SEC 1: talks about form of negotiable instruments(commercial paper defined,

negotiable instruments defined, formal requirements of negotiability in general,

applicability of formal requirements, formal requirements explained, non-negotiable
instrument defined, nature of non-negotiable instrument, promissory note defined,
original parts to a promissory note, bill of exchange defined, original parties to
a bill of exchange, idea and purpose of a bil exchange)

Commercial paper defined: sa broader sense nagrerefer ito sa written promises or

obligations na nag aarise galing sa commercial transactions once na ginamit yung
instruments na ito as a promissory notes at bills of exchange.. Ano nga ba yung
commercial transactions?
So when we say commercial transactions ito yung undertaking na kung saan mayroong
sort of payment para sa good or service.
: Hindi ito macoconsider as commercial paper if hindi ito nagmula sa commercial
transactions. Lahat ng paper or instrument na ito ay maaaring negotiable or
non-negotiable.

So ano nga ba yung tinutukoy nating Negotiable Instrument: Section 1 defines

negotiable instruments. Hindi pwedeng magcome into operation ang Negotiable
Instruments
Law unless yung existance ng dosument ay pasok sa character described sa Section 1.
Hindi nito kinocover yung ibang types ng negotiable documents na involve sa sales
or trasfer ng goods.Yung mga requisites listed sa Sec 1 enable one to tell at one
glance kung yung isang instrument ba ay negotiable or hindi. And para rin
maestimate niya yung mga risks involved sa pagkuha ng instruments na ito as a
security sa isang obligation.

So ano nga ba yung mga formal requirements para masabi nating negotiable ang isang
instrument:
Una, form and content: so when we say neotiable instruments ito yung mga
contractual obligation na magbayad ng pera. Pero, nakadepende entirely sa form at
content
ng isang instrument in order for us to say na negotiable or non-negotiable ba ito.
Hindi naman necessary na sabihing valid lang ang isang instrument if it is
negotiable. Kasi again, mag aapply lang naman yung negotiable instruments law if
yung existance ng document ay pasok sa characteristics required by this section.

Pangalawa, matters to be considered: Para madetermine yung negotiability ng isang

instrument the following must be considered:
A) The whole of the instrument
B) Kung ano lang yung nag-appear on the face ng instrument at
C) Yung provisions ng Negotiable Instruments Law especially sa Sec 1 na kung
saan fully dinefine kung ano yung mga requirements na kailangang imeet ng isang
instrument in order for it to be considered as negotiable.

So kanina pa tayo may nababanggit na requirements needed para masabing negotiable

ang isang instrument. Ano nga ba yung mga formal requirements na ito?
1) Yung instrument must be in writing. Kailangan daw nakasulat yung instrument or
nakareduce sa tangible form. Otherwise, walang negotiations ang mangyayari or
walang
maipapasa from hand to hand
a) So hindi lamang yung kung ano lang ang nakasulat sa paper ang pwedeng
maconsider as writing but also that of printed or has been typed. Yung usual way
is to have the instrument written or printed sa isang durable paper.

b) Wala tayong tinatawag na negotiable that is in oral form. Kasi mahirap

idetermine yung liability when it is in oral promise and maaari rin itong magcreate
ng danger of fraud.
2) Yung instrument must be signed by the maker or drawer: As a general rule, yung
signature ng maker or drawer ay nakalagay sa lower right hand corner ng instrument.
However, this signature may also appear sa kahit anong parte ng instrument whether
sa top, bottom, middle or sa border ng margin. Magiging valid at binding pa rin
ang isang instrument as long as it appears na yung intention ng person is to make
the instrument his own. Under this characteristic, we have 4 underlying concepts:

a) His signature is prima facie (what appears at first glance, is

rebuttable) evidence ng intensyon niyang to be bound as maker or drawer. Pero yung
signature
na nakalagay sa instrument na hindi malinaw kung hanggang saan yung capacity
ng taong pumirma, he is considered as an indorser at hindi isang maker or drawer.

b) Usually yung signature ng maker or drawer ay in written. As a general

rule, it is preferable na mag appear sa instrument yung full name or at least
surname
ng person intended to sign. However, it still deemed sufficient kahit na
initial or any mark lang yung mag appear as long as yung signature na ito ay
pwedeng
gamitin as substitute and yung maker or drawer ay mabobound gamit nito.

