A _note_ is a written promise to pay a specified sum at a certain time.
The person who promises is called the _maker_, and the person to whom he
promises is called the _payee_.
The FACE of a note is the sum of money promised.
A _negotiable note_ is one which is made payable to the bearer, or to
the order of the payee. A negotiable note can be sold or transferred.
A note is _non-negotiable_ when it is payable only to the person or
persons named in the note.
An _indorser_ of a note is a person who writes his name on the back of
it. The person who indorses, by so doing guarantees its payment. An
_indorsement in blank_ is simply the signature of the indorser written
across the back of the note or draft. When indorsed in this way the note
or draft is made payable without further indorsement to any person
holding.
A note or draft is _indorsed in full_ when the indorser states, over his
signature, the person to whose order the note or draft is to be paid. If
an indorser does not wish to guarantee the payment of a note or draft,
he writes “Without recourse” over his name when indorsing it.
A _protest_ of a negotiable note or draft is a formal statement by a
notary public that said note or draft was presented for payment or
acceptance and refused.
A note, when due, must be presented at the place at which it is made
payable. The _day of maturity_ is the day on which a note becomes due.
The _days of grace_ are the three days beyond the specified time for
payment. Days of grace are now practically abolished throughout the
United States.
KINDS OF NOTES.--There are three principal kinds of notes--_Time Notes_,
_Joint Notes,_ and _Joint and Several Notes._
A _Time Note_ must be paid in a specified time.
A _Joint Note_ is one signed by two or more persons who are jointly
liable for its payment.
A _Joint and Several Note_ is a note signed by two or more persons who
are both jointly and individually liable for its payment. Each man who
signs the note is as much responsible for the payment of the whole sum
as if he had signed alone.