sent it for payment within a reasonable time. What is a reasonable time, however, still remains for consideration. The Negotiable Instruments Act provides generally * * * as the court said that "in determining what is a 'reasonable time' or an 'unreasonable time' regard is to be had to the nature of the instrument, the usage of trade or business, if any, with respect to such instruments and the facts of the particular case." This, however, would not seem to lay down or to establish any new rule. The nature of the instrument and the facts of the particular case have always been considered in the passing upon the question of reasonable or unreasonable time. In deciding, therefore, whether this check was presented within a reasonable time, if presented on Friday, resort must be had to the rules which have been hitherto established in similar cases. And one of the rules which have been established is that where the drawer and drawee and the payer are all in the same city or town a check to be presented within a reasonable time should be presented at some time before the close of banking hours on the day after it is issued and that its circulation from hand to hand will not extend the time of presentment to the detriment of the drawer. If it is presented and paid afterwards the drawer suffers no harm. But if not presented within the time thus fixed, and there is a loss it falls not on him but on the holder. *

* *

The case of Taylor v. Wilson, supra, relied on by the plaintiff, was a case where a check was drawn by one doing business in Charlestown and living in Roxbury on a bank in Charlestown in favor of a resident of Newport. The check was dated September 30, 1842, which was Friday, and was received by the payee Saturday evening, October 1st. On Tuesday, October 4th, having been previously cashed for the payee by a local bank, it was given by the cashier of that bank to a messenger to be carried to the Merchants' Bank at Providence in the usual course of remitting its funds and securities and was received by that bank on Wednesday and sent by its cashier to the Suffolk Bank at Boston. That bank received it on the next day (October 6th) and presented it on the same day to the bank on which it was drawn and payment was refused; the bank having closed its doors on Monday morning, October 3d, and being insolvent. The case was submitted to the court on agreed facts with power to draw inferences and the court found in favor of the payee and against the drawer. The court held in effect that under the circumstances there had beer. no laches and that the check had been presented within a reasonable time. There is a sentence in the opinion to the effect that a check may pass from hand to hand and that a reasonable time is allowed to each party receiving it to present it for payment and the case has been cited to that point with approval in Veazie Bank v. Winn, 40 Me. 60. But we do not think that the court meant to lay down the rule that under any and all circumstances each party receiving a check from a previous holder was entitled to a reasonable time to present it for payment, or that the case required that it should lay down such a rule. On the contrary the court expressly said that a party receiving a check was not guilty of laches if he did not present it on the same day on which it was drawn, but was allowed a reasonable time for that purpose, and that the next day was held to be such reasonable time. The decision should be limited to the case before the court which was that of a check drawn on a bank in one place and sent to a payee in another place at considerable distance and forwarded for presentment

in the usual course of business and so understood and applied was

correct.

It follows from what has been said that the exceptions must be sustained. The conclusion to which we have come on the principal question renders it unnecessary to consider the questions of evidence, though we may observe that we see no error in regard to them. Exceptions sustained.

SWIFT & CO. v. MILLER.

* *

(Appellate Court of Indiana, 1916. 62 Ind. App. 312, 113 N. E. 447.) FELT, J. * Under the rules of the law merchant, a check must be presented within reasonable time after it is received. Under ordinary conditions when the holder resides at the place the check is made payable, such reasonable time for presentment includes all of the banking hours of the day immediately following the day on which the check is received. If the bank upon which the check is drawn is at another place, the check must be forwarded to the place of payment on the next business day, and be presented not later than the day immediately following the day of its receipt at the place of payment.

* * *

As between the holder and drawer of a check, delay in presentment will not ordinarily discharge the drawer from liability, but if loss results from the delay for which the drawer is not responsible, the delay is at the peril of the holder. As between the holder of a check and an indorser, unreasonable delay in presentment for payment, or in giving notice of dishonor, will discharge the indorser from his liability without regard to whether such delay did or did not occasion loss to the holder. * * *

SECTION 5.-TIME OF PRESENTMENT OF INSTRUMENTS BEARING A FIXED MATURITY

We have yet to consider the rules prescribing the time for presentment of instruments payable at a fixed date. This is relatively simple. These rules are alike for all kinds of negotiable time paper.

N. I. L. Section 71. Where the instrument is not payable on demand presentment must be made on the day it falls due.

N. I. L. Section 85. Every negotiable instrument is payable at the time fixed therein without grace. When the day of maturity falls on Sunday, or a holiday, the instrument is payable on the next succeeding business day. Instruments falling due 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 twelve o'clock noon on Saturday when that entire day is not a holiday.

N. I. L. Section 85 abolishes days of grace, which, before the Act, were commonly allowed. A few states expressly allow three days of grace on sight bills.

