Negotiable Instrument
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Act No. 2031 February 03, 1911 THE NEGOTIABLE INSTRUMENTS LAW ACT NO. 2031 February 03, 1911 THE NEGOTIABLE INSTRUMENTS LAW I. FORM AND INTERPRETATION Section 1. Form of negotiable instruments. - An instrument to be negotiable must conform to the following requirements:chanroblesvirtuallawlibrary (a) It must be in writing and signed by the maker or drawer; (b) Must contain an unconditional promise or order to pay a sum certain in money; (c) Must be payable on demand, or at a fixed or determinable future time; (d) Must be payable to order or to bearer; and (e) Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. Sec. 2. What constitutes certainty as to sum. - The sum payable is a sum certain within the meaning of this Act, although it is to be paid: (a) with interest; or (b) by stated installments; or (c) by stated installments, with a provision that, upon default in payment of any installment or of interest, the whole shall become due; or (d) with exchange, whether at a fixed rate or at the current rate; or (e) with costs of collection or an attorney's fee, in case payment shall not be made at maturity. Sec. 3. When promise is unconditional. - An unqualified order or promise to pay is unconditional within the meaning of this Act though coupled with: (a) An indication of a particular fund out of which reimbursement is to be made or a particular account to be debited with the amount; or (b) A statement of the transaction which gives rise to the instrument. But an order or promise to pay out of a particular fund is not unconditional.chan robles virtual law library Sec. 4. Determinable future time; what constitutes. - An instrument is payable at a determinable future time, within the meaning of this Act, which is expressed to be payable:chanroblesvirtuallawlibrary (a) At a fixed period after date or sight; or (b) On or before a fixed or determinable future time specified therein; or (c) On or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain. An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the defect. Sec. 5. Additional provisions not affecting negotiability. - An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which:chanroblesvirtuallawlibrary (a) authorizes the sale of collateral securities in case the instrument be not paid at maturity; or (b) authorizes a confession of judgment if the instrument be not paid at maturity; or (c) waives the benefit of any law
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Transcript of Negotiable Instrument
Act No. 2031 February 03, 1911 THE NEGOTIABLE INSTRUENTS LA!
A"T NO. 2031 February 03, 1911
