PRESENTMENT FOR PAYMENT SECS 70-88

Presentment for payment

- (G) presentation of an instrument to the person primarily liable for the purpose of
demanding and receiving payment
- Production of BE to drawee for acceptance/payment; or production of PN to the
person liable for the payment of the same
- Act of exhibiting of note to maker and demanding payment or showing be to
drawee and requesting to acceptance or payment(Sec 74)
- There must be (valid)
o Personal demand for payment at the proper place
o Bill or note must be ready to be exhibited if required and surrendered upon
payment
- GR: necessary to charge persons secondarily liable
- E:
o sec 79, Drawer has no right to expect or require that the drawee or acceptor
will pay the instrument
o sec 80, Instrument was made or accepted for his accommodation and has no
reason to expect that the instrument will be paid if presented
(accommodated indorser)
o sec 82, presement for payment is excused: dishonored by non-acceptance
(a) After exercise of reasonable diligence, presentment cannot be made
(b) Drawee is a fictitious person
(c) Waiver of presentment for payment

Sec 70. Presentment for payment is

NOT NECESSARY to charge persons primarily liable
NECESSARY to charge drawer and indorsers.
- Why not necessary: since upon making/accepting he is already absolutely charged
of the instrument
- EX. M issued to P an interest bearing PN. M has deposit at maturity and at all time
has sum sufficient to pay if presented
- P’s failure to present dies not release M from liability, but M is not liable for
interest after maturity
- If P sues M on the note, M will be entitled court costs
- IF payable at PNB (special place), presentment for payment is STILL not
necessary. The only effect is that if drawee/maker, is able and willing to pay the
bill at the PNB in maturity, it is equivalent to a tender of payment on the part of
drawee/maker
 - Before charging those secondarily liable:
o Presentment for payment must be made within period required to person
primarily liable unless excused
o Proper Notice of Dishonor by non-payment/non-acceptance
- GR: presentment for payment is NECESSARY to charge drawer and indorsers
- Effect of Failure of Presentment for payment: drawer and indorsers are
DISCHARGED from their secondary liability unless such presentment is excused
or dispensed with

Sec 71. Presentment, when made:

IF NOT payable on demand: on the day it falls due (maturity date)
IF payable on demand: within reasonable time after issue (if BE, after last negotiation—
last transfer for value)
- When reasonable: a question of fact but in checks 180 days or 6months
- 60 days is held unreasonable
- 7 months is reasonable
- Burden is on the holder when seeking to hold an indorser to prove due and timely
presentment

Sec 72 Sufficient presentment, if made:

a) By holder or person authorized to receive payment (who presents)
b) At reasonable hour on business day (when)
c) At proper place (where)
d) To person primarily liable OR if absent, any person found at the place where
presentment was made (to whom presented)
- Cannot be made on Sunday or holiday

Sec 73 Place of presentment (order of preference)sa u w

1. Where specified in the instrument
2. Address of person to make payment (maker/acceptor)
3. Usual place of business or residence of person to make payment
4. Where he can be found or at last known place of business or residence

Sec 74 Instrument must be exhibited (as part of presentment)

- Exhibited = personal/ face to face (demand by phone is insufficient)
- Presentment both includes exhibition of the instrument and demand for payment
- Purpose: to enable the debtor to determine the genuineness of the instrument and
the holder’s right to collect/retain possession upon payment
- Effect of Failure to exhibit:
 o Presentment would be ineffectual as debtor is entitled to see the instrument
and demand its surrender upon payment to prevent
- When exhibition excused (Exception of Sec 74)
o Debtor doesn’t demand to see the instrument but refuses payment on some
other grounds
o Instrument is lost or destroyed
o Express waiver of the maker/acceptor

Sec 75 Presentment where payable at bank

IF has funds: during business hours
IF NO funds: any hour before bank is closed
- Why any hour? Even if presentment is made during banking hours, instrument
could have been paid just the same
- Banking hours: 9am to 3pm (atleast 6hrs) in BPI Puerto (am to 4:30pm

Sec 76 Presentment where principal debtor is dead & no place of presentment is

specified
Made to his personal representatives (with reasonable diligence he can be found)
- “personal representatives” = executor (appointed in will) or administrator
(appointed by court) if there is one and he can be found (
- Holder is not excluded from giving notice of dishonor to the indorser if he wishes
to hold the latter liable on the instrument

Sec 77 Presentment to persons liable as partners & no place specified

May be made to ANY one of them, even though there has been dssolution (why?
dishonor by one is a dishonor by all; all partners are solidarily liable for everything
chargeable to the partnership)

