Presentment

for Payment Notice of dishonor Presentment for acceptance Protest

When necessary
Sec. 70. Effect of want of demand on Sec. 89. To whom notice of dishonor Sec. 143. When presentment for Sec. 152. In what cases protest
principal debtor. – must be given. – acceptance must be made. – necessary. –
Presentment for payment is Except as herein otherwise provided, Presentment for acceptance must be Where a foreign bill appearing on its
Ø not necessary in order to Ø when a negotiable instrument made: face to be such is dishonored by
charge the person primarily has been dishonored by non- a) Where the bill is nonacceptance,
liable on the instrument; acceptance or non-payment, Ø payable after sight, or Ø it must be duly protested
Ø but if the instrument is, by its o notice of dishonor must be Ø in any other case, where for nonacceptance,
terms, payable at a special given to the drawer and to presentment for Ø by nonacceptance is
place, and he is able and willing each indorser, and any acceptance is necessary in dishonored and where such
to pay it there at maturity, such drawer or indorser to order to fix the maturity of a bill which has not
ability and willingness are whom such notice is not the instrument; or previously been dishonored
equivalent to a tender of given is discharged. b) Where the bill expressly stipulates by nonpayment, it must be
payment upon his part. that it shall be presented for duly protested for
But except as herein otherwise acceptance; or nonpayment.
provided, presentment for payment is Sec. 92. Effect of notice on behalf of c) Where the bill is drawn payable û If it is not so protested, the
Ø necessary in order to charge holder. – elsewhere than drawer and indorsers are
the drawer and indorsers. Where notice is given by or on behalf Ø at the residence or discharged. Where a bill
of the holder, it inures to the benefit Ø place of business of the does not appear on its face
of drawee. to be a foreign bill, protest
1) all subsequent holders and In no other case is presentment for thereof in case of dishonor
2) all prior parties who have a acceptance necessary in order to is unnecessary.
right of recourse against the render any party to the bill liable.
party to whom it is given.
Sec. 144. When failure to present
Sec. 93. Effect where notice is given by releases drawer and indorser. –
party entitled thereto. – Except as herein otherwise provided,
Where notice is given by or on behalf the holder of a bill which is required by
of a party entitled to give notice, it the next preceding section to be
inures to the benefit of presented for acceptance must either
Ø the holder and Ø present it for acceptance or
Ø all parties subsequent to the Ø negotiate it within a
party to whom notice is given. reasonable time.
If he fails to do so, the drawer and all
indorsers are discharged.

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 Formalities
Sec. 72. What constitutes a sufficient Sec. 95. When notice sufficient. – Sec. 145. Presentment; how made. – Sec. 153. Protest; how made. –
presentment. – Ø A written notice need not be Presentment for acceptance must be The protest must be annexed to the
Presentment for payment, to be signed and made bill or must contain a copy thereof,
sufficient, must be made: Ø an insufficient written notice Ø by or on behalf of the holder and must be under the hand and
a) By the holder, or by some may be supplemented and (No need to be authorized) seal of the notary making it and
person authorized to receive validated by verbal Ø at a reasonable hour, must specify:
payment on his behalf; (BY communication. Ø on a business day and a) The time and place of
WHOM) Ø A misdescription of the Ø before the bill is overdue, presentment;
b) At a reasonable hour on a instrument does not vitiate Ø to the drawee or some person b) The fact that presentment was
business day; (WHEN) the notice authorized to accept or refuse made and the manner thereof;
c) At a proper place as herein û unless the party to whom acceptance on his behalf; and c) The cause or reason for
defined; (WHERE) the notice is given is in protesting the bill;
d) To the person primarily liable fact misled thereby. d) The demand made and the
on the instrument, or answer given, if any, or the fact
o if he is absent or Sec. 96. Form of notice. – that the drawee or acceptor
inaccessible, to any The notice could not be found.
person found at the Ø may be in writing or merely
place where the oral and
presentment is made. Ø may be given in any terms
(TO WHOM) which sufficiently identify the
instrument,
and
Ø indicate that it has been
dishonored by non-
acceptance or non-payment.
Ø It may in all cases be given by
delivering it personally or
through the mails.

