A note made out on _Sunday_ is void.
If a note does not state that _interest_ is to be paid, it does not bear
interest until after it is due.
If anyone obtains a note _by fraud_ or from an _intoxicated person,_ he
cannot collect.
_To be negotiable_ an instrument must be in writing and signed by the
maker (of a note) or drawer (of a bill or check).
_It must contain_ an unconditional promise or order to pay a certain sum
in money.
Must be payable on demand, or at a fixed future time.
Must be payable to order or to bearer.
In a bill of exchange (check), the party directed to pay must be
reasonably certain.
Every negotiable instrument is presumed to have been issued for a
valuable consideration, and want of consideration in the creation of the
instrument is not a defense against a bona-fide holder.
_An instrument is negotiated_, that is completely transferred, so as to
vest title in the purchaser, if payable to bearer, or indorsed simply
with the name of the last holder, by mere delivery; if payable to order,
by the indorsement of the party to whom it is payable and delivery.
One who transfers an instrument by indorsement warrants to every
subsequent holder that the instrument is genuine, that he has title to
it, and that if not paid by the party primarily liable at maturity, he
will pay it upon receiving due notice of non-payment.
_To hold an indorser liable_ the holder upon its non-payment at maturity
must give prompt notice of such non-payment to the indorser and that the
holder looks to the indorser for payment. Such notice should be sent
within twenty-four hours.
_When an indorser is thus compelled to pay_ he may hold prior parties,
through whom he received the instrument, liable to him by sending them
prompt notice of non-payment upon receiving such notice from the holder.
One who transfers a negotiable instrument by delivery, without indorsing
it, simply warrants that the instrument is genuine, that he has title to
it, and knows of no defense to it, but does not agree to pay it if
unpaid at maturity.
_The maker of a note is liable_ to pay it, if unpaid at maturity,
without any notice from the holder or indorser.
Notice to one of several partners is sufficient notice to all.
_When a check is certified_ by a bank the bank becomes primarily liable
to pay it without notice of its non-payment, and when the holder of a
check thus obtains its certification by the bank, the drawer of the
check and previous indorsers are released from liability, and the holder
looks to the bank for payment.
_A bona-fide holder_ of a negotiable instrument, that is, a party who
takes an instrument regular on its face, before its maturity, pays value
for it and has no knowledge of any defenses to it, is entitled to hold
the party primarily liable responsible for its payment, despite any
defenses he may have against the party to whom he gave it, except such
as rendered the instrument void in its inception. Thus, if the maker of
a note received no value for it, or was induced to issue it through
fraud or imposition, that does not defeat the right of a bona-fide
holder to compel its payment from him.
The dates and amounts of _partial payments_ on a note, before it is
finally paid in full, are placed on the back.
The _place of payment_, if not mentioned, is at the maker’s place of
business or residence, during reasonable business hours.
If a _note_ or a _check_ received in payment of a debt is _dishonored_,
the debt revives.
_Ignorance_ of the law does not excuse anyone. No _contract_ is good
unless there be a _consideration_. No consideration is good that is
_illegal_.
The _maker_ of an _accommodation note_ is not bound to the person
accommodated; but he is bound to any other person receiving the note for
value.