Waiver of notice.

-who may be affected by.

Waiver of protest.

When notice dispensed with.

When delay excused.

When notice not

Third. If he is sojourning in another place, notice may be sent to the place where he is so sojourning.

But where the notice is actually received by the party within the time specified by this act it will be sufficient, though not sent in accordance with the requirements of this section.

SEC. 1413. WAIVER OF NOTICE.-Notice of dishonor may be waived either before the time of giving notice has arrived or after the omission to give due notice, and the waiver may be express or implied.

SEC. 1414. Where the waiver is embodied in the instrument itself it is binding upon all parties, but where it is written above the signature of an indorser it binds him only.

SEC. 1415. WAIVER OF PROTEST.-A waiver of protest, whether in the case of a foreign bill of exchange or other negotiable instrument, is deemed to be a waiver not only of a formal protest, but also of presentment and notice of dishonor.

SEC. 1416. WHEN NOTICE DISPENSED WITH.-Notice of dishonor is dispensed with when, after the exercise of reasonable diligence, it can not be given to or does not reach the parties sought to be charged.

SEC. 1417. WHEN DELAY EXCUSED.-Delay in giving notice of dishonor is excused when the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate notice must be given with reasonable diligence.

SEC. 1418. WHEN NOTICE NOT REQUIRED AS TO DRAWER.-Notice required as to of dishonor is not required to be given to the drawer in either of the

drawer.

When not re

following cases:

First. Where the drawer and the drawee are the same person.

Second. Where the drawee is a fictitious person or a person not having capacity to contract.

Third. Where the drawer is the person to whom the instrument is presented for payment.

Fourth. Where the drawer has no right to expect or require that the drawee or acceptor will honor the instrument; or,

Fifth. Where the drawer has countermanded payment.

SEC. 1419. WHEN NOT REQUIRED AS TO INDORSER.-Notice of dis quired as to in- honor is not required to be given to an indorser in either of the

dorser.

Notice of pay

following cases:

First. Where the drawee is a fictitious person or a person not having capacity to contract, and the indorser was aware of the fact at the time he indorsed the instrument.

Second. Where the indorser is the person to whom the instrument is presented for payment; or,

Third. Where the instrument was made or accepted for his accommodation.

SEC. 1420. NOTICE OF NONPAYMENT, WHEN NOT NECESSARY. -Where ment, when not due notice of dishonor by nonacceptance has been given, notice of a subsequent dishonor by nonpayment is not necessary, unless in the meantime the instrument has been accepted.

necessary.

ceptance, effect.

Omission to give SEC. 1421. OMISSION TO GIVE NOTICE OF NONACCEPTANCE.—An notice of nonac- omission to give notice of dishonor by nonacceptance does not prejudice the rights of a holder in due course subsequent to the omission. Protest on other SEC. 1422. PROTEST ON OTHER INSTRUMENTS THAN FOREIGN BILLS. instruments than Where any negotiable instrument has been dishonored it may be foreign bills. protested for nonacceptance or nonpayment, as the case may be; but protest is not required except in the case of foreign bills of exchange. The original protest of a notary public in the District, under his hand and official seal, of any bill of exchange, check, or order for nonacceptance or nonpayment, or of any promissory note for nonpayment, stating the presentment by him of such bill of exchange, check, order, or promissory note for acceptance or payment and the nonacceptance

or nonpayment thereof, and the service of notice thereof on any of the parties to such bill of exchange, promissory note, or check, and the mode of giving such notice, and the reputed place of business or residence of the party to whom the same was given shall be prima facie evidence of the facts therein contained.

SEC. 1423. WHEN NEGOTIABLE INSTRUMENT DISCHARGED.-A nego- When negotiable tiable instrument is discharged—

instrument dis

First. By payment in due course by or on behalf of the principal charged. debtor.

Second. By payment in due course by the party accommodated,
where the instrument is made or accepted for accommodation.
Third. By the intentional cancellation thereof by the holder.
Fourth. By any other act which will discharge a simple contract for

the payment of money.

Fifth. When the principal debtor becomes the holder of the instrument at or after maturity in his own right.

SEC. 1424. WHEN PERSON SECONDARILY LIABLE DISCHARGED.—A person secondarily liable on the instrument is discharged— First. By an act which discharges the instrument.

Second. By the intentional cancellation of his signature by the holder.

Third. By the discharge of a prior party.

Fourth. By a valid tender of payment made by a prior party. Fifth. By a release of the principal debtor, unless the holder's right of recourse against the party secondarily liable is expressly reserved. Sixth. By an agreement binding upon the holder to extend the time of payment, or to postpone the holder's right to enforce the instrument, unless made with the assent of the party secondarily liable or unless the right of recourse against such party is expressly reserved. SEC. 1425. PAYMENT BY PARTY SECONDARILY LIABLE NOT A DISCHARGE.Where the instrument is paid by a party secondarily liable thereon it is not discharged; but the party so paying it is remitted to his former rights as regards all prior parties, and he may strike out his own and all subsequent indorsements and again negotiate the instrument, except

First. Where it is payable to the order of a third person and has been paid by the drawer; and,

Second. Where it was made or accepted for accommodation and has been paid by the party accommodated.

