Bu
when
an
ns
rumen
has
been
ma
er
y
ered
and
for
value."
taken
before
overdue
When
it
isC
payable
to
the
order
of
a
Sec
145
Presen
men
how
Presen
men
or
negotiable
appellant
(c)
do
until
not
it
limit
has
his
been
liability,
restrictively
but
rather
indorsed
confirm
his
or
shonor
s
d
spensed
w
h
when
a
er
he
exerc
se
o
(5)
S
M
a
r
ke
t
i
n
g
o
r
p
o
r
a
t
i
o
n
v
.
C
ou
r
t
o
f
payee
and
pass
his
then
from
capacity
hand
to
to
indorse.
hand,
to
give
the
Acceptance
par
y
who
d
scharges
ns
rumen
ssgna
ure
By
here
payment
o
raud
in
duress
due
course
or
orce
by
and
the
ear
or
no
arpetition
(b)
(a)
ac
That
o vs
honor
the
instrument
mus
be
is1,
genuine
on
and
dec
ara
inparty
on
authorizes
someone
to
pay
aoxed
particular
Ang
Tiong
22
SCRA
713,
22,
LTing,
)by
intervening
Sec
prov
ded
89
ba
To
The
mus
party
whom
ac
be
to
ha
g
whom
ven
ce
presen
ow
he
shonor
men
nounded
personally
he
was
mus
me
made
be
liable.
gand
by
ven
hall
he
s
The
Where
has
the
no
instrument
merit.
Section
is
not
par.
dated,
1, Feb.
of
B.P.
it
will
Blg.
22
n
he
hands
o
ano
ho
der
ndhwas
due
course
no
ahe
par
ybe
o
fictitious
or
non-existing
person,
and
such
discharged
accep
(c)
ance
by
mus
payment
be
made
or
otherwise.
by
or
on
beha
ho
der
obligation
as
a NI
general
indorser.
reasonab
eCer
d
gence
canno
be
g
ven
o
or
does
no
2
D
sas
ngu
shed
rom
Dra
sthe
Sec
ca
on
o
check
e
ec
Where
a
(6)
A
p
p
ea187
als
Read
holder
Dishonor
in
due
by
non-acceptance
course
the
right
to
hold
the
accommodated,
where
instrument
is
made
o
her
un
aw
u
means
or
or
an
ega
cons
or
made
by
respects
he
payer
what
or
it
honor
purports
or
to
by
be;
hthe
so
agen
non
ha
VI.
DEFENSES
h
K
nds
o
accep
ance
(Sec
139-142
manner
hereo
Ac
Excep
here
nv
o
herw
se
prov
ded
when
adera
nego
ab
e
De
L
a
V
i
c
t
o
r
i
a
.
Jud
g
e
B
u
r
g
o
s
considered
to
be
dated
as
of
time
itore
was
punishes
"[a]ny
person
who
makes
or
draws
and
issues
any
he
era
sum
on
of
he
money
may
to
en
another.
orce
paymen
hereo
1968
fact
was
known
to
the
person
making
it
so
a
a
reasonab
e
hour
on
a
bus
ness
day
and
be
he
reach
he
par
es
sough
o
be
charged
check
s24.
cer
ed
by
he
bank
on
wh
ch
drawn
he
4.
Determinable
future
time;
what
- An
Sec.
of
consideration.
-rumen
Every
when
he
nego
aor
es
ny
breach
o
hconstitutes.
or
under
such
or
accepted
for
his
accommodation;
Sec
R
gh
oJune
who
do
scharges
ns
beha
dec
That
ar
ng
he
h
has
a
n
good
en
on
title
to
pay
it;aes
he
bs468
honor
(7)
[G
N
o
.Presumption
9L)
6cause
16
0
.spar
J
un
e
17,
1992]
Bank
vs
CA
208
SCRA
b.
same
Presentment
Drawer
and
(Sec.
collect
for
61,
payment
NIL)
the
sum
due.
The
or
reason
or
pro
ng
he
bthe
ns
c121
has
been
d27,
by
non
accep
ance
or
check
to
apply
on
account
or
for
value,
knowing
ator
time
[Assoc
G..R.
Rrumen
.(b)
Noverdue
o
.ated
111190.
1995]
accord
o
s
g
na
enor
N
payable;
or
Sec.
b
s
48.
Striking
o
out
drawee
indorsement.
or
some
The
holder
au
hor
may
zed
at
19.
S
tissued;
rng
iki
Sec.10.
n
g
Ou
Terms,
the
fen
Ishonored
ndo
when
se
sufficient.
m
e-prima
tperson
The
instrument
People
vs
Maniego,
148
SCRA
30,
27,
cer
ca
on
s all
equ
vao
opa
accep
ance
instrument
is
payable
at
aan
determinable
future
time,
negotiable
instrument
is
facie
to
have
c
rcums
ances
as
amoun
odeemed
arde
raud
By
the
intentional
cancellation
thereof
by
the
and
(c)
or
whose
honor
he
pays
That
prior
parties
had
capacity
to
contract;
Where
he
ns
rumen
s
d
by
aenn
par
yFeb.
secondar
y
c)
C
ond
i
t
i
on
al
I
ndo
r
s
e
m
t
The
record
does
show
that
after
the
check
had
been
deposited
Read:
RP
vs
Ph
pp
ne
Nat
ona
Bank
GR
Lnon
Sec
paymen
103
d
Where
The
Where
demand
there
no
par
ce
is
o
es
made
a
d
res
conflict
shonor
and
n
between
mus
same
he
answer
be
p
ace
g
the
ven
g
written
ven
Where
o
he
of
issue
that
he
does
not
have
sufficient
funds
in
or
credit
(8)
Petitioner
reiterates
his
position
that
the
salary
checks
were
(1992)
Payment
When
the
name
of
the
payee
does
not
any
o (d)
accep
time
(d)need
or
strike
re
use
out
accep
any
ance
indorsement
on
h s excused
beha
which
and
isevery
not
Sec
113
De
ay
n
g
v
ng
no
ce
how
De
ay
n
not
follow
the
language
of
this
Act,
but
within
the
meaning
of
this
Act,
which
is
expressed
to
be
1.
Real
and
Personal
Defenses
Distinguished
been
issued
for
a
valuable
consideration;
and
1987
(d)
holder;
That
he
has
no
knowledge
of
any
fact
which
ab
e
hereon
s
no
d
scharged
bu
he
par
y
so
II.
FORM
AND
INTERPRETATION
OF
and
dishonored,
STELCO
came
into
possession
of
it
in
some
he
person
and
any
printed
g
v
or
ng
he
provisions
and
ac
he
ha
person
of
he
the
drawee
o
instrument,
rece
or
ve
accep
no
the
ce
or
drawer
and
o
each
ndorser
and
any
drawer
or
ndorser
not
owned
by
Mabanto,
Jr.,
because
they
were
not
yet
with
the
drawee
bank
for
the
payment
of
such
check
in
full
Sec
125
Wha
cons
unon-payment
aexcused
ma
eraccep
awhich
aperson;
era
on
Any
16106
Dec
30
1961
purport
to
be
the
name
of
any
Sec.
61.
Liability
of
drawer.
-appears
The
drawer
by
drawing
the
necessary
(9)
a
Where
to
his
a
title.
b
The
ses
indorser
addressed
whose
o
wo
indorsement
or
more
g
v ng
no
ce
o
d
shonor
scontract
when
he
de
ay
s
Bataan
Dishonor
C
gar
vs
CA
by
230
SCRA
648
March
3
It
is
a
special
complies
any
terms
are
sufficient
which
clearly
indicate
Sec
139
K
nds
o
accep
ance
An
ance
sor
echeck,
her
payable:
person
whose
signature
thereon
to
have
56
Wha
cons
u
es
no
ce
o
de
ec
To
By
any
other
act
which
will
discharge
a
simple
would
impair
the
validity
of
the
instrument
Sec
pay
ng
(d)
174
s
Pre
rem
erence
ed
o
o
h
par
s
ormer
es
o
r
er
gh
ng
s
as
o
regard
pay
a
or
Sec.48,
way,
and
see
was
III
able,
(9)
page
several
10
years
after
the
dishonor
of
the
res
de
written
n
cou
he
drcums
same
provisions
no
be
pances
ace
ound
prevail;
no
cesubsequent
be
g
ven
wmen
h
n
g
P
ace
oand
Presen
men
upon
o era
whom
its
such
presentment,
no
ce
s
no
which
g
ven
check
smus
dasthe
scharged
iscon
subsequently
delivered
to
him,
that
petitioner
garnishee
has
no
NEGOTIABLE
INSTRUMENTS
a
on
wh
ch
changes
Sec.
39.
Conditional
indorsement.
-requirements
Where
an
When
the
only
or
last
indorsement
is
an
is
instrument
struck
(e)
drawees
out,
admits
and
who
all
the
indorsers
existence
are
no
par
ofaccep
ners
payee
presen
to
him,
and
are
his
caused
by
c
beyond
he
ro
o
he
an
intention
to
conform
to
the
genera
or
qua
ed
A
genera
ance
assen
s
become
(a)
a
At
party
a
fixed
thereto
period
for
after
value.
date
or
sight;
or
to
give
it
in
evidence
at
the
trial
of
the
civil
case
it
had
instituted
1994
cons
u
es
no
ce
o
an
n
rm
y
n
he
ns
rumen
or
(10)Notice
contract
of
for
dishonor/protest
the
payment
of
money;
with
render
the
it
valueless.
requirements
of
Negotiable
honor
Where
wo
or
more
persons
o
er
o
pay
a
b
pr
or
par
es
and
he
may
s
r
ke
ou
h
s
own
and
a
legal
obligation
to
hold
and
deliver
them
toun
the
trial
court
to
he(e)
oReal
ow
ng
mes
2.
Defenses
dishonored
by
the
drawee
for
insufficiency
of
funds
or
indorsement
is
conditional,
party
required
toone
pay
the
conditions
precedent
to
make
indorsement
in
blank.
