"in the option of the holder to resort to the referee in case of need If a or not as he may see fit." 57 This section is the same as a section of the English Bills of Exchange Act.58 The referee in case of need is sometimes called the drawee in case of need. bill contains the name of the person to whom the holder may resort in case of need the bill should be presented to the person so named if the drawee refuse to accept. § 138. Bill in set constitute one bill. 66 59 The Negotiable Instruments Law provides that: "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 "constitute one bill." The English Bills of Exchange Act contains the same provision.61 This section is in all respects declaratory of the common law.62 It is the custom, in the case of international bills, to issue them in sets of threes, each being the counterpart of the others, except that there is a clause inserted that that particular bill shall be paid in case the others remain unpaid. This is done for security, and the bills are usually sent by different mails. The German Exchange Law contains a provision to the effect that if one part of the set omit reference to the rest, it becomes a separate bill in the hands of the bona fide holder, and this is probably the law in this country. We have in an earlier section referred quite fully to the forms and requisites of bills in a set.64 63 § 139. Rights and liabilities of holders of different parts. a. Where different parts are negotiated.— The Negotiable Instruments Law provides that: "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 nothing in this section affects the rights 57. Neg. Inst. L. (N. Y.), § 215. 58. English Bills of Exchange Act, $ 15. they shall thus accept and pay the bill." 60. Neg. Inst. L. (N. Y.), § 310. For same section in statutes of other States see Appendix. 61. English Bills of Exchange Act, § 71 (1). 62. Dunkin v. Cranston, 7 Johns. (N. Y.) 442; Holdsworth v. Hunter, 10 B. & C. (Eng.) 449. 63. German Exchange Law, art. 66. See French Code, art. 147. 64. See ante § 8. "of a person who in due course accepts or pays the part first 66 presented to him." 65 The same provision is contained in the English Bills of Exchange Act.66 b. Liability where parts are indorsed to different persons.The Negotiable Instruments Law provides that: "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 66 were separate bills." 67 The English Bills of Exchange Act contains the same provision, which is, probably, declaratory of the common law. 68 $140. Acceptance of bill in a set; payment by acceptor. a. Acceptance of bill in a set.-- The Negotiable Instruments Law provides that: "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." The English Bills of Exchange Act contains a similar provision. 69 70 b. Payment by acceptor. The Negotiable Instruments Law provides that: "When the acceptor of a bill drawn in a set pays 65. Neg. Inst. L. (N. Y.), § 311. For same section in statutes of other States see Appendix. 66. English Bills of Exchange Act, § 71 (3). 67. Neg. Inst. L. (N. Y.), § 312. For same section in statutes of other States see Appendix. 68. English Bills of Exchange Act, 871 (2). The section is in accordance with the German Exchange Law, art. 67. In the case of Holdsworth v. Hunter, 10 B. & C. (Eng.) 449, the drawee of the foreign bill in a set accepted the second part, which was the first which came to his hands, and indorsed it as a collateral security for a debt. He later indorsed another part of the set which came to him to a bona fide holder for value, who indorsed it to the plaintiff. It was contended that the plaintiff could not recover because another party having obtained a prior acceptance was entitled to the whole set. It was held that the plaintiff was entitled to recover since the prior acceptance was only conditional, and it was intimated that had the prior acceptance been unconditional the defendant would nevertheless have been liable. In the case of Bank of Pittsburg v. Neal, 20 How. (U. S.) 107, it was held that any innocent holder of a part of a bill which had been accepted and indorsed to him may recover thereon against the acceptor without regard to the history of the other parts. 69. Neg. Inst. L. (N. Y.), § 313. For same section in statutes of other States see Appendix. "it without requiring the part bearing his acceptance to be de"livered 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." 71 A similar provision is contained in the English Bills of Exchange Act.72 c. Effect of discharging one of a set.- The Negotiable Instruments Law provides that: "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 nothing in this section affects the rights of a per"son who in due course accepts or pays the part first presented to "him." 73 This is also the same as a provision contained in the English Bills of Exchange Act. If the acceptance is written on more than one part, and such other parts are transferred, the discharge of one part of the bill would not discharge the other parts which have been accepted and are in the hands of a bona fide holder. 