NEGOTIABLE INSTRUMENTS LAW

Case Overview and Summary

Summary of the Negotiable Instruments Law:

Form and Interpretation of Negotiable Instruments
- Requirements for an instrument to be negotiable (Sec. 1)
- Certainty of sum payable (Sec. 2)
- Unconditional promise or order to pay (Sec. 3)
- Determinable future time for payment (Sec. 4)
- Additional provisions not affecting negotiability (Sec. 5)
- Omissions, seal, and particular money (Sec. 6)
- Payable on demand (Sec. 7)
- Payable to order (Sec. 8)
- Payable to bearer (Sec. 9)
- Sufficient terms (Sec. 10)
- Presumption as to date (Sec. 11)
- Antedated and postdated instruments (Sec. 12)
- Inserting date (Sec. 13)
- Filling blanks (Sec. 14)
- Incomplete instrument not delivered (Sec. 15)
- Delivery and revocability (Sec. 16)
- Construction of ambiguous instruments (Sec. 17)
- Liability of person signing in trade or assumed name (Sec. 18)
- Signature by agent (Sec. 19-21)
- Effect of endorsement by infant or corporation (Sec. 22)
- Forged signature (Sec. 23)

Consideration
- Presumption of consideration (Sec. 24)
- What constitutes value (Sec. 25)
- Holder for value (Sec. 26-27)
- Effect of want of consideration (Sec. 28)
- Liability of accommodation party (Sec. 29)

Negotiation
- What constitutes negotiation (Sec. 30)
- Endorsement requirements (Sec. 31-32)
- Kinds of endorsement (Sec. 33-39)
- Endorsement of instrument payable to bearer (Sec. 40)
- Endorsement where payable to two or more persons (Sec. 41)
- Endorsement to a person as cashier or officer (Sec. 42)
- Endorsement where name is misspelled (Sec. 43)
- Endorsement in representative capacity (Sec. 44)
- Time and place of endorsement (Sec. 45-46)
- Continuation of negotiable character (Sec. 47)
- Striking out endorsement (Sec. 48)
- Transfer without endorsement (Sec. 49)
- Negotiation back to prior party (Sec. 50)

Rights of the Holder
- Right to sue and payment (Sec. 51)
- Holder in due course requirements (Sec. 52-54)
- Defective title (Sec. 55)
- Notice of defect (Sec. 56)
- Rights of holder in due course (Sec. 57)
- Subject to original defenses (Sec. 58)
- Presumption of holder in due course (Sec. 59)

Liabilities
- Liability of maker (Sec. 60)
- Liability of drawer (Sec. 61)
- Liability of acceptor (Sec. 62)
- Person deemed endorser (Sec. 63)
- Liability of irregular endorser (Sec. 64)
- Warranty on negotiation by delivery or qualified endorsement (Sec. 65)
- Liability of general endorser (Sec. 66)
- Liability where paper negotiable by delivery (Sec. 67)
- Order of endorser liability (Sec. 68)
- Liability of agent or broker (Sec. 69)

Presentment for Payment
- Effect of want of demand on principal debtor (Sec. 70)
- Presentment where instrument is not payable on demand and where payable on demand (Sec. 71)
- Sufficient presentment requirements (Sec. 72)
- Place of presentment (Sec. 73)
- Exhibiting instrument (Sec. 74)
- Presentment where instrument payable at bank (Sec. 75)
- Presentment where principal debtor is dead (Sec. 76)
- Presentment to persons liable as partners (Sec. 77)
- Presentment to joint debtors (Sec. 78)
- When presentment not required to charge the drawer (Sec. 79)
- When presentment not required to charge the endorser (Sec. 80)
- Delay in making presentment excused (Sec. 81)
- When presentment may be dispensed with (Sec. 82)
- When instrument dishonored by nonpayment (Sec. 83)
- Liability of person secondarily liable when instrument dishonored (Sec. 84)
- Time of maturity and grace period (Sec. 85)
- Time computation (Sec. 86)
- Instrument payable at bank (Sec. 87)
- Payment in due course (Sec. 88)

Notice of Dishonor
- To whom notice of dishonor must be given (Sec. 89)
- By whom notice may be given (Sec. 90-91)
- Effect of notice given on behalf of holder or party entitled (Sec. 92-93)
- When agent may give notice (Sec. 94)
- Sufficient notice (Sec. 95)
- Form of notice (Sec. 96)
- To whom notice may be given (Sec. 97)
- Notice where party is dead (Sec. 98)
- Notice to partners (Sec. 99)
- Notice to joint parties (Sec. 100)
- Notice to bankrupt (Sec. 101)
- Time within which notice must be given (Sec. 102)
- Where parties reside in same place (Sec. 103)
- Where parties reside in different places (Sec. 104)
- When sender deemed to have given due notice (Sec. 105)
- Deposit in post-office (Sec. 106)
- Notice to subsequent party (Sec. 107)
- Where notice must be sent (Sec. 108)
- Waiver of notice (Sec. 109-110)
- Waiver of protest (Sec. 111)
- When notice is dispensed with (Sec. 112)
- Delay in giving notice excused (Sec. 113)
- When notice need not be given to drawer (Sec. 114)
- When notice need not be given to endorser (Sec. 115)
- Notice of nonpayment where acceptance refused (Sec. 116)
- Effect of omission to give notice of nonacceptance (Sec. 117)
- When protest need not be made and when must be made (Sec. 118)