c) Kung saan yung genuiness ng signature of maker or drawer is denied. So

yung party na nagclaclaim ng such objection must present some evidence ng
invalidity
of the signature kasi as a general rule such signature is presumed valid. On
the other hand, yung party naman na nagclaclaim ng validity ng signature must then
provide proof ng genuiness nito.

d) Ang importante is that yung signer ay may intensyon na iadopt yung

signature sa instrument as his own at iobligate yung sarili niya para sa payment
nito.
Pero, nililimitahan ng unsual signature yung acceptability ng isang
instrument. Ang paggamit ng lapis ay hindi desirable kasi madali na lamang mababago
kung
ano yung nasa writing.

3) Dapat mayroong unconditional promise or order to pay ang isang instrument:

Nakapaloob dapat ang promise to pay or an order to pay sa isang commercial paper or

kahit anong instrument na involve ang payment of money. Subsequently, we can

classify negotiable instruments as either promise or orders to pay.

4) Yung instrument ay dapat payable in a sum certain in money: DAHIL:

a) Una, yung pera ay isang standard of value sa actual business. Lahat ng
commodities ay maaaring umangat at bumaba ang value pero, in theory, ang pera
lamang
ang may kakayahang magmeasure ng pagtaas at pagbaba nito but still remains
the same. Pero yung promise or order ay maaaring idesignate yung isang particular
kind ng current money kung saan isasagawa yung payment.

b) Pangalawa, ang pera ang medium of exchange na inaauthorize or inaadopt ng

domestic or foreign government as part ng currency nito. In literal sense, yung
term na money means "cash". Nakapaloob dito lahat ng legal tender na kung
saan dinedefine as "that currency na kung saan yung debtor can legally compel sa
creditor na iaccept yung payment ng utang in money kapag tinender ng debtor
sa tamang presyo. Thus, hindi considered as money ang gold, silver, at bank notes.

5) Yung instruments ay kailangang payable at a fixed or determinable future time or

on demand: Para masabing negotiable ang isang instrument kailangan nababayaran ito
at a fixed meaning date agreed by the parties, or determinable future meaning may
conditions na kailangang imeet, or on demand kapag nagoblige na yung creditor to
pay
such obligation.

6) Yung instrument ay dapat payable to order: naka indicate daw dapat sa instrument
yung tao or organization na kung saan inauthorize ng payer na makareceive sa kanya
ng pera.

7) Yung instrument ay dapat payable to bearer: naka indicate din daw dapat sa
instrument yung tao or organization na may hawak ng instrument na ito ay may
karapatang
makatanggap ng pera once it is due.

8) Kailangang mapangalanan yung drawee: nag aaply lamang ito sa checks and bills.
a) As a geneeral rule, yung order na hindi naka address sa kahit kaninong tao
ay
hindi kinoconsider as a bill. Pero sufficient na ang isang bill, if yung drawee is
indicated therein na may kasamang reasonable certainty even though hindi siya
pinangalanan. Kunwari yung bill is addressed sa 'treasurer' ng corporation, in here
kahit there is no indicated name on the bill it is still sufficient kasi yung
drawee ay naindicate sufficiently.

b) Yung reason behind sa last element ng negotiability ay para maenable yung

payee or holder na malaman kung kanino siya pupunta when it comes to acceptance or
payment of the obligation.

c) Walang drawee ang promissory note. However, kailangan pa ring pangalanan

yung payee with reasonable certainty tulad ng ginagawa sa drawee.

Next naman nating pag-uusapan is yung non-negotiable instrument: From the word
itself, ito yung mga instruments na hindi negotiable. Ibig sabihin di nito na meet
lahat
ng requirements laid down para maqualify aang isang instrument as negotiable. Or
kapag sa inception yung instrument ay negotiable pero as time goes by nawala nito
yung
quality of negotiability niya.
A) FOR EXAMPLE: Yung check payable para sa specific person, kunwari ang
nakalagay is "Pay to Sam Pinto". Hihinto lamang ang pagiging negotiable ng
negotiable
instruments kapag yung prinohibit na ng indorsement yung further negotiation nito.

B) Kahit na hindi man pwedeng gamitin yung non-negotiable instrument when it

comes to negotiation pede naman itong matransfer or maassign sa ibang individual
lalo na kapag walang nakalagay na express prohibition ng assignment or transfer sa
face ng instrument.

C) Yung transfer ng non-negotiable instruments ay ginogovern ng Civil Code on

assignment of contract rights. Similarly yung basic principles ng contract law
na nakalagay sa Civil Code ang maggogovern kapag yung negotiable instrument ay
hindi maayos na nanegotiate sa third person.

D) Yung mga legal consequences sa negotiation ay iba sa legal consequence ng

assignment of negotiable instrument. Ang napapasa lamang ng taong nagtransfer
or nag assign ng contractual or non-negotiable rights ay yung mga rights lang na
meron sila.

Next is yung nature of non-negotiable instrument:

1) Yung non-negotiable instrument ay isa lamang simpleng kontratang
nakasulat. For this reason, it is covered by the Civil Code at hindi ng Negotiable
Instruments Law

2) Hindi nagagamit ang non-negotiable instrument for negotiation however, it

may be assigned or trasferred kapag wala namang nagproprohibit sa face ng
instrument about doing such actions. Yung legal consequences ng negotiation ay iba
sa assignment or transfer of non-negotiable instruments. Yung right lamang na
meron yung isang individual ang kaya niyang matrasfer or maasign contractual or
non-negotiable rights.

Next is promissory note:

1) Ang isang negotiable promissory note ay unconditional promise in writing
na ginawa ng one person para sa taong ka-transact niya, meron rin itong pirma
ng maker, ineencourage din nito na magbayad on demand, or sa fixed or determinable
future time ng sum certain in money to order (specific designee na pedeng
magkolekta
ng payment sa instrument na yun) or to bearer (walang specific designee, as long as
kung sinong may hawak ng instrument they can collect the payment).

2) Ang promissory note ay isang written promise na magbayd ng sum of money.

Commonly refered as 'note'. Maaaring demand instrument ito (written order to pay
a specified sum when there is a presentation of demand) pero normally it is a time
instrument (needed to paid at a specified point in the future)

Next is yung mga original parties sa promissory note. Yung mga ganitong klase ng
negotiable instrument ay isang promise paper, or two-party paper. Meaning:
1) Originally merong 2 parties ang isang promissory note.
a) Maker - siyang gumagawa ng promise at pumipirma sa instrument at
b) Payee - para sa kanya yung ginawang promise or sa kanya babayaran
yung instrument made by the maker.

2) Yung payee ay maaaring madesignate specifically by name or office or title

(FOR EXAMPLE: Pay to Sam Pinto, or Treasurer of ABC Corp) or pwede rin namang
unspecified (for example: Bearer: kung sinong may hawak ng instrument pwede
siyang magdemand ng payment from the maker)

3) Pwedeng magseek ng payment ang payee either personally or further

negotiate the instrument. As long as si maker nangako siyang magbabayad siya sa
payee
or sa holder.

4) Yung maker's signature ay dapat mag aappear sa face ng note para masabing
liable siya to such promissory note. Kahit na natapos nang maissue at madeliver
ang instrument, maaari pa ring maging involved yung mga additional parties.

FOR EXAMPLE: Payable to Order: Let's say na ang maker is si Jonathan Byers.
Nangutang siya kay Nancy Binay. Gumagawa siya ng promissory note on August 10, 2022
wherein it includes the following statement: For value received, I promise to
pay to the order of Nancy Binay the sum of Five thousand Pesos on or before
October 10, 2022 at his office at Olongapo City, Zambales.
a)Yung figures na 5,000 ay dapat nakaindicate sa upper left hand corner
ng instrument. Hindi naman siya essential pero convinient ito kasi yung
amount in figures ay mas mabilis na magrasp kaysa sa written
words.
b) Yung Zambales sa upper right is nagiindicate ng lugar kung san
inexecute yung contract, at yung date naman na Aug. 10, 2016 (date of execution).
Yung place at date ay hindi essential sa negotiability ng instrument
except sa mga cases na kung saan necessary yung date para madetermine kung
kailan yung due ng note (illustration B)
 c) Yung words na 'for value received' nagiindicate ng specoified
consideration given for the note. kapag naman presumed lang yung consideration,
di na to kailangang ilagay.
d) yung words na 'i promise to pay' siginify an absolute at
unconditional promise to pay the payee or to a holder. Pero yung mere
acknowledgement lang
ng debt at hindi gumamit ng words of negotiability ay hindi
nagsasatisfy sa requirement kasi hindi niya naman inimply yung promise to pay
example: Due to Almer Santos. Hindi rin pasok yung word na will agree
to pay.
e) THE REST BASAHIN NA LANG SA PDF pg 10

Next na pag-uusapan is Bill of Exhange

1) So yung negotiable bill of exchange ay isang unconditional order in
writing na inaaddress ng isang party to another, may pirma ng taong nagbibigay
nito,
at nirerequire nito yung taong to whom it is addressed na magbayad upon demand or
sa fixed or determinable future time ng sum certain in money to order to bearer
2) Ito yung order na ginawa ng isang tao to another para magbayad ng pera sa
third person. Check ang tawag kapag drawn on a bank at payable on demand. Ito
yung pinaka-common type ng order paper.

Next is original parties to a bill of exchange: so yung class na ito ng negotiable

instruments ay known as order paper, or 3 party paper.
1) At least 3 parties- yung bill of exchange ay nagrerequire sa inception nit
ng atleast 3 parties para mafill yung legal roles involved.
a) Drawer: siya yung taong nag issue at nag draw ng order bill. Siya
yung nagbigay ng order to pay money sa third party. Hindi siya nagbabayad
directly. (siya yung nagooblige sa drawee na magbayad sa payee)
b) Drawee: siya naman yung party upon whom the bill is drawn. Sa kanya
naka address yung bill at siya rin yung ordered and expected na magbabayad.
Nagiging acceoptor siya kapag inindicate niya yung willingness na
bayaran yung bill. The drawee is a bank in case of a check. (siya yung nagbabayad
ng pera na nakaindicate sa bill of exchange)
c) Payee: siya naman yung party na kailangang bayaran nung bill or sa
kanya originally inissue yung bill. again, pedeng designated ito specifically,
or may be sa office or title, or unspecified (siya yung makakareceive
ng pera)

FOR EXAMPLE: (page 13 pdf) For example: Si Jonathan may utang siya kay Nancy na
10,000 payable on Aug. 15,2020. Let's say na si Jonathan nag-draw ng check para
mabayaran yung utang niya kay Nancy sa ABC Bank worth 10,000 and charge the same to
his account. Subsequently, ABC Bank accepts the bill.
Ngayon si Jonathan, pwede niyang ioblige si ABC Bank for the 10,000 pesos. In this
problem, ang drawer natin is si Jonathan,
ang drawee is si ABC Bank, and ang payee is si Nancy. Hindi naman talaga party ng
bill si ABC Bank however, inassume niya yung liability ni Jonathan by accepting the

bill and pag-sign ng pangalan niya on the face of the bill, in this case huminto
siya as a drawee and becomes known as an acceptor. In this case, primarily liable
na si acceptor tulad ng maker ng note, magiging surety na lang yung drawer.

2) Yung parties di naman kailangang distinct persons: meaning yung drawer

maaaring magdraw on himself payable sa sarili niyang order. In this case, yung 2
parties sa bill ay pwedeng maging same person (drawer-drawee) (yung drawer at
payee ay pwedeng parehas na tao unless yung drawer tinransfer niya ung bill of
exchange sa 3rd person)

Next is the idea and purpose of a bill exchange

 1) Drawer's funds in hands of drawee: Yung fundamental idea and purpose ng
bill of exchange is that yung drawer ay mayroon siyang funds na nasa kamay
ng drawee na kung saan gustong gamitin ng former para ipambayad kay payee. Si
drawer ngayon ay magdradraw ng bill of exchange na kung saan binibigyan niya ng
order yung yung drawee na bayaran kay payee yung amount na nakalagay sa bill of
exchange.

2) Liability of drawee for non-payment: If tumanggi si drawee na iaccept yung

bill pero meron siyang funds para sa purpose na yun, magiging liable siya sa
drawer at hindi sa payee para sa mga damages incurred and the harm done sa drawer.
If walang funds si drawer sa kamay ni drawee pinepresume na merong ginawang arrange
ments si drawer kay drawee para lang ihonor nito yung bill. In such case, yung
drawee ay pwedeng magreimburse from the drawer at hindi sa bona fide holder (siya
na
yung may hawak ng instrument bago pa man magkaroon ng defect dito, in good faith)

In short para maging liable si drawee kay drawer, meron dapat agreement na
inoobligate yung drawee na ihonor yung order ng drawer, that is, yung drawee must
owe the
drawer a debt. In which case yung drawer binibigyan niya lang ng order yung drawee
na bayaran yung debt or portion nito sa third party.

