IV. That at maturity the said bill of exchange was duly presented for payment to said William Jones, but was not paid, of which the defendants had due notice. V. That thereafter, the same was duly presented to the said John Foster for payment, but was not paid, of which the defendant, William Blake, had due notice; and the defendants are now justly indebted to the plaintiff thereon in the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. (Demand.) 6. If the drawer is compelled to pay the bill after it has been accepted by the drawee, he may bring an action thereon against the acceptor. Certain damages are awarded in case of dishonor to the holder of a foreign bill of exchange, which are regulated by the statutes of the several States. On foreign bills of exchange drawn or negotiated within the State of New York, judgment for damages must be demanded, in case of dishonor, according to the following rates: 1. If drawn on any person in either of the New England States, or New Jersey, Pennsylvania, Ohio, Delaware, Maryland, Virginia, or the District of Columbia, three per cent.; 2. If drawn on a person in North Carolina, South Carolina, Virginia, Georgia, Tennessee, five per cent.; 3. If drawn on a person in any other part of the United States, or any place adjacent north of the equator, or in any part of Europe, ten per cent. Such damages are in lieu of all costs, interest before notice, protest, and other charges. After notice of protest, interest is allowed on the amount of principal and damages. 1 6. If the drawer is compelled to pay the bill after it has been accepted by the drawee? What are awarded to the holder in case of the dishonor of a foreign bill? How regulated? When is three per cent. allowed in the State of New York as damages? When is five per cent. allowed? When is ten per cent. allowed? Such damages are in lieu of what? On what is interest allowed after notice of protest? CHAPTER CI. ACTIONS UPON CHECKS. 1. BANK checks are payable on demand, without days of grace. They may be indorsed in the same manner as promissory notes or bills of exchange. The drawer undertakes that the bank shall pay the check on presentment, which must be made as soon as the next day after it is given (unless further delay is execused), in order to bind the drawer absolutely. If after the next day the bank fails, and the drawer loses his funds there deposited for the payment of the check, it will be the loss of the holder of the check, and not the loss of the drawer. 2. The drawer is not discharged by any delay in the presentment, unless he has been injured by such delay. In order to bind the indorser of a check to the payment thereof, in case of dishonor, it must be duly presented as soon as the next day, unless further delay be excused. If dishonored, immediate notice must be given to the indorsers, or they will be discharged. In an action against the drawer of a check, the holder must show that it has been duly presented for payment and dishonored, and notice of the dishonor given to the drawer, or that there is a sufficient excuse for the omission. The holder of a check is excused from giving notice to the drawer, when the drawer has no funds in the bank. If the bank is restrained by an order of the court from paying out 1. How are checks payable? How indorsed? What does the drawer undertake? How soon must presentment be made? If after the next day the bank fails? 2. When only is the drawer discharged by the delay of the holder? What must be done to bind the indorsers? If dishonored, what must be done? In an action against the drawer of a check, what must the holder show? When is the holder of a check excused from giving notice to the drawer? If the bank is restrained by order of the court from paying out funds or transaction of business, omission of presentment is excused as to the drawer, who is still holden. Want of funds, or restraint by the order of the court, will be no excuse for non-presentment, so far as the indorser is concerned, and such omission will release the indorsers. If the check has been certified, the bank is holden thereon. until the expiration of the Statute of Limitations. 3. When no time of payment is mentioned in the check, it is payable on demand, and no time of payment need be stated in the complaint. All checks in the State of New York are payable without days of grace, and it is not necessary to protest the same for non-acceptance. If the drawer of a check has not been injured by delay, presentment at any time before an action is commenced will be sufficient. An action does not lie upon a check against the drawer until after presentment, demand, and notice of dishonor, unless want of demand and notice is excused. It is always to be presumed, until the contrary appear, that the drawer has funds in the drawee's hands, and that the drawer will be damaged by an omission to present the bill or check to the drawee. If a check be drawn on a bank, and it is presented and not paid, the payee may commence an action thereon against the drawer. 4. When the holder of a check commences an action against the drawer and indorser, he must allege in his complaint presentment, demand, and notice of dishonor. Want of notice is excused, if the drawee have no funds of the drawer in his hands. The want of funds in the hands of the drawee, if relied upon as an excuse for want of no funds? Will want of funds or restraint by order of the court excuse the want of presentment, as far as the indorser is concerned? If a check has been certified? 