71. Neg. Inst. L. (N. Y.), § 314. For same section in statutes of other States see Appendix. 72. English Bills of Exchange Act, 71 (5). 73. Neg. Inst. L. (N. Y.), § 315. For same section in statutes of other States see Appendix. 74. English Bills of Exchange Act, § 71 (6). CHAPTER XIII. Presentment for Acceptance. § 141. When Presentment for Acceptance Must be Made. a. Statutory provision. b. Presentment of bills payable after sight. $142. Presentment Within Reasonable Time; Effect of Failure. a. Statutory provision. b. General rule. c. What is reasonable time. § 143 Presentment, how Made. a. Statutory provision. b. To whom presentment should be made. c. Place of presentment. § 144 Presentment on Certain Days; Presentment where Time is Insufficient. a. On what days presentment may be made. b. Presentment where time is insufficient. $145. When Presentment is Excused. § 146. Dishonor by Nonacceptance. a. When bill dishonored by nonacceptance. § 141. When presentment for acceptance must be made. a. Statutory provision.— The Negotiable Instruments Law provides that: "Presentment for acceptance must be made: "1. Where the bill is payable after sight, or in any other case where presentment for acceptance is necessary in order to fix "the maturity of the instrument; or "2. Where the bill expressly stipulates that it shall be pre"sented for acceptance; or "3. Where the bill is drawn payable elsewhere than at the "residence or place of business of the drawee. "In no other case is presentment for acceptance necessary in "order to render any party to the bill liable." " A similar provision is contained in the English Bills of Exchange Act.76 b. Presentment of bills payable after sight.—The statute declares the general rule, which is well established in this country, that a presentment for acceptance is necessary, in order to fix the period when the bill is to be paid, in cases of bills payable at sight, or at a certain specified time after sight, or after any other event not absolutely fixed." But where a bill is payable a certain number of days after date or after any other specified and fixed event, presentment for acceptance is unnecessary; and acceptance and payment of the bill may be at once demanded at its maturity.78 Notwithstanding the fact that when a bill is payable at a day certain the drawer and indorser are not discharged if the bill is not presented until the day of payment, it is still the duty of a bank or other agent for collection to present the bill for acceptance without delay and to give immediate notice of the drawee's refusal to accept." 75. Neg. Inst. L. (N. Y.), § 240. For the same section in the statutes of other States see Appendix. 76. English Bills of Exchange Act, § 39, (1), (2), (3). 77. Story on Bills of Exchange, § 228; Aymar v. Beers, 7 Cow. (N. Y.) 705; Robinson v. Ames, 20 Johns. (N. Y.) 146; Hart v. Smith, 15 Ala. 807, 50 Am. Dec. 161; Austin v. Rodman, 8 N. C. 194, 9 Am. Dec. 630. 78. Bank of Washington v. Triplett, 1 Pet. (U. S.) 25, 7 L. Ed. 37; Townsley v. Sumrall, 2 Pet. (U. S.) 170, 7 L. Ed. 37; Evans v. Bridge, 4 Port. (Ala.) 348; Landrum v. Trowbridge, 2 Metc. (Ky.) 281; Union Nat. Bank v. Marr, 6 Bush (Ky.), 614; Glasgow v. Copland, 8 Mo. 268; Walker v. Stetson, 19 Ohio St. 400, 2 Am. Rep. 405; House v. Adams, 48 Pa. St. 261, 8 Am. Dec. 588; Bank of Bennington v. Raymond, 12 Vt. 401. The indorser of the bill of exchange, for the accommodation of the drawer, payable in six months from date, is liable as an indorser upon nonpayment and notice although the bill is not presented for acceptance, and protested for nonacceptance, and notice thereof given to the indorser, until five months after its date. Oxford Bank v. Davis, 4 Cush. (Mass.) 188. When presentment necessary.- In the case of Allen v. Suydam, 21 Wend. 79 (N. Y.) 321, 32 Am. Dec. 555, the court said: "A bill payable at sight, or a certain number of days after sight, must be presented for acceptance and payment, or for acceptance only, without unreasonable delay, or the drawer and indorsers will be discharged, for they have an interest in having the bill accepted immediately, in order to shorten the time of payment, and thus to put a limit to the period of their liability; and also to enable them to protect themselves by other lines, before it is too late, if the bill is not accepted and paid within the time originally contemplated by them. But in relation to the bill payable at a day certain, as at a fixed time after its date, it is perfectly well settled, not only in this country and in England, but also in Scotland and France, that the drawer or indorser of the bill is not discharged by the neglect of the holder to present the same for acceptance immediately, or until the time when it becomes due and payable. If, however, such bill is actually presented for acceptance, and is dishonored before it becomes due, the notice of such dishonor must be given to the drawer or indorser without delay, or it will be discharged." 79. Allen v. Suydam, 20 Wend. (N. Y.) 321, 332, 32 Am. Dec. 555. |