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Who
Sec. 76. Presentment where principal Sec. 98. Notice where party is dead. – Sec 145. Where the drawee is dead,
debtor is dead. – When any party is dead and presentment may be made to his
Where the person primarily liable on 1) his death is known to the personal representative; (merely
the instrument is dead and no place of party giving notice, permissive)
payment is specified, presentment for 2) the notice must be given to a
payment must be made personal representative, if
Ø to his personal representative, there be one, and
if such there be, and 3) if with reasonable diligence,
Ø if, with the exercise of he can be found.
reasonable diligence, he can be û If there be no personal
found. representative, notice
may be sent to the
o last residence or
o last place of business
of the deceased.

Sec. 77. Presentment to persons liable Sec. 99. Notice to partners. –
as partners. – Where the parties to be notified are
Where the persons primarily liable on partners,
the instrument are liable as partners Ø notice to any one partner is
and no place of payment is specified, notice to the firm,
Ø presentment for payment may o even though there
be made to any one of them, has been a
o even though there has dissolution.
been a dissolution of
the firm.

Sec. 78. Presentment to joint debtors. – Sec. 100. Notice to persons jointly Sec 145. Where a bill is addressed to
Where there are liable. – two or more drawees who are not
Ø several persons, not partners, Notice to joint persons who are not partners, presentment must be made
primarily liable on the partners to them all
instrument and Ø must be given to each of them Ø unless one has authority to
Ø no place of payment is unless one of them has accept or refuse
specified, authority to receive such acceptance for all, in
Ø presentment must be made to notice for the others. which case presentment
them all. may be made to him only;

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 Sec. 101. Notice to bankrupt. – Sec 145. Where the drawee Sec. 158. Protest before maturity
Where a party has been Ø has been adjudged a where acceptor insolvent. –
1) adjudged a bankrupt or an bankrupt or an insolvent Where the acceptor has been
insolvent, or or adjudged a bankrupt or an insolvent
2) has made an assignment for Ø has made an assignment or has made an assignment for the
the benefit of creditors, for the benefit of benefit of creditors before the bill
notice may be given either to the party creditors, matures, the holder may cause the
himself or to his trustee or assignee. presentment may be made to him bill to be protested for better
or to his trustee or assignee. security against the drawer and
indorsers.

Sec. 90. By whom given. – Sec. 154. Protest, by whom made. –
The notice may be given Protest may be made by:
i. by or on behalf of the a) A notary public; or
holder, or b) By any respectable resident of
ii. by or on behalf of any the place where the bill is
party to the instrument dishonored, in the presence of
a. who might be two or more credible witnesses.
compelled to pay
it to the holder,
and
b. who, upon taking
it up, would have
a right to
reimbursement
from the party to
whom the notice
is given.

Sec. 91. Notice given by agent. –
Notice of dishonor may be given by
any agent
Ø either in his own name or
Ø in the name of any party
entitled to given notice,
§ whether that party be his
principal or not.

Sec. 94. When agent may give notice. –

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 Where the instrument has been
dishonored in the hands of an agent,
1) he may either himself give
notice to the parties liable
thereon, or
2) he may give notice to his
principal.
§ If he gives notice to his
principal, he must do so
within the same time as
if he were the holder,
and
§ the principal, upon the
receipt of such notice,
has himself the same
time for giving notice as
if the agent had been an
independent holder.
Sec. 97. To whom notice may be
given. –
Notice of dishonor may be given either
1) to the party himself or
2) to his agent in that behalf.


