Notice given in ignorance of death, valid. Notice, when to be given. Notice of dishonor, when to be mailed. Notice, how given by agent. Additional time for notice oy indorser. Effect of notice of dishonor. SEC. 3147. Notice of dishonor, when given by the holder of an instrument, or his agent, otherwise than by mail, must be given on the day of dishonor, or on the next business day thereafter. N. Y. C. C., Sec. 1761. SEC. 3148. When notice of dishonor is given by mail, it must be deposited in the Post-office in time for the first mail which closes after noon of the first business day succeeding the dishonor, and which leaves the place from which, for the place to which, the notice should be sent. N. Y. C. C., Sec. 1762. SEC. 3149. When the holder of a negotiable instrument, at the time of its dishonor, is a mere agent for the owner, it is sufficient for him to give notice to his principal in the same manner as to an indorser, and his principal may give notice to any other party to be charged, as if he were himself an indorser. And if an agent of the owner employs a sub-agent, it is sufficient for each successive agent or sub-agent to give notice in like manner to his own principal. N. Y. C. C., Sec. 1763. SEC. 3150. Every party to a negotiable instrument, receiving notice of its dishonor, has the like time thereafter to give similar notice to prior parties, as the original holder had after its dishonor. But this additional time is available only to the particular party entitled thereto. N. Y. C. C., Sec. 1764. SEC. 3151. A notice of the dishonor of a negotiable instrument, if valid in favor of the party giving it, inures to the benefit of all other parties thereto, whose right to give the like notice has not been lost. N. Y. C. C., Sec. 1765. ARTICLE VI. EXCUSE OF PRESENTMENT AND NOTICE. SECTION 3155. Notice of dishonor, when excused. 3156. Presentment and notice, when excused. 3157. Same. 3158. Delay, when excused. 3159. Waiver of presentment and notice. 3160. Waiver of protest. NOTE. If the provision of Sec. 3131, requiring presentment to be made to a Notary Public in certain cases, is not adopted, it will be necessary to insert here a section as follows: SEC. -. The presentment of a negotiable instrument for payment is excused 1. When neither the place of payment, if any, designated in the instrument, nor the place of residence or business of the principal debter can, with reasonable diligence, be ascertained by the holder; or, 2. When no person to whom presentment may properly be made can, with reasonable diligence, be found by the holder; or, 3. When the instrument designates no place of payment, but purports to be signed by the principal debtor within this State, and he resided therein at the time of signing, but has removed therefrom. Notice of dis honor, when SEC. 3155. Notice of dishonor is excused1. When the party by whom it should be given cannot, excused. with reasonable diligence, ascertain either the place of residence or business of the party to be charged; or, 2. When there is no Post-office communication between the town of the party by whom the notice should be given, and the town in which the place of residence or business of the party to be charged is situated; or, 3. When the party to be charged is the same person who dishonors the instrument; or, 4. When the notice is waived by the party entitled thereto. N. Y. C. C., Sec. 1766. SEC. 3156. Presentment and notice are excused as to any party to a negotiable instrument, who informs the holder, within ten days before its maturity, that it will be dishonored. N. Y. C. C., Sec. 1767. Presentment and notice, when ex cused. SEC. 3157. If, before or after the maturity of an in- Same. strument, an indorser has received full security for the amount thereof, or the maker has assigned all his estate Delay, when excused. Waiver of presentment and notice. Waiver of protest. to him as such security, presentment and notice to him are excused. SEC. 3158. Mechanics' Bank vs. Griswold, 7 Wend., 165; Corney vs. Da Costa, 1 Esp., 302; limited in Seacord vs. Miller, 13 N. Y., 55. This rule is founded upon the same principle as the series