PRESENTME

NT FOR
PAYMENT
(SEC. 70 – 88)
WHAT IS PRESENTATION FOR PAYMENT?

Presentation of an instrument to the person primarily liable for the purpose of

demanding and receiving payment
WHAT CONSTITUTES A SUFFICIENT PRESENTMENT FOR
PAYMENT?
1. It must be made by the holder, or by some person authorized to receive payment on his behalf.
2. At a reasonable hour on a business day
3. At a proper place as herein defined
4. 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.
WHY PRESENTMENT FOR PAYMENT NOT NECESSARY TO
PRIMARILY LIABLE PERSONS
• Their liability is absolute.
• Instrument is payable at a special place.
• Ex: A issued a promissory note to B for the amount of Php10,000. They agreed that the amount shall be
paid at the residence of A. On the maturity date, B did not show up. What B later did was sue A for the
amount on the face of the promissory note plus interest and costs.
• Presentment is required by the terms of the instrument
WHY PRESENTMENT FOR PAYMENT NECESSARY TO CHARGE
SECONDARILY LIABLE PERSONS
• Indorsers and Drawers
• Exceptions:
1. As to drawer, where he has no right to expect or require that the drawee or acceptor will pay the
instrument
2. As to indorser, where the instrument was made or accepted for his accommodation and he has no
reason to expect that the instrument will be paid if presented
WHY PRESENTMENT FOR PAYMENT NECESSARY TO CHARGE
SECONDARILY LIABLE PERSONS
• Exceptions:
3. When presentation is dispensed with:
• When it cannot be made after the exercise of reasonable diligence
• When the drawee is a fictitious person
• By waiver of presentment, express or implied

4. When a bill is dishonored by non-acceptance

WHERE (SEC 73)
Order of Preference:
1. Specified place in the instrument
2. Address of the person to make the payment if given
3. Usual place of business or residence of person to make payment
4. Wherever he can be found; or
5. At his last known place of business or residence
HOW (SEC 74)
• Presentment – exhibiting the instrument to the person from whom payment is
demanded requesting its acceptance or payment.
• Why?
• For debtor to determine genuineness; and
• To take possession of it upon payment
HOW (SEC 74)
• Without exhibition, presentment has no effect.
• Ex. Demand by telephone
• Maker’s right to exhibition is waived when:
1. He does not demand to see the note; and
2. He refuses to pay on some other grounds
BY WHOM
By the holder, or some person authorized to receive payment in his behalf
TO WHOM
To person primarily liable on the instrument, or if he’s absent or inaccessible,
to any person found at the place where presentment is made.

NOTE: The person mentioned must be of sufficient discretion.

TO WHOM
• If principal debtor is dead:
• Personal representative

• If principal debtors are partners:

• Any one of the partners (no place of payment is specified, and even if there has been a dissolution
of the firm)

• If principal debtors are joint debtors:

• To all of them, unless one is authorized by the others (if no place of payment is specified)
DISHONOR BY NON-PAYMENT (SEC 83)
1. Non-payment upon due presentation
a. Duly presented for payment to primarily liable
b. Payment is either refused or cannot be obtained

2. Non-payment without presentation

a. Presentment is excused
b. Instrument is overdue
c. Instrument is unpaid
LIABILITY OF SECONDARILY LIABLE WHEN INSTRUMENT
DISHONORED (SEC 84)
An immediate right of recourse to all parties secondarily liable thereon
accrues to the holder.
PAYMENT IN DUE COURSE (SEC 88)
1. Must be made at or after the date of maturity
2. Must be made to the holder
3. Must be made in good faith and without notice that the holder’s title is
defective.