SEC 2: defines certainty of sum payable, sum to be paid with interest, sum payable
by stated installments, sum to be paid by stated installments with acceleration
clause, sum to be paid with exchange, sum to be paid with costs of collection or an
attorney's fee.

Certainty of Sum Payable: Naka-indicate dapat sa promise or order yung payment para
sa sum certain in money. Isa ito sa requisite ng negotiability ng instrument, to
assure na malinaw at certain yung determination ng value ng instrument.
1) Payment of fixed amount of money: yung negotiable instrument ay isang
device na ginagamit para palitan yung place ng money. For this reason,
kinakailangang
nirerepresenta nito yung fixed amount na babayaran wholly in money. Yung amount na
kailangang bayaran ay dapat nakaindicate at determinable sa face ng instrument
kahit na walang reference galing sa outside source. Namemeet ng instrument yung
"sum certain" requirement if kayang madetermine ng holder yung amount na entitled
siyang makuha at maturity from the instrument itself.
For Example: "To pay 5,000 or what may be due on my current deposit" This statement
does not express sum certain, kasi walang definite at certain na amount given.

*Hindi naman considered as negotiable kapag yung instrument calls for an act dahil
again yung negotiable instrument ay ginagamit lamang bilang kapalit ng pera.

2) Permissible clauses or stipulations: Yung sum ng instrument naman na may

indicated clause na babayaran ito with interest, or by stated installments, with
exchange, with costs ng collection, or with attorney's fees ay hindi kinoconsidered
as uncertain. Hindi rin naaapektuhan ng acceleration provision sa installment note
yung certainty ng sum. Kasi ang basic test lang naman is whether kaya bang
madetermine ng holder yung amount payable niya when due na yung instrument by
calculation
or computation. Pero yung promissory note na nagbibigay sa maker ng karapatan na
hanapin yung amount rightly payable is non-negotiable.
FOR EXAMPLE: Sabi ni John, maker, "I promise to pay Paul or order 50,000 or to
deliver to him a brand-new laptop computer" is this negotiable?
 NO,the instrument is non-negotiable kasi nabigyan ng right yung maker na mag come
up ng amount rightly payable.

SUM TO BE PAID WITH INTEREST

1) Interest at fixed rate: Yung pagdagdag ng provision para sa payment ng
interest sa instrument does not make it non-negotiable dahil hindi naman
naapektuhan
yung certainty ng sum payable. FOR EXAMPLE: "I promise to pay Edwards or order
5,000, with interest at 10% per annum" The instrument is still negotiable dahil
hindi
naman nagbago yung certain amount of sum payable which is yung principal na 5,000.
Dagdag pa rito madali lang rin naman icompute yung interest due at any given time.

2) Interest at increased or reduced rate: Tulad nung unang provision, hindi

rin nawawala ang negotiability ng isang instrument if nagkaroon ng provision para
sa increased interest rate kapag hindi pa nababayaran yung note at maturity or
kapag bumaba naman yung rate and nangyari yung payment at or before maturity, or
kahit
sa payment ng interest sa interests.

3) Accrual/rate of interest not specified: If naman nagprovide ng provision

para sa payment ng interest na walang sinabing date kung kailan magaaccrue yung
interest, dapat itong computin mula sa date ng instrument. In cases, na walang date
yung instrument, sa issuance magbase. If meron namang stipulation para sa payment
ng interest pero walang specific rate, dito na mag aapply yung legal rate na 6%.
FOR EXAMPLE: "I promise to pay Edwards or order 5,000, with interest at 10% per
annum, from date until paid; 6% if paid when due" Dito yung increase na 4% ay
penalty
at hindi part ng interest. Yung notes nagbebear pa rin siya ng same rate of
interest na 6% before as after maturity.

SUM PAYABLE BY STATED INSTALLMENTS

When we say stated installments ito yung: a) interest ng bawat installment at
b) fixed dapat sa instrument yung due date ng bawat installment.
FOR EXAMPLE: Nagpromise akong bayaran si Edwards or order the sum of 5,000 sa
dalawang installments as follows: 2,500 on or before Aug. 1,2022 at isa pang
2500, on or before Sept.1, 2022 naman"
However, yung promise to pay 5,000 in "two installments" or "in
installments" ay hindi sufficient para sa requirements ng batas.

