PRESENTMENT FOR PAYMENT - If absent or inaccessible = to any person found at the
place where presentment is made
Sec. 70 - Effect of Want of Demand on Principal Debtor
Gen. Rule = Presentment for Payment is not necessary in order to
charge the person primarily liable on the instrument
Exc = If the instrument is by its terms:
1. Payable at a special place AND
2. He is able and willing to pay it here 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 indorser.
SPECIAL PLACE OF PAYMENT - place where the holder can present
a note, where the maker can deposit or provide funds to meet it,
and where a legal offer can be made
EX: house, bank, place of business
If the holder will not present the instrument for payment at such
special place, he loses his right to payment of interest.
STEPS IN PROMISSORY NOTE
1. Presentment must be made within the required period to
the maker
2. If the maker dishonors the instrument by non-payment, a
notice of dishonor should be given to the payee and
indorsers
3. If the holder fails to give a notice of dishonor, the
liabilities and obligations to pay for the purchase price of
the payee and the indorsers will be discharged
STEPS IN A BILL OF EXCHANGE
1. Presentment for payment to the acceptor should be made
2. If the bill is accepted:
a. Wait for maturity
b. Present for payment
3. If the bill is dishonored, notice of dishonor should be
given to persons secondarily liable
4. FOREIGN BILL OF EXCHANGE = there must be protest for
dishonor of non-acceptance
Sec. 71- Presentment where instrument is not payable on demand
and where payable on demand
 Not payable on Demand = day it falls due
 Payable on Demand = must be made within a reasonable
time after its issue EXCEPT for a bill of exchange
 BoE = presentment for payment will be sufficient if made
within a reasonable time after the last negotiation =
reasonably prudent man
Sec. 72- What constitutes a sufficient presentment
1. Must be made by a holder or some person authorized to
receive payment on his behalf
2. Made at a reasonable hour on a business day on a proper
date = 8am-8pm (usually); depends on the business hours
of a business
3. At the proper place
4. Must be made to the persons primarily liable to the
instrument
5. The person entitled to present the instrument must
exhibit the instrument to the person from whom the
instrument is demanded and upon payment must be
delivered to the person paying it
Sec. 73 - Place of Presentment (successive)
a) Specified place of payment
b) address of the person to make payment
c) no place and no address = usual place of business or
residence of the person to make payment
d) in any other case presented to the person to make
payment, wherever he can be found OR if presented at his
last known place of business or residence
Sec. 74 - Instrument must be exhibited
- to the person to whom payment is demanded and
when it is paid, it must be delivered up to the party
paying it
- PURPOSE:
1. Judge the genuineness of the instrument
2. Right of H to receive payment and so that he may
immediately reclaim possession upon paying the
amount
o Instrument must be produced by the H or any person who
is presenting for payment
REASON = to avoid having it be negotiated further
o the person from whom payment is demanded should not
pay unless the instrument is surrendered
-If not surrendered and cancelled = there is a danger that
it may fall in the hands of other persons who might claim
right over the instrument
Sec. 75 - Presentment when instrument is payable at bank
Gen. Rule = must be made during banking hours
Exc = 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 is closed on that day is sufficient
Sec. 76 - Presentment where principal debtor is dead
Gen. Rule = Presentment for payment must be made to his
personal representative, if there is and he must be within the
exercise of reasonable diligence
Sec. 77 - Presentment to Persons Liable as Partners
Gen. Rule = presentment may be made to any one of them even
though there has been a dissolution of the firm
Requisites:
1. Persons are partners
2. No place of payment
*each partner is an agent of the other partners
*each may bind and represent the partnership
Sec. 78 - Presentment to Joint Debtors
Gen. Rule =presentment must be made to all of them
Requisites:
1. Several persons, not partners
2. No place of payment
*Joint Debtors = Each is liable only for their shares in the obligation

Sec. 79 - When presentment not required to charge the drawer
Gen. Rule= presentment is not required to charge the drawer
where he has no right to expect or require that the drawee or
acceptor will pay the instrument = drawee is already close or is
insolvent
Sec. 80 - When presentment not required to charge the indorser
Gen. Rule = instrument was made or accepted for his
accommodation and he has no reason to expect that the
instrument will be paid, if presented
Sec. 81 - When delay in making presentment is excused
1. Delay is caused by circumstances beyond the control of
the H and not imputable to his default, misconduct or
