4475. Treatment of bill as promissory note

Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person, or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or a promissory note.

8 4476. Referee in case of need

The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need; that is to say in case the bill is dishonored by nonacceptance or nonpayment. That person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may see fit.

Article B-Acceptance

§ 4481. Acceptance; definition; method of making

The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. The acceptance must be in writing and signed by the drawee. It may not express that the drawee will perform his promise by any other means than the payment of

money.

§ 4482. Holder entitled to acceptance on face of bill

The holder of a bill presenting the same for acceptance may require that the acceptance be written on the bill and, if his demand is refused, may treat the bill as dishonored.

84483. Acceptance by separate instrument

Where an acceptance is written on a paper other than the bill itself, it does not bind the acceptor except in favor of a person to whom it is shown and who, on the faith thereof, receives the bill for value.

§ 4484. Promise to accept; equivalent to acceptance

An unconditional promise in writing to accept a bill before it is drawn is deemed an actual acceptance in favor of every person, who upon the faith thereof, receives the bill for value.

§ 4485. Time allowed drawee to accept

The drawee is allowed 24 hours after presentment in which to decide whether or not he will accept the bill; but the acceptance, if given, dates as of the day of presentation.

§ 4486. Liability of drawee retaining or destroying bill

Where a drawee to whom a bill is delivered for acceptance destroys the same, or refuses within 24 hours after the delivery, or within such other period as the holder may allow, to return the bill accepted or nonaccepted to the holder, he will be deemed to have accepted the

same.

84487. Acceptance of incomplete bill

A bill may be accepted before it has been signed by the drawer, or while otherwise incomplete, or when it is overdue, or after it has been dishonored by a previous refusal to accept, or by nonpayment. But when a bill payable after sight is dishonored by nonacceptance and the drawee subsequently accepts it, the holder in the absence of any different agreement, is entitled to have the bill accepted as of the date of the presentment.

§ 4488. Kinds of acceptance

An acceptance is either general or qualified. A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

8 4489. General acceptance

An acceptance to pay at a particular place is a general acceptance, unless it expressly states that the bill is to be paid there only and not elsewhere.

84490. Qualified acceptance

An acceptance is qualified which is:

(1) conditional; that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated;

(2) partial; that is to say, an acceptance to pay part only of the amount for which the bill is drawn;

(3) local; that is to say, an acceptance to pay only at a particular place;

(4) qualified as to time;

(5) the acceptance of some one or more of the drawees, but not of all.

§ 4491. Qualified acceptance; rights of parties

The holder may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance he may treat the bill as dishonored by nonacceptance. Where a qualified acceptance is taken the drawer and indorsers are discharged from liability on the bill, unless they have expressly or impliedly authorized the holder to take a qualified acceptance, or subsequently assent thereto. When the drawer or an indorser receives notice of a qualified acceptance, he must, within a reasonable time, express his dissent to the holder, or he will be deemed to have assented thereto.

Article C-Presentment for Acceptance

84501. Necessity of making presentment for acceptance 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.

Presentment for acceptance is not necessary in any other case in order to render any party to the bill liable.

§ 4502. Failure to present as releasing drawer and indorsers

Except as herein otherwise provided, the holder of a bill which is required by section 4501 of this title to be presented for acceptance must either present it for acceptance or negotiate it within a reasonable time. If he fails to do so, the drawer and all indorsers are discharged.

8 4503. Time for making; persons to whom made

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:

(1) where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all, unless one has authority to accept or refuse acceptance for all, in which case presentment may be made to him only;

(2) where the drawee is dead, presentment may be made to his personal representative;

(3) where the drawee has been adjudged a bankrupt or an insolvent or has made an assignment for the benefit of creditors, presentment may be made to him or to his trustee or assignee. 84504. Days on which presentment may be made

A bill may be presented for acceptance on any day on which negotiable instruments may be presented for payment under sections 4403 and 4416 of this title. When Saturday is not otherwise a holiday, presentment for acceptance may be made before twelve o'clock noon, on that day.

§ 4505. Insufficient time

Where the holder of a bill drawn payable elsewhere than at the place of business or the residence of the drawee has not time with the exercise of reasonable diligence to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused and does not discharge the drawers and indorsers. § 4506. Excuse

Presentment for acceptance is excused and a bill may be treated as dishonored by nonacceptance, in either of the following cases:

(1) where the drawee is dead, or has absconded, or is a fictitious person, or a person not having capacity to contract by bill; (2) where, after the exercise of reasonable diligence, presentment cannot be made;

(3) where, although presentment has been irregular, acceptance has been refused on some other ground.

84507. Dishonor by nonacceptance

A bill is dishonored by nonacceptance:

(1) when it is duly presented for acceptance and such an acceptance as is prescribed by this chapter is refused or cannot be obtained; or

(2) when presentment for acceptance is excused and the bill is not accepted.

