Page:United States Statutes at Large Volume 77.djvu/709

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

payable to the payee and may be negotiated, discharged or enforced by him; (c) in any other manner is payable to the payee miconditionally and the additional words are without effect on subsequent parties. § 28:3—118. Ambiguous terms and rules of construction The following rules apply to every instrument: (a) Where there is doubt whether the instrument is a draft or a note the holder may treat it as either. A draft drawn on the drawer is effective as a note. (b) Handwritten terms control typewritten and printed terms, and typewritten control printed. (c) Words control figures except that if the words are ambiguous figures control. (d) Unless otherwise specified a provision for interest means interest at the judgment rate at the place of payment from the date of the instrument, or if it is undated from the date of issue. (e) Unless the instrument otherwise specifies two or more persons who sign as maker, acceptor or drawer or indorser and as a part of the same transaction are jointly and severally liable even though the instrument contains such words as " I promise to pay". (f) Unless otherwise specified consent to extension authorizes a single extension for not longer than the original period. A consent to extension, expressed in the instrument, is binding on secondary parties and accommodation makers. A holder may not exercise his option to extend an instrument over the objection of a maker or acceptor or other party who in accordance with section 28:3—604 tenders full payment when the instrument is due. § 28:3—119. Other writings affecting instrument (1) As between the obligor and his immediate obligee or any transferee the terms of an instrument may be modified or affected by any other written agreement executed as a part of the same transaction, except that a holder in due course is not affected by any limitation of his rights arising out of the separate written agreement if he had no notice of the limitation when he took the instrument. (2) A separate agreement does not affect the negotiability of an instrument. § 28:3—120. Instruments "payable through" bank An instrument which states that it is "payable through" a bank or the like designates that bank as a collecting bank to make presentment but does not of itself authorize the bank to pay the instrument. §28:3—121. Instruments payable at bank A note or acceptance which states that it is payable at a bank is the equivalent of a draft drawn on the bank payable when it falls due out of any funds of the maker or acceptor in current account or otherwise available for such payment. § 28:3—122. Accrual of cause of action (1) A cause of action against a maker or an a,cceptor accrues (a) in the case of a time instrument on the day after maturity; (b) in the case of a demand instrument upon its date or, if no date is stated, on the date of issue. (2) A cause of action against the obligor of a demand or time certificate of deposit accrues upon demand, but demand on a tim^ certificate may not be made until on or after the date of maturity.

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