Negotiable Instruments Law1 CHAPTER 8ENFORCEMENT OF LIABILITYI. STEPS TO CHARGE THE PARTIES LIABLEA. PRIMARY LIABILITY In a PN, the make is liable the momenthemakes the instrument (Sec 60, NIL).Similarly, anacceptorsliabilityisfie!themoment he accepts the "#$ (Sec 6%, NIL). &he uncon!itional promise attaches themoment the maker makes the instrument'hile the acceptors assent to theuncon!itional or!er attaches the moment heaccepts the instrument. No further act isnecessary in or!er for the liability to accrue.B. SECONDARILY LIABLE &he in!orser an! the !ra'er are notautomatically liable the moment the in!orseraffies his si(nature on the instrument or themoment the !ra'er !ra's the instrument. Necessary steps shoul! be taken in or!er tochar(e the persons secon!arily liable. )nless the hol!er is ecuse! from takin( anysteps state! herein, the persons secon!arilyliable are !ischar(e!.a. Steps in a PN*. Presentment for payment must be ma!e'ithin the re+uire! perio! to the maker.%. Noticeof !ishonor must be(i,en, if PNis!ishonore! by non-payment by the maker.b. Steps in BOE*. Presentment for acceptance . Ne(otiation'ithinareasontimeafter it 'asac+uire!shoul! be ma!e only in the ff instances/a. "ill is payable after si(ht, orpresentment for acceptancenecessary to fi the maturity of theinstrument0 orb. "ill epressly stipulates that it shallbe presente! for acceptance0 orc. "ill !ra'npayableelse'herethanat the resi!ence or place ofbusiness of the !ra'ee.%. If !ishonore! by non-acceptance/a. Notice of 1ishonor shoul! be (i,ento in!orsers an! !ra'ersb. If bill isforei(nbill, theremust beprotest for !ishonor by non-acceptance.2. If bill is accepte!/3. Presentment for payment to theacceptor shoul! be ma!e". If bill is!ishonore!uponpresentmentfor payment/a. N#1 must be (i,en to personssecon!arily liable.b. If bill is forei(n bill, protest for!ishonorfornon-payment must bema!e.c. 3cceptor for 4onor an! 5eferee in 6ase of Nee!*. Protest for non-payment by the !ra'ee.II. PRESENTMENT FOR PAYMENTA. REQUISITES FOR SUFFICIENCY Se!s "# an$ "%&NIL'*. Presentment must be ma!e by the hol!er, or bysomepersonauthori7e!torecei,epayment onhis behalf.%. It must bema!e at areasonable hour on abusiness !ay on the proper !ate.2. Presentment must be ma!e at the proper place.8. Presentment must be to the person primarilyliableontheinstrument, or if heisabsent orinaccessible, toanypersonfoun!at theplace'here the presentment is ma!e.9. &he person entitle! to present the instrument forthepayment must ehibit theinstrument tothepersonfrom'homtheinstrument is!eman!e!an! upon payment must be !eli,ere! to theperson payin( it. B. DATE OF PRESENTMENTa. :ie! 1ate. If the maturity !ate is fie! in theinstrument, the instrument shoul! bepresente!for payment onthesai!fie!!ate.b. Payable on 1eman! If payable on !eman!, presentment ofmust bema!e'ithinareasonabletimeafter itsissueor if "#$, must bema!e"y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$ $' In an1 *t+e) !ase i- p)esente$ t* t+e pe)s*n t*.a8e pa1.ent /+e)e5e) +e !an be -*,n$& *)i- p)esente$ at +is 0ast 8n*/n p0a!e *-b,siness *) )esi$en!e. &hehol!er must present it inthesai!placeintheor!er that the places are enumerate! in Section >2. Ifthereisastipulate!place'herepresentment mustbe ma!e, the instrument cannot be presente! in theplacesmentione! in par.(b),(c),an!(!)of Section>2.a. Special Place Section >0 of the NIL pro,i!es that if the instrument is,by its terms, payableat aspecial place, an!thepersonprimarilyliableisablean!'illin(topayitthere at maturity, such ability an! 'illin(ness aree+ui,alent to ten!er of payment upon his part. Ifhol!er 'ill not present the instrument for payment atsuch special place, he loses his ri(ht to the paymentof interest. &he 'or!s ?place of payment@ means ? a house, bank,countin( room, store or place of business, 'here thehol!er can present a note, 'here the maker can!eposit or pro,i!e fun!s to meet it, an! 