(2) the fact that presentment was made and the manner thereof; (3) the cause or reason for protesting the bill; (4) the demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found. § 4513. Persons who may make protest Protest may be made by: (1) a notary public; or (2) any respectable resident of the place where the bill is dishonored, in the presence of two or more credible witnesses. 8 4514. Time for making When a bill is protested, the protest must be made on the day of its dishonor, unless delay is excused as herein provided. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting. 8 4515. Place where made A bill must be protested at the place where it is dishonored, except that when a bill drawn payable at the place of business, or residence of some person other than the drawee, has been dishonored by nonacceptance, it must be protested for nonpayment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary. § 4516. Protest both for nonacceptance and nonpayment A bill which has been protested for nonacceptance may be subsequently protested for nonpayment. 84517. Protest before maturity; better security Where the acceptor has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, before the bill matures, the holder may cause the bill to be protested for better security against the drawer and indorsers. 4518. Dispensing with protest Protest is dispensed with by any circumstances which would dispense with notice of dishonor. Delay in noting or protesting is excused when 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, the bill must be noted or protested with reasonable diligence. 8 4519. Lost, destroyed, or wrongly detained bill When a bill is lost or destroyed or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof. Article E-Acceptance for Honor 84521. Circumstances authorizing acceptance for honor Where a bill of exchange has been protested for dishonor by nonacceptance or protested for better security, and is not overdue, any person not being a party already liable thereon may, with the consent of the holder, intervene and accept the bill supra protest for the honor of any party liable thereon, or for the honor of the person for whose account the bill is drawn. The acceptance for honor may be for the part only of the sum for which the bill is drawn; and where there has been an acceptance for honor for one party, there may be a further acceptance by a different person for the honor of another party. § 4522. Method of acceptance for honor An acceptance for honor supra protest must be in writing, and indicate that it is an acceptance for honor, and must be signed by the acceptor for honor. § 4523. Honor of drawer; presumption Where an acceptance for honor does not expressly state for whose honor it is made, it is deemed to be an acceptance for the honor of the drawer. 8 4524. Liability of acceptor The acceptor for honor is liable to the holder and to all parties to the bill subsequent to the party for whose honor he has accepted. 84525. Agreement of acceptor The acceptor for honor by such acceptance engages that he will on due presentment pay the bill according to the terms of his acceptance; provided, it shall not have been paid by the drawee; and provided, also, that it shall have been duly presented for payment and protested for nonpayment and notice of dishonor given him. § 4526. Maturity of sight bill accepted for honor Where a bill payable after sight is accepted for honor, its maturity is calculated from the date of the noting for nonacceptance and not from the date of the acceptance for honor. § 4527. Protest after acceptance Where a dishonored bill has been accepted for honor supra protest or contains a reference in case of need, it must be protested for nonpayment before it is presented for payment to the acceptor for honor or referee in case of need. § 4528. Presentment for payment to acceptor Presentment for payment to the acceptor for honor must be made as follows: (1) if it is to be presented in the place where the protest for nonpayment was made, it must be presented not later than the day following its maturity; (2) if it is to be presented in some other place than the place where it was protested, then it must be forwarded within the time specified by section 4436 of this title. 84529. Excuse for delay in making presentment Section 4412 of this title applies where there is delay in making presentment to the acceptor for honor or referee in case of need. § 4530. Dishonor by acceptor for honor When the bill is dishonored by the acceptor for honor it must be protested for nonpayment by him. Article F-Payment for Honor 4541. Persons who may make payment for honor Where a bill has been protested for nonpayment, any person may intervene and pay it supra protest for the honor of any person liable thereon or for the honor of the person for whose account it was drawn. § 4542. Formalities The payment for honor supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honor which may be appended to the protest or form an extension to it. § 4543. Declaration before payment for honor The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays. § 4544. Preference of parties offering to pay for honor Where two or more persons offer to pay a bill for the honor of different parties, the person whose payment will discharge most parties to the bill is to be given the preference. § 4545. Discharge of subsequent parties; subrogation of payer Where a bill has been paid for honor, all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor is subrogated for, and succeeds to, both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter. § 4546. Refusal of payment; loss of right of recourse Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourse against any party who would have been discharged by the payment. § 4547. Rights of payer for honor The payer for honor, on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest. Article G-Bills in a Set § 4551. Bills in sets constitute one bill Where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other parts, the whole of the parts constitutes one bill. § 4552. Negotiation of different parts; rights of holders Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is, as between such holders, the true owner of the bill. But this section does not affect the rights of a person who in due course accepts or pays the part first presented to him. § 4553. Liability of holder indorsing two or more parts to different persons Where the holder of a set indorses two or more parts to different persons he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed, as if such parts were separate bills. 8 4554. Acceptance The acceptance may be written on any part and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts are negotiated to different holders in due course, he is liable on every such part as if it were a separate bill. § 4555. Payment by acceptor When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereon. § 4556. Discharging one part; effect Except as herein otherwise provided, where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged. Subchapter III-Promissory Notes and Checks § 4561. Promissory note defined A negotiable promissory note within the meaning of this chapter is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to order or to bearer, but the negotiability of a promissory note otherwise negotiable in form, secured by a mortgage or deed of trust upon real or personal property, shall not be affected or abridged by reason of a statement therein that it is so secured, nor by reason of the fact that said instrument is so secured, nor by any conditions contained in the mortgage or deed of trust securing the same. Where a note is drawn to the maker's own order it is not complete until indorsed by him. § 4562. Check defined A check is a bill of exchange drawn on a bank payable on demand. Except as herein otherwise provided, the provisions of this chapter applicable to a bill of exchange payable on demand apply to a check. § 4563. Time for presenting check A check must be presented for payment within a reasonable time after its issue or the drawer will be discharged from liability thereon to the extent of the loss caused by the delay. 8 4564. Certification of check; effect Where a check is certified by the bank on which it is drawn, the certification is equivalent to an acceptance. § 4565. Holder procuring check to be certified; effect Where the holder of a check procures it to be accepted or certified, the drawer and all indorsers are discharged from liability thereon. 84566. Check not an assignment; liability of bank A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer with the bank, and the bank is not liable to the holder, unless and until it accepts or certifies the check. Subchapter IV-General Provisions § 4571. Short title This chapter may be cited as the Uniform Negotiable Instruments Act. § 4572. Definitions In this chapter, unless the context otherwise requires: "acceptance" means an acceptance completed by delivery or notification; "action" includes counterclaim and setoff; "bank" includes any person or association of persons carrying on the business of banking, whether incorporated or not; "bearer" means the person in possession of a bill or note which is payable to bearer; "bill" means bill of exchange, and "note" means negotiable promissory note; "delivery" means transfer of possession, actual or constructive, from one person to another; "holder" means the payee or indorsee of a bill or note, who is in possession of it, or the bearer thereof; "indorsement" means an indorsement completed by delivery; "instrument" means negotiable instrument; "issue" means the first delivery of the instrument, complete in form, to a person who takes it as a holder; "person" includes a body of persons, whether incorporated or not; "value" means valuable consideration; "written" includes printed; and "writing" includes print. § 4573. Primary and secondary liability The person "primarily" liable on an instrument is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are "secondarily" liable. § 4574. Reasonable time; computation In determining what is a "reasonable time" or an "unreasonable time," regard is to be had to the nature of the instrument, the usage of trade or business (if any) with respect to such instruments, and the facts of the particular case. § 4575. Time; computation; last day on holiday Where the day, or the last day, for doing any act herein required or permitted to be done falls on Sunday or on a holiday, the act may be done on the next succeeding secular or business day. § 4576. Cases not provided for In a case not provided for in this chapter the rules of the law merchant shall govern. Sec. CHAPTER 107-RELIEF IN GENERAL 4611. Species of relief. 4612. Relief in case of forfeiture. § 4611. Species of relief As a general rule compensation is a relief or remedy provided by the law of the Canal Zone for the violation of private rights, and the means of securing their observance; and specific and preventive relief may not be given in cases other than those specified by this chapter and chapters 109 and 111 of this title. § 4612. Relief in case of forfeiture Whenever, by the terms of an obligation, a party thereto incurs a forfeiture, or a loss in the nature of a forfeiture, by reason of his failure to comply with its provisions, he may be relieved therefrom, upon making full compensation to the other party, except in case of a grossly negligent, willful, or fraudulent breach of duty. Sec. CHAPTER 109-COMPENSATORY RELIEF SUBCHAPTER I-DAMAGES IN GENERAL Article A-General Principles 4641. Damages for detriment from unlawful act or omission. 4642. Detriment defined. 4643. Detriment after commencement of action. Article B-Interest as Damages 4651. Recovery of interest on damages. 4652. Breach of obligation other than contract. 4653. Interest stipulated by contract. 4654. Waiver by accepting principal. |