THE NEGOTIABLE INSTRUENTS LA! I. FOR AN# INTER$RETATION Sect%o& 1. Form of negotiable instruments. - A& %&'tru(e&t to be &e)ot%ab*e (u't co&+or( to t,e +o**o-%&) re.u%re(e&t'/c,a&rob*e'0%rtua**a-*%brary 1a2 It (u't be %& -r%t%&) a&3 '%)&e3 by t,e (a4er or 3ra-er5 1b2 u't co&ta%& a& u&co&3%t%o&a* 6ro(%'e or or3er to 6ay a 'u( certa%& %& (o&ey5 1c2 u't be 6ayab*e o& 3e(a&3, or at a 78e3 or 3eter(%&ab*e +uture t%(e5 132 u't be 6ayab*e to or3er or to bearer5 a&3 1e2 !,ere t,e %&'tru(e&t %' a33re''e3 toa 3ra-ee, ,e (u't be &a(e3 or ot,er-%'e %&3%cate3 t,ere%& -%t, rea'o&ab*e certa%&ty. Sec. 2. What constitutes certainty as to sum. 9 T,e 'u( 6ayab*e %' a 'u( certa%& -%t,%& t,e (ea&%&) o+ t,%' Act, a*t,ou), %t %' to be 6a%3/ 1a2 -%t, %&tere't5 or 1b2 by 'tate3 %&'ta**(e&t'5 or 1c2 by 'tate3 %&'ta**(e&t', -%t, a 6ro0%'%o& t,at, u6o& 3e+au*t %& 6ay(e&t o+ a&y %&'ta**(e&t or o+ %&tere't, t,e -,o*e ',a** beco(e 3ue5 or 132 -%t, e8c,a&)e, -,et,er at a 78e3 rate or at t,e curre&t rate5 or 1e2 -%t, co't' o+ co**ect%o& or a& attor&ey:' +ee, %& ca'e 6ay(e&t ',a** &otbe (a3e at (atur%ty. Sec. 3. When promise is unconditional. - A& u&.ua*%7e3 or3er or 6ro(%'e to 6ay %' u&co&3%t%o&a* -%t,%& t,e (ea&%&) o+ t,%' Act t,ou), cou6*e3 -%t,/ 1a2 A& %&3%cat%o& o+ a 6art%cu*ar +u&3 out o+ -,%c, re%(bur'e(e&t %' to be (a3e ora 6art%cu*ar accou&t to be 3eb%te3 -%t, t,e a(ou&t5 or 1b2 A 'tate(e&t o+ t,e tra&'act%o& -,%c, )%0e' r%'e to t,e %&'tru(e&t. But a& or3er or 6ro(%'e to 6ay out o+ a 6art%cu*ar +u&3 %' &ot u&co&3%t%o&a*.c,a& rob*e' 0%rtua* *a- *%brary Sec. ;. Determinable future time; what constitutes. 9 A& %&'tru(e&t %' 6ayab*e at a 3eter(%&ab*e +uture t%(e, -%t,%& t,e (ea&%&) o+t,%' Act, -,%c, %' e86re''e3 to be 6ayab*e/c,a&rob*e'0%rtua**a-*%brary 1a2 At a 78e3 6er%o3 a+ter 3ate or '%),t5 or 1b2 O& or be+ore a 78e3 or 3eter(%&ab*e +uture t%(e '6ec%7e3 t,ere%&5 or 1c2 O& or at a 78e3 6er%o3 a+ter t,e occurre&ce o+ a '6ec%7e3 e0e&t -,%c, %' certa%& to ,a66e&, t,ou), t,e t%(e o+ ,a66e&%&) be u&certa%&. A&%&'tru(e&t 6ayab*eu6o&aco&t%&)e&cy%'&ot &e)ot%ab*e, a&3 t,e ,a66e&%&) o+ t,e e0e&t3oe' &ot cure t,e 3e+ect.Sec. e3 to rece%0e 6ay(e&t o& ,%'be,a*+51b2Atarea'o&ab*e,ouro& a bu'%&e''3ay51c2 At a 6ro6er 6*ace a' ,ere%& 3e7&e35132 To t,e 6er'o& 6r%(ar%*y *%ab*e o& t,e%&'tru(e&t, or %+ ,e %' ab'e&t or%&acce''%b*e, to a&y 6er'o& +ou&3 at t,e6*ace -,ere t,e 6re'e&t(e&t %' (a3e. Sec. A3.,laceof presentment. -$re'e&t(e&t+or 6ay(e&t %' (a3e at t,e 6ro6er6*ace/c,a&rob*e'0%rtua**a-*%brary 1a2 !,ere a 6*ace o+ 6ay(e&t %''6ec%7e3 %& t,e %&'tru(e&t a&3 %t %' t,ere6re'e&te351b2 !,ere &o 6*ace o+ 6ay(e&t %''6ec%7e3 but t,ea33re''o+ t,e6er'o&to (a4e 6ay(e&t %' )%0e& %& t,e%&'tru(e&t a&3%t %' t,ere6re'e&te351c2 !,ere &o 6*ace o+ 6ay(e&t %''6ec%7e3a&3&oa33re'' %')%0e&a&3t,e %&'tru(e&t %' 6re'e&te3 at t,e u'ua*6*ace o+ bu'%&e'' or re'%3e&ce o+ t,e6er'o& to (a4e 6ay(e&t5132 I& a&y ot,er ca'e %+ 6re'e&te3 to t,e6er'o&to(a4e6ay(e&t -,ere0er ,eca& be +ou&3, or %+ 6re'e&te3 at ,%' *a't4&o-& 6*ace o+ bu'%&e'' or re'%3e&ce. Sec. A;.