'here a le(aloffer to pay can be ma!e@. &he !esi(nation of a to'nor city is not sufficient. G. TO 6HOM PRESENTED &he instrument must be presente! to the personprimarily liable on the instrument or if he is absent orinaccessible, to any person foun! at the place 'herepresentment is ma!e. &he personfoun!attheplaceofpresentment mustbe a capacitate! person. &his rule is also subCect tothe follo'in(/a. Person primarily liable is !ea! an! noplace of payment specifie!,presentment must be ma!e to hispersonal representati,e0b. Personsprimarilyliableareliableaspartnersan!noplaceof payment isspecifie!, presentment for paymentmay be ma!e to any one of them e,enthou(h there has been a !issolution ofthe firm0c. &here are se,eral persons, notpartners, primarilyliable an! noplaceof payment specifie!, presentmentmust be ma!e to them all.a. Partners In partnership, each partner is an a(ent of theother partners. &hus, each partner mayrepresent thepartnershipan! maybin!otherpartners. Presentment may be ma!e to any of thepartners un!er Section >>. 4o'e,er, there aret'ore+uirementsbeforepresentment canbema!e to either of the persons primarily liable/*. Persons primarily liable must bepartners.%. &here is no place of payment specifie!.b. Doint 1ebtors If the !ebtors are Coint !ebtors, each !ebtor isliable onlyfor theirrespecti,esharesintheobli(ation. If therearet'oor moremakersor t'oormoreacceptors, eachmakeror acceptor isliableonlyfor their shareintheobli(ation,hence, theremust bepresentment toall ofthem. &hese are in accor!ance 'ith Section >B ofthe NIL 'hich pro,i!es thatSe!. "8. Presentment to joint debtors. 4 6+e)et+e)e a)e se5e)a0 pe)s*ns& n*t pa)tne)s&p)i.a)i01 0iab0e *n t+e inst),.ent an$ n*p0a!e*- pa1.ent isspe!i-ie$& p)esent.ent.,st be .a$e t* t+e. a00.H.INSTRUMENT E?HIBITED"y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$ is a case of constructi,e acceptance of a bill.a. Section *26 an! *2> !istin(uishe! It has been su((este! that there is conflict bet'een *26 an! *2> because *26 allo's the !ra'ee %8 hours in 'hich to accept 'hile *2> "y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$ so pro,i!es If the hol!er shoul! !eman! return before %8 hours, the !ra'ee 'oul! be re+uire! to complyt on pain of bein( hel! as an acceptor0 but return 'ithin %8 hoiurs unaccepte! 'oul! not be a !ishonor. (NIL *8F an! *90) &he !ra'ee coul! still accept by notification 'ithin %8 hours (*F*) 4ere an intrinsic acceptance, *28 'oul! play an important part. If the !ra'ee after returnin( the bill still refuse! to act after the epiration of the time allo'e!, the hol!er then 'oul! be re+uire! to treat the bill as !ishonore! or lose his ri(hts a(ainst prior parties (*90)C. FUTURE AND INCOMPLETE BILLSSec. *29. Promise to accept; when e#ui$alent to acceptance. - 3n uncon!itional promise in 'ritin( to accept a bill before it is !ra'n is !eeme! an actual acceptance in fa,or of e,ery person 'ho, upon the faith thereof, recei,es the bill for ,alue. Sec. *2B. cceptance of incomplete bill. - 3 bill may be accepte! before it has been si(ne! by the !ra'er, or 'hile other'ise incomplete, or 'hen it is o,er!ue, or after it has been !ishonore! by a pre,ious refusal to accept, or by non payment. "ut 'hen a bill payable after si(ht is !ishonore! by non-acceptance an! the !ra'eesubse+uently accepts it, the hol!er, in the absence of any !ifferent a(reement, is entitle! to ha,e the bill accepte! as of the !ate of the first presentment.D. :INDS OF ACCEPTANCESec. *2F. %inds of acceptance. - 3n acceptance is either (eneral or +ualifie!. 3 (eneral acceptance assents 'ithout +ualification to the or!er of the !ra'er. 3 +ualifie! acceptance in epress terms ,aries the effect of the bill as !ra'n.

