series, or that it is given for value received, does not affect the negotiability of the instrument in any way.

$317. Extraneous Matter.

Any such memoranda or additional matter entered upon a draft or note are considered part of the instrument if so entered at the time the instrument is executed, or are effective if entered thereafter by consent of all the parties interested. They are, however, of no effect whatsoever if entered by a stranger without consent of the parties. If made by some holder of the instrument without consent of the other parties, such additions are either ineffective or, if material, void the instrument.

§ 318. Presentment of Drafts for Acceptance.

A draft is an order for the payment of money but the drawee is not liable nor has the holder of the instrument any legal remedy against him until he has accepted the draft. Therefore, although in many cases the acceptance of a draft is not necessary to hold the drawer and any endorsers responsible, it is always a matter of prudence and good business to present the draft for acceptance as soon as possible. When accepted, not only is the drawer liable for the payment of the amount but the drawee is bound as well and the security of the debt is thereby materially improved.

In order to hold the drawers and endorsers, a draft must either be presented for acceptance or be negotiated-when the party receiving it must present it for acceptance or in his turn negotiate it within a reasonable time in the following cases;-(a) where acceptance is necessary in order to fix the maturity of the instrument; (b) when the draft expressly stipulates that it shall be presented for acceptance; (c) when

See § 273.

the draft is payable elsewhere than at the residence or place of business of the drawee. (§§ 240, 241.)

§ 319. When Presentment for Acceptance is Excused.

Presentment is excused and a draft treated as dishonored by non-acceptance under the following circumstances;-(a) where the drawee is dead or has absconded, or is a fictitious. person or a person not having capacity to contract by bill; (b) where presentment cannot be made by the exercise of reasonable diligence; (c) where an irregular presentment has been made and acceptance has been refused on some other grounds. (§ 245.)

Also presentment is excused where a draft is payable elsewhere than at the place of business or the residence of the drawee and the holder has not time with the exercise of reasonable diligence to present the bill for acceptance before it falls due. In this case the bill is not considered dishonored by its non-acceptance but the drawer and endorsers are held in spite of the delay in presentment for acceptance. (§ 244.)

§ 320.

Manner of Presentment for Acceptance.

Presentment for acceptance must be made by or on behalf of the holder at a reasonable hour on a business day before the draft is overdue, and must be made to the drawee or some person authorized to accept or refuse acceptance on his behalf.

If a draft is addressed to two or more drawees who are not partners, presentment must be made to all unless one has authority to act for all. If the drawee has been adjudged a bankrupt or is insolvent or has made an assignment for the benefit of creditors, presentment may be made to him or his trustees or assignee. Presentment may be made on any day on which a negotiable instrument may be presented for payment.7 (§ 243.)

See 88 266, 288.

§ 321. Dishonor by Non-Acceptance.

If a draft is duly presented for acceptance and acceptance is refused or cannot be obtained, or if the conditions are such that presentment for acceptance is excused and the draft is not accepted, it is then said to be dishonored by non-acceptance. (§ 246.)

When a draft is dishonored by non-acceptance, immediate right of recourse against the drawer and endorsers accrues to the holder and no presentment for payment thereafter is necessary. (§ 248.) The holder must then proceed in accordance with the rules as to protest and notice laid down in Chap. XXVIII, §§ 293-304, or otherwise he loses his right of recourse against the parties to the instrument. (§ 247.)

§ 322. Acceptance of Drafts.

The holder of a draft is always entitled to its acceptance on due presentation therefor and may require the acceptance to be in writing on the draft and if his request is refused, may treat the draft as dishonored. (§ 221.)

An acceptance of a draft must always be in writing and be signed by the drawee and must not state that the drawee will perform his promise by any other means than the payment of money. (§ 220.)

An acceptance is valid if written on a separate paper but does not then bind the acceptor save as to persons to whom it is shown and who on faith therein receive the bill for value. (§ 222.) Also an unconditional promise in writing to accept a draft, though made before the draft is drawn, is deemed an actual acceptance in favor of every person who on faith therein receives such draft for value. (§ 223.)

Also if a drawee to whom a draft is delivered for acceptance, destroys the same or refuses within twenty-four hours after such delivery or within such other period as the holder may allow, to return the draft accepted or non-accepted to the

holder, he will be deemed to have accepted the same. (§ 225.) Also a draft may be accepted before it is signed by the drawer or while otherwise incomplete or when it is overdue, or-as of the date of the first presentment-after it has been dishonored by a previous refusal to accept, or by non-payment. (§ 226.)

§ 323. Time for Acceptance.

The drawee is allowed twenty-four hours after presentment in which to decide whether or not he will accept a draft, but the acceptance, if given, dates as of the date of presentment. (§ 224.)

An acceptance is either general or qualified.

A general acceptance assents without qualification to the order of the drawer, save that it may provide for payment at a particular place if it does not expressly limit the payment to that place only. (§§ 227, 228.)

A qualified acceptance in express terms varies the effect of the draft as drawn. Such an acceptance may be,-(a) conditional, making payment by the acceptor dependent on the fulfilment of some condition therein stated; (b) partial, agreeing to pay a part only of the amount called for by the draft; (c) local, agreeing to pay only at a particular place; (d) qualified as to time; (e) partial as to drawees-that is acceptance by one or more of the drawees, but not by all. (§§ 227, 229.)

§ 325. Rights of a Holder as to Qualified Acceptance.

The holder of a draft may refuse to take a qualified acceptance if he so elects and, if he is refused an unqualified acceptance, may treat the draft as dishonored by non-acceptance. If he takes the qualified acceptance, the drawer and any

endorsers on the draft are discharged from liability unless they have expressly or impliedly authorized the holder to take a qualified acceptance, or subsequently assent thereto. When the drawer or an endorser receives notice of a qualified acceptance, he will be deemed to have assented thereto unless he expresses his dissent to the holder within a reasonable time. (§ 230.)

§ 326. Bills in Sets.

Drafts are sometimes drawn in sets, each part or member being numbered and containing a reference to the other parts, and the entire set constituting but one instrument. (§ 310.)

When drafts are so drawn, it is understood that but one member of the set is to be negotiated, unless that part is lost or destroyed, when another may be substituted for the lost member. The drawee, therefore, may accept and pay any part of a bill in a set that is presented to him, but must accept the one part only, must pay this accepted part only and require its surrender to him when paid. Otherwise he may perhaps be required to pay a second time. (§§ 313, 314.)

If the holder of a bill in parts endorses two or more parts to different persons, each part becomes in effect a separate bill on which the holder is liable. As to the parties who receive such improperly negotiated bills, the holder whose title first accrues is, as between such holders, the true owner of the bill but this does not in any way affect the rights of the drawee. If without knowledge of the improper negotiation he accepts and pays the part first presented to him, he is discharged. ($$ 311, 312.)

Unless a bill drawn in a set is improperly negotiated or accepted, the payment of one part discharges the whole bill. (§ 315.)