When person secondarily liable discharged.

Payment by party secondarily liable not a discharge.

Renouncing

SEC. 1426. RENOUNCING RIGHTS AGAINST PARTY.-The holder may expressly renounce his rights against any party to the instrument rights against before, at, or after its maturity. An absolute and unconditional party." renunciation of his rights against the principal debtor made at or after the maturity of the instrument discharges the instrument; but a renunciation does not affect the rights of a holder in due course without notice. A renunciation must be in writing, unless the instrument is delivered up to the person primarily liable thereon.

Cancellation un

SEC. 1427. CANCELLATION.-A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inopera- intentionally. tive; but where an instrument or any signature thereon appears to -burden of have been canceled the burden of proof lies on the party who alleges proof. that the cancellation was made unintentionally, or under a mistake, or without authority.

of.

SEC. 1428. ALTERATION.-Where a negotiable instrument is mate- Alteration, effect rially altered without the assent of all parties liable thereon it is avoided, except as against a party who has himself made, authorized, or assented to the alteration and subsequent indorsers.

But when an instrument has been materially altered and is in the hands of a holder in due course, not a party to the alteration, he may enforce payment thereof according to its original tenor.

-what a material alteration.

Bills of exchange. Definition.

Not an assignment of funds.

Bills addressed

SEC. 1429. WHAT IS A MATERIAL ALTERATION.-Any alteration which changes

First. The date.

Second. The sum payable, either for principal or interest.
Third. The time or place of payment.

Fourth. The number or the relations of the parties.

Fifth. The medium or currency in which payment is to be made. Or which adds a place of payment where no place of payment is specified, or any other change or addition which alters the effect of the instrument in any respect is a material alteration.

SEC. 1430. FORM OF BILL OF EXCHANGE.-A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer.

SEC. 1431. NOT AN ASSIGNMENT OF FUNDS.-A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for the payment thereof, and the drawee is not liable on the bil! unless and until he accepts the same.

SEC. 1432. TO WHOM ADDRESSED. A bill may be addressed to two to more than one or more drawees jointly, whether they are partners or not, but not to two or more drawees in the alternative or succession.

drawee.

Foreign and inland bills.

Where drawer

and

SEC. 1433. FOREIGN AND INLAND BILLS.-An inland bill of exchange is a bill which is or on its face purports to be both drawn and payable within this District. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill the holder may treat it as an inland bill.

SEC. 1434. WHERE DRAWER AND DRAWEE SAME PERSON.—Where in drawee are a bill drawer and drawee are the same person, or where the drawee is the same person. a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or a promissory note.

Referee in case of need.

Acceptance. -how made.

Holder entitled

SEC. 1435. REFEREE IN CASE OF NEED.-The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need; that is to say, in case the bill is dishonored by nonacceptance or nonpayment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not, as he may see fit.

SEC. 1436. ACCEPTANCE.-The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. The acceptance must be in writing and signed by the drawee. It must not express that the drawee will perform his promise by any other means than the payment of money.

SEC. 1437. The holder of a bill presenting the same for acceptance to acceptance on may require that the acceptance be written on the bill, and if such a request is refused may treat the bill as dishonored.

face of bill.

Acceptance on

SEC. 1438. Where an acceptance is written on a paper other than separate instru- the bill itself it does not bind the acceptor except in favor of a person to whom it is shown and who, on the faith thereof, receives the bill for value.

ment.

SEC. 1439. ACCEPTANCE BEFORE BILL DRAWN.-An unconditional promise in writing to accept a bill before it is drawn is deemed an actual acceptance in favor of every person who, upon the faith thereof, receives the bill for value.

SEC. 1440. TIME ALLOWED FOR ACCEPTING. The drawee is allowed twenty-four hours after presentment in which to decide whether or not he will accept the bill; but the acceptance, if given, dates as of the day of presentation.

SEC. 1441. ACCEPTANCE, WHEN DEEMED MADE. Where a drawee to whom a bill is delivered for acceptance destroys the same or refuses

Acceptance of

within twenty-four hours after such delivery, or within such other period as the holder may allow, to return the bill accepted or nonaccepted to the holder he will be deemed to have accepted the same. SEC. 1442. WHEN BILL MAY BE ACCEPTED.—A bill may be accepted before it has been signed by the drawer, or while otherwise incomplete, incomplete bill. or when it is overdue, or after it has been dishonored by a previous refusal to accept, or by nonpayment. But when a bill payable after sight is dishonored by nonacceptance and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of the first presentment. SEC. 1443. FORM OF ACCEPTANCE.-An acceptance is either general or qualified. A general acceptance assents avithout qualification to the ance. order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

SEC. 1444. ACCEPTANCE TO PAY AT PLACE NAMED.-An acceptance to pay at a particular place is a general acceptance, unless it expressly states that the bill is to be paid there only and not elsewhere. SEC. 1445. QUALIFIED ACCEPTANCE.-An acceptance is qualified which is

First. Conditional; that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated. Second. Partial; that is to say, an acceptance to pay part only of the amount for which the bill is drawn.

