First Batch

Section 1. Form of negotiable instruments. - An instrument to be negotiable must

conform to the following requirements:
(a) It must be in writing and signed by the maker or drawer;

(b) Must contain an unconditional promise or order to pay a sum certain in
money;

(c) Must be payable on demand, or at a fied or determinable future time;

(d) Must be payable to order or to bearer; and

(e) !here the instrument is addressed to a drawee, he must be named or
otherwise indicated therein with reasonable certainty"
Sec. 184. Promissory note, defined. - A negotiable promissory note within the meaning
of this Act is an unconditional promise in writing made by one person to another, signed
by the maker, engaging to pay on demand, or at a fied or determinable future time, a
sum certain in money to order or to bearer" !here a note is drawn to the maker#s own
order, it is not complete until indorsed by him"
Sec. 126. Bill of exchange, defined. - A bill of echange is an unconditional order in
writing addressed by one person to another, signed by the person gi$ing it, requiring the
person to whom it is addressed to pay on demand or at a fied or determinable future
time a sum certain in money to order or to bearer"
Sec. 185. Check, defined. - A check is a bill of echange drawn on a bank payable on
demand" %cept as herein otherwise pro$ided, the pro$isions of this Act applicable to a
bill of echange payable on demand apply to a check"
Second Batch
Sec. 60. Liability of maker. - &he maker of a negotiable instrument, by making it,
engages that he will pay it according to its tenor, and admits the eistence of the payee
and his then capacity to indorse"
Sec. 61. Liability of drawer. - &he drawer by drawing the instrument admits the
eistence of the payee and his then capacity to indorse; and engages that, on due
presentment, the instrument will be accepted or paid, or both, according to its tenor, and
that if it be dishonored and the necessary proceedings on dishonor be duly taken, he will
pay the amount thereof to the holder or to any subsequent indorser who may be
compelled to pay it" 'ut the drawer may insert in the instrument an epress stipulation
negati$ing or limiting his own liability to the holder"

Sec. 62. Liability of acceptor. - &he acceptor, by accepting the instrument, engages
that he will pay it according to the tenor of his acceptance and admits:
(a) &he eistence of the drawer, the genuineness of his signature, and his
capacity and authority to draw the instrument; and

(b) &he eistence of the payee and his then capacity to indorse"
Sec. 65. Warranty where negotiation by deliery and so forth. %$ery person
negotiating an instrument by deli$ery or by a qualified indorsement warrants:
(a) &hat the instrument is genuine and in all respects what it purports to be;

(b) &hat he has a good title to it;

(c) &hat all prior parties had capacity to contract;

(d) &hat he has no knowledge of any fact which would impair the $alidity of the
instrument or render it $alueless"
'ut when the negotiation is by deli$ery only, the warranty etends in fa$or of no holder
other than the immediate transferee"

&he pro$isions of subdi$ision (c) of this section do not apply to a person negotiating
public or corporation securities other than bills and notes"

Sec. 66. Liability of general indorser. - %$ery indorser who indorses without
qualification, warrants to all subsequent holders in due course:
(a) &he matters and things mentioned in subdi$isions (a), (b), and (c) of the net
preceding section; and

(b) &hat the instrument is, at the time of his indorsement, $alid and subsisting;
And, in addition, he engages that, on due presentment, it shall be accepted or paid, or
both, as the case may be, according to its tenor, and that if it be dishonored and the
necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the
holder, or to any subsequent indorser who may be compelled to pay it"
Other Provisions
Sec. 9. When payable to bearer. - &he instrument is payable to bearer:
(a) !hen it is epressed to be so payable; or

(b) !hen it is payable to a person named therein or bearer; or

(c) !hen it is payable to the order of a fictitious or non(eisting person, and such
fact was known to the person making it so payable; or

(d) !hen the name of the payee does not purport to be the name of any
person; or

(e) !hen the only or last indorsement is an indorsement in blank"
Sec. 14. Blanks! when may be filled. - !here the instrument is wanting in any material
particular, the person in possession thereof has a prima facie authority to complete it by
filling up the blanks therein" And a signature on a blank paper deli$ered by the person
making the signature in order that the paper may be con$erted into a negotiable
instrument operates as a prima facie authority to fill it up as such for any amount" In
order, howe$er, that any such instrument when completed may be enforced against any
person who became a party thereto prior to its completion, it must be filled up strictly in
accordance with the authority gi$en and within a reasonable time" 'ut if any such
instrument, after completion, is negotiated to a holder in due course, it is $alid and
effectual for all purposes in his hands, and he may enforce it as if it had been filled up
strictly in accordance with the authority gi$en and within a reasonable time"

Sec. 15. "ncomplete instrument not deliered. - !here an incomplete instrument has
not been deli$ered, it will not, if completed and negotiated without authority, be a $alid
contract in the hands of any holder, as against any person whose signature was placed
thereon before deli$ery"

Sec. 16. #eliery! when effectual! when presumed. $ %$ery contract on a negotiable
instrument is incomplete and re$ocable until deli$ery of the instrument for the purpose of
gi$ing effect thereto" As between immediate parties and as regards a remote party other
than a holder in due course, the deli$ery, in order to be effectual, must be made either by
or under the authority of the party making, drawing, accepting, or indorsing, as the case
may be; and, in such case, the deli$ery may be shown to ha$e been conditional, or for a
special purpose only, and not for the purpose of transferring the property in the
instrument" 'ut where the instrument is in the hands of a holder in due course, a $alid
deli$ery thereof by all parties prior to him so as to make them liable to him is
conclusi$ely presumed" And where the instrument is no longer in the possession of a
party whose signature appears thereon, a $alid and intentional deli$ery by him is
presumed until the contrary is pro$ed"
Sec. 23. Forged signature! effect of. - !hen a signature is forged or made without the
authority of the person whose signature it purports to be, it is wholly inoperati$e, and no
right to retain the instrument, or to gi$e a discharge therefor, or to enforce payment
thereof against any party thereto, can be acquired through or under such signature,
unless the party against whom it is sought to enforce such right is precluded from setting
up the forgery or want of authority"
Sec. 52. What constitutes a holder in due course. - A holder in due course is a holder
who has taken the instrument under the following conditions:
(a) &hat it is complete and regular upon its face;

(b) &hat he became the holder of it before it was o$erdue, and without notice that
it has been pre$iously dishonored, if such was the fact;

(c) &hat he took it in good faith and for $alue;

(d) &hat at the time it was negotiated to him, he had no notice of any infirmity in
the instrument or defect in the title of the person negotiating it"