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ARTICLE XV.

PAYMENT OF BILLS OF EXCHANGE FOR HONOR.'

$ 178. Where a bill has been protested for non-payment, any person may intervene and pay it supra protest for the honor of any person liable thereon or for the honor of the

person

for whose account it was drawn.

$ 179. 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 of it.

$ 180. The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf, declaring his intention to pay the bill for honor and for whose honor he pays.

$ 181. 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.

$ 182. 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.

$ 183. 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.

$184. The payer for honor, on paying to the holder tho amount of the bill and the notarial expenses incidental to its dishonor, is entitled to receive both the bill itself and the protest.

ARTICLE XVI.

BILLS IN A SET.

$ 185. 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.

I See the remarks ante, p. 7

$ 186. 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 iu due course accepts or pays the part first presented to him.

$ 187. 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. - $ 188. 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.

$ 189. 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.

$ 190. 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.

ARTICLE XVII.

PROMISSORY NOTES AND CHEQUES.

$ 191. 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.

$ 192. A cheque is a bill of exchange drawn on a bank, pay able on demand. Except as herein otherwise provided, the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque.

1 The maker may make the note payable to his own order, as the next seña tence but one shows.

$ 193. A cheque 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.

$ 194. Where a cheque is certified by the bank on which it is drawn, the certification is equivalent to an acceptance.?

$ 195. Where the holder of a cheque procures it to be accepted or certified, the drawer and all indorsers are discharged from liability thereon.

$ 196. A cheque 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 cheque.

[In the New York Statute, an article follows concerning Notes given for Patent Rights and for a Speculative Consideration.]

1 Certificate' in original statute. Amendment, 1898, chap. 336, § 29.

3 What does 'acceptance' as to a cheque signify? It certainly is not the same thing as acceptance of a bill of exchange. It is a misleading term.

INDEX.

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