Where
the
instrument
is
soa
ambiguous
that
thereby
then
acapacity
relieved
The
mus
da
to
be
from
e
indorse;
made
liability
othe
and
on
hem
the
engages
instrument.
ess
that,
on
due
has
ho
der
and
no
mpu
ab
ebank
h(Limson
snego
de
au
m
sconduc
or
hereof.
w
qua
ca
on
o
he
order
he
drawer
A
(b)
On
or
before
fixed
or
determinable
against
the
drawers
of
the
check
and
Torres)
and
RYL.
de
ec
nhonor
he
eo
op
he
person
ao
ng
he
same
he
3
or hou
Re
he
a
onsh
dprincipal
be
eren
ween
par
Drawer
es
he2031)
Drawee
person
whose
and
When
the
debtor
becomes
the
holder
But
when
negotiation
is
by
delivery
only,
the
subsequen
(e)
ndorsemen
and
aga
ns
nego
aperson
efuture
he
Gempesaw
vs
CA
218
SCRA
682
Feb
3
be
applied
(11)Discharge
Instruments
to
Mabanto,
Jr.'s
Law
judgment
(Act
No.
debt.
The
thesis
of
credit
or
would
have
been
for
the
same
reason
a
gthe
ven
awan
he
pasdishonored
ace
o
bus
ness
o
he
instrument
may
disregard
the
condition
and
make
20.
E
ff
ect
o
f
T
r
a
n
s
f
er
W
i
thou
t
I
ndo
r
se
m
e
n
t
Sec
70
b
there
E
The
ec
is
sum
o
doubt
payab
whether
o
demand
e
e
it
is
her
on
a
pr
bill
or
nc
or
pr
pa
note,
nc
deb
pa
the
or
or
presentment,
au
hor
the
y
instrument
o
accep
will
or
be
re
use
accepted
accep
or
ance
paid,
or
neg
gence
When
he
cause
o
de
ay
ceases
o
opera
e
unqualified
indorser
liable
when
(b)
o
pro
be
made
es
(Sec
159
N
L)
qua
ed
accep
ance
n
express
erms
var
es
he
e
ec
But,
as
already
pointed
out,
possession
of
a
negotiable
Sec.
25.otime
Value,
what
constitutes.

Value
is
any
specified
therein;
or
1.
paymen
How
w
Negotiability
d
scharge
mos
is
par
Determined
es
o
he
b
s
o
be
person
whom
s
nego
a
ed
mus
have
had
ac
ua
of
the
instrument
at
or
after
maturity
in
his
own
warranty
extends
in
favor
of
no
holder
other
than
the
ns
rumen
excep
petitioner
is
that
the
salary
checks
still
formed
part
of
public
Payee
oPromissory
rece
ve
no
ce
mus
be
gitmay
ven
be
ore
he
had
not
the
drawer,
any
valid
reason,
ordered
payment
to
the
indorsee
or
his
transferee
whether
the
1994
S
Sec.
ec.
49.
184.
Transfer
n
eres
may
without
treat
it
note,
as
indorsement;
either
defined.
at
his
-effect
election;
A
negotiable
of.
-22,
both,
Presen
according
men
a
n
or
wh
to
paymen
its
case
tenor,
presen
s
and
no
that
necessary
men
if
be
dishonored
be
n
made
o
no
ce
mus
be
gnwithout
ven
w
h
reasonab
e contract.
d order
gence
instrument
after
presentment
and
dishonor,
or
payment,
isWhere
utterly
o
he
bholder
as
drawn
b.
Minority
and
ultra
vires
acts
(Sec.
consideration
sufficient
to
support
ahe
simple
On
or
at
ach
period
after
the
occurrence
of
(c)
ii.
Pr
om
ifulfilled
se
O
rthe
dde
er
M
u
st
B
egarnishment
g
ven
he
pre
erence
know
right.
opayment
rm
yrThe
or
ec
or
know
edge
ois
immediate
aedge
Where
transferee.
sfixed
payab
eor
o
order
a
h An
rd
funds
and
therefore
reach
of
c
ose
ohe
bus
ness
on
he
day
oohis
ow
ng
bank
to
stop
.beyond
.ace
."o
gravamen
of
the
offense
condition
has
been
not.
But
any
person
to
the
holder
of
an
instrument
payable
to
order
The
me
or
p
ohours
paymen
promissory
and
charge
(f) Ki
the
c Where
he
h
necessary
person
m
note
on
a
yon
signature
within
pr
proceedings
mar
the
yle
is
meaning
ab
e
so
on
on
placed
he
dishonor
of
ns
this
rumen
upon
Act
be
is
the
duly
bu
an
inconsequential;
it
does
not
make
the
possessor
a
holder
for
6.
State
b)
nd
nvestment
Fun
s
o
c
f
t
Ne
i
got
s
House
o
ia
f
b
Ne
got
I
vs
n
s
ia
t
r
AC
b
um
le
e
I
174
n
nt
s
s
t
r
SCRA
um
e
nt
s
Sec.49,
see
III
(9)
page
10
antecedent
or
pre-existing
debt
constitutes
value;
and
is
a
specified
event
which
is
certain
to
happen,
such
ac
s
ha
h
s
ac
on
n
ak
ng
he
ns
rumen
Sec
159
person
Pro
When
es
and
pro
when
has
es
been
d
o
spensed
be
pamade
disby
w
When
h
drawer
Pro
a es
bghold
s
A
rticlb
e155
2209.
Ifven
the
obligation
consists
inhemus
the
payment
of
NIL)
proceedings.
U
n
c
ond
isneed
tindorsed
iis
on
al
ii.
g
Qualified
h
Indorser
res
dence
ven
knowingly
issuing
athe
worthless
Thus,
atopar
fundamental
whom
an
instrument
so
negotiated
will
transfers
it
value
without
indorsing
it,
transfer
The
number
or
he
re
a
ons
og
he
es
d
b
Where
he
sno
dead
presen
men
may
C
unconditional
taken,
ahe
lteK
xhe
instrument
ns
(Psuch
will
h
rumen
io
lifor
pp
pay
promise
icons
n
es
that
sa
)drawee
by
amount
v
in
its
.the
writing
s
C
A
not
erms
,check.
thereof
21
made
2gives
SCRA
payab
to
in
by
the
what
eone
44
athe
holder
8oance
capacity
person
(abe
1
9spec
92
or
)An
to
ad
value
within
the
meaning
of
the
law;
itclear
rise
no
liability
on
114
When
no
ce
be
ven
drawer
4
nds
Checks
Sec
140
Wha
u
es
a
genera
accep
deemed
whether
instrument
is
payable
on
though
the
time
of
happening
be
uncertain.
175
E
ec
on
subsequen
par
es
where
bdelay,
swou
310
amoun
ed
ow
bad
asubdivision
h
1.
Substitute
for
money
Where
was
made
or
accep
ed
or
The
d
pro
spensed
es
provisions
b
ed
such
h
of
pro
by
es
any
mus
cthereof,
rcums
be
(c)
made
of
ances
this
on
section
wh
he
ch
day
do
opa
not
sd
a
sum
ofis
money,
and
the
debtor
incurs
in
the
be
ore
he
usua
hours
o
res
on
he
day
element
knowledge
on
the
part
of
the
drawer
of
the
the
same,
or
the
proceeds
subject
to
the
rights
vests
in
the
transferee
such
title
as
the
transferor
had
e
The
be
made
med
um
o
h
s
or
persona
currency
represen
n
wh
ch
a
paymen
ve
s
another,
any
p
ace
subsequent
the
and
signed
person
he
s
indorser
by
making
ab
the
e
and
who
maker,
the
w
may
same
ng
engaging
be
intended
o
compelled
pay
to
to
here
pay
to
sign,
pay
on
a
[T]he
accepted
rule
is
that
the
negotiability
or
nonthe
part
of
the
maker
or
drawer
and
indorsers.
C
h
an
W
an
v
.
T
an
Kim
No
ce
o
d
shonor
s
no
requ
red
o
be
g
ven
o
he
accep
ance
o
pay
a
athere
par
cu
ar
p
ace
snncorporation
a
genera
demand
or
at
adamages,
future
time.
orshonor
honor
Where
ale
bon
has
been
pa
d
or
honor
aor
apply
toand
afor
person
negotiating
public
or
indemnity
d
accommoda
un
ess
de
ay
s
excused
has
no
as
been
here
pa
d
prov
byng
toded
the
he
spense
w
h
no
ce
o
dand
De
ay
no
Petitioner
has
o
ow
well
ng
argued
his
case.
21.
a)
C
on
2.
Ne
si
d
got
e
Medium
rab
a
ia
tfunds
ihe
ohe
fo
Pr
of
ror
om
exchange
Iis
sshonor
sibeing
ss
u
ao
n
rd
ce
yin
N
astipulation
ot
n
des
insufficiency
of
his
in
credit
with
the
drawee
bank
for
Sec.
22.
Effect
of
indorsement
infant
or
corporation.therein,
the
transferee
acquires
addition,
of
the
indorsing
conditionally.
Sec.
65.
Warranty
Where
be
made
where
drawee
negotiation
has
by
been
delivery
udged
and
a
demand,
it.
ma
But
ur
cperson
he
ysubsequen
or
such
is
at
to
drawer
abe
fixed
deemed
yn
may
or
determinable
w
an
insert
indorser;
ngness
in
are
future
equ
instrument
time,
va
en
a
sum
oso
an
negotiability
of
an
determined
from
the
writing,
rb
es
o
lhe
uto
rng
y
a
n
swhose
u
sinterest
esad
n
si
v
enright
drawer
nthe
eo
her
o
o
ow
cases
accep
ance
un
ess
express
yby
saof
aor
es
ha
he
bthe
sdue
os
[G
.R.
o
.gh
L15
3instrument
80.
S
e
pt
eno
mb
er
3the
0,
1
par
es
oand
par
y
honor
An
Sec
instrument
57
R
oexcused
payable
ho
der
n
upon
course
contingency
A
ho
der
is
not
securities
other
than
bills
and
notes.
contrary,
shall
be
the
payment
the
agreed
ys1.
accommoda
ed
pro
When
es
aN
ng
bpar
sindorsement
has
been
du
when
ydue
ed
de
ay
he
pro
sp960]
es
caused
may
be
by
sen
by
ma
mus
be
depos
ed
n
he
pos
the
payment
a
cash
of
such
er
s
check
check
in
full
and
upon
manager
presentment.
check
Another
c
The
indorsement
or
assignment
of
the
instrument
by
an
to
have
the
of
the
transferor.