Sec 78 Presentment to joint debtors & no place specified

Must be made to ALL

Sec 79 Presentment not required to charge the drawer (Exception to Sec 70), when
Drawer has no right to expect or require that the drawee or acceptor will pay the
instrument (or merge of drawer and drawee)
- Where party secondarily liable is not discharged in spite of luck of presentment
- If no reason to believe that upon presentment, bill will not be paid
- Presentment is not required to charge the drawer in the ff cases:
o Check upon which payment has been stopped
o Drawer’s bal is less than the amount of the check
 o Drawer of a bill containing the words”pay from balance” had no money or
deposit with the drawee but expected to arrange with broker to cover drafts
- EX. A issued a check payable to the order of B for 100K with BPI, despite A’s
awareness that he only had 50K balance. B-C-D-E
- E no longer needs to present it to BPI to hold A liable because A, already knew
- If E does not present to BPI, although E can charge A as exception, without
presentment E CANNOT charge parties secondarily liable: B, C,D
- When not necessary for charging indorser: if accommodated indorser which
must also be one on whom is in favor the bill was issued (payee must)
-

Sec 80 Presentment not required to charge indorser (Exception to Sec 70), when
Instrument was made or accepted for his accommodation and has no reason to expect that
the instrument will be paid if presented
- Applicability: only to an indorser for whose accommodation an instrument is
made or accepted (accommodated indorser)
- Why? He is the real debtor and not the maker or acceptor
- EX. A made a promissory note payable to the order of B, to accommodate B. B
negotiated to midtown Sales. B-Midtown Sales-C(holder)
- Midtown Sales NEED NOT to present to charge B the indorser because A is
merely the accommodating maker and B does not have any reason to believe that
A will pay
- IF Midtown Sales negotiated to C. Can C charge B (accommodated indorser)
without presentment? YES
- BUT if C does not present to A even if B can be charged, C cannot charge
Midtown Sales
- Cannot present BEFORE due!
- Accommodation party: one who sign the instrument as a party, without value for
the purpose of lending his name to some other person

Sec 81 When delay in making presentment is excused

Caused by circumstances BEYOND the control of the holder and not imputable to his
default, misconduct or negligence. (dmn)
When resume with reasonable diligence: when cause of delay ceases to operate
- EX. overwhelming calamity, malignant diseases like pandemic, interruption of
trade negotiations by political circumstances
Sec 82 When presentment for payment is excused adw
(a) After exercise of reasonable diligence(active search& make inquiries of
payee when neither maker nor his residence can be found), cannot be
made
(b) Drawee is a fictitious person
(c) Waiver of presentment

Sec 83 When dishonored by non-payment

(a) Presented for payment & refused or cannot be obtained
(b) Presentment is excused & overdue and unpaid

84 Liability of person secondarily liable when dishonored by non-payment

Indorsers are primarily liable and cease to be secondarily liable; they become principal
debtors-provided there is notice of dishonor given to them
- if no notice, discharged from liability
- as among themselves, persons secondarily liable are presumed liable in the order
that they become parties to the instrument

Sec 85 Time of maturity

- Time fixed
- If on Sunday/holiday/Saturday, next succeeding business day
o Except: if on demand, at the option of holder, MAY be presented before 12
noon on Saturday when it is not holiday

Sec 86 Time; how computed

excluding the day from which the time is to begin to run and by including the date of
payment
- Art 13 CC In the computation of period, the first day shall be excluded and the last
day included

Sec 87 Where instrument is payable at bank

Equivalent to an order to the bank to pay the same for the account of the principal debtor

Sec 88 Payment in due course = made at or after the maturity of the payment to the
holder in good faith and without notice that title is defective
- R of HDC to receive payment; if p in due course discharges instrument
- Possession of the note by the maker is presumptive evidence that it has been paid
Luis Wong vs. CA (GR No. 117857, February 2, 2001)
LPI deposited the checks within reasonable time (157 days after maturity date)
6 postdated Check drawer: Luis Wong (agent of Limtong Press Inc) manufacturer
Drawee; Allied banking Corp (ABC)
Payee: LPI

