Page:United States Statutes at Large Volume 76A.djvu/349

–253– -253(1) where the drawee is a fictitious person or a person not having capacity to contract, and the indorser was aware of tht 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 accommodation. § 4448. Notice of nonpayment where acceptance refused Where due notice of dishonor by nonacceptance has been given, notice of a subsequent dishonor by nonpayment is not necessary, unless in the meantime the instrument has oeen accepted. § 4449. Omission to give notice of nonacceptance; effect An omission to give notice of dishonor by nonacceptance does not prejudice the rights of a holder in due course subsequent to the omission. § 4450. Protest; when necessary; when unnecessary Where any negotiable instrument has been 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. Article H—Discharge of Negotiable Instruments S 4461. Methods of discharge A negotiable instrument is discharged: (1) by payment in due course by or on behalf of the principal debtor; (2) by payment in due course by the party accommodated, where the mstrument 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 instrument at or after maturity in his own right. § 4462. Persons secondarily liable; discharge A person 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 d ischarge of a prior party; (4) by a valid tender of payment made by a prior party; (5) by a release of the principal debtor, unless the holder's right of recourse against the party secondarily liable is expressly reserved; (6) by any 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 party secondarily liable, or unless the riglit of recourse against such party is expressly reserved. § 4463. Rights of parties secondarily liable who pay instruments Where the instrument is paid by a party secondarily 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: (1) where it is payable to the order of a third person, and has been paid by the drawer; and (2) where it was made or accepted for accommodation, and has been paid by the party accommodated.

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