A drawee that accepts a bill of exchange

without acceptance assumes all the warran.

ties of an acceptor under Section 62 of the
NIL (FEBTC 0. Gold Palace Jewellery Compa-
ny, G.R. No. 168274, August 20, 2008).
(2)
If, on the other hand, there is no payment
nor acceptance of a check and there was
dishonor,
the
drawee bank cannot be
sued by the payee even if the dishonor
was wrongful because there is no privity
between the drawee and the payee; there is
no assignment of funds in favor of the payee
when a bill of exchange is issued (1978, 1986,
and 1999 Bar). However, the drawee bank
is liable to its client, the drawer, in case of
wrongful dishonor (1986 Bar).
Drawer - there is secondary liability (1986 Bar).
His warranties are: (1) admits the existence of
payee and his capacity to indorse; (2) engages
that the instrument will be accepted or paid
by the party primarily liable; and (3) engages
that if the instrument is dishonored and proper
proceedings are brought, he will pay to the party
entitled to be paid.
(1)
The drawer is liable to
a
subsequent
indorser who paid the holder on the basis
of the indorser's secondarily liability after
dishonor by non-acceptance (Sec. 151, NIL;
2011 Bar).
(2)
A drawer may sign through an agent and
the agent may sign per procuration which
means that there is a notice that the author-
ity of the agent is limited. In which case,
the holder examining the bill of exchange
must determine the extent of the authority
of the agent. This rule applies to acceptance
or indorsement through an
agent per
procuration (Sec. 21, NIL; 2011 Bar).