Third. Local; that is to say, an acceptance to pay only at a particular place.

Fourth. Qualified as to time.

Fifth. The acceptance of some one or more of the drawees, but not of all.

Kinds of accept

-general.

-acceptance to

pay at place named general accept

ance.

Qualified accept

ance.

rights of par

SEC. 1446. HOLDER NOT BOUND TO TAKE.-The holder may refuse to take a qualified acceptance, and if he does not obtain an unqualified ties as to. acceptance he may treat the bill as dishonored by nonacceptance. Where a qualified acceptance is taken, the drawer and indorsers are discharged from liability on the bill unless they have expressly or impliedly authorized the holder to take a qualified acceptance or subsequently assent thereto. When the drawer or an indorser receives notice of a qualified acceptance, he must within a reasonable time express his dissent to the holder or he will be deemed to have assented thereto.

SEC. 1447. WHEN PRESENTMENT FOR ACCEPTANCE MUST BE MADE.Presentment for acceptance must be made

Presentment for acceptance.

-when to be

First. Where the bill is payable after sight, or in any other case where presentment for acceptance is necessary in order to fix the made. maturity of the instrument; or,

Second. Where the bill expressly stipulates that it shall be presented

for acceptance; or,

Third. Where the bill is drawn payable elsewhere than at the residence or place of business of the drawee.

In no other case is presentment for acceptance necessary in order to render any party to the bill liable.

-consequence

SEC. 1448. CONSEQUENCE OF FAILURE.-Except as herein otherwise provided, the holder of a bill which is required by the next preceding of failure. section to be presented for acceptance must either present it for acceptance or negotiate it within a reasonable time. If he fail to do so, the drawer and all indorsers are discharged.

SEC. 1449. WHEN PRESENTMENT TO BE MADE AND TO WHOM. Presentment for acceptance must be made by or on behalf of the holder at a reasonable hour on a business day, and before the bill is overdue, to the drawee or some person authorized to accept or refuse acceptance on his behalf; and,

First. Where a bill is addressed to two or more drawees who are not

When presentment to be made

and to whom.

May be made on

partners, presentment must be made to them all, unless one has authority to accept or refuse acceptance for all, in which case presentment may be made to him only.

Second. Where the drawee is dead, presentment may be made to his personal representative.

Third. Where the drawee has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, presentment may be made to him or to his trustee or assignee.

SEC. 1450. MAY BE MADE ON ANY DAY ON WHICH PAYMENT MIGHT any day on which BE DEMANDED.-A bill may be presented for acceptance on any day payment might be on which negotiable instruments may be presented for payment under demanded. the provisions of sections thirteen hundred and seventy-six and thirteen hundred and eighty-nine of this act. When Saturday is not otherwise a holiday, presentment for acceptance may be made before twelve o'clock noon on that day.

Excuses for delay.

Excuses for nonpresentment.

When bill dis

SEC. 1451. EXCUSES FOR DELAY.-Where the holder of a bill drawn payable elsewhere than at the place of business or the residence of the drawee has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawers and indorsers.

SEC. 1452. EXCUSES FOR NONPRESENTMENT.-Presentment for acceptance is excused and a bill may be treated as dishonored by nonacceptance in either of the following cases:

First. When the drawee is dead, or has absconded, or is a fictitious person, or a person not having capacity to contract by bill.

Second. Where after the exercise of reasonable diligence presentment can not be made.

Third. Where, although presentment has been irregular, acceptance has been refused on some other ground.

SEC. 1453. WHEN BILL DISHONORED BY NONACCEPTANCE.-A bill is honored by nonac- dishonored by nonacceptance— ceptance.

Duty of holder where bill not accepted.

-rights of.

Protest, when necessary.

-form.

First. When it is duly presented for acceptance and such an acceptance as is prescribed by this act is refused or can not be obtained; or, Second. When presentment for acceptance is excused and the bill is not accepted.

SEC. 1454. Where a bill is duly presented for acceptance and is not accepted within the 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. 1455. When a bill is dishonored by nonacceptance an immediate right of recourse against the drawer and indorsers accrues to the holder, and no presentment for payment is necessary.

SEC. 1456. PROTEST.-Where a foreign bill, appearing on its face to be such, is dishonored by nonacceptance, it must be duly protested for nonacceptance, and where such a bill which has not previously been dishonored by nonacceptance is dishonored by nonpayment it must be duly protested for nonpayment. If it is not so protested the drawer and indorsers are discharged. Where a bill does not appear on its face to be a foreign bill, protest thereof in case of dishonor is unnecessary. SEC. 1457. FORM.-The protest must be annexed to the bill, or must contain a copy thereof, and must be under the hand and seal of the notary making it, and must specify

First. The time and place of presentment.

Second. The fact that presentment was made, and the manner thereof.

Third. The cause or reason for protesting the bill.

Fourth. The demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found.