N. I. L. Section 86. 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.

N. I. L. Section 72. Presentment for payment must be made at a reasonable hour on a business day.

Where the instrument bears a fixed date of maturity but is subject to an earlier payment upon the happening of some event or upon the exercise of an option by the holder, it is not certain at what time presentment must be made. We have already been concerned with this situation (1) as regards the negotiability of such an instrument; and (2) as to whether a bona fide purchaser before the fixed date arrives but subsequent to the actual maturity under the acceleration clause, could be a holder in due course. We noted that there is a conflict of authority on the question whether such an instrument is negotiable. On the analogy of the rule recognized in section 52 (2) that one may be a holder in due course of a time bill of exchange purchased after dishonor by nonacceptance, but before the arrival of the fixed date, it would seem that in all other cases a holder who acquired title before the fixed date, but after an act or event which under an acceleration clause operated to mature the instrument, would be a holder in due course. So, also, with respect to the time of presentment of such an instrument, presentment should be effective if made before the fixed date, if the holder had no knowledge of the occurrence of the event which matured the instrument earlier.

N. I. L. Section 75. Where the instrument is payable at a bank, presentment for payment must be made during banking hours, unless the person to make payment has no funds there to meet it at any time, during the day, in which case presentment at any hour before the bank closed on that day is sufficient.

It should be noted, however, that the person to make payment has until the close of business hours to deposit money in the bank to meet the instrument. If presentment is made and the same is not then paid and the debtor deposits money subsequent to the presentment, the instrument is not dishonored.

SECTION 6.-OTHER ASPECTS OF A DUE PRESENTMENT FOR PAYMENT

(a) WHEN PRESENTMENT FOR PAYMENT IS NECESSARY N. I. L. Section 70. Presentment for payment is not necessary in order to charge the person primarily liable on the instrument; but if the instrument is, by its terms, payable at a special place, and he is able and willing to pay it there at maturity, such ability and willingness are equivalent to a tender of payment upon his part. But except as herein otherwise provided, presentment for payment is necessary in order to charge the drawer and indorsers.

(b) WHAT CONSTITUTES A DUE PRESENTMENT

N. I. L. Section 74. The instrument must be exhibited to the person from whom payment is demanded, and when it is paid must be delivered up to the party paying it.

(c) PLACE WHERE PRESENTMENT MUST BE MADE

N. I. L. Section 73. Presentment for payment is made at the proper place

1. Where a place of payment is specified in the instrument and it is there presented;

2. Where no place of payment is specified, but the address of the person to make payment is given in the instrument and it is there presented;

3. Where no place of payment is specified and no address is given and the instrument is presented at the usual place of business or residence of the person to make payment;

4. In any other case if presented to the person to make payment wherever he can be found, or if presented at his last known place of business or residence.

(d) BY WHOM PRESENTMENT MUST BE MADE

N. I. L. Section 72 (1). Presentment for payment, to be sufficient, must be made by the holder, or by some person authorized to receive payment on his behalf.

(e) TO WHOM PRESENTMENT MUST BE MADE

N. I. L. Section 72 (4). Presentment for payment, to be sufficient, must be made to the person primarily liable on the instrument, or if he is absent or inaccessible, to any person found at the place where the presentment is made.

N. I. L. Section 76. Where the person primarily liable on the instrument is dead, and no place of payment is specified, presentment for payment must be made to his personal representative, if such there be, and if, with the exercise of reasonable diligence, he can be found.

N. I. L. Section 77. Where the persons primarily liable on the instrument are liable as partners, and no place of payment is specified, presentment for payment may be made to any one of them, even though there has been a dissolution of the firm.

N. I. L. Section 78. Where there are several persons, not partners, primarily liable on the instrument, and no place of payment is specified, presentment must be made to them all.

(f) WHAT CONSTITUTES DISHONOR BY NON-PAYMENT N. I. L. Section 83. The instrument is dishonored by non-payment when

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

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

(g) LEGAL EFFECT OF DISHONOR BY NON-PAYMENT N. I. L. Section 84. Subject to the provisions of this act, when the instrument is dishonored by non-payment, an immediate right of recourse to all parties secondarily liable thereon accrues to the holder.

(h) LEGAL EFFECT OF FAILURE TO MAKE DUE PRESENTMENT FOR PAYMENT

N. I. L. Section 70. But except as herein otherwise provided, presentment for payment is necessary in order to charge the drawer and indorsers.

N. I. L. Section 186. A check 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.

(i) EXCUSES FOR FAILURE TO PRESENT FOR PAYMENT N. I. L. Section 82. Presentment for payment is dispensed with:

1. Where after the exercise of reasonable diligence presentment as required by this act cannot be made;

2. Where the drawee is a fictitious person;

3. By waiver of presentment, express or implied.

N. I. L. Section 81. Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate, presentment must be made with reasonable diligence.

SECTION 7.-PRESENTMENT FOR ACCEPTANCE

(a) WHEN PRESENTMENT FOR ACCEPTANCE IS NECESSARY N. I. L. Section 143. Presentment for acceptance must be made: 1. Where the bill is payable after sight, or in any other case, where presentment for acceptance is necessary in order to fix the maturity of the instrument; or

2. Where the bill expressly stipulates that it shall be presented for acceptance; or

3. Where the bill is drawn payable elsewhere than at the residence or place of business of the drawee.

In no other case is presentment for acceptance necessary in order to render any party to the bill liable.

(b) WHAT CONSTITUTES PRESENTMENT FOR ACCEPTANCE N. I. L. Section 145. Presentment for acceptance must be made by or on behalf of the holder at a reasonable hour, on a business day and before the bill is overdue, to the drawee or some person authorized to accept or refuse acceptance on his behalf; and: