PRESENTMENT FOR PAYMENT

By whom When Where To whom How

a. Holder as the “reasonable hour on “proper place” a. Promissory note: Presentment for payment – the
owner of the a business day” to the primary presentment of an instrument to
instrument; means during a. Specified party to the the person primary liable for the
or business hour place of maker purpose of demanding and
b. Any person payment – receiving payment.
authorized by Bank – during banking presentment b. Accepted bill: to
the holder is hours must be the acceptor EITHER: payable at a fixed or future
a proper made there determinable time or payable on
party to Place of business – c. BOE/Check demand
present the during usual business b. Unspecified (payable on
instrument hours in that place place of demand): to the Payable at a fixed or future
and the payment but drawee although determinable time – presentment
authorization Residence of the address of he is not liable on of payment must be made on the
need not be person liable to pay – the person to the bill; or if date if falls due
in writing. usual hours of rising make the primary person is
and retiring payment is inaccessible, then Payable on demand –
given – presentment a. Presentment for payment
presentment must be made to of promissory note: must
must be any person of be made to the maker
made in the sufficient within a reasonable time
address of discretion at the after its issue or delivery
the person proper place of
presentment. b. Presentment for payment
c. Unspecified of bills of exchange: must
place of d. Where principal be made within a
payment and debtor is dead: if reasonable time after the
no given no place of last negotiation thereof
address – payment is
presentment specified,
 must be presentment for
made at the payment must be
usual place made to his
of business personal
or residence representative, if
of the person such there be,
to make the and if, with the
payment exercise of
reasonable
d. In any other diligence, he can
case – be found.
presentment
must be e. Persons liable as
made to the partners: if no
person to place of payment
make the is specified,
payment presentment for
wherever he payment may be
can be found made to any of
or at his last them
known place notwithstanding
of business dissolution of the
or residence. firm.

f. Joint debtors – if
nor partners and
no place of
payment is
specified, must
be made to them
all.
Presentment for payment is excused Delay in making presentment is excused
(a) Where, after the exercise of reasonable diligence, (a) Delay is caused by circumstances beyond the control of the
presentment, cannot be made; holder; and
(b) Where the drawee is a fictitious person; (b) Not imputable to his default, misconduct, or negligence.
(c) By waiver of presentment, express or implied.

PRESENTMENT FOR ACCEPTANCE

By whom When Where To whom How
Must be made by or 1. At a Place of To the drawee or some Presentment for acceptance – is the
on behalf of the reasonable presentment is person authorized to accept production or exhibition of a bill of
holder hour not material since or refuse the acceptance on exchange to the drawee for his
2. On a the drawee need his behalf. acceptance or payment.
business day only to write his
3. Before the acceptance on a. 2/more drawees This is made by or on behalf of the
bill is the bill if he who are NOT holder; at a reasonable hour; on a
overdue and wishes to accept. partners – business day; before the bill is
within a presentment must overdue and within a reasonable
reasonable be made to them time; and to the drawee or some
time ALL unless one has person authorized to accept or
authority to accept refuse acceptance on his behalf.
or refuse
acceptance for all

b. Drawee is dead –
presentment may be
made to his
personal
 representative

c. Drawee adjudged
bankrupt/ insolvent
– presentment may
be made to trustee
or assignee

d. Presentment where
principal debtor is
dead – presentment
for payment may be
made to his
executor or
administrator of
there can be one
and can be found.
But can be
dispensed with if no
personal
representative can
be found (exercise
reasonable
diligence)

Presentment for acceptance is excused:

(a) Where the drawee is dead, or has absconded, or is a fictitious person or a person not having capacity to contract by bill.
(b) Where, after the exercise of reasonable diligence, presentment cannot be made.
(c) Where, although presentment has been irregular, acceptance has been refused on some other ground.

NOTICE OF DISHONOR
By whom When Where To whom How
a. By the holder; As soon as the If party has added Drawer and each Notice of Dishonor – is bringing,
or instrument is an address to his indorser; or their agents either verbally or in writing, to
b. Another in dishonoured signature – notice the knowledge of the drawer or
behalf of the must be sent to indorser of an instrument, the
holder; or PARTIES RESIDE IN THE that address Party is dead: Death is fact that a specified negotiable
c. By a party to SAME PLACE: known – given to instrument, upon proper
the instrument If not, notice must personal representative proceedings taken, has not been
who may be a. Place of the be sent: if there be one and can accepted or has not been paid
compelled to business of the be found; and if no and that the party notified is
pay it to the person – before a. Either to personal representative, expected to pay it.
holder and the close of the post notice may be sent to
who, upon business hours office the last residence or last May be given by:
taking it up, on the day nearest to place of business of the a. Personal delivery; or
would have a following his place of deceased. b. By mail
right to residence
reimbursemen b. At his residence or to the Notice to partners: ANY
t from the – before the post office ONE of the partners
party to whom usual hours of where he is
the notice is rest on the day accustomed Notice to persons jointly
given; or following to receive liable: Not partners,
d. Another his letters; must be given to EACH of
person in c. Sent by mail – or them
behalf of such must be
party (refers to deposited in the b. If he lives in Notice to bankrupt:
c) post office in one place, Trustee or Assignee
time to reach and have
him in usual his place of
course on the business in
day following. another,
notice may
PARTIES RESIDE IN be sent
DIFFERENT PLACES: EITHER; or
c. If he is
a. Sent by mail – sojourning
must be in another
deposited in the place, to
post office in the place
time to go by where he is
mail the day sojourning.
following the day
of the dishonour,
or if there be no
mail at a
convenient hour
on that day, by
the next mail
thereafter.

b. If given
otherwise than
through the post
office – within
the time that
notice would
have been
 received in due
course of mail, if
it has been
deposited in the
post office within
the time
specified in the
last subdivision.

Notice of dishonor is not required to be given to the drawer
(a) Where the drawer and drawee are the same person;
(b) When the drawee is fictitious person or a person not having
capacity to contract;
(c) When the drawer is the person to whom the instrument is
presented for payment;
(d) Where the drawer has no right to expect or require that the
drawee or acceptor will honor the instrument;
(e) Where the drawer has countermanded payment.
Notice of dishonor is not required to be given to an indorser
(a) When the drawee is a fictitious person or person not having
capacity to contract, and the indorser was aware of that fact at the
time he indorsed the instrument;
(b) Where the indorser is the person to whom the instrument is
presented for payment;
(c) Where the instrument was made or accepted for his
accommodation.
 PROTEST
By whom When Where To whom How
a. A notary On the day of its At the place where it is Protest – is meant the formal
public; or dishonour, unless dishonoured. instrument executed by a
b. By any delay is excused. notary public or other
respectable The exception is that a bill competent person certifying
resident of When a bill has dishonoured by non- that the facts necessary to the
the place been duly noted, acceptance must be dishonour of the instrument by
where the the protest may be protested for non-payment Drawer or its authorized non-acceptance or non-
bill is subsequently at the place where it is agent/representative/all payment have taken place. It
dishonoured, extended as of the expressed to be payable if the parties to the includes all the steps or acts
in the date of the noting. that place is the place of instrument. accompanying dishonour of a
presence of business or residence of bill taken to fix the liability of
two/more some person other than the the drawer and indorsers.
credible drawee.
witness Procedure:
a. After the instrument is
dishonoured by non-
acceptance or non-
payment, the holder
takes it to the notary
public;
b. Notary public himself
presents the instrument
again to the party who
previously dishonoured
it, and demands its
 acceptance or payment;
c. If the acceptance or
payment is refused, the
notary public on the day
of dishonour then makes
a minute of dishonour
on the instrument or on
his notarial register
(noting);
d. On the same day or
afterwards, the notary
public extends the
protest thus noted by
embodying in a
certificate the fact of the
protest and his acts in
making presentment,
demand and in giving
notice of dishonour; and
e. After the notary public
protests the instrument,
he sends notice of
dishonour to all the
parties to the
instrument.
 PROTEST v. NOTICE OF DISHONOR

Protest Notice of Dishonor

Required only, as a rule, in case of dishonour of a foreign bill In any negotiable instrument, other than a foreign bill
appearing on its face to be such
Always written May be oral or written
Includes presentment, notice of dishonour and all the steps Limited only to such notice
accompanying dishonour
Made either by a notary public, or by any respectable resident By a party or his agent
in the presence of witnesses
Made, as a rule, at the place where the bill is dishonoured Place of dishonour is not essential
Made on the day of the dishonour Giving of notice is made within the times prescribed.