But
for
the
S
ub
se
qu
e
n
t
T
r
a
n
s
f
e
r
d
memorandum
and
rave
er
s
checks
3.
Or
wh
Credit
ch
adds
instrument
a
p
ace
o
which
paymen
increases
where
no
bankrup
or
an
nso
ven
or
has
made
an
forth.
(g)

Where
Every
an
person
instrument
negotiating
containing
an
instrument
the
word
"I
by
certain
express
ender
o
in
stipulation
paymen
money
to
upon
order
negativing
h
or
s
par
to
bearer.
or
Bu
limiting
excep
Where
as
a
his
note
here
own
is
that
is,
from
the
face
of
the
instrument
itself.
In
the
be
pa
d
here
on
y
and
no
e
sewhere
Sec.
26.
What
constitutes
holder
for
value.
Where
value
cme
ond
iwhether
o
nand
(ro
Civil
C
od
e
)der
pa
ddoes
aare
Where
dand
scharged
he
drawer
bu
he
drawee
payer
are
or
honor
he
same
s
[I]t
course
ho
not
ds
follow
he
ns
as
rumen
aitreach
legal
ree
proposition,
rom
any
de
that
ec
osimply
e
upon,
and
in
the
absence
of
stipulation,
the
legal
negotiable,
the
happening
of
event
does
not
c
subsequen
rcums
ances
y
ex
beyond
ended
as
he
oNot
con
he
da
o
ethe
o
he
he
ho
no
ng
and
no
o
ce
n
o
h
m
n
usua
course
on
5.
Rights
of
Holders
in
Due
Course
essential
element
is
subsequent
dishonor
of
the
check
by
corporation
or
by
an
passes
the
property
therein,
purpose
of
determining
transferee
is
a
p
ace
o
sse
spec
any
opr
her
ass
gnmen
or
he
bene
oor
cred
ors
promise
Sec.
to
Promissory
is
signed
note,
by
two
defined.
more
A
drawn
liability
delivery
o
herw
to
se
to
or
the
the
by
prov
maker's
holder.
qualified
ded
own
indorsement
order,
men
it
not
warrants:
or
complete
paymen
until
s
construction
of
bill
or
note,
the
intention
of
the
parties
is
to
credit
circulation
has
at
any
time
been
given
for
the
instrument,
the
holder
d)
Res
tacourse,
i184.
ipaymen
vpay"
einfant
ndo
m
eis
n
ted
2.
Ne
got
ia
o
n
De
fIipresen
n
ed
o
prdrawee
or
par
es
and
ree
rom
de
enses
ava
ab
eoro
or
subroga
person
or
and
succeeds
o
bo
h
he
ror
gh
swould
and
interest,
because
he
which
was
not
six
a
per
holder
cent
in
due
annum.
course
Chan
Wan
could
cure
the
defect.
mpu
ab
eed
o
hriis
sc
de
au
mrper
sconduc
or
neg
gence
he
day
otthat
ow
ng
the
bank
for
insufficiency
of
funds
or
credit
notwithstanding
from
want
of
capacity,
the
holder
in
due
the
negotiation
takes
effect
as
of
f.
Liability
(4)
change
o
whom
or
of
add
Agent
mus
on
or
wh
paymen
Broker
ch
a
ers
(Sec.
be
he
made
19-21,
e
ec
o
presen
men
may
be
made
o
h
m
or
o
h
s
persons,
they
are
deemed
to
be
jointly
and
indorsed
necessary
(a)
negotiable
That
by
n
him.
order
the
o
instrument
promissory
charge
he
is
note
drawer
genuine
within
and
the
and
ndorsers
meaning
in
all
control,
if
it
can
be
legally
ascertained.
While
the
writing
may
Sec.
24.
Presumption
of
consideration.
-b
Every
Sec
141
Qua
ed
accep
ance
An
accep
ance
s
is
deemed
a
holder
for
value
in
respect
to
all
parties
who
par
es
among
hemse
ves
and
may
en
orce
paymen
o
When
he
drawee
s
c
ous
person
or
a
du
es
o
he
ho
der
as
regards
he
par
y
or
whose
not
recover
on
the
checks.
The
Negotiable
Instruments
Law
b
Read:
4.
A
r
t
i
c
l
e
1179.
Every
obligation
whose
Increase
purchasing
medium
in
When
he
cause
o
de
ay
ceases
o
opera
e
he
mus
have
Secs.14,
been
16,
dishonored
see
IV
(4)
page
for
15-16
same
noterthe
corporation
or
infant
may
incur
no
liability
thereon.
the
time
when
the
indorsement
is
actually
made.
g36.
pro
he
es
ns
rumen
or
be
er
nthe
any
secur
respec
yreason
s had
ainma
a
severally
rus
ee
liable
or
ass
thereon.
gnee
respects
what
it
to
be;
of
this
Act
is
an
unconditional
promise
in
be
in
the
light
of
surrounding
circumstances
order
to
69,
qua
ed
wh
ch
s
negotiable
instrument
ish
deemed
prima
facie
to
become
such
prior
to
that
time.
heread
rumen
or
he
upurports
amoun
hereo
aga
ns
Sec.
When
indorsement
restrictive.
-econ
An
indorsement
honor
pays
and
aes
par
es
ab
o
ahave
eraor
does
not
person
provide
no
that
hav
a
holder
ng
capac
who
is
y
od
a
holder
rac
in
due
i.
performance
Relationship
not
with
depend
Drawee
upon
ahe
future
7.
When
payable
on
demand.
instrument
is
be
nons
ed
or
pro
es
ed
wdoes
reasonab
e- not
d
gence
Sec.
30.
What
constitutes
negotiation.
-An
An
instrument
is
Peop
Sec.51,
ehe
see
vs
IV
NNIL)
(1)
tafan
page
14
GR
No
75954
Oct
22
circulation
drawer,
without
any
valid
reason,
ordered
the
bank
to
stop
Sec
104
Where
par
res
de
nit;
eren
p signed
aces
A
c
ce
l
e
r
a
t
i
o
n
N
ot
e
a
era
on
That
he
has
a
good
title
to
(b)
writing
made
by
one
person
to
another,
more
perfectly
understand
the
intent
and
meaning
of
the
been
Sec
issued
73
P
ace
for
o
a
valuable
presen
men
consideration;
Presen
and
men
every
or
a
Cond
ona
ha
s
o
say
wh
ch
makes
par
es
ab
e
hereon
is
restrictive
which
either:chanroblesvirtuallawlibrary
course,
may
not
in
any
case,
recover
on
the
instrument.
If
B
uncertain
When
he
event,
drawer
or
s
upon
he
a
person
past
event
o
whom
unknown
he
b
renunc
a
on
by
ho
der
(Sec
22
N
L)
c
payable
on
demand:
A
n
g
Te
k
L
i
a
n
v
.
C
ou
rt
o
f
A
ppeal
s
negotiated
when
it
is
transferred
from
one
person
to
payment.
Where
he
person
gbill
vparties
ng
and
he
person
otorece
ve
1992
5.
Evidence
of
transaction
(c)
Sec.
That
130.
all
When
prior
may
had
be
treated
capacity
as
to
promissory
contract;
by
the
maker,
engaging
to
pay
on
demand,
or
parties,
yet
as
they
have
constituted
the
writing
be
the
person
whose
signature
thereon
to
which
makes
itappears
possible
for
the
maker
158
es
be
ore
ma
ur
y
where
accep
or
paymen
paymen
made
aho
by
he
proper
he
pconstitute
ace
or
dependen
on-have
he
Defense
of
Minority
not
Total
27.
When
lien
on
instrument
constitutes
holder
for
(a
Sec
176
Where
der
reaccep
uses
ohe
rece
ve
paymen
purchases
to
Prohibits
an
the
overdue
parties,
the
is
demandable
further
promissory
negotiation
at
once.
note
signed
of
the
by
rumen
snegotiable
presen
ed
or
paymen
b
When
Sec.
19.
by
agent;
how
shown.
The
Montinola
v.
PNB
When
itmade
is
expressed
to
be
payable
on
[Provision
G.Rce
.(a)
N
ores
.Signature
Lsns
-Pro
2516.
S
ep
teren
eso
m
ber
25,
1950]
another
in
such
manner
as
to
the
transferee
Sec.
53.
When
person
not
deemed
holder
in
due
course.
no
de
n
d
pauthority;
aces
no
ce
mus
be
(d)
ii.
(3)
Relationship
accep
ed
with
Collecting
Bank
at
a
fixed
determinable
future
time,
a
sum
note.
That
Where
he
in
has
a
bill
no
the
knowledge
drawer
and
of
any
drawee
fact
are
which
the
only
outward
and
visible
expression
of
their
meaning,
no
become
nso
a
athe
Where
u
party
Where
men
thereto
a
pin
oparty
he
ace
afor
accep
cond
ocourse;
value.
paymen
or
on
has
here
son
been
spec
s
aoad
ed
ed
udged
nduly
he
a
value.

Where
the
holder
has
aon
lien
the
instrument
)ven
supra
pro
es
Where
he
ho
der
oan
an
b
re
uses
o
A,
he
is
not
instrument;
a
holder
or
due
but
he
may
recover
from
he
drawer
has
no
r(sec.
gh
expec
or
to
pay
negotiable
instrument
at
an
signature
dNo.
of
any
may
be
made
by
demand,
or
at
sight,
or
presentation;
orcheck
L-2861.
26,
1951]
Under
the
Negotiable
Instruments
Law
9is
[d],
aearlier
the
holder
thereof.
If
payable
to
bearer,
it
-[G.R.
Where
an
instrument
payable
on
demand
negotiated
g
ven
w
n
he
oFebruary
ow
ng
mes
Sec
22
EhWhere
ec
oto
ndorsemen
by
nor
or
corpora
onor
Wan
o
De
very
o
Comp
e
eagent
same
would
impair
or
where
validity
the
drawee
of
the
is
instrument
a
fictitious
certain
in
money
to
order
to
bearer.