&nstrument must bee3hibited.9 T,e%&'tru(e&t (u't be e8,%b%te3 to t,e 6er'o&+ro( -,o( 6ay(e&t %' 3e(a&3e3, a&3 -,e& %t%' 6a%3, (u't be 3e*%0ere3 u6 to t,e 6arty6ay%&) %t.Sec. Ae3toacce6t or re+u'e acce6ta&ce o& ,%' be,a*+5 a&3 1a2!,ereab%** %'a33re''e3tot-oor(ore 3ra-ee' -,o are &ot 6art&er',6re'e&t(e&t (u't be (a3e to t,e( a**u&*e'' o&e,a' aut,or%tytoacce6t orre+u'e acce6ta&ce +or a**, %& -,%c, ca'e6re'e&t(e&t (ay be (a3e to ,%( o&*y5
1b2 !,ere t,e 3ra-ee %' 3ea3,6re'e&t(e&t (ay be (a3e to ,%'6er'o&a* re6re'e&tat%0e5
1c2 !,ere t,e 3ra-ee ,a' bee&a3?u3)e3 aba&4ru6tora&%&'o*0e&tor,a' (a3e a& a''%)&(e&t +or t,e be&e7to+ cre3%tor', 6re'e&t(e&t (ay be (a3eto ,%( or to ,%' tru'tee or a''%)&ee. Sec. 1;@.Onwhatdayspresentmentmaybemade. 9 A b%** (ay be 6re'e&te3 +or acce6ta&ceo&a&y3ayo&-,%c,&e)ot%ab*e%&'tru(e&t'(ay be 6re'e&te3 +or 6ay(e&t u&3er t,e6ro0%'%o&'o+Sect%o&' 'e0e&ty9t-oa&3e%),ty970e o+ t,%' Act. !,e& Satur3ay %' &ot ot,er-%'ea ,o*%3ay, 6re'e&t(e&t +or acce6ta&ce (ay be(a3e be+ore t-e*0e o:c*oc4 &oo& o& t,at 3ay.
Sec. 1;A.,resentment where time isinsu"cient.9 !,ere t,e ,o*3er o+ a b%**3ra-&6ayab*e e*'e-,ere t,a& at t,e 6*ace o+ bu'%&e''or t,ere'%3e&ceo+ t,e3ra-ee,a'&ot%(e,-%t,t,ee8erc%'eo+ rea'o&ab*e3%*%)e&ce, to6re'e&t t,e b%** +or acce6ta&ce be+ore6re'e&t%&) %t +or 6ay(e&t o& t,e 3ay t,at %t +a**'3ue, t,e 3e*ay cau'e3 by 6re'e&t%&) t,e b%** +oracce6ta&ce be+ore 6re'e&t%&) %t +or 6ay(e&t %'e8cu'e3a&33oe'&ot 3%'c,ar)et,e3ra-er'a&3 %&3or'er'.
Sec. 1;B.Where presentment is e3cused. -$re'e&t(e&t +or acce6ta&ce%'e8cu'e3a&3ab%** (ay be treate3 a' 3%',o&ore3 by &o&9acce6ta&ce %& e%t,er o+ t,e +o**o-%&)ca'e'/c,a&rob*e'0%rtua**a-*%brary 1a2 !,eret,e3ra-ee%'3ea3, or ,a'ab'co&3e3, or %' a 7ct%t%ou' 6er'o& or a6er'o&&ot ,a0%&)ca6ac%tytoco&tractby b%**.
1b2 !,ere, a+ter t,e e8erc%'e o+rea'o&ab*e 3%*%)e&ce, 6re'e&t(e&t ca&&ot be (a3e.
1c2 !,ere, a*t,ou), 6re'e&t(e&t ,a'bee& %rre)u*ar, acce6ta&ce ,a' bee&re+u'e3 o& 'o(e ot,er )rou&3. Sec. 1;9. When dishonored by nonacceptance. 9A b%** %' 3%',o&ore3 by &o&9acce6ta&ce/c,a&rob*e'0%rtua**a-*%brary 1a2 !,e& %t %' 3u*y 6re'e&te3 +oracce6ta&cea&3'uc,a&acce6ta&cea'%' 6re'cr%be3 by t,%' Act %' re+u'e3 or ca&&ot be obta%&e35 or
1b2 !,e& 6re'e&t(e&t +or acce6ta&ce %'e8cu'e3 a&3 t,e b%** %' &ot acce6te3. Sec. 1