Where
Sec. 73. Place of presentment. – Sec. 108. Where notice must be sent. – Sec. 156. Protest; where made. –
Presentment for payment is made at Where a party has added an address A bill must be protested at the place
the proper place: to his signature, notice of dishonor where it is dishonored, except that
a) Where a place of payment is must be sent to that address; but if he when a bill drawn payable at the
specified in the instrument and has not given such address, then the place of business or residence of
it is there presented; notice must be sent as follows: some person other than the drawee
b) Where no place of payment is a) Either to the post-office nearest to has been dishonored by
specified but his place of residence or to the nonacceptance, it must be
o the address of the post-office where he is protested for non-payment at the
person to make accustomed to receive his letters; place where it is expressed to be
payment is given in the or payable, and no further
instrument and it is b) If he lives in one place and has his presentment for payment to, or
there presented; place of business in another, demand on, the drawee is
necessary.

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 c) Where no place of payment is notice may be sent to either place;
specified and no address is or
given and the instrument is c) If he is sojourning in another
presented place, notice may be sent to the
o at the usual place of place where he is so sojourning.
business or residence But where the notice is actually
of the person to make received by the party within the time
payment; specified in this Act, it will be
d) In any other case if presented sufficient, though not sent in
to the person to make payment accordance with the requirement of
o wherever he can be this section.
found, or
o if presented at his last
known place of
business or residence.
Sec. 74. Instrument must be exhibited. –
The instrument must be exhibited
Ø to the person from whom
payment is demanded, and
Ø when it is paid, must be
delivered up to the party
paying it.





When
Sec. 71. Presentment where instrument Sec. 102. Time within which notice Sec. 146. On what days presentment Sec. 155. Protest; when to be
is not payable on demand and where must be given. – may be made. – made. –
payable on demand. – Notice may be given as soon as the A bill may be presented for acceptance When a bill is protested, such
Where the instrument is not payable on instrument is dishonored and, on any day on which negotiable protest must be made on the day of
demand, Ø unless delay is excused as instruments may be presented for its dishonor unless delay is excused
Ø presentment must be made on hereinafter provided, must be payment under the provisions of as herein provided. When a bill has
the day it falls due. given within the time fixed by Sections 72 and 85 of this Act. been duly noted, the protest may be
Where it is payable on demand, this Act. When Saturday is not otherwise a subsequently extended as of the
Ø presentment must be made holiday, presentment for acceptance date of the noting.
§ within a reasonable may be made before 12 o'clock noon
time after its issue, on that day.

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 § except that in the case Sec. 103. Where parties reside in same
of a bill of exchange, place. –
presentment for Where the person giving and the
payment will be person to receive notice reside in the
sufficient if made same place, notice must be given
within a reasonable within the following times:
time after the last a) If given at the place of business of
negotiation the person to receive notice,
thereof. (The time Ø it must be given before the
from the issuance up close of business hours on the
to the last negotiation day following.
is not considered.) b) If given at his residence,
Ø it must be given before the
Sec. 85. Time of maturity. – usual hours of rest on the day
Ø Every negotiable instrument is following.
payable at the time fixed c) If sent by mail,
therein without grace. Ø it must be deposited in the
Ø When the day of maturity falls post office in time to reach
upon Sunday or a holiday, him in usual course on the day
o the instruments is payable following.
on the next succeeding
business day. Sec. 104. Where parties reside in
Ø Instruments falling due or different places. –
becoming payable on Saturday Where the person giving and the
o are to be presented for person to receive notice reside in
payment on the next different places, the notice must be
succeeding business day given within the following times:
§ except that a) If sent by mail,
instruments payable Ø it must be deposited in the
on demand may, at the post office in time to go by
option of the holder, mail the day following the day
be presented for of dishonor, or
payment before 12 Ø if there be no mail at a
noon on Saturday convenient hour on last day,
when that entire day is by the next mail thereafter.
not a holiday. b) If given otherwise than through
the post office, then
Sec. 86. Time; how computed. – Ø within the time that
When the instrument is payable notice would have been
Ø at a fixed period after date, received in due course of

