Bills and Notes § 411. Protest is necessary in the case of foreign bills, but protest may be waived, and when this is done it also waives presentment and notice.-Shaw Bros. v. McNeill, 95 N. C. 535.

471. How protest made. The protest must be annexed to the bill or must contain a copy thereof, and must be under the hand and seal of the notary making it, and must specify (1) the time and place of presentment; (2) the fact that presentment was made and the manner thereof; (3) the cause or reason for protesting the bill; (4) the demand made and the answer given, if any, or the fact that the drawee or acceptor could not be found. C. S., s. 3135; Rev., s. 2303; 1899, c. 733, s. 153.

472. By whom protest made. Protest may be made by (1) a notary public; or (2) by any respectable resident of the place where the bill is dishonored, in the presence of two or more credible witnesses.

C. S., s. 3136; Rev., s. 2304; 1899, c. 733, s. 154.

473. When protest to be made. When a bill is protested, such protest must be made on the day of its dishonor, unless delay is excused as herein provided. When a bill has been duly noted the protest may be supsequently extended as of the date of the noting. C. S., s. 3137; Rev., s. 2305; 1899, c. 733, s. 155.

474. Where protest made. A bill must be protested at the place where it is dishonored, except that when a bill drawn payable at the place of business or residence of some person other than the drawee has been dishonored by nonacceptance it must be protested for nonpayment at the place where it is expressed to be payable, and no further presentment for payment to or demand on the drawee is necessary.

C. S., s. 3138; Rev. s. 2306; 1899, c. 733, s. 156.

475. Protest both for nonacceptance and nonpayment. A bill which has been protested for nonacceptance may be subsequently protested for nonpayment.

C. S., s. 3139; Rev., s. 2307; 1899, c. 733, s. 157.

476. Protest before maturity, where acceptor insolvent. Where the acceptor has been adjudged a bankrupt or an insolvent or has made an assignment for the benefit of creditors before the bill matures, the holder may cause the bill to be protested for better security against the drawer and indorsers.

C. S., s. 3140; Rev., s. 2308; 1899, c. 733, s. 158.

477. When protest dispensed with. Protest is dispensed with by any circumstances which would dispense with notice of dis

honor. Delay in noting or protesting is excused when delay is caused by circumstances beyond control of the holder and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, the bill must be noted or protested with reasonable diligence.

C. S., s. 3141; Rev., s. 2309; 1899, c. 733, s. 159.

478. Protest where bill is lost. Where a bill is lost or destroyed or is wrongly detained from the person entitled to hold it, pro test may be made on a copy or written particulars thereof. C. S., s. 3142; Rev., s. 2310; 1899, c. 733, s. 160.

ART. 14. ACCEPTANCE FOR HONOR.

479. When a bill may be accepted for honor. Where a bill of exchange has been protested for dishonor by nonacceptance or protested for better security, and is not overdue, any person not being a party already liable thereon may, with the consent of the holder, intervene and accept the bill supra protest for the honor of any party liable thereon or for the honor of the person for whose account the bill is drawn. The acceptance for honor may be part only of the sum for which the bill is drawn, and where there has been an acceptance for honor for one party there may be a further acceptance by a different person for the honor of another party.

C. S., s. 3143; Rev., s. 2311; 1899, c. 733, s. 161.

480. How acceptance for honor made. An acceptance for honor supra protest must be in writing and indicate that it is an acceptance for honor, and must be signed by the acceptor for honor. C. S., s. 3144; Rev., s. 2312; 1899, c. 733, s. 162.

481. When deemed an acceptance for honor of drawer. Where an acceptance for honor does not expressly state for whose honor it is made, it is deemed to be an acceptance for the honor of the drawer.

C. S., s. 3145; Rev., s. 2313; 1899, c. 733, s. 163.

482. Liability of acceptor for honor. The acceptor for honor is liable to the holder and to all parties to the bill subsequent to the party for whose honor he has accepted.

C. S., s. 3146; Rev., s. 2314; 1899, c. 733, s. 164.

483. Agreement of acceptor for honor. The acceptor for honor by such acceptance engages that he will on due presentment pay the bill according to the terms of his acceptance, provided it shall

not have been paid by the drawee; and provided, also, that it shall have been duly presented for payment and protested for nonpayment and notice of dishonor given to him.

C. S., s. 3147; Rev., s. 2315; 1899, c. 733, s. 165.

484. Maturity of bill payable after sight accepted for honor. Where a bill payable after sight is accepted for honor its maturity is calculated from the date of the noting for nonacceptance and not from the date of the acceptance for honor.

C. S., s. 3148; Rev., s. 2316; 1899, c. 733, s. 166.

485. Protest of bill accepted for honor. Where a dishonored bill has been accepted for honor supra protest or contains a reference in case of need, it must be protested for nonpayment before it is presented for payment to the acceptor for honor or referee in case of need.

