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.

Section 176. [WHERE HOLDER REFUSES TO RECEIVE PAYMENT 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.

Section 177. [RIGHTS OF PAYER FOR HONOR.] The payer for honor, on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest.

§ 1207. Bills in parts or sets.

ARTICLE VII

BILLS IN A SET

Section 178.-[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 constitutes one bill.

Nevertheless as the following section shows the holder of a single part may be the owner of the whole bill.98

Section 179.-[RIGHT 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.

Section 180. [LIABILITY OF HOLDER WHO INDORSES TWO OR MORE PARTS OF A SET TO DIFFER

98 Caras v. Thalmann, 138 N. Y. App. D. 297, 123 N. Y. S. 97. See

also Casper v. Kuhne, 159 N. Y. App. D. 389, 144 N. Y. S. 502.

ENT 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.

Section 181. [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.99

Section 182. [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.

Section 183. [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.1

§ 1208. Definition of a promissory note.

TITLE III

PROMISSORY NOTES AND CHECKS

ARTICLE I

Section 184. [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.

99 See Holdsworth v. Hunter, 10 B. & C. 449.

1 See Casper v. Kuhne, 159 N. Y. App. D. 389, 393, 144 N. Y. S. 502.

§ 1209. Checks.

Section 185. [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.

There are important differences between the legal effect of a check and of an ordinary bill of exchange: (1) A check is a representation that the drawee has in his hands funds to meet the check.2 (2) Laches in presentment discharges the drawer of a check only to the extent of his loss.3 (3) The effect of certification of a check in discharging drawer and indorser under Section 188 has no analogy in the acceptance of ordinary bills of exchange. (4) The reasonable time for presenting a demand bill may be extended by negotiating the bill, and though the same rule is applicable to checks so far as indorsers are concerned, the drawer's liability cannot be preserved by negotiating the check, which must be presented in order to charge the drawer (if the drawee bank is in the same place where the check is drawn) on the day following delivery, or (if the drawee bank is not in the place where the check is drawn) it must be sent forward for collection on the following day.7

5

Section 186. [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

2 In re Robinson, 256 Fed. 55; Barton v. People, 135 Ill. 405, 25 N. E. 776; Mulroney Mfg. Co. v. Weeks (Iowa), 171 N. W. 36; Foote v. People, 17 Hun, 218.

See Sec. 186 of the Act. 4 See Sec. 71.

Plover Sav. Bank v. Moodie, 135 Ia. 685, 110 N. W. 29, 113 N. W. 476; Columbian Banking Co. v. Bowen, 134 Wis. 218, 114 N. W. 451.

6 Dehoust v. Lewis, 128 N. Y. App. Div. 131, 112 N. Y. S. 559, and see cases in the following note.

7 Watt v. Gans, 114 Ala. 264, 21 So. 1011, 62 Am. St. Rep. 99; Cox #. Citizens' State Bank, 73 Kans. 789, 85 Pac. 762; First Nat. Bank v. Buckhannon, 80 Md. 475, 31 Atl. 302, 27 L. R. A. 332; Gordon v. Levine, 194 Mass. 418, 421, 80 N. E. 505, 10 L. R. A. (N. S.) 1153, 120 Am. St. Rep. 565; Haggerty v. Baldwin, 131 Mich. 187, 91 N. W. 150; Martin v. Home Bank, 160 N. Y. 190, 54 N. E. 717; Kirkpatrick v. Puryear, 93 Tenn. 409, 24 S. W. 1130, L. R. A. 785; Gregg #. Beane, 69 Vt. 22, 26, 37 Atl. 248.

be discharged from liability thereon to the extent of the loss caused by the delay.

The statute follows the rule of the law merchant in discharging the drawer for delay in presentment only to the extent of his loss. This section qualifies section 71, for (in view of section 185) except as this section provides otherwise, section 71 is applicable to checks as well as to other demand bills. Now this section relates only to the discharge of the drawer of a check. Therefore, the indorser's liability, being governed by section 71, is totally discharged by delay in presentment.

It will be observed also that section 186 makes no provision in regard to notice of dishonor and therefore, since section 185 provides that in the absence of special provisions the law governing bills of exchange is applicable to checks, it follows that a failure to give notice of the dishonor of a check to the drawer within proper season discharges him absolutely and not merely to the extent of the injury which he has suffered; 10 and it also follows that the indorser of a check, like the indorser of an ordinary bill or note, is totally discharged not only by failure to make proper presentment but also by failure to give notice.11

Section 187. [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.1 12

8 In the Illinois and South Dakota Acts there is inserted after the word "issue" "and notice of dishonor given to the drawer as provided for in the case of bills of exchange."

'Empire Arizona Copper Co. v. Shaw (Ariz.), 181 Pac. 464; Cox v. Citizens' State Bank, 73 Kan. 789, 85 Pac. 762. See also Wileman v. King, (Miss. 1919), 82 So. 265; Rosenbaum v. Hazard, 233 Pa. 206, 82 Atl. 62, 38 L. R. A. (N. S.) 255, Ann. Cas. 1913 A, 1291; German Am. Bank v. Wright, 85 Wash. 460, 148 Pac. 769, Ann. Cas. 1917 D. 381.

10 See Ewald v. Faulhaber Stable Co,. 55 N. Y. Misc. 275, 105 N. Y. S. 114; Bacigalupo v. Parrilli, 112 N. Y. S. 1040; Kuflick v. Glasser, 114 N. Y. S. 870. But see Morris-Miller Co. v. Von Pressentin, 63 Wash. 74, 114 Pac. 912. 11 See Swift v. Miller, 62 Ind. App. 312, 113 N. E. 447; Carroll v. Sweet, 128 N. Y. 19, 27 N. E. 763, 13 L. R. A. 43. And, it seems, if the check was indorsed in payment of a debt, the debt also is discharged. See infra, § 1922a.

12 See National City Bank v. Titlow, 233 Fed. 838; Carnegie Trust Co. v.

Section 188. [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.13

If the drawer of a check procures it to be certified he is not discharged; 14 even though he does so at the payee's request. 15

Section 189. [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. 16

§ 1210. Miscellaneous provisions.

TITLE IV

GENERAL PROVISIONS

ARTICLE I

Section 190. [SHORT TITLE.] This act may be cited as the Uniform Negotiable Instruments Act.17