BASED ON AGBAYANIS BOOK AND ATTY. MERCADOS LECTURES
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BY: MA. ANGELA LEONOR C. AGUINALDO ATENEO LAW 2D BATCH 2010 to pay it there 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 indorsers.
MEANING OF PRESENTMENT FOR PAYMENT Production of a bill of exchange to the drawee for his acceptance, or to the drawee or acceptor for payment or the production of the promissory note to the person liable for payment of the same 1. Personal demand for payment at the proper place 2. With the bill or note in readiness to exhibit it as required and to receive payment and surrender it if the debtor is willing to pay
PRESENTMENT FOR PAYMENT NOT NECESSARY TO CHARGE PERSONS PRIMARILY LIABLE It cannot be validly claimed that it is presentment of the bill which is the operative act that makes the acceptor liable under his acceptance
PAYABLE AT A SPECIAL PLACE If the bill is payable at the PNB, is it necessary to make presentment for payment to X in order to charge him? No, the rule is the same. The only effect is that if, X is able and willing to pay the bill at the PNB at maturity, it is equivalent to a tender of payment on the part of drawee X.
PRESENTMENT NECESSARY TO CHARGE PERSONS SECONDARILY LIABLE
NECESSARY STEPS TO CHARGE PERSONS SECONDARILY LIABLE IN BILLS OF EXCHANGE 1. In the three steps required by law, presentment for acceptance to the drawee or negotiation within reasonable time after acquisition unless excused 2. If the bill is dishonored by non-acceptance, notice of dishonor by non-acceptance must be given to persons secondarily liable unless excused and in case of foreign bills, protest for dishonor by non-acceptance must be made unless excused 3. But if the bill is accepted, or if the bill isnt required to be presented for acceptance, it must be presented for payment to the persons primarily liable unless excused 4. If the bill is dishonored by non-payment, notice of dishonor by non-payment must be also be given to person secondarily liable unless excused, and in case of foreign bills, protest for dishonor by non-pay7ment must be made unless excused
NECESSARY STEPS TO CHARGE PERSONS SECONDARILY LIABLE Presentment for payment must be made within the period required to the person primarily liable unless excused If the note is dishonored by non-payment, notice of dishonor by non- payment must be given to the person secondarily liable unless excused
CASE DIGESTS: SECTION 70
131 CLARK V. SELLNER 42 SCRA 384
FACTS: Sellner with two other persons, signed a promissory note solidarily binding themselves to pay to the order of R.N Clark. The note matured but the amount wasn't paid. The defendant alleges that he didn't receive any amount of the debt; that the instrument wasn't presented to him for payment and being an accommodation party, he is not liable unless the note is negotiated, which wasn't done.
HELD: On the first issue, the liability of Sellner as one of the signers of the note, is not dependent on whether he has or has not, received any part of the debt. The defendant is really and expressly one of the joint and several debtors of the note and as such he is liable under the provisions of Section 60 of the NIL.
As to the presentment for payment, such action is not necessary in order to charge the person primarily liable, as is the defendant Sellner.
As to whether or not Sellner is an accommodation party, it should be taken into account that by putting his signature to the note, he lent his name, not to the creditor, but to those who signed with him placing him in the same position and with the same liability as the said signers. It should be noted that the phrasewithout receiving value therefore as used in section 29 means without receiving value by virtue of the instrument and not, as it apparently is supposed to mean, without receiving payment for lending his name. It is immaterial as far as the creditor is concerned, whether one of the signers has or has not received anything in payment for the use of his name. In this case, the legal situation of Sellner is that of a joint surety who upon the maturity of the note, pay the debt, demand the collateral security and dispose of it to his benefit. As to the plaintiff, he is a holder for value.