C. S., s. 3149; Rev., s. 2317; 1899, c. 733, s. 167.

486. How presentment for payment to acceptor for honor made. Presentment for payment to the acceptor for honor must be made as follows: (1) If it is to be presented in the place where the protest for nonpayment was made it must be presented not later than the day following its maturity; (2) if it is to be presented in some other place than the place where it was protested, then it must be forwarded within the time in this chapter specified. C. S., s. 3150; Rev., s. 2318; 1899, c. 733, s. 168.

487. When delay in making presentment excused. The provisions of section 3062 (herein 398) apply where there is delay in making presentment to the acceptor for honor or referee in case of need.

C. S., s. 3151; Rev., s. 2319; 1899, c. 733, s. 169.

488. Dishonor of bill by acceptor for honor.

When the bill is

dishonored by the acceptor for honor it must be protested for nonpayment by him.

C. S., s. 3152; Rev., s. 2320; 1899, c. 733, s. 170.

ART. 15. PAYMENT FOR HONOR.

489. Who may make payment for honor. Where a bill has been protested for nonpayment any person may intervene and pay it supra protest for the honor of any person liable thereon or for the honor of the person for whose account it was drawn.

C. S., s. 3153; Rev., s. 2321; 1899, c. 733, s. 171.

490. How payment for honor must be made. The payment for

honor supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honor, which may be appended to the protest or from an extension to it. C. S., s. 3154; Rev., s. 2322; 1899, c. 733, s. 172.

491. Declaration before payment for honor. The notarial act of honor must be founded on a declaration made by the payer for honor or by his agent in that behalf declaring his intention to pay the bill for honor and for whose honor he pays.

C. S., s. 3155; Rev., s. 2323; 1899, c. 733, s. 173.

492. Preference of parties offering to pay for honor. Where two or more persons offer to pay a bill for the honor of different parties the person whose payment will discharge most parties to the bill is to be given the preference.

C. S., s. 3156; Rev., s. 2324; 1899, c. 733, s. 174.

493. Effect on subsequent parties, where bill is paid for honor. Where a bill has been paid for honor all parties subsequent to the party for whose honor it is paid are discharged, but the payer for honor is subrogated for and succeeds to both the rights and duties of the holder as regards the party for whose honor he pays and all parties liable to the latter.

C. S., s. 3157; Rev., s. 2325; 1899, c. 733, s. 175.

494. Where holder refuses to receive payment supra protest. Where the holder of a bill refuses to receive payment supra protest he loses his right of recourse against any party who would have been discharged by such payment.

C. S., s. 3158; Rev., s. 2326; 1899, c. 733, s. 176.

495. Rights of payer for honor. The payer for honor on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonor is entitled to receive both the bill itself and the protest.

C. S., s. 3159; Rev., s. 2327; 1899, c. 733, s. 177.

ART. 16. BILLS IN A SET.

496. Bills in a set constitute one bill. Where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other parts, the whole of the parts constitute one bill.

C. S., s. 3160; Rev., s. 2328; 1899, c. 733, s. 178.

497. Rights of holders, where different parts are negotiated. Where two or more parts of a set are negotiated to different

holders in due course the holder whose title first accrues is, as between such holders, the true owner of the bill. But nothing in this section affects the rights of a person who in due course accepts or pays the part first presented to him.

C. S., s. 3161; Rev., s. 2329; 1899, c. 733, s. 179.

498. Liability of holder who indorses two or more parts of a set to different persons. Where the holder of a set indorses two or more parts to different persons he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if such parts were separate bills.

C. S., s. 3162; Rev., s. 2330; 1899, c. 733, s. 180.

499. Acceptance of bills drawn in sets. The acceptance may be written on any part, and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts are negotiated to different holders in due course, he is liable on every such part as if it were a separate bill.

C. S., s. 3163; Rev., s. 2331; 1899, c. 733, s. 181.

500. Payment by acceptor of bills drawn in sets. When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereon.

C. S., s. 3164; Rev., s. 2332; 1899, c. 733, s. 182.

501. Effect of discharging one of a set. Except as herein other wise provided where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged. C. S., s. 3165; Rev., s. 2333; 1899, c. 733, s. 183.

ART. 17. PROMISSORY NOTES AND CHECKS.

502. Negotiable promissory note defined. A negotiable promissory note within the meaning of this chapter is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand or at a fixed or deter minable future time a sum certain in money to order or to bearer. Where a note is drawn to the maker's own order it is not complete until indorsed by him.

C. S., s. 3166; Rev., s. 2334; 1899, c. 733, s. 184.

503. Check defined. A check is a bill of exchange drawn on a bank payable on demand. Except as herein otherwise provided