Discharge of Negotiable Instruments
- How instrument is discharged (Sec. 119)
- When persons secondarily liable are discharged (Sec. 120)
- Right of party who discharges instrument (Sec. 121)
- Renunciation by holder (Sec. 122)
- Cancellation and burden of proof (Sec. 123)
- Effect of alteration (Sec. 124)
- What constitutes a material alteration (Sec. 125)

Bills of Exchange
- Definition of bill of exchange (Sec. 126)
- Bill not an assignment of funds (Sec. 127)
- Bill addressed to more than one drawee (Sec. 128)
- Inland and foreign bills of exchange (Sec. 129)
- When bill may be treated as promissory note (Sec. 130)
- Referee in case of need (Sec. 131)

Acceptance
- How acceptance is made (Sec. 132)
- Holder entitled to acceptance on face of bill (Sec. 133)
- Acceptance by separate instrument (Sec. 134)
- Promise to accept equivalent to acceptance (Sec. 135)
- Time allowed drawee to accept (Sec. 136)
- Liability of drawee retaining or destroying bill (Sec. 137)
- Acceptance of incomplete bill (Sec. 138)
- Kinds of acceptances (Sec. 139-141)
- Rights of parties as to qualified acceptance (Sec. 142)

Presentment for Acceptance
- When presentment for acceptance must be made (Sec. 143)
- When failure to present releases drawer and endorser (Sec. 144)
- How presentment is made (Sec. 145)
- On what days presentment may be made (Sec. 146)
- Presentment where time is insufficient (Sec. 147)
- Where presentment is excused (Sec. 148)
- When dishonored by nonacceptance (Sec. 149)
- Duty of holder where bill not accepted (Sec. 150)
- Rights of holder where bill not accepted (Sec. 151)

Protest
- In what cases protest necessary (Sec. 152)
- How protest is made (Sec. 153)
- By whom protest may be made (Sec. 154)
- When protest must be made (Sec. 155)
- Where protest must be made (Sec. 156)
- Protest both for nonacceptance and nonpayment (Sec. 157)
- Protest before maturity where acceptor insolvent (Sec. 158)
- When protest dispensed with (Sec. 159)
- Protest where bill is lost (Sec. 160)

Acceptance for Honor
- When bill may be accepted for honor (Sec. 161)
- How acceptance for honor is made (Sec. 162)
- When deemed to be an acceptance for honor of the drawer (Sec. 163)
- Liability of the acceptor for honor (Sec. 164)
- Agreement of acceptor for honor (Sec. 165)
- Maturity of bill payable after sight accepted for honor (Sec. 166)
- Protest of bill accepted for honor (Sec. 167)
- Presentment for payment to acceptor for honor (Sec. 168)
- When delay in making presentment is excused (Sec. 169)
- Dishonor of bill by acceptor for honor (Sec. 170)

Payment for Honor
- Who may make payment for honor (Sec. 171)
- How payment for honor is made (Sec. 172)
- Declaration before payment for honor (Sec. 173)
- Preference of parties offering to pay for honor (Sec. 174)
- Effect on subsequent parties where bill is paid for honor (Sec. 175)
- Where holder refuses to receive payment supra protest (Sec. 176)
- Rights of payer for honor (Sec. 177)

Bills in a Set
- Bills in sets constitute one bill (Sec. 178)
- Right of holders where different parts are negotiated (Sec. 179)
- Liability of holder who endorses two or more parts to different persons (Sec. 180)
- Acceptance of bills drawn in sets (Sec. 181)
- Payment by acceptor of bills drawn in sets (Sec. 182)
- Effect of discharging one of a set (Sec. 183)

Promissory Notes and Checks
- Promissory note defined (Sec. 184)
- Check defined (Sec. 185)
- Time within which a check must be presented (Sec. 186)
- Effect of certification of check (Sec. 187)
- Effect where the holder of check procures it to be certified (Sec. 188)
- When check operates as an assignment (Sec. 189)

General Provisions
- Short title (Sec. 190)
- Definitions and meaning of terms (Sec. 191)
- Person primarily liable on instrument (Sec. 192)
- Reasonable time (Sec. 193)
- Time computation and holidays (Sec. 194)
- Application of Act (Sec. 195)
- Cases not provided for in Act (Sec. 196)
- Repeals (Sec. 197)
- Time when Act takes effect (Sec. 198)