negligence
2. When presentment of delay ceases to operate,
presentment must be made with reasonable diligence
Waiver of Presentment for Payment
o Verbal or writing
o Not necessary that the statement constituting the waiver
is direct and positive as it may result from implication and
usage or from any understanding between the parties
Sec. 82 - When presentment for payment is excused
1. Drawer has no right to expect or require that the drawee
or acceptor will pay the instrument
2. Instrument was made for accommodation by the indorser
3. After the exercise of reasonable diligence, presentment
cannot be made
4. Drawee is a fictitious person
5. By waiver of presentment, express or implied
Sec. 83 - When instrument is dishonored by non-payment
1. When presented for payment, it was refused or cannot be
obtained OR
2. Presentment is excused and the instrument is overdue
and unpaid
Who may give notice
1. Holder
2. Person on behalf of H
3. Person on behalf of any party in the instrument
Sec. 84 - Liability of Persons secondarily liable when instrument is
dishonored
Gen. Rule= when the instrument is dishonored by non-payment,
an immediate right of recourse to all parties secondarily liable
thereon accrues the holder
Exc = subject to the provisions of this act
Sec. 85 - Time of Maturity
1. NI is payable at the time fixed without grace
2. Day of maturity falls on Sunday/Holiday = Instrument is
payable on the next succeeding business days
3. Instrument payable on Saturday = instrument are to be
presented on the next succeeding business days EXCEPT:
when the instrument is payable on demand may at the
option of the H be presented before 12nn on Saturday
when that entire day is not a holiday
Sec. 86 - Time; How Computed
- Exclude the day from which time is to begin to run
and by including the date of payment
Sec. 87 - Rule when instrument is payable at bank
- Equivalent to an order to the bank to pay the same
for the account of the principal debtor
Sec. 88 - What constitutes payment in due course
- Made at or after the maturity of payment to the
holder thereof in good faith and without notice that
the title is defective
REQUISITES
1. Must be made by or on behalf of the principal debtor or
the accommodation party where the instrument is made
or accepted for his accommodation
2. Payment must be made to the H
3. Payor must be in GF and without notice that his title is
defective
4. Payment must be made at or after maturity date of the
instrument
BY WHOM MADE
1. Primary party
2. If the PP is a surety for a PP who signed as a secondary
party, then payment by him discharges the instrument
3. Payment on behalf of the principal debtor
NOTICE OF DISHONOR
- Bringing the attention of the person that the
instrument has not been accepted or not accepted
for payment
Sec. 89 - To whom NoD must be given
Gen. Rule = When a NI has been dishonored by non-acceptance or
non-payment, NoD must be given to:
a) Drawer and to each indorser
b) Any drawer or indorser to whom such notice is not given
is discharged
Exc = except herein as otherwise provided
 Payee does not have a legal obligation to inform the
drawer of the dishonor of NI
 NoD is required to:
1. Preserve the right of the payee to recover on the
check
2. Preserve the liability of the drawer and indorser
on the check
RULE IF PAYEE FAILS TO GIVE NOTICE
1. Drawer or Indorser is discharged from their liability AND
2. Payee is precluded from enforcing payment on the check
 Drawee cannot complain if payee does not give notice
because the right that is lost (secondary liability) belongs
to the payee

Sec. 90 - By whom given (Notice and Defects)
1) H or person on his behalf
2) By a party who might be compelled to pay it to the H or a
person on behalf of him
3) Person, who upon taking it up who have a right to
reimbursement from the party to whom notice is given
Sec. 91 - Notice given by an agent
1. May be in his own name OR
2. In the name of the party entitled to give notice, whether
that party be his principal or not = means that a person
may effectively give notice even if he is not authorized to
do so
Sec. 92 - Effect of Notice on behalf of holder
- Inures to the benefit of all subsequent holders and all
prior parties who have a right of recourse against the
party to whom it is given
Sec. 93 - Effect where notice is given by party entitled thereto (Ind)
- Such notice inures to the benefit of the H and all
parties subsequent to the party to whom notice is
given
M --- P --- A --- B --- C --- D
 If D gives NoD to PABC;
- C need not notify PAB again because notice by the H
inures to the benefit of all prior parties who have the
right of recourse against the party to whom it is given
WHEN NoD can be given
a. Non-payment
b. Non-acceptance
WHEN NoD should not be given
a. Qualified I
b. Persons negotiating by mere delivery
Sec. 94 - When agent may give notice
When the instrument has been dishonored in the hands of an
agent, he may either:
1) Give notice to the parties liable OR
2) Give notice to his principal
