17. Presentation Of Bills For Acceptance

The holder of a bill of exchange may present it for acceptance and have it protested should the drawee decline to accept it. In some states presentment for acceptance is not necessary when a bill is payable at a fixed period after date. Again, in some states the courts have held that while the holder of such a bill need not present the same for acceptance, a different rule applies to an agent to whom it has been sent for collection. There is no reason for applying a different rule to an agent and requiring that he should be more diligent than his principal.

18. Presentation Of Notes Payable On Demand

If a note payable on demand is indorsed, payment must be demanded within a reasonable time, otherwise the indorser is discharged. It has been held that if the demand for payment were delayed until just before the statute of limitations would become operative, it would be effective, and if the indorser were then notified of its non-payment as in other cases, his liability would become fixed. But the modern opinion is, the holder must demand payment earlier, within a reasonable time, though the courts do not attempt to define the reasonable time by a strict limit. In all the cases of this kind after demand has been made the indorser must be notified in the regular manner.

The maker of a note payable generally has the whole of the business day on which it is due to pay it; but a note payable,at a bank must be paid during banking hours; and when the holder is there until the close of the day, ready to receive payment, no further demand need be made to charge the indorser. And if the maker of a note thus payable has no funds there when it matures, a demand for payment is unnecessary.

19. When Paper Need Not Be Presented For Payment

Paper need not be presented for payment whenever this would be useless. The occasions when the law excuses the holder from doing this will now be described. When the maker has absconded, the law relieves from the making of further inquiry; but this rule can not be applied when the maker has merely removed from his place of residence. Whenever the drawer admits or acknowledges his liability to pay the bill he has drawn, the necessity of proving a demand of the drawee and his refusal and notice does not exist. And the proof may consist either of an express promise to pay or of other circumstances from which this may be inferred, as a part payment before or after the bill or check became due. Likewise an acknowledgment of liability and promise to pay by the indorser after a de-fault of payment by the maker dispenses with proof of presentment and notice, and throws on the indorser the double burden of negligence in this regard and that he was ignorant of it. His liability also continues whenever he waives notice of the protest. Thus, an indorser on the when a note became due indorsed thereon a written waiver of notice and protest for non-payment, and on the same day a demand was made at the banking house at which the note was payable, and the answer was that the maker had no money there. This was regarded as a sufficient demand. The death, bankruptcy, or imprisonment of the maker constitutes no excuse for not making a demand, because many means may remain of payment through the assistance of friends and in other ways.