Where
a
other
words
are
be
added
to
itg
or
substituted
in
its
stead.
Article
1341.
A
mere
expression
of
an
opinion
does
not
afrom
ha
sthe
o
say
an
accep
ance
o
pay
ns
and
s
here
presen
ed
bankrup
or
an
nso
ven
or
has
made
an
ass
gnmen
or
arising
either
contract
or
by
implication
of
law,
he
rece
ve
pro
es
he
oses
h
sissue,
rrequire
gh
o
(b
A,
ifdelivery;
the
latter
has
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valid
excuse
for
refusing
payment.
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Constitutes
the
indorsee
the
of
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c)
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h
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e
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al
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r
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De
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ipaymen
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Every
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tperson
o
rifrumen
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and
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eo
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s
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ngu
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shed
honor
authorized
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of
appointment
is
On
the
basis
the
facts
above
related
there
are
several
drawn
(b)
payable
In
which
to
the
no
order
time
of
for
"cash"
payment
a
is
check
expressed.
payable
to
by
payable
to
order,
it
is
negotiated
by
the
Read
on
an
unreasonable
length
of
time
after
its
the
date
or
make
it
possible
for
the
holder
to
Sec
The
a
143
ndorsemen
When
sen
by
presen
or
ma
ass
men
gnmen
mus
or
be
o
accep
depos
he
ns
ance
ed
n
mus
he
by
pos
be
a
note
is
to
the
makers
own
order,
ithe
is
person
render
or
person
itdrawn
not
having
capacity
to
contract,
The
duty
of
the
court
inace
such
case
to
not
what
signify
fraud,
unless
made
by
anis
expert
and
the
ns
rumen
par
on
yvalueless.
oshall
he
amoun
or
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ch
he
bother
s
Where
no
p
o
paymen
sascertain,
spec
ed
bu
he
he
bene
b
o
cred
ors
be
ore
he
b
ma
ures
is
deemed
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holder
for
value
to
the
extent
of
his
lien.
recourse
aga
ns
any
par
y
who
wou
d
have
been
)
only
disadvantage
indorser;
of
or
holder
who
is
not
a
holder
in
due
Read:
condition
(a)
presen
also
men
be
or
demandable,
paymen
without
he
ns
rumen
[indorsement
G
.
R
.
N
o
.
111190.
June
27,
1995]
necessary
for
this
purpose;
and
the
authority
of
the
bearer,
reasons
and
why
the
the
bank
complaint
may
pay
of
Montinola
it
to
the
cannot
person
prosper.
presenting
The
of
the
holder
and
completed
by
delivery.
holder
is
not
deemed
a
holder
in
course.
22.
W
hPresen
C
on
sptan
ibe
tut
es
Val
uance
edue
6
Re
aat
onsh
ween
Payee
Drawer
made
o
ce
men
nnegotiation
me
or
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o go
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ma
mus
he
be
day
made
owthe
ng
corpora
on
or
by
nthe
an
passes
he
proper
yo at
here
nit
PNB
vs
CA
256
SCRA
491
Apr
25
1996
not
complete
until
indorsed
by
him.
the
holder
may
treat
the
instrument
atpaymen
his
option
payment
of
the
negotiable
instrument
an
But
when
the
is
by
delivery
only,
the
parties
have
secretly
intended
as
party
has
relied
on
former's
special
knowledge.
drawn
address
othe
he
person
o
make
s
ho
der
may
cause
he
b
o
be
pro
es
ed
or
be
er
d
scharged
by
such
paymen
course
isan
that
Vests
the
the
negotiable
title
in
the
instrument
indorsee
is
subject
incoun
trust
to
for
defense
oraany
to
(c)
prejudice
to
the
effects
of
the
happening
of
the
Where
he
drawer
has
ermanded
[U]nder
agent
may
Sec.
be
16
established
of
the
Negotiable
as
in
other
Instruments
cases
of
Law,
agency.
every
insertion
of
the
words
"Agent,
Phil.
National
Bank"
which
for
payment
e
without
drawer's
indorsement.
Where
instrument
is
issued,
accepted,
or
indorsed
Jai-Alai
vs
he
day
BPI,
o
66
d
shonor
SCRA
or
29,
Aug.
here
be
6,
no
1975
ma
a
un
ess
excused
no
requ
red
no
w
a
hs
and
Where
ng
he
ha
b
s
rom
payab
wan
e
a
er
o
s
capac
gh
or
y
n
he
Drawee
either
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bill
of
exchange
or
as
promissory
note.
warranty
extends
in
favor
no
holder
other
than
they
contradistinguished
from
what
their
words
express,
but1951
paymen
That
kind
of
money
that
the
law
(NCC)
Mont
Loca
aor
vs
ha
PNB
sas
o
88
say
Ph
an
accep
178
ance
Feb
o26
pay
on
g
ven
n
he
ns
rumen
and
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here
earlier
date.
Sec
De
very
when
e
ec
ua
when
presumed
secur
c16
yno
aga
ns
he
drawer
and
ndorsers
as
if itPresumption
were
the
nonnegotiable.
of
some
other
persons.
event.
contract
on
ause
negotiable
instrument
is
converts
the
bank
from
aregards
mere
drawee
to
ahereon
drawer
and
when
overdue,
it
is,
the
person
so
conven
en
hour
on
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day
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he
nex
ma
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o
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n
an
may
where
ncur
presen
no
men
ab
yincomplete
or
accep
ance
3.
of
Due
Course
Holding
st A
Sec.
25.
Value,
what
constitutes.

Value
is
any
immediate
transferee.
what
is
the
meaning
of
the
words
they
have
used.
3.
s
si
gnm
e
n
t
a
n
d
Ne
got
ia
t
i
o
n
6.
Accommodation
Parties
a
a
par
cu
ar
p
ace
presen
ed
Every
con
rac
on
a
nego
ab
e
ns
rumen
s
ncomp
e
e
compels
acertain
creditor
toagent,
accept
Sec
177
R
gh
s
payer
honor
The
payer
or
But
the
mere
of
words
implying
power
to
p
aabsence
rtoies
tnit,
o
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exxx
got
ia
bhe
leas
revocable
until
delivery
ofperson
the
instrument
for
the
of
1
Class
ornecessary
on
or
before
date
Sec.
20. i.
Liability
of
signing
and
therefore
changes
its
liability,
constitutes
apurpose
accepting,
indorsing
payable
on
demand.
herea
er
s
order
o
ma
ur
ymaterial
o
he
consideration
sufficient
to
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contract.
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What
parties
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nd Dis
e)
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rWhere
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ee
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st
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ebe
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igno
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8.
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ot
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is
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ngu
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ed
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ed
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cthe
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e
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ontof
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ngu
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ia
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A
s
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ond
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ra bdelivery
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Read:
negotiate
does
not
make
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indorsement
giving
effect
thereto.
As
understood,
so
forth.
instrument
or
person
payment
of
debt
when
tendered
alteration
the
instrument
without
the
consent
of
the
parties
Sec
115
no
need
no
be
ven
o
ndorser

Read:
g
o
herw
se
han
hrough
he
pos
o
ce
p
r
om
iss
o
r
y
not
e
h
(1)
where
A
era
made
o
e
ns
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a
b
ns
rumen
or
2
Class
antecedent
or
pre-existing
debt
constitutes
value;
and
is
The
provisions
of
(c)
of
this
section
not
said.
Sec.
59.
Who
is
deemed
holder
in
due
course.
- do
Every
A
trice
u
cc.
m
M
n
a
en
n
g
ona
ehsubdivision
m
eec
cance
n
texpress
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.me
Cindicating
aou
to
fot105836
e
als
address
The
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son
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ven
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or
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purpose
eto
o
e
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o
As
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ween
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e
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tsignature
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eryha
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ai
n
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ar
ad
nc
den
aon
o
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dparty.
shonor
s
adds
his
words
that
he
signs
for
means
Sec.
29.
the
Acceptor
A
Liability
rtransfer
tg
ishonor
cvexpenses
la
ew
1181.
of
In
accommodation
possession
conditional
of
obligations,
the
instrument
-o
the
An
by
paymen
liable
and
so
discharges
the
instrument.
(Section
No
osee
sthe
requ
red
g
ven
osha
an
hen
nvs
he
no
ce
wou
din
have
Spouses
CA
GR
bthereon,
Where
he
bof
s be
pu
abe
es
ha
by
the
debtor
the
right
amount
Sec.53,
IV
(2)
page
14
Atrium
Management
Corp.
vs
CA,
GR
cr
me
(a)
renders
whole
debt
due
and
deemed
such
whether
the
instrument
is
payable
on
apply
to
a
person
negotiating
public
or
corporation
holder
is
deemed
prima
facie
to
a
holder
due
presen
drawees
ed
bu
a
no
he
o
usua
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p
ace
o
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ness
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es
and
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remo
e
par
y
o
her
han
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2.
E
ff
ect
o
f
E
s
topp
el
en
ed
o
rece
ve
bo
h
he
b
se
and
he
pro
es
[G
or
.R.
on
N
behalf
o
.
1
0
94
of
9
1.
a
F
principal
e
b
r
u
a
r
y
or
28,
in
2
0
a
01]
representative
the
accommodation
maker
acquisition
or
drawer
party
with
of
intent
is
rights,
one
to
transfer
who
as
has
title
well
to
signed
the
as
payee
the
the
124
of
the
Negotiable
Bills
Instruments
Law).
The
Notes
check
was
not
ndorser
n
e
her
o
he
o
ow
ng
cases
been
rece
ved
n
due
course
o
ma
had
Sec.
37.
Effect
of
restrictive
indorsement;
rights
of
be
presen
or
accep
ance
or
Assignment
Negotiation
March
7
1994
securities
other
than
bills
and
notes.
demand
or
at
a
future
time.
Sec
Pro
es
where
made
A
b make
mus
be
es
ed
That
which
ameaning
debtor
may
compel
a
course;
but
when
it oed
is
shown
that
title
oforder
any
person
res
109491,
Feb.
28,
2001
dence
he
person
othe
paymen
demandable
upon
failure
to
comply
with
ho
der
n
due
course
he
very
nthose
be
156
Maker/promissor
were
party
who
promises
capacity,
he
is
not
liable
on
the
instrument
ifpro
he
and
instrument
recognize
extinguishment
as
him
maker,
as
holder
drawer,
or
thereofI
loss
of
or
indorser,
already
In
the
instant
case,
the
checks
crossed
checks
and
legally
negotiated
within
the
of
the
Negotiable
Unconditional
order
promise
a
When
he
drawee
sUnconditional
aacceptor,
c
person
or
been
depos
ntreated
he
o
ce
w
h
nowas
he
indorsee.
130.
When
-Liability
Ae
restrictive
bill
may
be
indorsement
as
promissory
confers
upon
note.
the
ru
n
case
oacceptor.
un
nde
en
ona
a
on
Sec.
Where
he
of
bthe
s
drawn
payab
-pos
The
eous
ecance
acceptor,
sewhere
han
by
c62.
Refers
generally
to
ordinary
Refers
generally
to
(a)
no
ce
o
d
shonor
a
he
p172
ace
where
sed
d
shonored
excep
ha
when
who
has
negotiated
the
instrument
was
defective,
the
Sec.
83.
When
instrument
dishonored
by
non-payment.
Gempesaw
vs
CA
n
any
o
her
case
presen
ed
o
he
person
e
Sec
ec
142
ua
R
mus
gh
s
be
o
made
par
es
e
her
as
by
o
qua
or
under
ed
accep
he
au
ance
hor
d
Ar
c
e
Fa
s
ca
on
by
pr
va
e
nd
v
dua
and
use
o
creditor
to
accept
Crisologo-Jose
duly
authorized;
but
vs
CA,
the
GR
mere
80599,
addition
Sept.
of
15,
words
without
receiving
acquired,
value
shall
therefor,
depend
upon
and
for
the
the
happening
purpose
of
certain
conditions
(acc
e
le
r
a
t
i
o
nitoay-.
specifically
indorsed
for
deposit
to
payee's
account
only.
to
pay.
Instruments
Law.
Section
ofand
the
same
law
provides
that
person
no
hav
ng
capac
y
o
con
rac
and
spec
ed
n32
he
as
subd
she
on
indorsee
Involves
the
3on
parties
right:
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Involves
2vbus
parties
(maker,
Where
in
ame
bill
the
drawer
drawee
are
the
same
a
he
res
dence
or
p
ace
o
ness
o
he
accepting
the
instrument,
engages
that
will
pay
contract
negotiable
instruments
B
16
anc
Accep
o
d
e
ance
Oro
S
or
a
v
Honor
ing
s
an
vs
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Paymen
M
o
rt
gag
e
or
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Honor
a
n
k
v
b
drawn
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e
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he
p
ace
o
bus
ness
or
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dence
burden
is
the
holder
to
prove
that
he
or
some
person
instrument
is
dishonored
by
non-payment
when:
make
(b)
paymen
pro
es
wherever
he
can
be
ound
or
o
he
par
y
mak
ng
draw
ng
accep
ng
ndors
ng
as
The
ho
der
may
re
use
o
ake
a
qua
ed
accep
ance
a
s
ed
documen
s
The
pena
y
o
pr
s
on
describing
him
as
an
agent,
or
as
aand
representative
Hongkong
lending
his
name
and
to
Shangha
some
other
Bank
person.
vsis
Such
Cata
a an
person
From
theJr.
iii.
the
beginning,
event
Indorsers
which
Atrium
constitutes
ofnaware
was
Bearer
aware
Instruments
the
of
the
condition.
fact
that
the
Baas
v.
Court
of
Appeals
"the
must
behis
an
indorsement
of
the
entire
1989
he
ndorser
was
ofilling
ha
ac
abe
he
drawee,
payee)
payee)
person
or
where
the
drawee
isTransferee
a
fictitious
person
orme
a
to
receive
payment
of
the
cla
u
se);
according
to
the
tenor
of
acceptance
admits:
indorsement
Payee
to
whom
payment
made
Transferee
isank
an
assignee
is
aas
Sec
Cance
on
en
ona
burden
o
proo
o
some
person
o
her
han
he
drawee
has
been
E
under
qu
t123
ab
whom
lmay
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B
ied
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a
nmed
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ian
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v2000]
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ithe
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ito
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ace
oholder
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ness
and
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ed
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ance
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case
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and
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case
de
very
may
be
character,
correcc
ona
without
n
saclaims
um
and
max
mum
per
ods
does
and
not
a
SEC.
52.
Legal
Tender
Power.
All
notes
and
checks
were
all
for
deposit
only
to
payee's
account,
meaning
is
on
the
instrument
to
aprincipal,
holder
for
value,
[G.R.
102967.
February
10,
instrument.
An
indorsement
which
purports
to
transfer
to
the
he
ndorsed
he
ns
rumen
person
18
not
2004
having
capacity
to
contract,
the
holder
may
(Sec.
40,
65,
67,
NIL)
Drawer
(b)
only
to
secondarily
bring
any
action
Maker
thereon
is
primary
that
the
liable
Sec
n
no
105
o
her
When
case
sender
s
presen
deemed
men
o
have
or
accep
g
ven
ance
due
(a)
The
existence
of
the
drawer,
the
genuineness
instrument;
An
assignee
is
subject
to
A
holder
in
due
course
is
(b)
maker
shall
supply
additional
collateral
d
shonored
by
nonaccep
ance
mus
be
pro
es
ed
or
A
cance
a
on
made
un
n
en
ona
y
or
under
a
m
s
ake
[Oct
G
.
R
.
N
o
.
74917.
Janua
r
y
20,
1988]
due
course.
But
the
last-mentioned
rule
does
not
apply
is
refused
or
cannot
be
obtained;
85419.
M
arch
9,
1993]
may
rea
he
b
asthe
dAtrium
shonored
by
non
accep
ance
res
dence
shown
have
been
cond
ona
or
a
spec
aa
exempt
him
from
personal
ne
obthe
no
more
han
P5
000
pesos
sha
be
mposed
coins
issued
by
the
Bangko
Sentral
shall
be
E.T.
Henry.
Clearly,
then,
could
not
be
considered
17
notwithstanding
Paymen
by
such
Person
holder,
Pr
at
mar
the
y
time
L
ab
of
e
taking
vs
the
indorsee
In
the
sale
aoor
part
of
only
mortgaged
of
amount
property
payable,
the
amount
.or
.as
.b
(as
of
in
this
Where
he
ndorser
s
he
person
o
whom
he
treat
instrument
at
his
option
either
a
bill
of
could
(5)
or
bring;
accep
or
or
honor
re
eree
n
necessary
liable
of
n
his
order
signature,
o
render
and
any
his
par
capacity
y
o
he
and
authority
ab
e
no
ce
Where
no
ce
o
d
shonor
s
du
y
addressed
and
2.
p
e
r
i
o
d
(
Civ
i
l
C
od
e
)
both
real
and
personal
subject
only
to
real
non
aand
he
poyis
ace
where
sof
be
or
w paymen
he
au
hor
on
he
ho
der
sexpressed
nopera
bu
in
favor
of
athe
party
who
became
bound
on
the
instrument
A
commercial
bank
cannot
escape
the
liability
of drawer
endorser
c.hou
Non-Delivery
of
an
Incomplete
Where
(b)
Presentment
qua
ed
accep
excused
ance
s
and
aken
the
he
instrument
is
[I]nsofar
as
other
respondents
are
concerned,
petitioner
purpose
on
in
ycourse.
case
no
of
depreciation
he
purpose
o
rans
the
value
err
ng
he
of
liability.
ii.
ki
s
for
got
ia
b
le
p
raccommodation
om
ian
ss
ove
ryoand
holder
upon
ina
due
fully
guaranteed
by
the
Government
of
the
instrument,
knew
him
be
only
an
mortgage,
whether
the
property
is
merely
taken
subject
to
case)
does
operate
as
ae
negotiation
ofindorsee,
the
instrument."
ns
rumen
sor
presen
ed
or
paymen
exchange
or
transfer
as
and
promissory
his
rights
note.
as
such
where
to
draw
the
instrument;
and
Paymen
or
Honor
depos
ed
n
he
pos
oto
ce
he
sender
sbe
deemed
oGenerally
2not
presentments:
Only
1
presentment:
for
defenses
defenses
case
o
need
Sec.
40.
Indorsement
of
instrument
payable
to
bearer.
payab
where
ean
and
ns
no
rumen
ur
presen
any
s
gna
men
ure
or
hereon
paymen
appears
oess
or
2her
of
prior
a (c)
to
check
acquisition
and
which
of
may
such
turn
defective
out
to
title.
a
forged
ndorsers
are
d
scharged
rom
ab
yand
on
he
brumen
un
Bank
has
overdue
no
privity
and
with
unpaid.
them.
Since
petitioner
Bank
never
7
When
Requ
red
o
be
Presen
ed
or
proper
ythe
n
he
ns
rumen
Bu
where
he
ns
Republic
of
the
Philippines
shall
be
legal
Instrument
1
Any
pr
va
e
nd
v
dua
who
sha
comm
any
os
party.
the
original
deposit,
and
upon
default,
the
mortgage
or
whether
the
mortgage
is
assumed
by
the
Montinola
may
therefore
not
be
regarded
as
an
indorsee.
At
Where
he
ns
rumen
was
made
or
accep
ed
not
e
(b)
the
The
form
existence
ofure
the
indorsement
of
the
payee
authorizes
and
his
him
then
to
h
Presen
men
o
Par
y
Pr
mar
y
L
ab
e
Sec
have
144
c
g
ven
When
due
no
a
ce
no
o
w
presen
hs
and
re
ng
eases
any
m
drawer
scarr
and
age
for
acceptance
and
for
payment
A
r
t
i
c
l
e
1193.
Obligations
for
whose
fulfillment
Where
demand
o
Generally
have
an
been
on
an
instrument,
he
assignee
cance
drawee
ed
payable
s
he
necessary
burden
A
holder
to
bearer,
o
in
proo
due
is
course
es
indorsed
on
may
he
endorsement.
Whenever
any
bank
treats
the
signature
at
the
heyhe
have
express
yfollow
or
mp
ed
au
hor
zed
ho
der
received
the
checks
on
which
itdue
based
its
action
against
said
n
hands
o
as
ho
der
nprocuration;
course
a
va
dhe
de
Sec.
21.
Signature
by
effect
of.
-very
A
However,
ithe
does
not
as
aenumera
legal
proposition
that
simply
tender
into
the
Philippines
for
all
both
a(Sec
ca
ons
ed
ndebts,
he
nex
Paymen
185
N
purchaser,
shall
be
included
as
aL)
part
of
the
"selling
price"
most
he
be
regarded
as
aybeen
mere
assignee
of
the
the
note
shall
become
due;
capacity
or
hchecks
seges
accommoda
indorse.
on
do
so.
payment
ndorser
n
he
ma
s
as
here
o
herw
prov
ded
he
amay
day
certain
has
fixed,
shall
be
par
merely
yB
who
a
into
shoes
of
he
cance
aand
on
was
specially,
it
may
nevertheless
acquire
be
further
a
better
negotiated
right
than
by
back
of
the
endorsements
thus
logically
o
ake
a
qua
ed
accep
or
subsequen
ydoes
assen
4.
Om
issi
s
aes
nas
dha
P
reance
o
vnthem
isi
on
sas
Tse
hin
atcase,
Do
N
omade
them
respondents,
iton
never
owned
(the
checks)
nor
did
18
ssteps
naExcep
Se
hereo
by
par
pr
or
o
h
m
so
as
o
make
signature
by"procuration"
operates
notice
that
the
because
petitioner
Atrium
was
not
a
holder
due
course
for
public
preced
and
ng
ar
private:
c
n
Provided,
any
pub
however,
c
or
o
That,
cthe
ait
(a)
pro
es
or
non-paymen
Sec.
85.
Time
of
maturity.
Every
negotiable
instrument
4.
Rights
of
Holders
in
Due
Course
P30,000
but
the
amount
sold
to
of
him
the
by
mortgage,
Ramos,
to
in
the
which
extent
it
as
such
not
Sec.
15.
Incomplete
instrument
not
delivered.
Where
an
But
all
subsequent
indorsees
acquire
only
the
title
of
8
E
ec
o
Dea
h
o
Drawer
ho
der
o
a
b
wh
ch
s
requ
red
by
he
nex
preced
ng
7.
Shelter
contains
provisions
for
acceleration
un
the
ne
assignor
en
ona
demandable
yRule
or
under
only
a
when
san
ake
that
or
w
day
hou
comes.
hor
ythe
of
amaker
prior
party
(c)
Sec
60
L
ab
ygot
o
maker
The
orece
a au
ab
e
delivery;
but
the
person
indorsing
specially
is
liable
as
guarantees
the
as
such
there
can
be
no
doubt
said
here
oftaken
When
he
drawer
or
ndorser
ves
no
ce
CERTIFICATE
OF
DEPOSIT

anego
form
of
acquire
any
therein.
Thus,
anything
which
the
ab
o
h
m
sesame
conc
us
ve
y
presumed
And
where
he
agent
has
but
atime
limited
authority
to
sign,
and
documen
or
e
er
o
exchange
or
any
her
having
the
instruments
in
question
with
notice
that
the
unless
otherwise
by
the
Monetary
Board,
A
fect
Ninterest
ia
b
ili
tm
yfixed
when
pro
es
d
spensed
w
h
is
payable
at
the
fixed
therein
without
grace.
When
exceed
the
basis
to
the
vendor
of
the
property
sold,
shall
not
assignee,
he
is
subject
to
all
defenses
available
to
first
incomplete
indorsee
instrument
under
the
restrictive
has
not
been
indorsement.
delivered,
it
will
sec
Sec
on
106
oBill
Depos
be
presen
n
pos
ed
or
o
accep
ce
wha
ance
cons
mus
upay
eoes
her
9
Per
nen
Ph
pp
ne
C
ear
ng
House
Corp
bank
Sec.
indorser
has
127.
considered
to
only
not
such
an
the
assignment
holders
checks
as
negotiable.
make
of
funds
title
in
through
hands
his
ofe
ns
by
mak
ng
engages
ha
he
w
An
assignor
does
not
Aas
general
indorser
o
arumen
qua
ed
accep
ance
he
mus
w
h
n
aed
reasonab
where
holder
deems
himself
respondents
may
have
done
with
respect
to
said
checks
principal
o
is
her
bound
ru
es
only
inupon
case
the
agent
in
so
signing
ns
rumen
s
no
onger
nthe
he
possess
on
oinsecure
a
par
y
9.
Ne
got
ia
b
le
I
n
s
t
r
um
e
nt
s
C
omp
a
r
w
i
t
h
promissory
note
which
is
a
written
k
nd
o
commerc
a
documen
and
same
was
for
deposit
only
to
the
account
of
payee
E.T.
coins
shall
be
legal
tender
in
amounts
not
Sec
178
B
s
n
se
cons
u
e
one
b
Where
a
b
sa
the
day
of
maturity
falls
Sunday
or
a
holiday,
the
drawer
be
considered
Provincial
as
Treasurer
a
part
of
of
Misamis
"initial
payments"
Oriental
and
or
against
of
not,
if58.
completed
and
negotiated
without
Sec
165
Agreemen
o
or
honor
presen
No
ce
s-When
deemed
or
accep
have
ance
been
or
nego
depos
aex
ed
eauthority,
nhe
w
hew
heffect
pos
nThe
14.
Blanks;
when
may
bedefense.
filled.
--or
Where
the
Obligations
with
a accep
resolutory
period
take
Sec.
subject
to
original
Inence
the
hands
accord
ng
o
s
and
adm
sor
he
s
o
he
indorsement.
drawee.
A
bill
of
itself
does
not
operate
an
warrants
the
solvency
ofbe
warrant
the
solvency
of
prior
me
express
h
senor
diotFifty
ssen
o
he
ho
der
be
could
not
have
prejudiced
petitioner
Bank.
Itdenominations
had
no
right
or
acted
within
the
actual
limits
of
his
authority.
ru
es
RA
7653
New
Cen
ra
Bank
Ac
Sec
whose
s
gna
ure
appears
hereon
a
va
daas
Any
person
who
oany
he
damage
o
hand
rd
Henry
that
itse
was
altogether
precluded
from
recovering
on
exceeding
pesos
(P50)
for
(i
n
sec
u
r
y
cla
u
se)
2
d
any
ac
ha
d
scharges
s
mp
e
con
rac
s
drawn
n
aevalidity
each
par
o
he
se
be
ng
numbered
and
instruments
oth
er
acknowledgment
P
a
falling
p
e
r
s
due
or
of
a
becoming
bank
or
its
payable
receipt
on
of
Ramos.
"total
contract
Neither
price,"
can
Montinola
as
those
terms
be
considered
are
used
as
in
a
section
holder
43
in
valid
contract
in
the
hands
of
holder,
as
against
any
Sec.47,
see
III
(9)
page
10
Sec
159
When
pro
es
d
spensed
w
h
Pro
es
s
accep
reasonab
o
ce
or
when
or
depos
me
honor
he
ed
by
a
such
n
s
any
o
accep
do
branch
so
ance
he
pos
drawer
engages
o
ce
and
or
ha
a
n
instrument
is
wanting
in
any
material
particular,
the
The
and
negotiable
character
of
an
at
once,
but
terminate
upon
arrival
of
theCourt
day
payee
and
h
s
hen
capac
oen
ndorse
Apropos
of
any
holder
the
matter
other
of
forgery
than
acould
in
holder
in
due
course,
this
a
assignment
of
the
funds
in
the
prior
parties
ofsuch
the
drawee
deemed
unless
o
have
expressly
assen
ed
here
oendorsements,
interest
in
the
checks
which
have
been
violated
by
nparties
en
ona
de
very
by
hy
m
s176
presumed
un
he
par
yre
or
w
h
he
nCode)
ohands
cause
damage
the
instrument.
The
Negotiable
Law
does
not
of
twenty-five
centavos
and
above,
in
con
a102
n
ng
abox
erence
o
he
oInstruments
her
par
s
he
who
ethe
odo
Sec
No
ce
oan
non
paymen
where
accep
ance
Saturday
are
to
be
presented
for
payment
on
the
next
due
of
the
course
Code,
because
in
sections
section
174
52
and
of
said
of
law
these
defines
regulations,
aand
holder
person
whose
signature
was
placed
thereon
before
(Ar
a
certain
sum
C
vhe
with
ahas
promise
to
pay
he
w
on
due
presen
pay
he
accord
ng
Sec.
69.
Liability
of
agent
or
broker.
-b
Where
a
broker
any
d
ndorsers
spensed
e116
er
are
w
d
h1231
scharged
under
by
any
cthat
rcums
con
ro
ances
oby
he
wh
pos
ch
wou
othat:
ce
in
possession
thereof
has
a
prima
facie
authority
negotiable
certain.
instrument
is
subject
to
the
same
defenses
has
succinctly
emphasized
the
collecting
bank
or
last
available
for
the
payment
thereof,
and
the
drawee
is
not
stipulated
or
insolvency
ismen
instrument
are
NOT
affected
the
fact
said
respondents.
Petitioner
Bank
therefore
no
cause
of
Sec.
con
rary
65.course
Warranty
s
proved
where
negotiation
by
delivery
and
so
sha
n
any
pr
va
e
documen
comm
any
o
provide
that
a
holder
not
in
due
course
can
not
recover
on
amounts
not
exceeding
Twenty
pesos
(P20)
for
he
par
s
cons
u
es
one
b
in
succeeding
due
business
as
a
holder
day
who
except
has
taken
that
the
instruments
instrument
and
re
used
in
this
Where
section.
due
The
term
no
ce
"initial
o
d
payments"
shonor
by
does
non
not
delivery.
he
erms
o
h
s
accep
ance
prov
sha
no
have
or
d
w
h
no
ce
oA
d until
shonor
instrument
De ay
n
no
without
ng
or
depar
men
to
complete
itnon-negotiable.
by
filling
up
the
blanks
And
a
same.
as
it
were
But
aded
holder
who
derives
E
xspense
tifinstrument.
eother
n
si
o
nvagent
Cla
snegotiates
endorser
suffers
the
loss
because
ittherein.
has
duty
to
Sec
62
L
ab
yu
oeorespondents,
accep
or
The
accep
or
by
liable
on
the
bill
unless
and
he
thenthe
same.
known
togenerally
him
S
esb
r
e
o
.has
C
ou
ppeal
san
action
Gempesaw
against
v.
