Page:United States Statutes at Large Volume 31.djvu/1460

 14US FIFTY—SIXTH CONGRESS. Sess. II. Ch. 851. 1901. or nonpayment thereof, and the service of notice thereof on any of the parties to such bill of exchange, promissory note, or check, and the mode of giving such notice. and the reputed place of business or residence of the party to whom the same was given shall be prima facie evidence of the facts therein contained. S,Q§}j1j};,Q~‘g{;?{;glgggj _ SEc._ 11:23. XVIIEN ¥EGOTIABLE INSTRUMENT Disci-IARoIs;I>.-A negotiable instrument is discharged- First. By payment in due course by or on behalf of the principal debtor. . Second. By payment in due course by the party accommodated, where the instrument is made or accepted for accommodation. Third. By the intentional cancellation thereof by the holder. Fourth. By any other act which will discharge a simple contract for the payment of money. Fifth. \Vhen the principal debtor becomes the holder of the instrument at or after maturity in his own right. m;§';‘;{‘, Pging gg Sec. 1121. WHEN PERSON SECONDARILY LIABLE DISGIIARGEII.-A <:b¤rge<i. person seeondarily liable on the instrument is discharged- First. By an act which discharges the instrument. Second. the intentional cancellation of his signature by the holder. Third. By the discharge of a prior party. Fourth. By a valid tender of payment made by a prior party. Fifth. By a release of the principal debtoi·, unless the holder’s right of recourse against the party secondarily liable is expressly reserved. Sixth. By an agreement binding upon the holder to extend the time of payment, or to postpone the holder`s right to enforce the instrument, unless made with the assent of the pai·ty secondarily liable or unless the right of recourse against such party is expressly reserved. P¤>’1¤<>P¤ by PMW Sec. 1125. PAYMENT BY PARTY SECONDARILY LIABLE Nor A DIS- secondarily liable not V. _ . . . . a discharge. QHARGE.-\\ here the instrument is paid by a party S€CI1dEL1`1l_V liable thereon it is not discharged; but the party so paying it is remitted to his former rights as regards all prior parties, and he may strike out his own and all subsequent indorsements and again negotiate the instrument, except- · First. YVhere it is payable to the order of a third person and has been paid by the drawer; and, Second. Where it was made or accepted for accommodation and has been paid by the party accommodated. ,,g§§,§lf§‘}§§,‘§,‘f.? fights SEC- IE6- RENOUNGING RIGHTS {XGAINST PARTY.-The holder may ` expressly renounce his rights against any party to the Instrument before, at, or after its maturity. An absolute and unconditional renunciation of his rights against the principal debtor made at or after the maturity of the instrument discharges the instrument; but a 1`€llllI1Cl€lt»lIl does not affect the rights of a holder in due course without notice. A renunciation must be in writing, unless the instrument is delivered up to the person primarily liable thereon. mgQ,*;$$}&Efo¤1 *mi¤· SEQ. 1127. CANcELLATIoN.-A cancellation made unintentionally, or ` under a mistake, or without the authority of the holder, is inopera- —l>¤¤l~***<*fPF¤0f- tive; but where an instrument or any signature thereon appears to have been canceled the burden of proof lies on the party who alleges . that the cancellation was made unintentionally, or under a mistake, or without authority. ·*“°’*“i*-*“~**’*°°*‘*f· Sec. 1128. ALTERATIoN.-\Vhere a negotiable instrument is materially altered without the assent of all parties liable thereon it is avoided, except as against a party who has himself made, authorized, or assented to the alteration and subsequent indorsers. But when an instrument has been materially altered and is in the hands of a holder in due course, not a party to the alteration, he may enforce payment thereof according to its original tenor.