Page:The American Cyclopædia (1879) Volume XII.djvu/222

 214: NEGOTIABLE PAPER converted into money. Hence it is now like paper not negotiable; that is, it may be sold or transferred as before, but the purchaser takes it now subject to the defence which could be made against it if it were still in the hands of the first party who transferred it after dishonor or after it fell due. A bill of exchange should be presented for accept- ance daring the usual hours of business. The drawee may answer at once, or he may take a day for consideration ; but if he does not accept before the end of the day after pre- sentation, he refuses to accept. If not accept- ed absolutely, but upon some terms or con- ditions, the holder may assent to these, and then hold the acceptor ; but he must treat it as no acceptance, and give notice accordingly in order to hold the drawer. When a bill is accepted it becomes like a note ; and every bill and every note must be presented for pay- ment, or in other words, payment of them must be demanded, and the demand must be such as the law requires, or all parties except the maker or acceptor are discharged. The paper must be so presented and demanded at maturity, by the holder or his authorized agent, of the acceptor or maker, on the very day on which it falls due, and in the usual and proper business hours of that day. Nei- ther the bankruptcy, nor the insolvency, nor the absence, nor the death of the acceptor or maker is a sufficient excuse for not making the demand. For the insolvent may pay it, and if the payer is absent the demand must be made at his house or residence, or at his place of business ; and if he is dead, it must be made of his executors or administrators. If the holder dies before the paper matures, and his executors or administrators are not appointed until after it matures, they must make the demand as soon after as they can ; and if they make it without unreasonable delay, it is sufficient. Generally, when the demand cannot be made in the usual way at the time, the law permits it to be made within a reasonable time after the obstruc- tion is removed. If the payer has abscond- ed, or has no place of residence or business in the state, or is absent and cannot be found by diligent inquiry, demand is excused. But the same notice must be given of this non- demand as of non-payment; for the parties liable on the paper have not only a right to require demand upon all persons liable before them, but the further right to have notice given them if the paper is not paid. The purpose of this is to give them every opportu- nity of getting such security or indemnity as they can from the parties for whom they are to make payment. Once, the law said only that the notice must be given in a reasonable time ; but now, all over the commercial world, the law itself defines this reasonable time. It requires that this notice be given on the day of non-acceptance or non-payment, or on the day immediately following. If the party en- titled to notice lives at a distance, the notice should be given by mail, and must be put into the mail on the day of dishonor or the next day, if there be such a mail, and otherwise into the first mail that goes. A personal notice is, in general, good wherever given. And it should be personal, or in writing left at the residence or place of business, if the person giving the notice (as the notary or agent) lives in the same town or city with the party to whom it is given. He may send it even then by mail, but takes the risk of its reaching the party in season ; but if it is sent out of town he may send it by mail, and this risk is not on the sender. As the holder has one whole day to give his notice, so every one receiving notice has the same indulgence. Thus, if a note with six indorsers falls due, and the indorsee makes due demand of the maker, he must give no- tice of the non-payment to his indorser (who is the sixth) on the next day. That indorser has also until the next day to notify the fifth, and so on. Hence the first indorser will not get notice until the sixth day after non-pay- ment ; but now he will be held not only to his indorsee but to all persons below him, because he has had his due notice. No person, how- ever, is entitled to the delay of more days than his own single day. Thus, if the indor- see of the sixth indorser notifies his indorser on the next day, he holds him ; but if that in- dorser neglects to notify others, and the hold- er, learning this, on the third day notifies all the rest, all are discharged but the sixth in- dorser. Hence, it is usual for the holder not to take the risk of this, but to send notice him- self to all the persons whose names are on the paper. (See NOTARY PUBLIC.) There is no precise form necessary for the notice. It should, however, state with sufficient distinct- ness what the paper is, its dishonor, and who the parties are, and the purport of the notice. After due demand and due notice have fixed the liability of parties, it remains in force, and there is no need of immediate suit. This right to demand and notice may be waived by any party entitled to it, and he may do this by any words of sufficient meaning ; the usual way is by writing over his name when he indorses: "Waives demand and notice." It should be remembered that a waiver of notice is not a waiver of demand ; although a waiver of de- mand is perhaps a waiver of notice. The de- mand must be made when the note falls due, or, to use the common phrase, at its maturity. But this is not at the expiration of the time when the note is made payable on the face of it. The law adds three whole days, which are called days of grace. At first these were, as the name intimates, days of favor or mere in- dulgence ; but usage, and now law, have con- verted them into an absolute right. In most of the states statutes provide that all negotia- ble paper, not payable at sight or on demand, is entitled to three days of grace, unless it be expressly agreed otherwise. This is sometimes