of cases that were overthrown in Hall vs. Newcomb, 7 Hill, 416; and perhaps ought to share their fate. If the maker intends that the indorser shall waive notice, he will naturally so stipulate with him, or will give the security to the holder outright. The following is suggested instead of this section: [SEC. 1768. No transactions between the maker and indorser of a negotiable instrument waive or excuse notice of dishonor to the latter, unless they so agree.] This latter rule is established in Connecticut (Holland vs. Turner, 10 Conn., 308, 317). N. Y. C. C., Sec. 1768. Delay in presentment, or in giving notice of dishonor, is excused, when caused by circumstances which the party delaying could not have avoided by the exercise of reasonable care and diligence. N. Y. C. C., Sec. 1769. SEC. 3159. A waiver of presentment waives notice of dishonor also, unless the contrary is expressly stipulated; but a waiver of notice does not waive presentment." Buchanan vs. Marshall, 22 Vt., 561; Burnham vs. Webster, 17 Me., 50. N. Y. C. C., Sec. 1770. SEC. 3160. A waiver of protest on any negotiable instrument other than a foreign bill of exchange, waives presentment and notice. Coddington vs. Davis, 1 N. Y., 186; 3 Den., 16. N. Y. C. C., Sec. 1771. Obligation of party, ARTICLE VII. EXTINCTION OF NEGOTIABLE INSTRUMENTS. SECTION 3164. Obligation of party, when extinguished. SEC. 3164. The obligation of a party to a negotiable when extin. instrument is extinguished guished. 1. In like manner with that of parties to contracts in general; or, 2. By payment of the amount due upon the instru ment, at or after its maturity, in good faith and in the ordinary course of business, to any person having actual See Secs. 1744 and 1745, and notes. By the commercial N. Y. C. C., Sec. 1772. obligation. SEC. 3165. If, after its extinction, a negotiable instru- Revival of ment comes into the possession of an indorsee in due course, the obligation thereof revives in his favor. N. Y. C. C., Sec. 1773. CHAPTER II. BILLS OF EXCHANGE. ARTICLE I. FORM AND INTERPRETATION. II. DAYS OF GRACE. III. PRESENTMENT FOR ACCEPTANCE. IV. ACCEPTANCE. V. ACCEPTANCE OR PAYMENT FOR HONOR. VI. PRESENTMENT FOR PAYMENT. VII. EXCUSE OF PRESENTMENT AND NOTICE. ARTICLE I. FORM AND INTERPRETATION OF A BILL. SECTION 3171. Bill of exchange, what. 3172. Drawee, in case of need. 3174. When must be in a set. 3175. Presentment, etc., of part of set. 3176. Bill, where payable. 3177. Rights and obligations of drawer. SEC. 3171. A bill of exchange is an instrument, negotiable in form, by which one, who is called the drawer, Bill of exwhat. change, Present ment, etc., requests another, called the drawee, to pay a specified sum of money. N. Y. C. C., Sec. 1774. SEC. 3172. A bill of exchange may give the name of any person in addition to the drawee, to be resorted to in case of need. N. Y. C. C., Sec. 1775. SEC. 3173. A bill of exchange may be drawn in any number of parts, each part stating the existence of the others, and all forming one set. N. Y. C. C., Sec. 1776. SEC. 3174. An agreement to draw a bill of exchange binds the drawer to execute it in three parts, if the other party to the agreement desires it. N. Y. C. C., Sec. 1777. SEC. 3175. Presentment, acceptance, or payment, of a of part of set single part in a set of a bill of exchange, is sufficient for the whole. Bill, where payable. Rights and obligations of drawer. or, N. Y. C. C., Sec. 1778. SEC. 3176. A bill of exchange is payable 1. At the place where, by its terms, it is made payable; 2. If it specifies no place of payment, then at the place to which it is addressed; or, 3. If it is not addressed to any place, then at the place of residence or business of the drawee, or wherever he may be found; or, 4. If this cannot be done, then at the office of any Notary Public in the State. See Story on Bills, Sec. 48. This provision is new. Compare Secs. 1783 and 1748, which contain similar provisions. N. Y. C. C., Sec. 1779. SEC. 3177. The rights and obligations of the drawer of a bill of exchange are the same as those of the first indorser of any other negotiable instrument. N. Y. C. C., Sec. 1780. |