to all subsequent holders; other jurisdictions hold that it inures only to the person to whom it is given.1 In the former jurisdictions he occupies the position of an indorser "waiving protest," in the latter he occupies the position of an indorser "without recourse."

308. Damages.-The acceptor of a bill and the maker of a dishonored note are both liable for the amount of the bill or note, notarial expenses and interest from the date of maturity or, if interest is reserved in the note, from the date of the note. The amount of damages to be recovered from an indorser or drawer is practically the same as that from the acceptor or maker, except that in the case of foreign international bills the amount is increased by what is known as re-exchange.

Re-exchange is the act of drawing a sight draft on the drawer to make good the loss on the dishonored bill. In many states a definite percentage of the amount of the bill is added, ranging from 10 per cent upwards, to take the place of all damages. The damage to be recovered against a drawer or indorser for breach of warranty is generally equal to the amount lost by reason of the breach. The above rules are very general and apply only where the contract is for value and is entirely enforcible.

1See Belcher vs. Smith, 7 Cush. (Mass.) 482; True vs. Fuller, 21 Pick. (Mass.) 1401, contra Ellsworth vs. Harmon, 101 Ill. 274; Cole vs. Merchants' Bank, 60 Ind. 350; Dubuque, etc., Bank vs. Carpenter, 41 Iowa 518; Green vs. Burrows, 47 Mich. 70, 10 N. W. 111: Phelps vs. Sargent, 69 Minn. 118, 71 N. W. 927.

CHAPTER XX

PRESENTMENT AND NOTICE OF DISHONOR

309. Presentment for acceptance.-The drawer and indorsers of a bill usually expect that it will be honored by the drawee. They, therefore, demand that it be presented for acceptance on pain of being discharged if this duty is not fully performed. All bills, however, do not require presentment for acceptance. In any case where it is necessary to fix the maturity of the bill, as in a case where the bill is payable so many days after sight, or where the bill expressly stipulates that it shall be presented for acceptance or where it is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented. Presentment in other cases is unnecessary except in those few jurisdictions where days of grace are still allowed, in which jurisdictions sight drafts must be duly presented.

310. When, where and how made.-Presentment must be made a reasonable time after issue or last indorsement, by or on behalf of the holder at a reasonable hour on a business day. Presentment on Saturday must be made in the forenoon. Presentment to one partner is sufficient, but it must be made to all the individual drawees named in a bill unless one has authority to refuse or accept for all. Presentment is excused where the drawee is dead, has absconded, is a fictitious person or is without capacity to contract or where he cannot be found after diligent search.

311. Presentment for payment.-Presentment for

payment to render makers and acceptors liable is not necessary except to charge drawers and indorsers who have not in some way waived their rights. Where presentment for payment is necessary it must be made by the holder or his authorized agent to the maker or acceptor, as the case may be, or to his authorized agent. Presentment for payment must be made to all nonpartners, but it may be made to one partner even after the dissolution of the drawee firm.

If the maker or acceptor is absent or inaccessible, presentment for payment must be made to any person at the place. If the maker or acceptor is dead, presentment may be made to his executor or administrator, if he can be found. Upon presenting the instrument and demanding payment, the demand is granted or refused. If granted, the instrument and collateral security, if any, must be delivered. If refused, the instrument is dishonored for non-payment and the persons secondarily liable, i. e., the drawer and indorsers, are notified.

312. Time and place of presentment for payment.— Payment must be made on the day fixed unless it be a Sunday or a holiday, in which event it is payable on the succeeding business day. Under the negotiable instruments law instruments payable on Sunday must be presented on the following business day. Presentment of checks and demand notes must be made a reasonable time after issue; of demand bills, a reasonable time after the last negotiation. The place of presentment is the place specified in the instrument. If no place be specified, it must be made at the business address or residence of the acceptor or maker, or wherever he may be found or at his last known place of business or residence.

If the instrument is payable at a bank, the presentment is complete if it is in the possession of the bank on

the day of maturity. Delayed presentment is good where the facts causing the delay are beyond the holder's control.

313. Presentment waived and dispensed with.-If the exercise of reasonable diligence is not sufficient to enable the holder to make presentment as above indicated, it is dispensed with. It is unnecessary also where it has been waived, either in writing or orally, a promise to pay after discharge for non-presentment being equivalent to a waiver if given with full knowledge of the fact of non-presentment. Presentment is usually waived by an indorser by writing "waiving protest" or "waiving presentment" after his name.

314. Payment for honor.-Where a bill has been protested for non-payment, any person may pay it supra protest for the honor of any person liable. The payer appends to the bill or to the protest a sworn declaration of his intention and then takes the bill, which remains an obligation in his favor, against the person for whose honor it was paid and against all parties prior to him.

315. Notice of dishonor.-By way of review, we may repeat that ordinarily liability to the holder of an instrument is of two kinds, primary and secondary. The parties primarily liable are the makers of notes and the acceptors of bills. The liability that attaches to drawers and indorsers is secondary and arises only when the primary liability is not fulfilled, and then only on two conditions: presentment and notice. Presentment has been discussed. Notice of non-acceptance or non-payment is called notice of dishonor. Unless it is given to all parties secondarily liable or is waived or otherwise dispensed with, they are discharged from liability.

EXAMPLE

314. "To X. On July 1, 1910, pay to the order of A $100. C." "Accepted, X." Indorsed by A to E. Here X is primarily liable. A and C are secondarily liable. If E presented the bill to X, and it is not paid he must notify A and C immediately, or they will be discharged from liability.

316. By whom notice is given.-Notice may be given by the holder, his agent or his notary or by any person who, on receiving notice, becomes liable on the instrument. Notice by a stranger is ineffective.

317. Time within which notice must be given.Where the parties reside in the same place notice must be given at the place of business before close of hours or at the residence before the usual hours of rest of the day following the dishonor, or it must be deposited in the postoffice in time to reach the person to be notified in the usual course on the day following. Where the person giving and the person to receive the notice reside in different places, it must be deposited in the postoffice in time to go by mail the day following the day of dishonor, or if there be no mail at a convenient hour on that day to go by the next mail thereafter.

Personal notice in either case may be given, but must reach the person receiving notice not later than it would by mail. The same rules apply to indorsers giving notice to prior parties except that time is reckoned from the receipt of notice instead of from dishonor.

318. Place of notice.-Notice of dishonor must be sent to the address indicated by the drawer or indorsers in the bill or note. If none is indicated, it must be sent to his business or residence or to a place where he is sojourning. Miscarriage in the mails does not affect