BASED ON AGBAYANIS BOOK AND ATTY. MERCADOS LECTURES
Page 99 of 190
BY: MA. ANGELA LEONOR C. AGUINALDO ATENEO LAW 2D BATCH 2010 TIME FOR MAKING PRESENTMENT At a reasonable hour on a business day
CASE DIGESTS: SECTION 72
135 STATE INVESTMENT HOUSE V. IAC 175 SCRA 310
FACTS: New Sikatuna requested for a loan from Spouses Chua. Latter issued post- dated crossed checks in favor of former. Thereafter, Sikatuna sold checks to SIHI which upon deposit, checks were dishonored. The trial court decided the case in favor of SIHI.
HELD: Jurisprudence provides the following effects of crossing a check: 1. The check may not be encashed but only deposited in the bank 2. The check may be negotiated only onceto one who has an account with a bank 3. The act of crossing the check serves the warning to the holder that the check has been issued for a definite purpose so that he must inquire if he has received the check pursuant to that purpose, otherwise, he is not a holder in due course.
The checks in issue were crossed generally and issued payable to New Sikatuna Wood which could only mean that the drawer has intended the same for deposit only by the rightful person. Apparently, it was not the payee who presented the same for payment and therefore, there was no proper presentment and the liability didn't attach to the drawer. Thus, in the absence of due presentment, the drawer didn't become liable. Consequently, no right of recourse is available to petitioner against the drawer of the subject checks considering that the petitioner is the proper party authorized to make presentment of the checks in question.
Nonetheless, the holder could still collect from New Sikatuna if the latter doesn't have a valid excuse from refusing payment.
Sec. 73. Place of presentment. - Presentment for payment is made at the proper place:
(a) Where a place of payment is specified in the instrument and it is there presented;
(b) 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;
(c) 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;
(d) 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. (ORDER OF PREFERENCE)
Sec. 74. Instrument must be exhibited. - 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.
NECESSITY OF EXHIBITION OF INSTRUMENT Presentment includes not only demand for payment but also the exhibition of the instrument Purpose is to enable the debtor to determine the genuineness of the instrument and the right of the holder to receive payment and to enable him to retain possession upon payment
A DEMAND BY TELEPHONE IS INSUFFICIENT
WHEN EXHIBITION EXCUSED 1. When the debtor doesnt demand to see the instrument but refuses payment on some other grounds 2. When the instrument is lost or destroyed
CASE DIGESTS: SECTION 74
136 ANSALDO V. CA 177 SCRA 8
FACTS: TFC issued promissory notes in favor of PCIB. At about the same time, TFC extended loans to Ansaldo and Reyes. These loans were evidenced by promissory notes, each waiving demand, presentment, protest, and notice of protest and non-payment. TFC then paid part of its obligation with PCIB. To pay for its outstanding balance, it endorsed the notes issued by Ansaldo and Reyes. Claiming that the notes have matured without payment by Ansaldo and Reyes, the bank instituted actions against them.