Presentment of payment is one of the incidents in the life of a negotiable instrument where an

instrument such as promissory note or accepted bill is presented to the person primarily liable
for the purpose of demanding and receiving payment. This report is the presentment of
payment under Section 70 to 80 which constitutes the effect of want of demand on principal
debtor, date of presentment of instrument, requisites for a sufficient presentment for payment,
place of presentment, presentment where instrument payable at a bank, presentment where
principal debtor is dead, presentment to person liable as partners, presentment to joint
debtors, when presentment not required to charge drawer and when presentment not
required to charge indorser.
(Section 70 NIL)
Presentment for payment is the presentation of the instrument to the person primarily liable
for the purpose of demanding and receiving payment. Presentment for payment is not
necessary in order to charge the person primarily liable (maker or acceptor) on the instrument,
but presentment for payment is necessary in order to charge the drawer and indorser. The
ability and willingness on the part of the primary party to pay at a special place like a bank, an
office or at a residence at maturity are equivalent to a tender and offer of payment or his part
so that if the instrument is not paid and is overdue, he cannot be considered in delay.
Therefore, not being fault, he is not liable for the costs and interests subsequently accrued by
such delay but still liable for the amount due. Presentment for payment still not necessary to
charge the maker or drawer even if the terms of the instrument require it the failure to make
the presentment would not put him in default not withstanding that the instrument is overdue
and unpaid. If the instrument is not presented to the person primarily liable, the drawer and
the indorsers are discharged from their secondary liability unless such presentment is excused
or discharged with.
Presentment where instrument is not payable on demand; and where payable on demand:
(Sec. 71 NIL)
Instrument is not payable on demand. (Payable at a fixed or at a determinable future time) -
Presentment must be made on the day it falls due; otherwise, the Drawer and Indorsers will be
discharged from liability. However, The Presentment made before maturity is not effective.
Instrument payable on demand are promissory note, bill of exchange and last negotiation.
Promissory note is presentment for payment must be made to the Maker within a reasonable
time after its issue. Bill of Exchange is presentment for payment to the Drawee or Acceptor
must be made within a reasonable time after the last negotiation thereof. Last negotiation
means the last transfer for value.
What constitutes sufficient presentment: (Sec. 72 NIL)
Presentment for payment, to be sufficient, must be made by the Holder, or by some person
authorized to receive payment on his behalf; It must be made at a reasonable hour on a
business day, at a proper place as herein defined, to the person primarily liable on the
instrument, or if he is absent or inaccessible, to any person found at the place where
presentment is made.
Place of presentment: (Sec. 73 NIL)
Place of presentment is made at a proper place when the place for payment is specified, where
it is presented as stated. If no place is specified, the given address of the person to make
payment in the instrument shall be the place of presentment. If there is no given address of the
person to make the payment, the usual place of business of the person to make payment shall
be the place of presentment. However, if presentment cannot be made at any other place, his
last known place of business or residence, or the place wherever he can be found shall be the
place of the presentment.
(Sec 74 NIL) The instrument must be exhibited to the person from whom payment is
demanded, and when it is paid, must be delivered up to the party paying it
Presentment where instrument payable at BANK: (Sec. 75 NIL)
It must be made during Banking hours where persons who are secondarily liable of making
payment outside banking hours will be discharged. If presentment is made any time during the
day, presentment at any hour before the bank is closed is sufficient to hold persons secondarily
liable. But if presentment is made before the closing hour of the Bank, the person has to make
the payment until the closing hour of the bank. When the principal debtor is dead, the
presentment for payment must be made to his personal representative if he can be found with
the exercise of reasonable diligence.
(Sec. 76 NIL) When the Partners are liable, the presentment for payment may be made to any
one of them, even though there has been dissolution of the firm.
(Sec. 77 NIL) When the presentment is made to Joint Debtors, presentment must be made to
them all. (Sec. 78 NIL) The presentment is not required to charge the following Instances where
there is lack of presentment, a party secondarily liable will still be not discharged from liability.
Drawer: (Sec. 79 NIL) The presentment is not required to charge the drawer if he has no right
to expect. This means that he has no funds with the drawee. The presentment is also not
required to charge the Drawer and Drawee if they are the same person.
Indorser: (Sec. 80 NIL) The presentment is not required to charge the indorser if he is an
indorser for whose accommodation an instrument is made or accepted by the accommodated
payee, which means that the indorser is the real debtor and not the maker or acceptor.
CONCLUSION
As a general rule, one who signs an instrument as maker or drawer is personally liable unless he
or she signs in a representative capacity and either the instrument or the signature shows that
the signing has been made in a representative capacity. Various rules govern the permutations
of signatures when an agent and a principal are involved. Presentment of payment must be
done right after the acceptance of the instrument which must be in accordance with Section 70-
88 of the Law on Negotiable Instruments.