Page:United States Statutes at Large Volume 76A.djvu/350

–254– -254§ 4464. Renunciation by holder 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 renunciation 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. § 4465. Unintentional cancellation; burden of proof A cancellation made unintentionally, or under a mistake or without the authority of the holder, is inoperative; 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. § 4466. Material alteration; effect Where 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. § 4467. Material alteration defined Any alteration which changes: (1) the date; (2) the sum payable, either for principal or interest; (3) the time or place of payment; (4) the number or the relations of the parties; (5) the medium or currency in which payment is to be made— or which adds a place of payment where no place of payment is specified, or any other change or addition which alters the effect of the instrument m any respect, is a material alteration. Subchapter II—Bills of Exchange Article A—Form and Interpretation § 4471. Bill of exchange defined A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a feed or determinable future time a sum certain in money to order or to bearer. § 4472. Bill not an assignment of funds in hands of drawee A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for the payment thereof, and the drawee is not liable on the bill unless and until he accepts the same. § 4473. Bill addressed to two or more drawees A bill may be addressed to two or more drawees jointly, whether they are partners or not; but not to two or more drawees in the alternative or in succession. § 4474. Inland and foreign bills defined An inland bill of exchange is a bill which is, or on its face purports to be, both drawn and payable within the Canal Zone. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.

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