- If he gives notice to his principal, he must do so
within the same time as if he were the H
- The principal, upon receipt of such notice has himself
the same time for giving notice as if the agent had
been an independent holder
Sec. 95 - When Notice Sufficient
1. Written Notice = need not be signed
REASON = Verbal Notice is accepted
2. Insufficient WN = may be supplemented and validated by
a verbal communication
3. Misdescription = does not vitiate the notice UNLESS the
party to whom the NoD is given is misled
CONTENTS OF NOTICE (w/n V or W)
1. Sufficient description of the bill or note
2. Statement that the instrument has been dishonored upon
presentment for acceptance or for payment
3. Statement that the instrument has been protested if
protest is required (foreign BoE only)
4. Announcement of the intention to look to the party
addressed for payment
5. Identity of the instrument
6. Statement to deny payment
If the WN lacks any of these matters, the same may
nevertheless be completed or validated by a verbal
communication
If it contains all except 2 = the person may orally state
that there was dishonor to complete or validate the NoD
Sec. 96 - Form of Notice
a) Writing - mail or personal delivery
b) Merely Oral AND
c) May be given in any terms which sufficiently identify the
instrument AND
d) Indicate that it has been dishonored by non-acceptance or
non-payment
Sec. 97 - To whom Notice may be given
1. Party himself
2. Agent
Sec. 98 - Notice where party is dead
 When any party is dead and his death is unknown to the
party giving notice = the notice must be given to a
personal representative, if there be one with reasonable
diligence
 No personal representative = notice may be sent to the
last residence or last place of business of the deceased
SERVICE TO A REPRESENTATIVE IS NECESSARY ONLY WHEN THE
FF REQUISITES ARE PRESENT
1. The person who should give notice knows that the person
to receive notice is dead
2. The person who is supposed to receive notice has a
personal representative AND
3. Personal representative could be found after the exercise
of reasonable diligence
NOTICE TO A REPRESENTATIVE IS NOT NECESSARY IF:
1. There was no personal representative
2. The person to give notice is not aware of the death of the
person who is supposed to receive notice OR
3. The personal representative cannot be found despite the
exercise of reasonable diligence
Sec. 99 - Notice to Partners
Where the parties to be notified are partners = notice to one
partner is enough even though there is dissolution
- A partner binds the partnership
- Every partner is an agent of partnership for purposes
of its business
Sec. 100 - Notice to Persons Jointly Liable
Gen. Rule = Joint persons are not partners = notice must be given
to each one of them
Exc = UNLESS, one of them has authority to receive such notice for
the others
- Each debtor is responsible for his own share in the
obligation
Sec. 101 - Notice to Bankrupt
Where a party has been adjudged or bankrupt or an insolvent or
has made an assignment for the benefit of the creditors = notice
may be given either to the party himself or to his trustee or
assignee
Sec. 102 - Time within which notice must be given
1. N may be given as soon as the instrument is dishonored
UNLESS delay is excused and must be given within the
time fixed by this act
2. The moment NI is dishonored = NoD must be given within
the time provided by Secs. 103-104
3. No notice was given within the said period = D or I are
discharged from secondary liability
4. Liability of D under a separate contract remain although
NoD was given
ABSENCE OF NoD
1. Affects Ds secondary liability BUT
2. Does not affect the liability of the drawer under a
separate contract
If the drawer issued a BoE to the payee in payment of the
obligation and the bill was dishonored by the drawee (No NoD was
given to the Drawer) = DRAWER IS NOT SECONDARILY LIABLE BUT
1. D is still liable based on the breach of contract of sale
2. If D fails to pay, he is still liable to pay such price despite
the absence of NoD
Sec. 103 - Where parties reside in the same place
1. If given at the place of business of the person to receive
notice = it must be given before the close of business
hours on the following day
2. If given at his residence = It must be given before the
usual hours of rest on the day following
- USUAL HOURS = any of the hours when the member
of the household are attending their usual affairs
3. If sent by mail = it must be deposited in the post office in
time to reach him in usual course of the following day
Sec. 104 - Where parties reside in different places
1. If sent by mail = it must be deposited in the post office in
time to go by mail the day following the day of dishonor
2. If there be no mail = convenient hour on last day by the
next mail after
3. Given through the post office = within the time that
notice would have been received in due course of mail IF
it had been deposited in the post office within the time
specified in the last subd.
