maturity. If made on the day before or the day after the due date, unless authorized by established custom, the demand for payment will be nugatory.

E holds a note endorsed by C and D. Wishing to leave the city on the day of maturity, E made a demand for payment of the maker the day before it was due. The maker refused payment, whereupon E notified the endorsers, C and D. The endorsers are not liable, because the demand for payment was not made on the right day.

Rule: If the demand for payment be made at the maker's or acceptor's place of business it must be within business hours. If at his residence, it must be within those business hours which the maker or acceptor is presumed to be in a condition to attend to business.

The holder of a note presents it at 11 o'clock p.m. at the maker's private residence. This is an unreasonable hour; hence not a good presentment. But when the demand for the payment is made at an unreasonable hour, and payment refused on some other ground, the draft or note is deemed to have been duly presented. If, in the above illustration, the maker did. not object to the lateness of the hour, but simply denied his liability on the note, or claimed it to be a forgery, or for some other reason would not pay it, the demand would have been sufficient, and the endorsers would be liable upon receiving due notice of its dishonor.

Rule: When a draft is drawn payable at sight or on demand, it must be presented for payment either on the day it is received or the day following.

If the drawee and holder live in different places it must be forwarded by mail not later than the day after its receipt.

2. Place of demand. Rule: The holder must exercise due diligence to find the acceptor or maker.

When the place is mentioned the demand should be made at that place. If no place be stated, then the demand should be made at the debtor's place of business. The place of the date of a note is prima facie evidence of the debtor's place of business, and therefore, the place of payment. But if the place of busi

ness or residence is elsewhere, and such fact be known to the holder, he must present the paper there.

Suppose A of Hagerstown while in Pittsburgh on business issued his note to B. The note was dated thus: "Pittsburgh, September 1, 1915.” Before maturity B endorses the note to C. If C wishes to look to B for payment, should A, the maker, dishonor it, he must demand payment of A in Hagerstown, Md., the place of his residence or domicile.

A personal demand on the street is good, provided no objection be made to the place where the demand is made. The holder of a note meets B, the maker, on the street on the day of maturity, and presents it for payment. B merely says he is unable to pay it, and raises no objection to the place of the demand. This is a due presentment, and would be sufficient to bind the endorsers if notice of dishonor be given them.

QUESTIONS

1. What are the duties of a holder of a negotiable instrument?

2. What drafts must be presented for acceptance?

3. When must a draft be presented for acceptance?

4. Where must the demand for payment be made?

5. Upon what may the time of the presentment of an instrument for payment depend?

CASES

(GIVE REASONS FOR YOUR ANSWERS)

1. A draft which has been accepted by a merchant is presented to him at his country home at 9 p.m. Payment being refused, the drawer is duly notified and subsequently sued. Can the holder recover?

2. A draws a sight draft on B in favor of C, who resides in the same city as B. After keeping the draft in his possession for four days, C presents it for payment. The draft is dishonored. C seeks to hold A liable. Can he succeed?

3. A merchant of Wilmington, while in New York City, gave B his note and dated it, "New York City, Sept. 1, 1915." B endorsed the note to C, who knew that the merchant's place of business was in Wilmington. At maturity, C presented the note for payment to the merchant in New York City, who replied that his business was attended to in Wilmington; whereupon without any further demand, C notified B of the dishonor, and sought to make him liable. Can he succeed?

4. D holds A's note, which was made payable at the First National Bank. The note had been endorsed by B and C. At maturity, D pre

sented the note to A at his place of business, and not being paid, duly notified B and C. Are B and C liable?

5. D, the holder of a note, which was silent as to the place of payment, presented it to A, the maker, on the street on the day of maturity. A replied that he had no money with which to redeem his note; whereupon D notified the endorsers of its dishonor. Are the endorsers liable?

CHAPTER XXII

DUE NOTICE OF DISHONOR

239. Conditional liability made absolute. Rule: If the drawee refuses to accept or to pay a draft, or the maker of a note refuses payment, the endorser or drawer, or both, must receive notice of such refusal.

When such notice is given their liability is no longer conditional, but absolute. In consideration of the fact that it is often difficult to prove that there was a proper presentment, demand and dishonor, the Law Merchant requires that all foreign bills of exchange must be protested. The benefits of protest have also been extended to drafts, checks and notes. Although it is usual for the holder to have drafts, checks and notes protested, yet it is not obligatory upon him to do so. The advantages gained by having the paper protested will be noticed under "Evidence of Protest."

240. The protest as evidence. Protest is, by the Law Merchant, made prima facie evidence of:

1. Due presentment for acceptance.

2. Due demand for payment and its dishonor, but not of notice for, as already stated, it is not the duty of the notary public to give notice. This law formerly applied to foreign bills of exchange only. The legislatures of the different states have passed laws which extend to inland bills and promissory notes the credit given to the protest as in foreign bills of exchange, and make the notary's certificate prima facie evidence of the presentment for acceptance or demand for payment and the protest of the paper for non-acceptance or non-payment.

When the notary public sends notice to the endorsers or drawer for the holder, the same act provides that if the certificate of protest shall state (as in the form given) that notice of such non-payment or non-acceptance has been sent or delivered to the drawer or endorser of draft or note, and the manner of

sending the notice, such protest shall be prima facie evidence that such notice has been sent in the manner therein stated. The effect of this act is to make the protest of the notary prima facie evidence that notice has been given in the manner described in the protest. And for this reason, although not necessary, it is customary to have all drafts and notes protested when there are endorsers.

241.

CERTIFICATE OF PROTEST

STATE OF ILLINOIS, to wit:

On this, the first day of September in the year of our Lord nineteen hundred and fifteen at the request of the endorsee, J. N. ROE, bearer of the original Promissory Note, whereof a true copy is attached hereto, I, Thomas Kell Bradford, Notary Public, by letters patent under the Great Seal of Illinois, commissioned and duly qualified, residing in the City of Peoria, in the State aforesaid, presented the said promissory note to the maker, C. J. Harmer, and duly demanded payment thereof, which was refused.

Wherefore, I, the said Notary, at the request of the aforesaid endorsee, HAVE PROTESTED and by these presents DO SOLEMNLY PROTEST as well against the endorser of the said Promissory Note as all others whom it may concern, for exchange, re-exchange, and all costs, charges, damages and interests suffered and to be suffered for want of payment of the said Promissory Note.

This done and Protested at the City of Peoria aforesaid, and on the same day I addressed written notices to the endorser of said Promissory Note, informing him that it had not been paid, payment thereof having been demanded and refused, and that he would be held responsible for the payment thereof.

In testimony whereof, I have hereunto set my hand and affixed my notarial seal the day and year aforesaid.

THOMAS KELL BRADFORD, Notary Public.