ACCEPTANCE
By whom When Where To whom How
Acceptance is the act by which the drawee
Drawee Drawee has 24 General Acceptance: Holder manifests his consent to comply with the request
hours after an acceptance to pay contained in the Bill of Exchange directed to him
presentment for at a particular place and it contemplates an engagement or promise to
acceptance pay.
within which to Qualified Acceptance
act upon the bill. (local): an acceptance [Note: Applies ONLY to BOE and not in PN]
to pay only at a
particular place a. In writing

ACCEPTANCE FOR HONOR & PAYMENT FOR HONOR
Acceptance for honor
Is an undertaking by a stranger to a bill after protest for the
benefit of any party liable thereon or for the honor of the
person for whose account the bill is drawn which acceptance
inures also to the benefit of all parties subsequent to the
person for whose honor it is accepted, and conditioned to
pay the bill when it becomes due if the original drawee does
not pay it. (acceptance supra protest)
Purpose: To preserve the credit of the parties to the
instrument or some party to it for whose honor the
acceptance is made, as the drawer, drawee, or indorser, or
somebody else.
Requisites (must concur):
1. Bill must have been protested for dishonour by non-
acceptance or for better security;
2. Acceptor for honor must be a person not a party
already liable thereon, that is, a stranger to the bill;
3. Bill must not be overdue at the time of the
acceptance and honor; and
4. The acceptance for honor must be with the consent
of the holder of the instrument.
b. Signed by the drawee
c. Express a promise to pay money
d. Delivered to the holder
- Acceptance may be on the bill itself; or
- Acceptance by separate instrument; or
- Acceptance by telegram
Payment for honor
Is payment made by a person, whether a party to the bill or not, after it
has been protested for non-payment, for the benefit of any party liable
thereon or for the benefit for whose account it was drawn. (payment
supra protest)
Purpose: Payment for honor may be availed of when the holder,
knowing that the bill has already been dishonoured for non-payment,
does not want to indorse the bill and thereby incurs the liabilities of an
indorser specified under Section 66 or of one negotiating by mere
delivery under Section 65.
Requisites:
1. Bill has been dishonoured by non-payment;
2. It has been protested for non-payment;
3. Payment supra protest is made by any person, even a party
thereto;
4. The payment is attested by a notarial act of honor which must
be appended to the protest or form an extension of it; and
5. The notarial act must be based on the declaration made by the
payer for honor or his agent of his intention to pay the bill for
honor and for whose honor he pays.
 Note: Holder cannot refuse the payment. Otherwise, he cannot recover
from parties who would have been discharged had he accepted the
same.
Formal requisites:
1. Must be in writing;
2. Indicate that it is an acceptance for honor;
3. Must be signed by the acceptor for honor;
4. Contain an express or implied promise to pay money;
and
5. Accepted bill for honor must be delivered to the
holder

Acceptance for honor Payment for honor

Protest must be for non-acceptance and better security
It must not be overdue
Consent of the holder is required
Acceptor is primarily liable
Notarial act of honor is not necessary
There may be several acceptors for honor
Effects are those provided for in Sections 164 (Liability of the
acceptor for honor) and 165 (Agreement of acceptor for
honor)
Protest must be for non-payment
Bill is overdue
Consent of the holder is not required nor can the holder refuse
Acceptor is secondarily liable
A notarial act of honor is necessary
There can only be one payer for honor
Effects are those provided for in Sections 175 (Effect on subsequent
parties where bill is paid for honor) and 177 (Rights of payer for honor)