Sec. 105 - When sender deemed to have given due notice
NoD is addressed and deposited in the post office = sender is
deemed to have given due notice, notwithstanding any miscarriage
in the mails
Sec. 106 - Deposit in post office: What constitutes
Gen. Rule = Notice is deemed to have been deposited in the post
office when deposited in any branch post office or in any letter box
under the control of the post office department
- Notice was duly mailed, meaning duly addressed and deposited in
the post office with sufficient stamps = there is deemed to be
notice of dishonor even if there was miscarriage in the mails
-Notice was misdelivered to another person = PRESUMPTION:
There is NoD so long as it was properly mailed on time
Notice may be mailed in
1. Post office
2. Branch post office
3. Letter box under the control of post office department
Sec. 107 - Notice to subsequent party: time of
Where a party receives NoD = He has, after the receipt of such
notice, the same time for giving notice to antecedent parties that
the holder has after the dishonor
Sec. 108 - Where notice must be sent
Gen. Rule = Where a party has added an address to his signature
= NoD must be sent to that address
Exc = BUT, if he has not given such address, then notice must be
sent as follows:
1. Post office nearest to his place of residence OR to the P-O
where he is accustomed to receive his letters
2. If he lives in one place and has his place of business in
another = notice may be sent to either place
3. If he is sojourning in another place = notice may be sent
to the place where he is sojourning
Notice is received by the party within the time specified =
sufficient though not sent in accordance with the requirement of
this section
Sec. 109 - Waiver of Notice
May be waived:
1. Either before the time of giving notice has arrived OR
2. After the omission to give notice
Ways:
1. Express
2. Implied
Sec. 110 - Whom affected by waiver
1. Waiver is embodied in the instrument itself= binding upon
all parties
2. W is written above the signature of an indorsement =
binds only him
Waiver = means the person who is making the waiver renounces
the benefit of the act or matter in his favor
Sec. 111 - Waiver of Protest
In case of BoE or other NI = deemed to be a waiver not only of a
formal protest but also of presentment and NoD
PROTEST - indispensable only in a foreign BoE
Effects:
1. Protest is waived
2. Presentment for payment or acceptance is also waived
3. NoD is waived
Sec. 112 - When notice is dispensed with
1. After the exercise of reasonable diligence, it can’t be given
to or does not reach the parties sought to be charged
Sec. 113 - Delay in giving notice; How excused
1. Excused when delay is caused by circumstances beyond
the control of the H and not imputable to his default,
misconduct or negligence
2. Cause of delay ceases to operate = notice must be given
with reasonable diligence
Sec. 114 - when notice need not be given to the drawer
1. Drawer and drawee are the same person
2. Drawee is a fictitious person or a person not having
capacity to contract
3. Drawer is the person to whom the instrument is
presented for payment
4. Drawer has no right to expect or require that the drawer
or acceptor will honor the instrument
5. Drawer has countermanded payment
Sec. 115 - when notice need not be given to the indorser
1. Drawee is a fictitious person or a person not having
capacity to contract and the indorser was aware of that
fact at the time he indorsed the instrument
2. Indorser is the person to whom the instrument is
presented for payment
3. Instrument was made or accepted for his accomodation
Sec. 116 - Notice of Non-Payment where acceptor refused
NoD by non-acceptance has been given = Notice of a subsequent
dishonor by non-payment is not necessary UNLESS in the
meantime, instrument has been accepted
Sec. 117 -Effect of Omission to give notice of non-acceptace
- Does not prejudice the rights of a HIDC subsequent to
the omission
Sec. 118 - When Protest need not be made; when must be made
1. NI has been dishonored = it may be protested for non-
acceptance or non-payment
2. Foreign BoE = no protest is required
DISCHARGE
Sec. 119 -Instrument; How discharged
1. By payment in due course by or on behalf of the principal
debtor
2. By payment in due course by the party accommodated,
where the instrument is made or accepted for
accommodation
3. By intentional cancellation
4. By any other act which will discharge a simple contract
for the payment of money
5. When the principal debtor becomes the holder of the
instrument at or after maturity in his own right
Sec. 120 -When persons secondarily liable on the instrument are
discharged
1. By any act which discharges the instrument
2. By intentional cancellation of his signature by H
3. By discharge of a prior party
4. By a valid tender or payment made by a prior party
5. By a release of the principal debtor unless the H’s right of
recourse against the party secondarily liable is expressly
reserved
6. By any agreement binding upon the H to extend the time
of payment
Sec. 121- Right of a party who discharges the instrument
Gen. Rule = where the instrument is paid by a party secondarily
liable, it is not discharged BUT the party doing so is remitted to his
former rights as regards all prior parties, and he may strike out his
own and all subsequent indorsements and again negotiate the
instrument EXCEPT:
1. Payable to the order of a 3rd person and has been paid by
the party accommodated
2. Made or accepted for accommodation and has been paid
by an accommodation party
Sec. 122- Renunciation by a H
1. H waives his rights to recover from any party before, at or
after maturity
a. Expressly; in writing
b. Absolute and conditional
2. Waives to collect from M or Dr = instrument is discharged
3. Indorsers are released from the obligation before or after
the maturity date
Sec. 123- Unintentional Cancellation
Inoperative BUT where an instrument or any signature
appears to have been cancelled, the burden of proof lies to the
parties who allege that the cancellation was made unintentionally
or under a mistake or without authority; does not discharge the
instrument
Sec. 124- Alteration of instrument
Effects: same as that of a forged signature
HIDC: can enforce payment according to its original tenor
Sec. 125- Material Alteration
a) Date
b) Sum payable, either for principal or interest
c) Time or place of payment
d) Number or relations of the parties
e) Medium or currency in which payment is to be made
f) Or which adds a place of payment where no place of payment is
specified, or any other change or addition which alters the effect of
the instrument in any respect is a material alteration