Sec. *80. What constitutes a general acceptance. - 3n acceptance to pay at a particular place is a (eneral acceptance unless it epressly states that the bill is to be pai! there only an! not else'here.

Sec. *8*. &ualified acceptance. - 3n acceptance is +ualifie! 'hich is/ (a) 6on!itional0 that is to say, 'hich makes payment by the acceptor !epen!ent on the fulfillment of a con!ition therein state!0

(b) Partial0 that is to say, an acceptance to pay part only of the amount for 'hich the bill is !ra'n0

(c) Local0 that is to say, an acceptance to payonly at a particular place0

(!) Eualifie! as to time0

(e) &he acceptance of some, one or more of the !ra'ees but not of all. Sec. *8%. 'ights of parties as to #ualified acceptance. - &he hol!er may refuse to take a +ualifie! acceptance an!if he !oes not obtain an un+ualifie! acceptance, he may treat the bill as !ishonore! by non-acceptance. Ahere a +ualifie! acceptance is taken, the !ra'er an! in!orsers are !ischar(e! from liability on the bill unless they ha,e epressly or implie!ly authori7e! the hol!er to take a +ualifie! acceptance, or subse+uently assent thereto. Ahen the !ra'er or an in!orser recei,es notice of a +ualifie! acceptance, he must, 'ithin a reasonable time, epress his !issent to the hol!er or he 'ill be !eeme! to ha,e assente! thereto. A. NOTICE OF DISHONORSec. BF. To whom notice of dishonor must be gi$en. - $cept as herein other'ise pro,i!e!, 'hen a ne(otiable instrument has been !ishonore! by non-acceptance or "y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$,%0**, noticeshoul!be!eposite!'iththe appropriate a!!ress an! !ulystampe! in such a 'ay that it 'oul! bepart of themail that 'oul!!epart onSeptember %B, %0** Pe)s*na0 se)5i!eI sufficient if notice ispersonally !eli,ere! 'ithin the same time that themail 'ill normally reach the !estination $.(., If it usually takes three!ays toreach the !estination, the person (i,in(notice personally also has three !ays topersonally ser,e it E--e!t *- n*ti!e(i5en*,t *- ti.e=Notice'oul!beconsi!ere! not to ha,e been (i,en, thus, party to recei,enotice 'oul! be !ischar(e! CASE= Ae)+*.a0 5s. Esta!i* "ank!ishonore!thecheckonDune*8, *F600!efen!ant resi!e! in Leyte an! the plaintiffresi!e! in &acloban0 notice of !ishonor 'as !ate!"y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$, *F600 Noticeof !ishonor not timely(i,en.------------------------------------------------------------------------------SECT!"#$2. -hensender deemedtoha'e&i'enduenotice. ( -here notice of dishonor is duly addressed anddeposited in the post-office* the sender is deemed to ha'e&i'en due notice* notwithstandin& any miscarria&e in themails.SECT!" #$3. 4eposit in post-office; what constitutes. ("oticeisdeemedtoha'ebeendepositedinthepost-office when deposited in any branch post-office or in anyletter bo) under the control of the post-office department.