Acceptance of dishonored bill.--Where a dishonored bill has been accepted for honor supra protest or contains a reference in case of need, it must be protested for non-payment before it is presented for payment to the acceptor for honor or referee in case of need.

Presentment to acceptor how made.-Presentment for payment to the acceptor for honor must be made as follows:

1. If it is to be presented in the place where the protest for non-payment was made, it must be presented not later than the day following its maturity.

2. If it is to be presented in some other place than the place where it was protested, then it must be forwarded within the time specified in section 1678-34.

The provisions of section 1678-11 apply where there is delay in making presentment to the acceptor for honor or referee in case of need.

When the bill is dishonored by the acceptor for honor it must be protested for non-payment by him.

SECTION XVII.

PAYMENT FOR HONOR.

Payment supra protest.--Where a bill has been protested for non payment, any person may intervene and pay it supra protest for the honor of the person for whose account it was drawn.

Notarial act of honor, when necessary.-The payment for honor supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honor which may be appended to the protest or form an extension to it.

Foundation of notarial act.-The notarial act of honor must be founded on a declaration made by the payer for honor by agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays.

Different parties.-Where two or more persons offer to pay a bill for the honor of different parties, the person whose payment will discharge most parties to the bill is to be given the preference.

Bill paid for honor.-Where a bill has been paid for honor, all parties subsequent to the party for whose honor

it is paid are discharged, but the payer for honor is subrogated for and succeeds to, both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter.

Holder's refusal, supra protest.--Where the holder of a bill refuses to receive payment supra protest, he loses his right of recourse against any party who would have been discharged by such payment.

Payer for honor.--The payer for honor, on paying to the holder the amount of the bill and the notarial expenses incident to its dishonor, is entitled to receive both the bill itself and the protest.

SECTION XVIII.

BILLS IN A SET.

When one bill.--Where a bill is drawn in a set, each part of a set being numbered and containing a reference to the parts, the whole of the parts constitutes one bill.

When parts are negotiated.--Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accures is as between such holders the true owner of the bill. But nothing in this section affects the rights of the person who in due course accepts or pays the part first presented to him.

Indorsement to different parties.--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 were separate bills.

Acceptance on any part.--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.

Liability of acceptor in paying part.--When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of an holder in due course, he is liable to the holder thereon.

When whole bill is discharged.--Except as herein otherwise provided where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged.

SECTION XIX.

DAMAGES ON BILLS.

Rate of damages within state.--Whenever any bill of exchange drawn or indorsed within this state and payable without the limits of the Unided States shall be duly protested for non-aceeptance or non-payment the party liable for the contents of such bill shall, on due notice and demand thereof, pay the same at the current rate of exchange at the time of the demand and damages at the rate of five per cent. on the contents thereof, together with interest on the said contents, to be computed from the date of the protest; and said amount of contents, damages and interest shall be in full of all damages, charges and expenses.

Rate of damages without state.--If any bill of exchange drawn upon any person or corporation out of this state, but within some state or territory of the United States, for the payment of money shall be duly presented for acceptance or payment and protested for non-acceptance or non-payment the drawer or indorser thereof, due notice being given of such non-acceptance or non-payment, shall pay such bill with legal interest according to its tenor and five per cent. damages, together with costs and charges of protest.

SECTION XX.

PROMISSORY NOTES AND CHECKS.

Negotiable notes defined.--A negotiable promissory note within the meaning of this act is an unconditional promise in writing made by one person to another signed by the maker engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to order or to bearer. Where a note is drawn to the maker's own order it is not complete until indorsed by him.

Check.-A check is a bill of exchange drawn on a bank, payable on demand. Except as herein otherwise provided, the provisions of this act applicable to a bill of exchange payable on demand apply to a check.

Presentation of check.-A check must be presented for payment within a reasonable time after its issue or the drawer will be discharged from liability thereon to the extent of the loss caused by the delay.

As between the drawer and payee, if the check is received in the same place in which the drawee bank is situated the payee has the next day in which to make presentment, excluding Sundays and holidays. Where the payee receives the check at a distance from place where the bank is situated he has the whole of the next day after receiving it to forward the check for presentment thro' the proper channel by mail or express, to the place where the bank is situated. The person to whom it is sent has the next day after receiving it in which to make presentment. If the party who receives the check resides in the country or away from the post-office, the rule in forwarding the check for presentment is not so strictly enforced as in other cases. The same rules apply to indorsee in his relation to the immediate indorser.

Except in case of memorandum checks, it is necessary in order to hold the drawer and indorser, to make presentment for payment and give notice of dishonor. Failure to make such presentment will discharge indorser but will not discharge the drawer unless he suffers injury by the delay, and then only for the actual loss. A check is considered stale and overdue so as to let in equitable defences whenever the delay in presentment has been so long that in the light of the circumstances it is sufficent to arouse the suspicion of a reasonably prudent man.

Certified check.-Where a check is certified by the bank on which it is drawn, the certification is equivalent to an acceptance.

NOTE.---The rule as to due care in the presentation of a check drawn on a bank at a distant point is satisfied if the check is forwarded by the last mail of the day after its receipt and is presented at any time before the close of business on the day succeeding its receipt at the place of business of the drawee bank.

Discharge of liability of drawer and indorsers.--Where the holder of a check procures it to be accepted or certified the drawer and all indorsers are discharged from liability thereon.

Check not assignment of funds.-A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer, with the bank, and the bank is not liable to the holder, unless and until it accepts or certifies the check.

SECTION XXI.

NOTES FOR PATENTS, LIGHTNING RODS, ETC.

Words to be printed on face of note.-All promissory notes and other evidence of indebtedness, taken or given for any lightning rod, patent right or interest in patent right, shall have written or printed thereon the words, "The consideration for this note is the sale of a lightning rod, patent, patent right, or interest in the same," as the case may be.

Penalty.-Any person who shall sell a lightning rod, patent, patent right or any interest in a lightning rod, patent or patent right, who shall take a promissory note or other evidence of indebtedness for the whole or any part of the consideration of any lightning rod, patent, patent right or interest in a patent right, and which shall fail to state the consideration for said note as above provided, or in words of similar import, shall be liable to a penalty equal to the face value of said note so taken.

Such notes non-negotiable; innocent holder.--All notes taken as a part of the consideration for any lightning rod, patent, patent right or interest in the same, which shall express upon their face the consideration for which they are taken, shall be non-negotiable, and subject to all the defences in the hands of an innocent holder that the same would have been if not transferred.