3. If no time of payment is mentioned in the check? How are all checks payable in the State of New York? If the drawer of a check has not been injured by delay? When does an action lie upon a check against the drawer? What is always to be presumed until the contrary appear? 4. When the holder of a check commences an action against the drawer and indorser, what must he allege in the complaint? When is want of notice excused? If the want of funds is relied upon as an excuse tice to the drawer, must be alleged in the complaint. In an action by the payee against the drawer of a check, presentment and notice are excused when the bank has become insolvent. When insolvency of the bank is alleged as an excuse for non-presentment and notice, the time of insolvency should be stated, that it may appear to be such as to excuse the holder from making the demand. After a check has been presented to the bank and certified, a subsequent presentment and demand must be made before an action can be commenced against the bank. 5. If a bill, note, or check be drawn, accepted, or indorsed by an agent, some agency must appear on the face of the instrument, in order to bind the principal. If the agent act in his own name, or act without authority, he is personally bound to the other contracting party. 6. The law of the place where a contract is made governs the form and solemnities of the contract. The law of the place where the contract is to be executed governs the execution. In the interpretation of a contract, the first object is to ascertain the real intention of the parties in their stipulations. If the full intention of the parties does not appear from the words of the contract, it may be interpreted by the customs and usages of the place where made. If a contract is to be performed in a foreign State or country, its validity, nature, obligation, and interpretation are governed by the law of the place of per for want of notice to the drawer? In an action by the payee against the drawer of a check, when are presentment and notice both excused? When the insolvency of the bank is alleged as an excuse, what should be stated? After a check has been presented to the bank, and certified, what further is necessary before commencing an action against the bank? 5. If made by an agent, what must appear on the face of the instru ment? If the agent act in his own name, or act without authority? 6. What is governed by the law of the place where the contract is made? What is governed by the law of the place where the contract is to be executed? In the interpretation of a contract, what is the first object? If the full intention of the parties does not appear from the words? If a contract is to be performed in a foreign State or country? By what is the rate of interest to be governed? formance. This is the rule adopted by the Supreme Court of the United States. The rate of interest is to be governed by the law of the place where the contract is to be performed. 7. A guaranty is an undertaking by one person to be auswerable for the payment of some debt, or performance of some contract, by another person, who himself remains. liable to perform the same. It must be founded upon a valuable consideration. When the guaranty is collateral to the principal contract, and made at the same time, and becomes an essential ground of the credit, no separate consideration to the guarantor is necessary. If the guaranty be subsequent to the principal contract, a further consideration must be shown. The contract of the guarantor is nearly the same as that of a drawer of a bill of exchange. He contracts to pay the amount upon- due presentment and notice of dishonor, within a reasonable time. If the guarantor sustains any loss or injury by the delay of the holder to make presentment and give notice, it will be the loss of the holder, and not of the guarantor. 8. Commercial paper must be made and indorsed by parties competent to contract. The parties are presumed to be competent, until the contrary is proved. The want of capacity must be alleged in the answer, and proved on the trial. It is a general rule, that persons must be of full age, and of sound mind, to bind themselves as makers, acceptors, or indorsers of commercial paper. If an infant be a party to commercial paper, he may avoid his conA new promise, after the infant becomes of age, is binding. Persons who have been judicially declared tract. 7. What is a guaranty? Upon what founded? If the guaranty is collateral to the principal contract, and made at the same time, and becomes an essential ground of the credit? If the guaranty be subsequent to the principal contract? What does the contract of the guarantor resemble? Upon what does he contract to pay the amount? If the guarantor sustain any loss or injury by the delay of the holder? 8. By what parties must commercial paper be made? What is presumed as to the competency of the parties? Where must the want of capacity be alleged? What is the general rule as to capacity? If an infant be a party? If an infant make a new promise after he becomes |