Court
said
Appeals
inaccepts
the
alternative
or
forth.
Every
person
negotiating
an
instrument
by
he
ac
s
ort
afof
sone
ca
on
enumera
ed
he
nex
the
a.
It
is
not
dated;
of
ten
centavos
or
less.
payable
on
demand
may,
at
the
option
the
holder,
be
under
include
accep
certain
ance
amounts
conditions,
received
been
g
by
ven
of
the
no
vendor
ce
isay
that
oin
the
aprescribed
he
subsequen
year
became
sale
the
been
pa
ddenominations
by
he
drawee
and
prov
ded
aof
so
ha
sof
sha
indorsement,
pro
es
ng
s
he
excused
incurs
all
when
the
liabilities
de
sis
caused
by
signature
on
aonsh
blank
paper
delivered
by
the
person
his
title
through
a
holder
in
due
course,
and
who
is
not
a
re
A
day
a
certain
p
o
is
par
understood
es
to
be
that
which
ascertain
the
genuineness
ofwhich
all
prior
endorsements
accep
ng
he
ns
rumen
engages
ha
he
w
pay
Ar
c
e
1231
Ob
ga
ons
are
ex
ngu
shed
An
assignor
is
liable
even
An
indorser
not
liable
[Provision
G
.
R
.
N
o
.
89252.
M
a
y
24,
1993]

BONDS

a
certificate
or
evidence
of
a
c
Accep
ance
requ
s
es
otherwise.
[G.R.
No.
92244.
If
that
at
all,
February
extend
it
is
Sima
9,
the
1993]
Wei,
maturity
the
drawer,
dates.
who
would
An
delivery
or
by
a
qualified
indorsement
warrants:
preced
ng
ar
c
e
Sec
179
R
gh
on
ho
ders
where
dthe
eren
par
s
holder
from
presented
the
before
disposition
for
itce
payment
was
to
overdue.
aof
third
before
When
person
twelve
Montinola
notes
o'clock
received
noon
by
the
on
d
shonor
by
non
paymen
s
no
necessary
un
ess
n are
he
have
b.
been
It
du
does
yof
presen
not
ed
specify
or
paymen
the
value
and
pro
given,
es
ed
or
or
Sec.
16.
Delivery;
when
effectual;
when
presumed.
Fraud
nducemen
Section
Sec
c
rcums
107
Sixty-five
ances
No
beyond
oacceptance.
of
subsequen
this
he
Act,
con
unless
ro
par
o
yof
he
he
me
ho
discloses
ogiven
der
Where
and
no
the
a
making
the
signature
order
that
paper
may
be
himself
a
party
to
any
fraud
or
illegality
affecting
must
necessarily
come,
although
it
may
not
be
8
When
Presen
men
or
Accep
ance
Excused
considering
that
the
act
presenting
the
check
for
payment
Sec.
139.
Kinds
of
-bank
An
acceptance
either
accord
ng
o
he
enor
oin
h
s
accep
ance
and
adm
s
By
paymen
or
per
ormance
1
without
notice
dishonor
unless
there
be
[I]t
isg
important
to
bear
in
mind
that
the
negotiation
of
ahave
b
awarran
cause
es
action
against
her
(a)
That
the
instrument
is
genuine
and
in
all
[T]he
decision
to
hold
the
drawee
liable
is
based
on
law
debt
Any
person
on
which
who
sha
the
issuing
know
ng
company
y
n
or
n
The
disadvantage
of
Atrium
in
not
being
holder
in
due
3ab
nego
a
ed
Where
wo
or
par
saor
o
aroduce
se
are
instrument
is
payable
at
amore
definite
time
ifis
by
its
check,
vendee
Saturday
it
as
was
when
part
long
that
of
overdue.
entire
purchase
And,
is
price
not
Montinola
a
which
holiday.
are
not
due
even
and
a
mean
me
he
ns
rumen
has
been
accep
ed
SEC.
Legal
Character.
Checks
representing
non
and
no
ce
oofday
d
shonor
ggiven
ven
o
h
m
Every
contract
on
athe
negotiable
instrument
is
incomplete
name
of
principal
and
the
fact
that
he
is
acting
only
par
mpu
ypaymen
rece
ehis
ves
ohas
h60.
no
s
de
ce
au
orights
m
sconduc
he
has
neg
a
gence
er
he
converted
into
a
negotiable
instrument
operates
as
a
instrument,
all
the
of
such
former
holder
in
that
known
any
when.
value
had
been
therefor,
to
the
drawee
is
an
assertion
that
the
party
making
the
general
a
or
The
qualified.
ex
s
ence
A
o
general
he
drawer
acceptance
he
genu
assents
neness
By
he
oss
o
he
h
ng
due
2
presentment
and
notice
of
negotiable
instrument
must
be
distinguished
from
co-respondents,
148
ifthe
N
the
L)
allegations
in
the
complaint
are
found
respects
what
it not
purports
to
be;
and
substantial
and
on
mere
equity.
And
although
ev
n
ud
cn
a
proceed
ng
or
o
he
course
is
that
negotiable
instrument
is
subject
to
nego
a
ed
odence
djustice
eren
ho
ders
course
he
ho
der
c(Sec
24-hour
ru
eany
Sec
132
Accep
ance
how
by
and
or
hfor
The
governmental
body
promises
to
pay
the
holder
payable
because
subsequent
section
years.
191
of
Commissions
the
same
law
and
defines
other
holder
selling
demand
deposits
do
not
have
legal
tender
and
revocable
until
delivery
of
the
instrument
the
terms
itin
is
payable
at
a
definite
time
subject
to
as
agent.
rece
When
p
he
o
such
cause
no
o
de
ce
ay
he
ceases
same
odue
me
opera
or
g
eso
v
ng
he
no
bamount.
mus
ce
o
prima
facie
authority
to
fill
itmade
up
as
such
for
any
respect
of
all
parties
prior
to
the
latter.
presentment
has
done
its
duty
to
ascertain
the
genuineness
o
h
s
s
gna
ure
and
h
s
capac
ysuch
and
au
hor
y
without
qualification
to
the
order
of
the
drawer.
A
By
he
condona
on
or
rem
ss
on
o
he
deb
3
dishonor
assignment
or
transfer
of
an
instrument
whether
that
be
c.
It
does
not
specify
the
place
where
it
is
Read:
to
be
true.
That
he
has
a
good
title
to
it;
(b)
the
case
was
brought
before
the
court
not
on
breach
of
damage
o
ano
her
or
who
w
h
he
n
en
o
defenses
as
if
it
were
non-negotiable.
One
defense
is
whose
e
rs
accrues
as
be
ween
such
ho
ders
accep
ance
oat
bthe
sthat
he
s
gn
ca
on
by
he
drawee
o
as
the
payee
or
indorsee
of
a
bill
or
note
and
Montinola
expenses
paid
incurred
by
the
vendor
are
to
be
Sec
117
Ehowever,
ec
o
om
ss
on
o
g
no
ce
o
non
power
and
their
acceptance
in
the
payment
of
purpose
of
giving
effect
thereto.
As
between
immediate
d
bondholders
ron
caor
ad
ru
ethe
aPaymen
specified
or
cash
er
amount
snot
checks
of
interest
an
be
no
eceden
ed
or
pro
par
es
es
ed
w
ha
h
reasonab
he
ho
der
eve
d
has
gence
anot
er
he
In
order,
any
such
instrument
when
extension
option
of
the
holder,
or
to
If
o
the
draw
uncertainty
he
ns
rumen
consists
and
in
whether
the
day
of
the
I
qualified
acceptance
in
express
terms
varies
the
effect
By
he
con
us
on
or
merger
o
he
gh
safrom
o
c)
4endorsements.
previously
dishonored
negotiable
or
non-negotiable.
Only
an
instrument
Governed
by
Articles
1624
Negotiation
is
governed
by
3
Presen
men
or
(c)
That
all
prior
parties
had
capacity
to
contractual
obligations,
courts
are
precluded
cause
such
damage
sha
use
any
oaccep
he
se
absence
or
failure
of
consideration.
drawn
or
the
place
where
itas
is
payable
Great
Eastern
nsurance
vs
Hongkong
and
he
rue
owner
o
he
b
Bu
no
h
ng
nalready
hcontract;
srqualifying
sec
on
h
Sec
s
148
Where
o
he
presen
order
men
oa
he
s
drawer
excused
The
Presen
men
ance
not
deducted
aassen
payee.
or
taken
Neither
into
is
account
he
an
indorsee
in
determining
for
the
amount
stated,
of
debts,
both
public
and
private,
is
at
the
option
accep
ance
An
om
ss
on
oremote
g
ve
no
ce
oand
dconditional,
shonor
by
parties
and
as
regards
party
other
than
a
d
shonor
completed
may
be
enforced
against
any
person
who
for
a
specified
length
of
time
to
repay
The
ex
s
ence
o
he
payee
and
h
s
hen
will
come
or
not,
the
obligation
is
of
the
b
bill
as
drawn.
cred
or
and
deb
or
as
a
negotiable
instrument
under
the
relevant
statute
may
extension
to
a
further
definite
time
at
the
option
to
1635
(on
assignment
of
Negotiable
Instruments
law
Read:
(d)
That
he
has
no
knowledge
of
any
fact
which
applying
to
the
circumstances
ofdelivery,
the
the
laws
pertinent
documen
sng
embraced
ncontract
he
nex
preced
ng
Fossum
v.
Hermanos
mus
a
s
becin
he
n
rwr
gh
ng
o
and
aN
person
sthe
gned
who
by
he
ncase
due
drawee
course
mus
accep
no
orec
accep
ance
sbe
excused
and
aud
b
may
be
rea
ed
as
at
most
he
can
considered
only
as
assignee.
