Section 44.
Indorsement in representative
08/16/19
Section 41. Two or more payees or indorsees
jointly
I promise to pay to the order of
B1 and B2
As you see, there are two payees and
this instrument will be used to pay X.
In the back of the instrument, pag inindorse nila
yan kay X, dapat pareho silang pumirma as
indorsers.
Pay to X
sgd by B1 and B2
As a rule, both of them must indorse
Exemption: It is possible to indorse the
instrument by B1 only if B2 gave his authority to
B1 or vice versa.
Section 42. Effect of instrument drawn or
indorsed to a person as cashier
Pag merong floating promise, hindi raw
yung person nor the position of the secretary
ang totoong payee. Ang totoong payee ay ang
bank or the corporation.
Section 43. Indorsement where name is
misspelled
Pangalan ng payee is Juan pero nakalagay sa
face ng instrument One e gagamitin niya yan
pambayad sa utang kay X.
Pay to the order of One
sgd by the maker
Paano niya yan i-endorse?
Isulat niya yung maling spelling at sundan ng
tamang spelling.
Pay to X
(sgd.) One (sgd.) Juan
capacity
Take note of the word SAD
If you are an agent, you act within the Scope of
your Authority and Disclose your principal
Pay to the order of Atty.
Ferdinand Cruz
POV of Atty. Cruz: Sabi ko sa secretary ko,
Andeng, indorse this instrument to pay for X
At the back of the instrument, it must be:
Pay to X
sgd by Andeng, agent of Atty. Cruz
Section 45. Time of indorsement, presumption
Additional information:
Presumption – an idea that is taken to be true,
and often used as the basis for other ideas,
although it is not known for certain.
Kumuha ka exam sa taxation, multiple
choice, wala kang maintindihan sa tanong kasi
hindi mo naaral. Kung wala kang maintindihan,
punta ka sa presumption. Ano ang presumption
against sa taxation? Taxation without taxes,
government cannot live or exist also known as
the lifeblood theory. Kaya lahat ng assessment
ng BIR ay presumed na tama.
In negotiable instrument:
Kung merong date sa instrument, it is deemed
prima facie to have been effected before it was
overdue.
Payable on August 10, 2013
The presumption is that the instrument was
indorsed on or before August 10, 2013, that is,
before the note was overdue
Section 46. Place of indorsement, presumption
The instrument is presumed prima facie
to have been made at the place where it
was dated.
Section 51. Right of holder to sue payment
 APPLICATIONS
As a rule, liable ang sinumang
pumirma sa instrument.
X connive with payee B in Treasurer or As a secretary or treasurer,
wrongfully inserting the secretary’s mananagot ka ba?
Holder in due amount of 100, 000 and payee signature Hindi ka mananagot once
course B negotiate it corrects. tumalbog ang checke kahit na
Is X holder in due course? nandun pirma mo kasi
Si X ay hindi holder in due ministerial lamang iyon sa
course dahil nakipag connive trabaho mo.
siya sa payee.

Section 62. Liability of irregular indorser

Minority Minor can transfer title but he
defense will not be liable
Pineke ni janitor ang pirma ni
payee at nagkunwari siyang si
payee B at napunta kay X.
Forgery Mananagot ba si B kay X?
No. The instrument is wholly
inoperative. No right to
demand payment and no right
to retain the instrument
Nagkakaron ng indorser pagtapos ng
negotiation. E paano kung binigay ni maker kay
B yung instrument may pirma na si X sa likod?
So hindi pa nani-negotiate pero meron ng pirma
sa likod si X. X is considered as irregular
indorser or anomalous indorser.
Section 70.
Kapag maniningil ka, you have to present a
receipt.
Kapag binayaran ka, it is already discharged
Section 71.

So pinapirma mo si Daniel Date of presentment of

Padilla, ginawa mo ngayon instrument
Fraud in promissory note.
factum Masisingil mo ba si Daniel
Padilla?
Payable at a fixed
No. Payable on
or determinable
future time demand

Nag isuue ka ng checke

pambili ng beer tapos walang
dumating. So kinabukasan, On the day it falls PN BOE
ipina-stop payment mo yung due
Absence of check because there is
consideration absence of consideration. Within a reasoble time
Dinemanda ka ngayon ng
pinagbilhan mo dahil
tumalbog checke. After After last
Mananagot ka ba? issue of negotiation
No, there is absence of note of bill
consideration
Section 72. What constitutes sufficient Presentment for Notice of dishonor
presentment – Presentment for payment, to be payment (Parties secondarily
sufficient, must be made: (Person primarily liable)
liable)
By the holder, or by some person Section 76 Section 98
Who authorized to receive payment
on his behalf Person Presentment Parties Notice of
primarily for payment secondar dishonor
At a reasonable hour on a ily liable
liable
When business day
Must be
Place of presentment: made to his
(a) At the place stated in the personal
instrument representat
(b) At the address of the Must be ive, if such
person primarily liable if made to his there be,
stated in the instrument personal and if, with
(c) At the usual place of representati the
Where business or residence of ve, if such exercise of
the person to make there be, reasonable
payment If dead and if, with If dead diligence,
(d) Wherever he can be the he can be
found exercise of found.
Apply the succession reasonable
rule. You will only diligence, If none, to
proceed to the next if the he can be the last
previous is not available. found. residence
To the person primarily liable, if or last
To Whom absent, to any person found at place of
the place where the presentment business of
is made the
deceased.
Pakita mo instrument, instrument
How must be exhibited and yan ay
ide-deliver mo up to the party
paying it.

Section 75. Banking hours – maningil ka kung

bukas ang bank Section 77 Section 99
Person Presentment Parties Notice of
primarily for payment secondar dishonor
liable ily liable

Must be Must be
Are made to Are made to
partners any one of partners any on
them partner
Section 78 Section 100
Person Presentment Parties Notice of
primarily for payment secondar dishonor
liable ily liable