ARTICLE XVI.* Bills in a Set. Section 310. Bills in sets constitute one bill. 311. Rights of holders where different parts are negotiated. 313. Acceptance of bills drawn in sets. 314. Payment by acceptor of bills drawn in sets. 315. Effect of discharging one of a set. 310. Bills in sets constitute one bill.- 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. 8311. Rights of holders where different parts are negotiated. 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 person who in due course accepts or pays the part first presented to him. § 312. Liability of holder who indorses two or more parts of a set to different persons. 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. § 313. Acceptance of bills drawn in sets. 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. § 314. Payment by acceptor of bills drawn in sets.— 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 a holder in due course, he is liable to the holder thereon. $ 315. Effect of discharging one of a set.-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. * The numbers of the sections of this article in other States than New York are as follows: Arizona, 3481-3486; Colorado, Connecticut, District of Columbia, Florida, Iowa, Massachusetts, New Jersey, North Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Utah, Virginia, and Washington, 178-183; Maryland, 197-202; Ohio, 31770-3177t; Rhode Island, 186-191; Wisconsin, 1681-35-1681-40. ARTICLE XVII.* Promissory Notes and Checks. Section 320. Promissory note defined. 321. Check defined. 322. Within what time a check must be presented. 323. Certification of check; effect of. 324. Effect where holder of check procures it to be certified. 325. When check operates as an assignment. § 320. Promissory note 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. § 321. Check defined. 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. § 322. Within what time a check must be presented.— 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. § 323. Certification of check; effect of. Where a check is certified by the bank on which it is drawn the certification is equivalent to an acceptance. 8324. Effect where the holder of check procures it to be certified.— Where the holder of a check procures it to be accepted or certified the drawer and all indorsers are discharged from liability thereon. § 325. When check operates as an assignment.-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. * The numbers of the sections of this article in other States than New York are as follows: Arizona, 3487-3491; Colorado, Connecticut, District of Columbia, Florida, Iowa, Massachusetts, New Jersey, North Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Utah, Virginia, and Washington. 184-189; Maryland, 203-208; Ohio, 3177u-31772; Rhode Island, 192–197; Wisconsin, 1684-1684-5. The word "certification" substituted for "certificate" by Laws N. Y. 1898, c. 336. ARTICLE XVIII.* Notes Given for a Patent Rights and for a Speculative Consideration. Section 330. Negotiable instruments given for patent rights. 331. Negotiable instruments given for a speculative consideration. 332. How negotiable bonds are made non-negotiable. § 330. Negotiable instruments given for patent rights.- A promissory note or other negotiable instrument, the consideration of which consists wholly or partly of the right to make, use or sell any invention claimed or represented by the vendor at the time of sale to be patented, must contain the words "given for a patent right" prominently and legibly written or printed on the face of such note or instrument above the signature thereto; and such note or instrument above the signature thereto; and such note or instrument in the hands of any purchaser or holder is subject to the same defenses as in the hands of the original holder; but this section does not apply to a negotiable instrument given solely for the purchase price or the use of a patented article. § 331. Negotiable instruments for a speculative consideration.— If the consideration of a promissory note or other negotiable instrument consists in whole or in part of the purchase price of any farm product, at a price greater by at least four times than the fair market value of the same product at the time, in the locality, or of the membership and rights in an association, company or combination to produce or sell any farm product at a fictitious rate, or of a contract or bond to purchase or sell any farm product at a price greater by four times than the market value of the same product at the time in the locality, the words, "given for a speculative consideration," or other words clearly showing the nature of the consideration, must be prominently and legibly written or printed on the face of such note or instrument above the signature thereof; and such note or instrument, in the hands of any purchaser or holder, is subject to the same defenses as in the hands of the original owner or holder. § 332. How negotiable bonds are made non-negotiable. The owner or holder of any corporate or municipal bond or obligation (except such as are designated to circulate as money, payable to bearer), heretofore or hereafter issued in and payable in this State, but not registered in pursuance of any State law, may make such bond or obligation, or the interest coupon accompanying the same, non-negotiable, by subscribing his name to a statement indorsed thereon that such bond, obligation or coupon is his property; and thereon the principal sum therein mentioned is payable only to such owner or holder, or his legal representatives or *This article appears only in the statute as enacted in New York and Ohio. assigns, unless such bond, obligation or coupon be transferred by indorsement in blank, or payable to bearer, or to order, with the addition of the assignor's place of residence. ARTICLE XIX. Laws Repealed; When to Take Effect. Section 340. Laws repealed. 341. When to take effect. § 340. Laws repealed.— The laws or parts thereof specified in the schedule hereto annexed are hereby repealed. § 341. When to take effect. This chapter shall take effect on the first day of October, eighteen hundred and ninety-seven. 1877..... 65...... Subject-matter. Notice of protest; how given. Protest of foreign bills, etc. All...... Negotiability of corporate bonds; how limited. 84........ All...... Negotiable bonds; how made non-negotiable. All...... Negotiable bonds, how made negotiable. 1, 3..... Negotiable instruments given for patent rights. 1887...... 461........ All...... Effect of holidays upon pay 1894..... for a speculative consideration. 607........ All...... Days of grace abolished. *This schedule comprises only the New York statutes. LAWS OF NEW YORK, 1897, CHAP. 613. AN ACT to amend the Penal Code, relative to violation of The Negotiable Instruments Law. The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. The penal code is hereby amended by inserting at the end of title twelve the following new sections: 8 384m. Notes given for patent rights.—A person who takes, sells or transfers a promissory note or other negotiable instrument, knowing the consideration of such note or instrument to consist in whole or in part of the right to make, use or sell any patent invention or inventions, or any invention claimed or represented to be patented, without having the words "given for a patent right" written or printed legibly and prominently on the face of such note or instrument above the signature thereto, is guilty of a misdemeanor. § 384n. Notes given for a speculative consideration.— A person who takes, sells or transfers a promissory note or other negotiable instrument, knowing the consideration of such note or instrument to consist in whole or in part of the purchase price of any farm product at a price greater by four or more times than the fair market value of the same product at the time in the locality, or in which the consideration shall be in whole or in part membership of and rights in an association, company or combination to produce or sell any farm product at a fictitious rate, or of a contract or bonds to purchase or sell any farm product at such rate, without having the words "given for a speculative consideration," or other words clearly showing the nature of the consideration prominently and legibly written or printed on the face of such note or instrument above the signature thereof is guilty of a misdemeanor. 2. Section two of chapter sixty-five of the laws of eighteen hundred and seventy-seven, and section two of chapter two hundred and sixtytwo of the laws of eighteen hundred and ninety-one, are hereby repealed. $3. This act shall take effect the first day of October, eighteen hundred and ninety-seven. |