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 Ø after sight, or a mail, if it had been
Ø After that happening of a deposited in the post
specified event, office within the time
the time of payment is determined by specified in the last
excluding the day from which the time subdivision.
is to begin to run, and by including the Sec. 107. Notice to subsequent party;
date of payment. time of. –
Where a party receives notice of
dishonor,
Ø he has, after the receipt
of such notice, the same
time for giving notice to
antecedent parties that
the holder has after the
dishonor.
Where such presentment, notice or protest is excused
. Sec. 82. When presentment for Sec. 112. When notice is dispensed Sec. 148. Where presentment is Sec. 159. When protest dispensed
payment is excused. – with. – excused. – with. –
Presentment for payment is excused: Notice of dishonor is dispensed with Presentment for acceptance is excused Protest is dispensed with by any
a) Where, after the exercise of when, and a bill may be treated as dishonored circumstances which would
reasonable diligence, Ø after the exercise of by non-acceptance in either of the dispense with notice of dishonor.
presentment, as required by reasonable diligence, it following cases:
this Act, cannot be made; cannot be given to or does not a) Where the drawee
b) Where the drawee is a fictitious reach the parties sought to be Ø is dead, or
person; charged. Ø has absconded, or
c) By waiver of presentment, Ø is a fictitious person or a
express or implied. Ø person not having capacity
to contract by bill.
b) Where, after the exercise of
reasonable diligence, presentment
cannot be made.
c) Where, although presentment has
been irregular, acceptance has
been refused on some other
ground.

Sec. 81. When delay in making Sec. 113. Delay in giving notice; how Sec 159. Delay in noting or
presentment is excused. – Delay in excused. – protesting is excused when delay is
making presentment for payment is Delay in giving notice of dishonor is caused
excused when the delay is caused excused when the delay is caused

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 Ø by circumstances beyond the Ø by circumstances beyond the Ø by circumstances beyond
control of the holder and control of the holder and the control of the holder
Ø not imputable to his default, Ø not imputable to his default, and
misconduct, or negligence. misconduct, or negligence. Ø not imputable to his
When the cause of delay ceases to When the cause of delay ceases to default, misconduct, or
operate, presentment must be made operate, notice must be given with negligence.
with reasonable diligence reasonable diligence. When the cause of delay ceases to
operate, the bill must be noted or
protested with reasonable
diligence.
Sec. 79. When presentment not Sec. 114. When notice need not be
required to charge the drawer. – given to drawer. –
Presentment for payment is not Notice of dishonor is not required to
required in order to charge the drawer be given to the drawer in either of the
Ø where he has no right to expect following cases:
or require that the drawee or a) Where the drawer and
acceptor will pay the drawee are the same person;
instrument. b) When the drawee is fictitious
person or a person not having
capacity to contract;
c) When the drawer is the
person to whom the
instrument is presented for
payment;
d) Where the drawer has no
right to expect or require that
the drawee or acceptor will
honor the instrument;
e) Where the drawer has
countermanded payment.
Sec. 80. When presentment not Sec. 115. When notice need not be Sec. 147. Presentment where time is
required to charge the indorser. – given to indorser. — insufficient. –
Presentment is not required in order to Notice of dishonor is not required to Where the holder of a bill drawn
charge an indorser be given to an indorser in either of the Ø payable elsewhere than at the
Ø where the instrument was following cases: place of business or
made or accepted for his a) When the drawee is a Ø the residence of the drawee
accommodation and fictitious person or person not has no time,
Ø he has no reason to expect that having capacity to contract, with the exercise of reasonable
the instrument will be paid if and the indorser was aware of diligence, to present the bill for
presented. acceptance before presenting it for

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 that fact at the time he payment on the day that it falls due,
indorsed the instrument; the delay caused by presenting the bill
b) Where the indorser is the for acceptance before presenting it for
person to whom the payment is excused and does not
instrument is presented for discharge the drawers and indorsers.
payment;
c) Where the instrument was
made or accepted for his
accommodation.