8 4508. Duty of holder on nonacceptance

If a bill is duly presented for acceptance and is not accepted within the prescribed time the person presenting it must treat the bill as dishonored by nonacceptance or he loses the right of recourse against the drawer and indorsers.

4509. Rights of holder on nonacceptance

If a bill is dishonored by nonacceptance, an immediate right of recourse against the drawers and indorsers accrues to the holder and no presentment for payment is necessary.

Article D-Protest

84511. Necessity for protest

If a foreign bill appearing on its face for nonacceptance, and by nonacceptance, it must be duly protested for nonacceptance, and where such a bill which has not previously been dishonored by nonacceptance is dishonored by nonpayment, it must be duly protested for nonpayment. If it is not so protested, the drawer and indorsers are discharged. Where a bill does not appear on its face to be a foreign bill, protest thereof in case of dishonor is unnecessary. 84512. Method of making

The protest must be annexed to the bill, or must contain a copy thereof, and must be under the hand and seal of the notary making it, and must specify:

(1) the time and place of presentment;

(2) the fact that presentment was made and the manner thereof;

(3) the cause or reason for protesting the bill;

(4) the demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found.

§ 4513. Persons who may make protest Protest may be made by:

(1) a notary public; or

(2) any respectable resident of the place where the bill is dishonored, in the presence of two or more credible witnesses.

8 4514. Time for making

When a bill is protested, the protest must be made on the day of its dishonor, unless delay is excused as herein provided. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.

§ 4515. Place where made

A bill must be protested at the place where it is dishonored, except that when a bill drawn payable at the place of business, or residence of some person other than the drawee, has been dishonored by nonacceptance, it must be protested for nonpayment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary.

§ 4516. Protest both for nonacceptance and nonpayment

A bill which has been protested for nonacceptance may be subsequently protested for nonpayment.

§ 4517. Protest before maturity; better security

Where the acceptor has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, before the bill matures, the holder may cause the bill to be protested for better security against the drawer and indorsers.

84518. Dispensing with protest

Protest is dispensed with by any circumstances which would dispense with notice of dishonor. Delay in noting or protesting is excused when 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, the bill must be noted or protested with reasonable diligence.

§ 4519. Lost, destroyed, or wrongly detained bill

When a bill is lost or destroyed or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

Article E-Acceptance for Honor

8 4521. Circumstances authorizing acceptance for honor Where a bill of exchange has been protested for dishonor by nonacceptance or protested for better security, and is not overdue, any person not being a party already liable thereon may, with the consent of the holder, intervene and accept the bill supra protest for the honor of any party liable thereon, or for the honor of the person for whose account the bill is drawn. The acceptance for honor may be for the part only of the sum for which the bill is drawn; and where there has been an acceptance for honor for one party, there may be a further acceptance by a different person for the honor of another party.

§ 4522. Method of acceptance for honor

An acceptance for honor supra protest must be in writing, and indicate that it is an acceptance for honor, and must be signed by the acceptor for honor.

§ 4523. Honor of drawer; presumption

Where an acceptance for honor does not expressly state for whose honor it is made, it is deemed to be an acceptance for the honor of the drawer.

8 4524. Liability of acceptor

The acceptor for honor is liable to the holder and to all parties to the bill subsequent to the party for whose honor he has accepted. § 4525. Agreement of acceptor

The acceptor for honor by such acceptance engages that he will on due presentment pay the bill according to the terms of his acceptance; provided, it shall not have been paid by the drawee; and provided, also, that it shall have been duly presented for payment and protested for nonpayment and notice of dishonor given him.

§ 4526. Maturity of sight bill accepted for honor

Where a bill payable after sight is accepted for honor, its maturity is calculated from the date of the noting for nonacceptance and not from the date of the acceptance for honor.

8 4527. Protest after acceptance

Where a dishonored bill has been accepted for honor supra protest or contains a reference in case of need, it must be protested for nonpayment before it is presented for payment to the acceptor for honor or referee in case of need.

§ 4528. Presentment for payment to acceptor

Presentment for payment to the acceptor for honor must be made as follows:

(1) if it is to be presented in the place where the protest for nonpayment was made, it must be presented not later than the day following its maturity;

(2) if it is to be presented in some other place than the place where it was protested, then it must be forwarded within the time specified by section 4436 of this title.

§ 4529. Excuse for delay in making presentment

Section 4412 of this title applies where there is delay in making presentment to the acceptor for honor or referee in case of need.

§ 4530. Dishonor by acceptor for honor

When the bill is dishonored by the acceptor for honor it must be protested for nonpayment by him.

Article F-Payment for Honor

§ 4541. Persons who may make payment for honor

Where a bill has been protested for nonpayment, 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.

§ 4542. Formalities

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 to it.