------------------------------------------------------------------------------ D D,01.ai0e$EH!ulya!!resse!an!!eposite!inthepost office 'ith sufficient stamps &he notice must be !uly a!!resse!, stampe! an!maile!. #ther'ise, the notice, e,en thou(hmaile!, isnot proper, an!thein!orser 'ill be!ischar(e! from liability, such as, 'here a noticea!!resse!toother thantheone(i,enonthenote, or 'ithout sufficient posta(e prepai!. If$,01 .ai0e$'ithin the time prescribe! by la',there is !eeme! to be notice of !ishonornot'ithstan!in( miscarria(e inthemails (e.(.,mis!eli,ere! to another person) 6+e)e n*ti!e .a1 be .ai0e$ Post office itself "ranch post office Letter bo un!er thecontrol of thepost-office!epartment 3noticeleft inaplaceinthenotarysoffice 'heremail'asusuallycollecte!by the postman 'as not amailin( of thenotice as re+uire! by the statute.Is t+e p)es,.pti*n !*n!0,si5eC &he presumption is conclusi,e if not rebutte!, or at least,contra!icte! (PN" ,s. Picornell)------------------------------------------------------------------------------SECT!"#$5. "oticeof subse6uent party; timeof. (-hereapartyrecei'esnoticeofdishonor* hehas* afterthe receipt of such notice* the same time for &i'in& noticeto antecedent parties that the holder has after thedishonor------------------------------------------------------------------------------ 3nin!orser 'horecei,esnoticeof !ishonor entitle!to(i,enoticetopersons from'hom'homhecanaskreimbursement (i.e., antece!ent parties) 1ra'er Prior in!orsers Suchin!orser cana,ail of theperio!pro,i!e!inSecs.*02 an! *08 I00,st)ati*n= 15 P 3 " 6 3ll parties resi!e in the same to'n "efore maturity !ate on September %>, %0**, =r.6 presente! the instrument to =r. 1A (!ra'ee),for acceptance, but 'as !ishonore! on the same!ay. =r. 6(a,enoticeof !ishonor to=r. "onhisplace of business on September %B, %0**. )n!er this situation, =r. " has the same perio!un!er Sec. *02 'ithin 'hich to (i,e notice to =r.15, =r. P an! =r. 3. 4ence, until September %F,%0**. REMEMBER=Ahenthela' pro,i!esforthetime'ithin'hichthehol!eristo(i,enotice, thela'saysthe!ayfollo'in(the!ayof maturity. "ut inthecaseof apartyentitle! to (i,e notice, 'hen the la' says the same time, itis to be reckone! not from the !ay of !ishonor, but fromthe!ateof receipt of notice.&oillustrate. Let ussay6,upon the !ishonor of the note by the maker (i,es noticesto all. 3is not a party entitle! to (i,e notice. AhyL"ecause ha,in( been (i,en notice by 6, he can be hel!liable. 6an he (i,e notice to 1L No, because he is the oneliable to 1. 4e is a party prior un!er Sec. 6B. 4e is kno'nasapartyentitle!to(i,enotice, but, hecanonly(i,enoticetotheparty.parties from'homhecanask forreimbursement shoul! he be compelle! to pay. b. 6+e)e N*ti!e M,st Be Sent------------------------------------------------------------------------------SECT!"#$7. -herenoticemust besent. (-hereapartyhasaddedanaddresstohissi&nature* noticeofdishonor must be sent to that address; but if he has not&i'ensuchaddress* thenthenoticemust besent asfollows./a0 Either to the post-office nearest to his place ofresidence or to the post-office where he is accustomed torecei'e his letters; or"y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$d' T+e $e.an$ .a$e an$ t+e ans/e) (i5en& i- an1& *)t+e -a!t t+at t+e $)a/ee *) a!!ept*) !*,0$ n*t be -*,n$.SECTION F3%. Protest* by whom made. H P)*test .a1 be .a$e b1=a' A n*ta)1 p,b0i!> *)b' B1 an1 )espe!tab0e )esi$ent *- t+e p0a!e /+e)e t+ebi00 is $is+*n*)e$& in t+e p)esen!e *- t/* *) .*)e !)e$ib0e /itnesses.SECTION F9G. Protest where bill is lost and so forth. H 6+en a bi00 is 0*st *) $est)*1e$ *) is /)*n(01$etaine$ -)*. t+e pe)s*n entit0e$ t* +*0$ it& p)*test .a1 be .a$e *n a !*p1 *) /)itten pa)ti!,0a)s t+e)e*-.SECTION F33. Protest; when to be made. H 6+en a bi00 is p)*teste$& s,!+ p)*test .,st be .a$e *n t+e $a1 *- its $is+*n*) ,n0ess $e0a1 is e2!,se$ as +e)ein p)*5i$e$. 6+en a bi00 +as been $,01 n*te$& t+e p)*test .a1 be s,bse;,ent01 e2ten$e$ as *- t+e $ate *- t+e n*tin(./0uly noted/ is 'hen the notary public Cots !o'n a note on the bill, or paperaffie! thereto, or in his re(istry book, consistin( of his initials or si(naturean! those matters re+uire! to be state! in Section *92.)pon eecution of the a formal protest, the same retroacts to the !ate of notin(SECTION F38. Protest before maturity where acceptor insol'ent. H 6+e)e t+e a!!ept*) +as been a$I,$(e$ a ban8),pt *) an ins*05ent& *) +as .a$e an assi(n.ent -*) t+e bene-it *- !)e$it*)s be-*)e t+e bi00 .at,)es& t+e +*0$e) .a1 !a,se t+e bi00 t* be p)*teste$ -*) bette) se!,)it1 a(ainst t+e $)a/e) an$ in$*)se)s.Protest for "etter Security Ione ma!e by the hol!er of a bill after it has been accepte! but before it matures, a(ainst the !ra'er an! in!orsers, 'here the acceptor hasbeen a!Cu!(e! a bankrupt or an insol,ent, or has ma!e an assi(nment for the benefit of the cre!itorsNe,ertheless, the hol!er cannot procee! a(ainst the acceptor before maturity !ateSECTION F39. Protest; where made. H A bi00 .,st be p)*teste$ at t+e p0a!e /+e)e it is $is+*n*)e$& e2!ept t+at /+en a bi00 $)a/n pa1ab0e at t+e p0a!e *- b,siness *) )esi$en!e *- s*.e pe)s*n *t+e) t+an t+e $)a/ee +as been $is+*n*)e$ b1 n*n4a!!eptan!e& it .,st be p)*teste$ -*) n*n4pa1.ent at t+e p0a!e /+e)e it is e2p)esse$ t* be pa1ab0e& an$ n* -,)t+e) p)esent.ent -*) pa1.ent t*& *) $e.an$ *n t+e "y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$ an$ /+e)e t+e)e +as been an a!!eptan!e -*) +*n*) -*) *ne pa)t1& t+e)e .a1 be a -,)t+e) a!!eptan!e b1 a $i--e)ent pe)s*n -*) t+e +*n*) *- an*t+e) pa)t1.SECTION F9#. +cceptance for honor; how made. H An a!!eptan!e -*) +*n*) s,p)a p)*test .,st be in /)itin( an$ in$i!ate t+at it is an a!!eptan!e -*) +*n*)&an$ .,st be si(ne$ b1 t+e a!!ept*) -*) +*n*).5e+uisites/1. &he bill must ha,e been protested for !ishonor bynonacceptance or for better security.2. &he acceptor for honor must be a stranger an! not a party alrea!y liable on the instrument3. "ill must not be o$erdue4. 3cceptance for honor must be 'ith the consent ofthe hol!er of the instrument"y 1$L;31#, 4oney, L#5$, $m, P3SI6#L3N, Sheila, an! 5$. Protest for NPB. N#1 NP (i,en to 3:4 by the hol!erF. 1ishonor by N3 by the 3:4 *0. Protest for NPE/ Ahy is 2r! protest necessaryL3/ &o re,i,e the hol!ers claim a(ainst persons liable. SECTION F9