CHAPTER VI: Bihag, Kristel Jane

PRESENTMENT
Butastas, Marcia
Lacida, Lara Mae
Singanon, Rexile Tashanny

FOR PAYMENT Tan, Shannen Keisha

WHAT IS PRESENTMENT FOR
PAYMENT?
 The presentation of an instrument, i.e.,
promissory note or bill, to the person
primarily liable for the purpose of demanding
and receiving payment
SECTION 70
 Presentment for payment to person
primarily liable not necessary
 Presentment for payment to persons
secondarily liable necessary
SECTION 71 – DATE OF
PRESENTMENT OF THE
INSTRUMENT
 Payable at a fixed or determinable future time
 Payable on demand
 Reasonable time after issue
 Reasonable time after last negotiation
SECTION 72 – REQUISITES FOR
A SUFFICIENT PRESENTMENT
 Must be made by the holder or by some person authorized to
receive payment on his behalf;
 Must be made at a reasonable hour on a business day;
 Must be made at a proper place as herein defined;
 Must be made to the person primarily liable on the instrument or
if he is absent or inaccessible, to any person found at the place
where presentment is made
SECTION 73 – PROPER PLACE
OF PRESENTMENT
 Place of payment is specified in the instrument;
 No place of payment is specified, but the address of the person to make payment is
given in the instrument;
 No place of payment is specified and no address is given and the instrument is
presented at the usual place of business or residence of the person to make payment;
 In any other case if presented to the person to make payment wherever he can be
found or if presented at his last known place of business or residence
SECTION 74
 Instrument must be exhibited
SEC. 75 PRESENTMENT WHERE
INSTRUMENT PAYABLE AT
BANK
 Equivalent to an order to bank to make payment

 Presentment for payment must be made during banking

hours.
TO WHOM PRESENTMENT BE
MADE IF NO PLACE IS
SPECIFIED AND:
 Principal Debtor is dead?

 Persons liable are partners?

 Persons liable are not partners?

PRINCIPAL DEBTOR IS DEAD?
(SEC. 76)

 Presentment must be made to his personal

representative, if there is one, and if with the exercise of
reasonable diligence, he can be found.
PERSONS LIABLE ARE
PARTNERS? (SEC. 77)

 Presentment may be made to any one of them, even

though there has been a dissolution of the firm.
PERSONS LIABLE ARE NOT
PARTNERS?
(SEC. 78)

Presentment must be made to them all, unless one is

authorized by the others.
SEC. 79 WHEN PRESENTMENT
NOT REQUIRED IN ORDER TO
CHARGE THE DRAWER

 When he has no right to require/expect that the drawer

or acceptor will pay the instrument
INSTANCES ARE:

 He has no funds with the drawer unless arrangement

has been made
 He has stopped payment of the check
 He has withdrawn all funds from drawee bank
 Drawer and drawee are the same person
 TIME OF MATURITY
Section 85:
• Every Negotiable Instrument is payable at the time fixed therein
without grace.
• When the day of maturity falls upon Sunday or a holiday, the
instrument is payable on the next succeeding business day.
• Instruments falling due or becoming payable on Saturday are to
be presented for payment on the next succeeding business day
except that instruments payable on demand may, at the option of
the holder, be presented for payment before 12:00 noon on
Saturday when that entire day is not a holiday.
 TIME OF MATURITY

Section 85:
1. Every Negotiable Instrument is payable at the time fixed therein without
grace.
-if grace is provided in the instrument, the instrument is payable on the last
day of the grace.
Example:
An instrument payable on September 26, 2016 must be presented for payment
on September 26,2016. It shall be considered dishonored if it is not paid on that
date.
-IF a grace period of 3 days is provided in the instrument, then the presentment
must be made on September 29, 2016, the last day of the grace
 TIME OF MATURITY
Section 85:
2. When the day of maturity falls upon Sunday or a holiday, the
instrument is payable on the next succeeding business day.
WHY?
Example:
If in the preceding example, September 26, 2016 is a Sunday or a
holiday, the holder must present the instrument on the next
succeeding business day.
 TIME OF MATURITY
Section 85:
3. General Rule: Instruments falling due or becoming payable
on Saturday are to be presented for payment on the next
succeeding business day
Exception: instruments payable on demand may, at the option
of the holder, be presented for payment before 12:00 noon on
Saturday when that entire day is not a holiday.
WHY for the general rule? WHY for the Exception?
 TIME OF MATURITY
Section 85:
Example:
If the instrument falls due on Saturday, being a time for
Instrument, it should be presented on Monday, or the next
succeeding business day if Monday is a holiday.
*If the instrument is payable on demand and September 26, 2016
is a Saturday, presentment for payment may be made before
12:00 noon on Saturday or on Monday Sept. 28, 2016 at the
option of the holder.
 TIME OF MATURITY; HOW
COMPUTED?
Section 86:
Where the instrument is payable at a fixed period after date,
after sight, or after the happening of a specified event, the time
of payment is determined by excluding the day from which time
is to begin to run (even if the said date is a holiday), and by
including the date of payment.
 TIME OF MATURITY; HOW
COMPUTED?
Section 86:
Examples:
1. An instrument dated April 5, 2016 and payable 3 months
after date, the due date is July 5, 2016
2. An instrument dated Nov. 8, 2016 and payable after 12
months, the due date is Nov. 8, 2016
3. But one dated Jan. 31, 2016 and payable one month after date
will mature on Feb. 29 (leap year) or Feb. 28 if not a leap year
 RULE WHERE INSTRUMENT
PAYABLE AT BANK
Section 87:
Where the instrument is payable at a bank it is equivalent
to an order to the bank to pay the same for the account of
the principal debtor thereon.

-this section applies only where the instrument is payable

at particular named bank, e.g., “Philippine National Bank”
not “any bank in Manila”
 PAYMENT IN DUE COURSE
Section 88:
Payment is made in due course when it is made at or after the
maturity of the instrument to the holder thereof in good faith and
without notice that his title is defective.
REQUISITES:
1. Payment must be made at or after the date of maturity.
2. Payment must be made to the holder.
3. Payment must be made in good faith and without notice that
the holder’s title is defective.