A negotiable instrument is discharged: a) By payment in due course by or on behalf of the principal

debtor; b) By payment in due course by the party accommodated, where the instrument is made or
accepted for his accommodation; c) By the intentional cancellation thereof by the holder; d) By any
other act which will discharge a simple contract for the payment of money; e) When the principal debtor
becomes the holder of the instrument at or after maturity in his own right. Indorsement: special, blank,
restrictive, conditional, qualified. Payment is made in due course when it is made at or after the maturity
of the payment to the holder thereof in good faith and without notice that his title is defective. Only
secondary parties discharged (b) By the intentional cancellation of his signature by the holder; (c) By the
discharge of a prior party; (d) By a valid tender of payment made by a prior party; (f) By any agreement
binding upon the holder to extend the time of payment, or to postpone the holder’s right to enforce the
instrument. Any alteration which changes (a) The date;(b) The sum payable, either for principal or
interest;(c) The time or place of payment:(d) The number or the relations of the parties;(e) The medium
or currency in which payment is to be made;(f) Or which adds a place of payment where no place of
payment is specified, or any other change or addition which alters the effect of the instrument in any
respect, is a material alteration. Checks Discharge from liability will only happen if these 3 requisites are
complied with: 1. That the check is not presented within reasonable time after its issue 2. That the
drawer suffers loss, and 3. The loss suffered by the drawer is attributable to the delay. ELEMENTS OF BP
22 a. Making, drawing or issuance of a check to apply on account or for value; b. Knowledge of the
maker, drawer, issuer that at the time of issue he does not have sufficient funds in or credit with the
drawee bank for payment of such check in full upon its presentment; c. Check is subsequently
dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for
the same reason had not the drawer, without any valid reason, ordered the bank to stop payment. Sub
elements: deposit within 90 days, notice of dishonor, no payment within 5 days. a. Check must be
presented within 90 days from the date of the check; b. Notice of dishonor has been given; and TN:
“Receives notice” means that it is not enough that the notice was “given,” you must make sure that it
was “received.” c. Failure of the drawer to pay, within 5 days from his receipt of notice of dishonor. If all
of the three requisites have been complied, there is a presumption that the drawer had knowledge of
the insufficiency of the funds in his account. Prima facie presumption does not arise in case of failure to
present check for payment within 90 days. Novation theory still bp22 for 2 checks now if replacement is
also worthless.CRUZ2 payment of check even after 5 day period as long as before filing case exonerates
because no public interest or banking system is not injured. Prescriptive 4 years, 30-1yr, 2x amount of
check max 200k 1 day for every 8 pesos. Resterio case: Notice of dishonor insufficient without
authenticating affidavit of mailer.