SUM TO BE PAID BY STATED INSTALLMENTS WITH ACCELERATION CLAUSE

1) Acceleration dependent on maker: certain pa rin yung sum kahit na

nagkaroon ng installments with an acceleration clause yung payable.
For example: Nangako ako na magbabayad ako kay Edwards or order 5,000 with interest
at 10% per annum, in four equal monthly installments na magsisimula ng July 1,2022
Kapg nagkaroon ng default sa payment ng kahit anong installment or interest,
magiging due and payable na yung kabuuang sum. In this case, hindi naman naging
upon contingency yung instrument payable since it is certain na darating naman yung
time of payment. Pwede ring maiwasan ng maker yung acceleration clause sa
pagbabayad ng installments on their due date. Hindi pwedeng iaccelerate ng payee or
holder yung clause hangga't hindi nagfefail si maker na magbayad ng installment.

2) Acceleration at option of holder: Kapag naman yung acceleration ng note ay

nasa kamay ni holder, yung instrument will be considered as non-negotiable
Kasi let's say na yung clause states that "or the whole amount on Sept. 30, 2022 at
the option ng holder" This is non-negotiable kasi sinabi lang naman in cases of
stated installments, once na nagkaroon lang ng default sa payment ng installment
dun lang magiging due yung buong sum payable.
SUM TO BE PAID WITH EXCHANGE
Yung tinutukoy sa Sec 2 d ay yung instruments na payable in foreign currency. Hindi
nasisira ng promise or order to pay "with exchange" ang negotiability ng isang
instrument.
1) So ano nga ba yung tinutukoy nating exchange, ito yung charge para sa
expense of providing funds sa place kung saan payable ang instrument para lang
mameet
yung instrument na inissue sa ibang bansa. Pwede itong at a fixed rate or at
the current rate.

2)Payment in foreign exchange: Again yung provision para sa payment ng sum in

a foreign currency ay hindi nakakaapekto sa negotiability ng instrument dahil
yung current exchange rate at any given time ay madali lamang madetermine sa
pamamagitan ng inquiry mula sa banks dealing on exchange or foreign currencies and
yung
rate na yun is only a matter of common commercial knowledge. Yung isang instrument,
whether payable 'at a fixed rate or at the current rate' is deemed by the law
na imeet yung sum certain requirement.

3)Payment with exchange rate: yung provision sa payment with exchange ay nag
aapply lamang sa instruments na dinraw sa isang country at payable sa ibang bansa.
In other words, exhange is capable only to foreign bills. FOR EXAMPLE: J promises
to pay K or order $4000 with exchange at 3/4%

4)Exchange not applicable to inland of domestic bill: Kapag ang instrument ay

inland or domestic bill, dahil parehas silang nadraw at payable sa iisang bansa.
Walang exchange so yung stipulation for payment in exchange ay disregarded

SUM TO BE PAID WITH COSTS OF COLLECTION OR AN ATTORNEY'S FEE

1) Increase in amount due effective after maturity: yung negotiability ay
hindi apektado ng provision na kung saan yung payment ay hindi gagawin sa maturity,
meron dapat added sa amount due on the note costs or collection or attorney's fee.
Hindi nito naaapektuhan yung certainty ng amount payable at maturity dahil
yung increase sa amount due even if uncertain ay magtatake place pa rin after
maturity kapag yung instrument ceases to be negotiable in the full commercial
sense.
FOR EXAMPLE: Si M nangakong magbabayad kay P or bearer 10,000 on or before October
4, 2022 with 15% attorney's fee at costs of collection if hindi nabayaran on
maturity.
2) Liability for attorney's fee: yung stipulation ng attorney fee ay pedeng
babaaan ng law if it is found unconscionable or unreasoble. If walang stipulation
ng attorney fee, then kailangang reasonable sum ito.
3) Acquisition of Instrument after maturity: Hindi na icoconsider as holder
in due course ang isang transferee na nag aacquire ng instrument kapag overdue
na ito. And consequently, hahawakan na nito yung yung instrument na subject to
defenses, na parang non-negotiable ito simula't sapul.