Neither
the
"initial
payments,"
"total
price,"
or
the
of
the
creditor:
Provided,
however,
That
as
non
accep
ance
does
no
pre
ce
he
r
gh
s
o
It
bears
a
seal;
d.
holder
due
course,
the
in
order
to
be
Shangha
Bank
Corp
GR
18657
Aug
23
became
a
party
thereto
prior
to
its
completion,
it
must
6.
I
n
omp
le
t
e
e
got
ia
t
i
o
n
o
f
O
r
d
er
capac
y
o
ndorse
and
it
shall
be
regulated
by
the
rules
of
the
By
compensa
on
5 Thus,
the
loan
on
the
expiration
date.
be
negotiated
either
by
indorsement
thereof
coupled
with
credits
)be
of
the
Civil
Code
Read:
Mes
na
vs
AC
pro
es
where
bme
os
would
impair
the
validity
instrument
or
thereto.
the
fact
that
petitioner's
negligence
was
ar
c
e
or
nC
any
obeen
ng
subd
valready
sfound
ons
of
the
or
acceptor
or
automatically
upon
Sec.83,
see
IV
(2)
page
14
(above)
Philippine
express
ha
Bank
he
drawee
of
Commerce
w
per
hwith
vs
som
prom
Aruego
se
by
any
or
pays
he
par
swhich
presen
ed
ovorego
m
d
by
non
ance
norm
eor
her
oand
he
ocurrent
ow
ng
P
hshonored
ili
pp
imaker
eWhat
B
an
k
ors
faccep
o
m
rithe
c
e
.hof
A
rthe
ueg
o
could
"selling
itNo.
price."
said
The
that
term
he
"initial
took
payments"
in
good
faith.
contemplates
As
at
[G.R.
L-19461.
March
28,
1923]
has
cleared
credited
to
ho
der
n
due
course
subsequen
o
he
ss
on
effectual,
must
be
made
either
by
under
the
a
Concep
be
filled
up
strictly
in
accordance
the
authority
It
designates
a
particular
of
1922
preceding
Sec.
140.
constitutes
abe
general
acceptance.
- her
An
By
on
Ie.
6
n
s
tnrcheck
um
e
nrule
delivery,
by
delivery
alone
where
the
negotiable
orm
oe
no
ce
95
96
N
L)
render
itrtpaid
valueless.
to
the
cause
of
her
loss
does
not
preclude
M
esi
n
v
Inova
m
edrawing,
dof
t(Sec
eact
A
ella
tekind
C
o
u
requivalent
tany
DEBENTURE
aifpp
promissory
note
or
o
hnt
spayment
ar
cSection.
epaymen
sha
pun
shed
by
he
y
oGis
her
means
han
o31,
money
cases
[or
.be
Ra.e
N
oasproximate
.or
L.within
-making,
25836
-he
37.
Jia
a
nua
rcreditor
yaccepting,
1981]
stated,
he
has
not
the
full
amount
of
P90,000
for
least
one
other
in
addition
to
the
initial
payment.
If
after
specified
or
It
well-known
of
law
that
the
original
payee
ofpena
awhich
note
the
account
the
shall
be
of
the
party
or
indorsing,
as
given
and
a
reasonable
time.
But
if
such
acceptance
to
pay
at
a
particular
place
is
a
general
O
her
causes
o
ex
ngu
shmen
o
ob
ga
ons
such
as
instrument
is
in
bearer
form.
A
negotiable
instrument
may,
money
in
which
payment
is
to
be
made.
Qu
r
no
Gonza
ez
Logg
ng
vs
CA
GR
126568
7
But
when
the
negotiation
is
by
delivery
only,
the
from
recovering
damages.
The
reason
why
the
decision
nex
ower
n
degree
RPC
ARTICLE
348.
The
assignor
shall
answer
for
the
legality
Sec
180
L
ab
y
o
ho
der
who
ndorses
wo
or
more
4
When
Presen
men
Excused
No
Requ
red
bond
backed
by
the
general
credit
of
a
160
Pro
es
where
b
s
os
and
so
or
h
When
a
a
Where
he
drawee
s
dead
or
has
absconded
[G
unenforceable
.R.
N
o
.
7
0
for
14
5
lack
.
N
o
v
of
e
mb
consideration
er
1
3,
1
986]
repurchase
Ramos
the
entire
sold
purchase
him
P30,000
price
is
of
to
be
value
paid
of
in
the
a
lump
check.
sum
In
in
the
[U]nder
the
Negotiable
Instruments
Law,
a
bill
of
exchange
is
to
a
delivery
to
the
creditor
of
cash
in
an
Sec.
149.
When
dishonored
by
nonacceptance.
A
bill
is
case
be;
and,
in
such
case,
the
delivery
may
be
10
Cr
mes
nvo
vitbeing
ng
Checks
event.
instrument,
after
completion,
isno
negotiated
to
ato
holder
in
g.
Person
Who
Should
Sign
(Sec.
18,
NIL)
Sec
70
Emay
ec
on
wan
o
demand
on
pr
nc
pa
deb
or
acceptance
unless
expressly
states
that
the
bill
is
to
annu
men
resc
ss
uof
men
oeffect
a
reso
u
ory
Sec.
49.
Transfer
without
indorsement;
of.
-the
Where
however,
instead
negotiated,
also
be
assigned
or
de
ay
g
von
ng
no
(Sec
113
Nho
L)
warranty
extends
in
favor
holder
other
than
the
dealt
on
a
discussion
on
proximate
cause
iscredited
error
3.
w
h
en
pwrong
race
om
ise
par
sscourse,
o20
aWhen
se
dof
eren
persons
Where
he
der
o
Apr
of
the
credit
2003
and
the
capacity
in
which
he
the
instrument
after
transferring
itis
to
holder
in
due
course,
the
or
s
aonon-acceptance:
croyed
ous
person
or
a
person
no
hav
ng
Sec
b
95
os
or
des
no
ce
su
or
cpayment
s
en
Awater.
wr
y
de
en
adue
ned
no
ce
rom
need
he
second
place,
as
was
stated
by
the
trial
court
in
its
decision,
later
year,
there
being
no
during
the
year,
an unconditional
order
in
writing
addressed
by
one
person
to
Petitioner's
allegations
hold
no
Theories
and
amount
equal
to
the
amount
to
his
dishonored
by
corporation
and
usually
not
secured
by
a
shown
to
have
been
conditional,
or
for
amade
special
(Sec
79-82
N
L)
due
itonly
is
valid
and
effectual
for
all
purposes
in
how
made
be
Presen
paid
men
there
or
paymen
and
not
elsewhere.
s
no
necessary
n
order
o
cond
on
and
prescr
p
on
are
governed
e
sewhere
n
the
holder
of
an
instrument
payable
to
his
order
transferred.
The
legal
consequences
of
negotiation
as
N.B.
This
is
different
from
Sec.120(f)
of
NIL.
immediate
transferee.
pointed
out
by
petitioner
as
allegedly
committed
by
the
paper
a
sehands,
again
ndorses
becomes
wo
or
subject
more
in
par
the
sit
payee's
o
d
eren
hands
persons
to
the
same
he
transfer;
but
he
shall
not
answer
for
the
solvency
of
the
capac
y
o
con
rac
by
b
no
person
be
sen
gned
ed
and
o
an
ho
d
nsu
pro
c
en
es
wr
may
en
be
no
made
ce
may
on
be
Montinola
income
may
speculated
not
be
on
returned
the
check
on
and
the
took
installment
a
chance
basis.
on
its
another,
signed
by
the
person
giving
it,
requiring
the
person
examples
advanced
by
petitioner
on
causes
and
effects
of
a
N.B.
if
account.
the
instrument
is
not
dated,
it
will
be
un
c
ond
i
t
i
on
al
(a)
When
it
is
duly
presented
for
acceptance
and
purpose
only,
and
not
for
the
purpose
of
transferring
the
his
and
he
may
enforce
as
if
it
had
been
filled
mortgage
or
lien
on
any
specific
property.
(2)
A
era
on
o
Amoun
n
N
charge
he
person
pr
mar
y
ab
e
on
he
ns
rumen
bu
h
s
Code
transfers
it
for
value
without
indorsing
it,
the
transfer
distinguished
from
assignment
of
a
negotiable
a
Es
a
a
Rev
sed
Pena
Code
Ar
315
Sec.
18.
Liability
of
person
signing
in
trade
or
assumed
respondent
court.
And
in
breaches
of
contract
under
Article
defenses
to
which
it gaacceptance
would
have
been
subject
ifinstrument
the
paper
had
s
ab
e
on
every
such
par
and
every
ndorser
Sec
113
De
ay
n
v
ng
no
ce
how
excused
De
ay
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as
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1)
it
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known
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at
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instrument.
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is
up
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instrument
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of
course,
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issued
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May,
in
money
1942,
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obviously,
not
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may
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issued.
same
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true
where
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instrument
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retransferred
an
agent
of
apply
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person
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signature
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The
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of
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the
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the
is
received
Visayas
during
was
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the
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drawn
the
bank
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When
presentment
for
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all
to
him
so
as
to
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order
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12
No
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D
shonor
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Pro
order
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he
drawer
where
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ren
ghthem
o
to
have
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of
transferor.
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for
assigned
transferred,
an
express
prohibition
the
payee.
securities
may
requ
re
other
ha
than
heybills
accep
and
notes.
bees
on
he
bthe
otherwise
expressly
provided.
one
who
signs
in
aa
Supra.
Law
Vol.
Ior
(2009),
p.50
ho
der
no
mpu
ab
eabsent
o ance
hthe
sBut
de
auwr
mensconduc
or
ac
m
sand
ed
hereby
7
2

year,
purchaser
general
which
cannot
be
aptly
applied
to
case
emergency
notes
and
the
check
was
intended
to
be
liable
tooprinciples
him
and
the
is Act
conclusively
bill
isthat
nothwhether
accepted.
presumed.
And
where
meaning
of
this
though
with:
enderthe
paymen
upon
scoupled
par
Bu
asthe
n
purpose
of
determining
the
transferee
a
against
6
assignment
or
transfer
written
inexcep
the face
ofisthe
the
and
such
he
bhere
as
http://defin
itions.usreques
legal.com/ s re used may rea
instrument.

Notes
No
es By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez

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