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Presentment for Payment

Generally, presentment refers to the demand for payment or acceptance of negotiable


instrument. Rooting from this definition, it clearly suggests that there are two types of
presentment, namely, the presentment for payment and the presentment for acceptance.
Presentment for payment refers to the presentation of an instrument to the person
primarily liable for the purpose of demanding and receiving payment. In here, it should be
noted that presentment or demand for payment are not necessary to charge the person
primarily liable, because his liability is absolute. In other words, the holder can still sue the
maker or the acceptor, although no demand has been made by him, as soon as the date of
payment has passed without the instrument being paid. But in order to charge the person
secondarily liable, a demand for payment must be made first upon the person primarily liable,
otherwise, the drawer and the indorsers are discharged from their secondary liability unless
such presentment is excused or dispensed with.
The date of presentment depends on whether the instrument is payable at fixed or
determinable future or on demand. If the instrument is payable at a fixed or determinable
future time, presentment must be made on the date it falls due without period of grace. On the
other hand, if the instrument is payable on demand, the presentment depends on whether the
instrument is a promissory note or a bill of exchange. In case of the promissory note,
presentment must be made to the maker within a reasonable time after its issue. While in the
case of of bill of exchange, presentment must be made within a reasonable time after the last
negotiation thereof. Last negotiation refers to the last transfer of value.
The presentment for payment is said to be sufficient, when it is presented by the holder the
holder or by any person authorized to receive payment at a reasonable hour on a business day
and at a proper place to the person primarily liable on the instrument or if he is absent or
inaccessible, to any person found at the place where the presentment is made.
Furthermore, the instrument must be exhibited to the person primarily liable. Exhibition
refers to the act of showing something in front of the person. The purpose of the exhibition is to
enable the debtor to determine the genuineness of the instrument as well as its indorsements
and the right of the holder to receive payment, and to enable him, upon payment, to take
possession of it, to serve as a guard against a lawsuit by a subsequent holder. If the instrument
is not exhibited, the presentment would be ineffectual, as the debtor is entitled to see the
instrument and demand its surrender upon payment.
If the instrument is payable a bank, presentment is must be made during banking hours.
Presentment made outside banking hours is not sufficient because banks do not make payment
outside of banking hours.
Normally the liability of the drawer and the indorser is only secondary, and their liability
can be discharged when payment is made by the party primarily liable. However there are some
cases when presentment is not required to charge the drawer and the indorser. As to drawer,
presentment is not necessary when the drawer or acceptor are not expected to pay, it happens
when the drawer has no sufficient funds to the drawee bank to cover the amount of check.
Another is when the drawer and the drawee are the same person, since the drawee is
considered a maker he is liable even without presentment. As to indorser, presentment for
payment is not necessary to discharge the indorser when the instrument was made or accepted
for his accommodation, th reason for this rule is that the accomodated-payee-indorser is a real
debtor.
Presentment is also not required when it is dispensed with, it happens when after the
exercise of reasonable diligence, presentment still cannot be made or when the drawee is a
fictitious person, thus, there is no one to whom presentment is to be made or when the waiver
for presentment, excess or implied, is made.
Lastly, presentment is not necessary when the bill has been dishonored by non-acceptance.