Page:United States Statutes at Large Volume 47 Part 1.djvu/1345

 72d C ONGRESS. SESS. II. CH. 128 . FEBRUARY 27, 1933 . (2) Whe n the drawee is a fictitious per son or a person not }having capacity to contract ; (3) Wh en the drawer is the person to w hom the in str um ent is presented for payment ; (4) Where the drawer has no rig ht to expect or require that the drawee or acceptor will honor the instrument ; (5) W here the drawer has counter manded payment. SEC. 1514. W HEN NOT REQUIRED TO BE GIVEN INDORSER.-Notice of When not required to be given indorser. dishonor is not required to be given to an indorser in either of the foll owin g c ases (1) Where the drawee is a fictitious person or a person not having capacity to contract, and the indorser was aware of the fact at the time he indorsed the instrument ; (2) Where the indorser is the person to whom the instrument is presented for payment ; (3) Where the instrument was made or accepted for his accom- modat ion. SEC. 1515 . NOTICE OF NONPAYMENT WHERE AC CEP TA NCE REFUSEIi .- No tice of non pay Where due n otice of di shono r_ by nonac cepta nce h as bee n g iven, refused where acceptance notice ofa subsequent dishonor by nonpayment is not necessary, unless in the meantime the instrument has been accepted. SEC. 1516. EFFECT OF OMISSION.-An omission to give notic e of Effect of omission. dishonor by nonacceptance does not prejudice the rights of a holder in due course subsequent to th e omission. SEC. 1517. PROTEST :Where any negotiable instrument has been Protest- dishonored it may be protested for nonacceptance or nonpayment, as the case may be ; but protest is not required except in the case of foreign bills of exchange. DISCHARGE OF NEGOTIABLE INSTRUMENTS 1321 Dischar ge of n egoti- able in strumen ts. SEC. 1518 . How DISCHARGED .-A negotiable instrument is dis- How discharged. charged- (1) By payment in due course by or on behalf of the principal deb tor ; (2) By payment in due course by the party accommodated, where the instrument is made or accepted for accommodation ; (3 By the intentional cancellation thereof by the holder ; (4 By any other act which will discharge a simple contract for the payment of money ; (5) When the principal debtor becomes the holder of the instru- ment at or aft er maturity in h is own right. SEC. 1519. PERSONS SECOND ARILY LIAB LE DISCHARGED .-A person ll Persons hseco any secondarily liable on the instrument is discharged- (1) By any act which discharges the instrument ; (2) By the intentional cancellation of his signature by the holder 3) By the discharge of a prior party ; 4) By a valid tender of payment made by a prior party ; 5) By a release of the principal debto r, unless the ho lder's right of recourse against the party secondarily liable is expressly reserved (6) By any agre ement bi nding up on the h older to extend the time of payment, or to postpone the holder's right to enforce the instru- ment, unless made with the assent of the party secondarily liable, or unless the right of recourse against such party is expressly reserved . SEC . 1520 . RIGHT OF PARTY WHO DISCHARGED.-Where the inst ru- Right of party who ment is paid by a party secondarily liable thereon, it is not di s- discharged . charged ; but the party so paying it is remitted to his former rights