When dishonored/refused
Sec. 83. When instrument dishonored Sec. 116. Notice of non-payment Sec. 149. When dishonored by
by non-payment. – where acceptance refused. – nonacceptance. –
The instrument is dishonored by non- Where due notice of dishonor by non- A bill is dishonored by non-acceptance:
payment when: acceptance has been given, a) When it is duly presented for
a) It is duly presented for Ø notice of a subsequent acceptance and such an
payment and payment is dishonor by non-payment is acceptance as is prescribed by this
refused or cannot be obtained; not necessary Act is
or § unless in the meantime Ø refused or
b) Presentment is excused and the instrument has been Ø cannot be obtained; or
the instrument is overdue and accepted. b) When presentment for acceptance
unpaid. is
Sec. 117. Effect of omission to give Ø excused and
Sec. 84. Liability of person secondarily notice of non-acceptance. – Ø the bill is not accepted.
liable, when instrument dishonored. – An omission to give notice of dishonor Sec. 150. Duty of holder where bill not
Subject to the provisions of this Act, by non-acceptance does not prejudice accepted. –
when the instrument is dishonored by the rights of a holder in due course Where a bill is
non-payment, subsequent to the omission. Ø duly presented for acceptance
Ø an immediate right of recourse and
to all parties secondarily liable Ø is not accepted within the
thereon accrues to the holder. prescribed time,
the person presenting it must treat the
bill as dishonored by nonacceptance or
§ he loses the right of
recourse against the
drawer and indorsers.

Sec. 151. Rights of holder where bill not
accepted. –

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 When a bill is dishonored by
nonacceptance,
Ø an immediate right of recourse
against the drawer and
indorsers accrues to the holder
and
Ø no presentment for payment is
necessary.

Protest related
Sec. 111. Waiver of protest. – Sec. 157. Protest both for non-
A waiver of protest, acceptance and non-payment. –
Ø whether in the case of a A bill which has been protested for
foreign bill of exchange or non-acceptance may be
other negotiable instrument, subsequently protested for non-
is deemed to be a waiver payment.
Ø not only of a formal protest
Ø but also of
i. presentment and
ii. notice of dishonor.

Sec. 118. When protest need not be
made; when must be made. –
Where any negotiable instrument has
been dishonored,
Ø it may be protested for non-
acceptance or non-payment,
as the case may be;
§ but protest is not
required except in the
case of foreign bills of
exchange.

Others
Sec. 75. Presentment where instrument
payable at bank. –
Where the instrument is payable at a
bank, presentment for payment must
be made

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 Ø during banking hours,
o unless the person to make
payment has no funds
there to meet it at any
time during the day,
o in which case
presentment at any
hour before the bank is
closed on that day is
sufficient.

Sec. 87. Rule where instrument payable
at bank. –
Where the instrument is made payable
at a bank,
Ø it is equivalent to an order to
the bank to pay the same for
the account of the principal
debtor thereon.

Sec. 88. What constitutes payment in Sec. 105. When sender deemed to Sec. 160. Protest where bill is lost
due course. – have given due notice. – and so forth. –
Payment is made in due course when Where notice of dishonor is When a bill is lost or destroyed or is
Ø it is made at or after the 1) duly addressed and wrongly detained from the person
maturity of the payment to the 2) deposited in the post office, entitled to hold it, protest may be
holder thereof Ø the sender is deemed to made on a copy or written
Ø in good faith and have given due notice, particulars thereof.
Ø without notice that his title is notwithstanding any
defective. (refers to the maker miscarriage in the mails.
or acceptor and not to the
holder) Sec. 106. Deposit in post office; what
constitutes. –
Notice is deemed to have been
deposited in the post-office when
1) deposited in any branch post
office or
2) in any letter box under the
control of the post-office
department.

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Sec. 109. Waiver of notice. –
Notice of dishonor may be waived
either
1) before the time of giving notice
has arrived or
2) after the omission to give due
notice, and
Ø the waiver may be expressed
or implied.

Sec. 110. Whom affected by waiver. –
Where the waiver is embodied in the
instrument itself,
Ø it is binding upon all parties;
but, where it is written above the
signature of an indorser,
Ø it binds him only.

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