security for any debts contracted by the maker with the holder, and that the indorsement might be withdrawn at the end of four months if the indorser paid such debts. Before the end of four months, the holder informed the indorser of the amount of the then indebtedness and the indorser undertook to see the maker, and, if the latter did not pay, to "shut him up." Held that the holder was not relieved from presentment and notice of non-payment. Congress Brewing Co. v. Habenicht, 82 N. Y. S., 481; 83 App. Div., 141.

§ 83. When Instrument Dishonored by Non-Payment. The instrument is dishonored by non-payment when:

1. It is duly presented for payment and payment is refused or can not be obtained; or

2. Presentment is excused and the instrument is overdue and unpaid.

Eaton and Gilbert, Com. Paper, 472.

§ 84. Liability of Person Secondarily Liable, when Instrument Dishonored.-Subject to the provisions of this act, when the instrument is dishonored by nonpayment, an immediate right of recourse to all parties secondarily liable thereon, accrues to the holder (a).

Eaton and Gilbert, Com. Paper, 473. Norton, B. & N., 367.

(a) The qualifying words, "subject to the provisions of this act," prevent the accrual of a right of action against parties entitled to notice of non-payment, until due notice is given.

§ 85. Time of Maturity; Days of Grace Abolished; Sunday; Holiday.-Every negotiable instrument is payable at the time fixed therein, without grace (a).* When the day of maturity falls upon Sun

*The North Carolina Act provides that "the laws now in force in this State with regard to days of grace shall remain in force and shall not be construed to be repealed by this Act."

day, or a holiday, the instrument is payable on the next succeeding business day (b).

Eaton and Gilbert, Com. Paper, 474. Norton, B.

& N., 77, 345, 350. Randolph, Com. Paper, §§ 1031, 1064.

(a) This has changed the law of Kentucky by abolishing days of grace.

A bill reading, "one hundred and eighty days, pay to the order of," is due one hundred and eighty days after date.

Moreland v. Citizens' Sav. Bank, 24 K. L. R., 1354; 71 S.
W., 520.

(b) This also has changed the law of Kentucky, which in such cases made the instrument due on the preceding business day (Ky. Stats., section 2089a).

In Kentucky the holidays are: The first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of July, the first Monday in September, all days appointed by the President of the United States, or by the Governor of Kentucky, as days of fasting or thanksgiving, and the twentyfifth day of December. Where a holiday falls on Sunday, the next succeeding day is treated as a holiday.

§ 86. Time; How Computed.-Where the instrument is payable at a fixed period after date, after sight, or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run, and by including the date of payment.

In Massachusetts an amendatory Act (Laws 1899, Ch. 130) restores days of grace on bills payable in that State at sight.

In Iowa, by an amendatory Act, demand may be made on any of the three days following maturity.

The New York Act provides that "instruments falling due or becoming payable on Saturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment before 12 o'clock noon on Saturday when that entire day is not a holiday."

The Colorado Act provides "instruments falling due on any day in any place where any part of such day is a holiday, are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment during reasonable hours of the part of such day which is not a holiday.

Eaton and Gilbert, Com. Paper, 479.

§ 87. Instruments Payable at Bank; Right of Bank to Pay.-Where the instrument is made payable at a bank, it is equivalent to an order to the bank to pay the same for the account of the principal debtor thereon (a).

Eaton and Gilbert, Com. Paper, 480.

(a) As the maker of such a note is the principal debtor, presentment of it at the bank is not necessary in order to charge him (see section 70). The effect of this section is, not to convert a note into a check, thereby changing the liability of the maker, but only to impose an obligation on the bank at which it is made payable.

But the mere fact that the instrument is payable at a bank does not make the bank the agent of the payee to receive the money. To constitute such agency, the instrument must be indorsed to, or deposited with the bank for collection.

Caldwell v. Evans, 5 Bush (68 Ky.) 380.

Since the bank is not the agent of the payee to receive the money, it seems to follow that, apart from statute, it would not be authorized or obligated to pay the note for the maker. (See Grissom v. Commercial Bank, 87 Tenn., 350; 10 S. W., 75; 3 L. R. A., 273.) In this particular this section seems to have changed the law of Kentucky.

§ 88. What Constitutes Payment in Due Course. -Payment is made in due course when it is made at or after maturity of the instrument (a) to the holder thereof (b) in good faith and without notice that his title is defective.

Eaton and Gilbert, Com. Paper, 483. Norton, B. & N., 296, 297.

(a) Payment to one of several joint payees extinguishes the rights of all.

Perry v. Perry, 98 Ky., 242; 17 K. L. R., 868; 32 S. W., 755. (b) A payment by the maker, of a note indorsed by the payee to a named bank "for collection," to an unknown holder or stranger

who had no right to collect it, does not discharge it. Had the note been indorsed in blank, or made payable to bearer, the case would be different.

Barnett v. Ringgold, 80 Ky., 289; 3 K. L. R., 781.

The instrument must be exhibited and, upon payment, surrendered (section 74). Daniel, Neg. Inst., sections 1227-1230.

ARTICLE VII.

NOTICE OF DISHONOR.

Section 89. To whom notice of dishonor must be given. 90. By whom given.

91. Notice given by agent.

92. Effect of notice given on behalf of the holder.

93. Effect where notice is given by party en

titled thereto.

94. Notice by agent when instrument dishonored in his hands.

95. When notice sufficient.

96. Form of notice; how notice delivered.
97. To whom notice may be given.

98. Notice where party is dead.

99. Notice to partners.

100. Notice to persons jointly liable not part

ners.

101. Notice to bankrupt or insolvent.

102. Time within which notice must be given.
103. Where parties reside in same place.
104. Where parties reside in different places.
105. When sender deemed to have given due
notice by mail.

106. Deposit in post-office, what constitutes.

107. Notice to antecedent parties, time of.

108. To what place notice must be sent.

Note. The numbers of the sections of this article in other States than Kentucky are as follows: Arizona, 3392-3421; Colorado, Connecticut, District of Columbia, Florida, Idaho, Iowa, Massachusetts, Montana, New Jersey, North Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Utah, Virginia and Washington, 89-118; Maryland, 108-137; New York, 160-189; Ohio, 3174g-3175; Rhode Island, 97-126; Wisconsin, 1678-19-1678-48.