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time of payment as fixed by the bill, and the bill is due and payable on the last day of grace: Provided, That
(a) When the last day of grace falls on Sunday, Christmas Day, January first, July fourth, or a day appointed by Esecutive proclamation as a public fast or thanksgiving day, the bill is, except in the case hereinafter provided for, due and payable on the preceding business day.
(b) When the last day of grace is a bank holiday, or is a Sunday, and the second day of grace is a bank holiday, the bill is due and payable on the succeeding business day.
(2) Where a bill is payable at a fixed period after date, after sight, or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment.
(3) Where a bill is payable at a fixed period after sight, the time begins to run from the date of the acceptance if the bill be accepted, and from the date of noting or protest if the bill be noted or protested for non-acceptance or for non-delivery.
(4) The term “ month” in a bill means calendar month.
SÉC. 15. That the drawer of a bill and any indorser may insert therein 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 non-acceptance or non-payment. 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 think fit.
ŠEC. 16. That the drawer of a bill and any indorser, may insert therein an express stipulation :
(1) Negativing or limiting his own liability to the holder ;
(2) Waiving as regards himself some or all of the holder's duties.
SEC. 17. (1) That the acceptance of a bill is the signification by the drawee of his assent to the order of the drawer.
(2) An acceptance is invalid unless it complies with the following conditions, namely :
(a) It must be written on the bill and be signed by the drawee. The mere signature of the drawee without additional words is sufficient.
(b) It must not express that the drawee will perform his promise by any other means than the payment of money.
SEC. 18. That a bill may be accepted :
(1) Before it has been signed by the drawer, or while otherwise incomplete.
(2.) When it is overdue or after it has been dishonored by a previous refusal to accept, or by non-payment.
(3) When a bill payable after sight is dishonored by nonacceptance, and the drawee subsequently accept it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.
Sec. 19. (1) That an acceptance is either (a) general or (b) qualified.
(2) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.
In particular an acceptance is qualified which is :
(a) Conditional, that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated;
(b) Partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn ;
(c) Local, that is to say, an acceptance to pay only at a particular specified place.
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.
(d) Qualified as to time.
(e) The acceptance of some one or more of the drawees, but not of all.
SEC. 20. (1) That where a simple signature on a blank stanı ped paper is delivered by the signer in order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, or the acceptor, or an indorser; and in like manner when a bill is wanting in any material particular the person in possession of it has a prima facie authority to fill up the omission in any way he thinks fit.
(2) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact : Provided, That if any such instrument after completion is
negotiated to a holder in due course it shall be valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.
SEC. 21. (1) That every contract on a bill, whether it be the drawer's, the acceptor's, or an indorser's, is incomplete and revocable, until delivery of the instrument in order to give effect thereto: Provided, That where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable.
(2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery
(a) In order to be effectual must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be ;
(b) May be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill.
But if the bill be in the hands of a holder in due course a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed.
(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved.
CAPACITY AND AUTHORITY OF PARTIES.
Sec. 22. (1) That capacity to incur liability as a party to a bill is coextensive with capacity to contract: Provided, That nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations, whether public or private.
(2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto, and against any assets received and held on account thereof by the incompetent party.
Sec. 23. That no person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such : Provided, That
(1) Where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name.
(2) The signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.
SEC. 24. That subject to the provisions of this act, where a signature on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorized signature is wholly inoperative, and no right to retain the bill or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded by negligence or other good cause from setting up the forgery or want of authority : Provided, That nothing in this section shall affect the ratification of an unauthorized signature not amounting to a forgery.
SEC. 25. That a signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority. If the agent sign without authority from the principal, the agent himself shall be bound.
SEC. 26. (1) That where a person signs a bill as drawer, indorser, or acceptor, and adds words to his signature, indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon, except as above stated ; and the mere addition to his signature of words describing him as an agent, or as filling a representative character, shall exempt him from personal liability, unless it shall otherwise appear that the intention is to bind the person making the signature.
(2) In determining whether the signature on a bill is that of the principal or that of the agent by whose hand it is written, the construction most favorable to the liability of the principal shall be adopted.
THE CONSIDERATION FOR A BILL.
Sec. 27. (1) That valuable consideration for a bill may be constituted by
the bill, or the acceptance thereof, by fraud, duress, or force tion, or when he negotiates it in breach of faith, or under such
(a) Any consideration sufficient to support a simple contract;
(b) An antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.
(2) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.
(3) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.
Sec. 28. (1) That an accommodation party to a bill is a person who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person.
(2) An accommodation party is liable on the bill to a holder for value ; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.
Sec. 29. (1) That a holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely:
(a) That he became the holder of it before it was overdue, and without notice that it had been previously dishonored, if such was the fact.
(b) That he took the bill in good faith for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it.
(2) In particular the title of a person who negotiates a bill is defective within the meaning of this act when he obtained and fear, or other unlawful means, or for an illegal considera:
circumstances as amount to a fraud.
(3) A holder (whether for value or not) who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.
Sec. 30. (1) That every party whose signature appears on