titled to give notice to A, until notice has been received from D.

§ 160. Effect of notice. Suppose D does send notice to C, and C in turn to B, what effect has the serving of these notices on the rights of the holder? They have the same effect in fixing the liability of B and C as notices sent by him personally. In like manner, C's notice to B enures to the benefit of D. The result is that each of these indorsers, B, C, and D, is responsible for the amount of the note to X; if D pays it, he may look for reimbursement to either B or C; but if B pays it, he is without recourse on A who has received notice from no one. The N. I. L. states the rule as follows:

Sec. 93. Where notice is given by or on behalf of a party entitled to give notice, it enures to the benefit of the holder and all parties subsequent to the party to whom notice is given.

If we suppose that the holder, X, instead of notifying D only, had also notified A, the notice would fix the liability of A not only to X but also to D. And, to carry the case a step further, had D notified B and C, the intermediate indorsers between him and A, the notice to A would operate for their benefit as well as for that of D. In other words, due notice from the holder to the first indorser fixed his liability to all subsequent indorsers who were themselves bound to the holder. The N. I. L. says:

Sec. 92. Where notice is given by or on behalf of the holder, it enures to the benefit of all prior par

ties who have a right of recourse against the party to whom it is given.

§ 161. Notice by agent. It is not necessary for the holder, or for a party entitled to give notice, to attend personally to the matter. He may, and usually does, act by an agent. A notice of dishonor sent by an agent is peculiar in that it need not be given in the name of his principal, but may be given in the agent's own name, or in the name of any other party who is entitled to give notice. For example, X is the holder of a note indorsed successively by A, B, and C. X gives notice to the last indorser, C, who employs Y to notify A and B. A notice by Y in his own name, as holder, is sufficient, although he is not the holder. And a notice by Y, in the name of the holder X, who has not authorized him to act, is good. This is provided in the N. I. L.:

Sec. 91. Notice of dishonor may be given by an agent, either in his own name or in the name of any party entitled to give notice, whether that party be his principal or not.

§ 162. Time within which notice must be given. Notice of dishonor may be given as soon as the instrument is dishonored (25). If a bill or note is presented at ten o'clock in the morning of the day of maturity and payment is not obtained, the dishonor is complete and notice may at once be given. Or, if an indorser receive notice from the holder, he may at once notify the prior indorsers. But such ex

(25) Neg. Inst. Law, sec. 102.

pedition is not necessary. The time within which notice must be given is determined by certain definite rules which have been incorporated in the N. I. L.:

Sec. 103. Where the person giving and the person to receive notice reside in the same place, notice must be given within the following times:

1. If given at the place of business of the person to receive notice, it must be given before the close of business hours on the day following.

2. If given at his residence, it must be given before the usual hours of rest on the day following.

3. If sent by mail, it must be deposited in the postoffice in time to reach him in usual course on the day following.

Sec. 104. Where the person giving and the person to receive notice reside in different places, the notice must be given within the following times:

1. If sent by mail, 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, by the next mail thereafter.

2. If given otherwise than through the postoffice, then within the time that notice would have been received in due course of mail, if it had been deposited in the post-office within the time specified in the last subdivison.

Sec. 94. Where the instrument has been dishonored in the hands of an agent, he may either himself give notice to the parties liable thereon, or he may give notice to his principal. If he give notice to his principal, he must do so within the same time as if he were the holder, and the

principal, upon the receipt of such notice, has himself the same time for giving notice as if the agent had been an independent holder.

§ 163. Successive notices. An illustration of the operation of these rules will show that, although the time within which a notice of dishonor must be given or despatched by mail is fixed, the time within which an indorser will receive notice may vary greatly with the circumstances. Y is the agent for collection of a bill for the holder X. The bill is indorsed by A, B, C, D, and E, who indorsed successively in the order named. Upon dishonor, Y the agent, may notify each of the five indorsers on behalf of the holder X. If he pursues this course the notices if sent by mail, must be deposited in the post-office not later than the day following the dishonor. A delay by him until the second day after dishonor (unless the circumstances bring the case within Sec. 104-1) would discharge A, B, C, D, and E. Y, however, instead of notifying the indorsers, may despatch a notice by mail to his principal, X. Upon its receipt, X may wait until the day following before mailing a notice to E, the fifth and last indorser. E, taking the full time allowed for giving notice, may notify the fourth indorser, D, who in turn notifies C, and so on. It is perfectly possible that several weeks or even longer may elapse before A, the first indorser receives notice. Yet when he is notified, he is just as effectually bound as if a notice had been sent him directly by the holder or his agent.

§ 164. To whom notice must be given. The N. I. L. provides:

Sec. 100. Notice to joint parties who are not partners must be given to each of them, unless one of them has authority to receive such notice for the others.

Sec. 99. Where the parties to be notified are partners, notice to any one partner is notice to the firm, even though there has been a dissolution.

Sec. 98. When any party is dead, and his death is known to the party giving notice, the notice must be given to a personal representative, if there be one, and if with reasonable diligence he can be found. If there be no personal representative, notice may be sent to the last residence or last place of business of the deceased.

§ 165. Where notice must be sent. If the message constituting the notice, whether oral or in writing, whether delivered in person, by messenger, or sent through the mail, is actually received by the indorser, within the time that would have been required for delivery had the notice been sent to the place designated by the law as the proper address to which the notice must be sent, the notice is sufficient (26). But, if the holder does not wish to assume the risk of the message being actually received within the proper time, the simple course, whatever the means of transmission may be, is to address it in accordance with the following rules laid down in the N. I. L.:

Sec. 108. Where a party has added an address to his signature, notice of dishonor must be sent to that address; but if he has not given such address, then the notice must be sent as follows:

(26) Neg. Inst. Law, sec. 108.