Facts:
- Petitioner Wong was an agent of Limtong Press Inc. (LPI), a manufacturer of
calendars.
- LPI would print sample calendars, then give them to agents to present to
customers. The agents would get the purchase orders of customers and forward
them to LPI. After printing the calendars, LPI would ship the calendars directly to
the customers. Thereafter, the agents would come around to collect the payments.
- Petitioner, however, had a history of unremitted collections, which he duly
acknowledged in a confirmation receipt he co-signed with his wife. Hence,
petitioner’s customers were required to issue postdated checks before LPI would
accept their purchase orders.
- In early December 1985, Wong issued six (6) postdated checks totaling
P18,025.00, all dated December 30, 1985 and drawn payable to the order of LPI,
- These checks were initially intended to guarantee the calendar orders of customers
who failed to issue post-dated checks. However, following company policy, LPI
refused to accept the checks as guarantees. Instead, the parties agreed to apply the
checks to the payment of petitioner’s unremitted collections for 1984 amounting to
P18,077.07. 3 LPI waived the P52.07 difference.
- Before the maturity of the checks, petitioner prevailed upon LPI not to deposit the
checks and promised to replace them within 30 days. However, petitioner reneged
on his promise. Hence, on June 5, 1986, LPI deposited the checks with Rizal
Commercial Banking Corporation (RCBC). The checks were returned for the
reason "account closed." The dishonor of the checks was evidenced by the RCBC
return slip.
- Petitioner failed to make arrangements for payment within five (5) banking days.
- Petitioner was charged with three (3) counts of violation of B.P. Blg. 22 and was
found guilty by the trial court, to which the CA affirmed
- Although initially intended to be used as guarantee for the purchase orders of
customers, they found the checks were eventually used to settle the remaining
obligations of petitioner with LPI.

- W LPI deposited the checks within reasonable time YES 157d from maturity
 - W there is presumption of knowledge of the insufficient funds. YES petitioner
was duly notified of the dishonor but failed to make arrangements for full payment
within five (5) banking days thereof

- Petitioner avers that since the complainant

- deposited the checks on June 5, 1986, or 157days after the December 30, 1985
maturity date
- Under Section 186 of the Negotiable Instruments Law, " a check must be
presented for payment within a reasonable time after its issue or the drawer will be
discharged from liability thereon to the extent of the loss caused by the delay."
- By current banking practice, a check becomes stale after more than six (6) months,
or 180 days. Private respondent herein deposited the checks 157 days after the date
of the check. Hence said checks cannot be considered stale.
- Only the presumption of knowledge of insufficiency of funds was lost, but such
knowledge could still be proven by direct or circumstantial evidence. As found by
the trial court, private respondent did not deposit the checks because of the
reassurance of petitioner that he would issue new checks. Upon his failure to do
so, LPI was constrained to deposit the said checks. After the checks were
dishonored, petitioner was duly notified of such fact but failed to make
arrangements for full payment within five (5) banking days thereof. There is, on
record, sufficient evidence that petitioner had knowledge of the insufficiency of
his funds in or credit with the drawee bank at the time of issuance of the checks.
-
-

NOTICE OF DISHONOR

Sec 89 to whom notice of dishonor must be given

To the drawer and to each indorser
Effect of failure: such drawer/indorser is discharged
- When considered to be dishonored
o Not accepted when presented for acceptance
o Not paid when presented for payment
o Presentment is excused/waived and is overdue and unpaid
- Notice of dishonor = refers to bringing either verbally or by writing, to the
knowledge of the drawer or indorser, the fact that upon proceedings taken, has not
been accepted or hasn’t been paid and that the party notified is expected to pay it
- Necessity and purpose of notice
 o To inform parties secondarily liable that the maker/acceptor has failed to
meet his engagement
o To advise such parties that they will be required to make payment
- Effect of failure to give notice: any such person to whom such notice is not given
is discharged (holder cannot file an action against one discharged)
- Required to notify all? NO holder may select to hold only one or some
- Remedy of holder: may still be liable for breach of warranties
- When notice, not necessary? If for maker/acceptor because they are the ones who
dishonored the instrument
- EX.
I promise to B or order 100K on Dec 25 2023
Sgd A
B-C-D-E-F then dishonored by A.
F may send a notice of dishonor to E, D, C and B
- IF F only sent a notice to E)and prove the same): D, C and B are discharged and F
cannot file an action against B, C & D
- Since E was sent a notice, he can also send a notice
- Burden of proof: on the plaintiff who seeks to enforce the liability as indorser by
proving that notice was given
- IF in installments: failure to give notice of previous installment to person
secondarily liable will also discharge them on succeeding installments if there is
an acceleration clause (why: generally, each separate installment is equivalent to
another note)

Sec 90 By whom given:

(a) Holder; or
(b) Another in behalf of holder
(c) Any party who might be compelled to pay it to holder (collecting bank/indorser
who received notice of dishonor)
(d) Another person in behalf of such party
- Effect of Notice to Stranger: ineffectual unless acting as agent for one who may
give notice
- EX.
I promise to pay P or order 100K 12/25/2023
Sgd M
P-A-B-C-D; dishonored in the hands of D
- D may give notice of dishonor to C, B, A & P
- IF D only notifies C, C can be compelled to pay
- C’s remedy: notify B, A & P
- B may notify A & P
 - A may notify P
- A cannot give notice to B cuz A is the one liable to B. A has no right of
reimbursement from B
- IF D gave only notice to B, C is discharged for lack of notice. C becomes a
stranger and not entitled to give notice unless acting as a mere agent who is can

Sec 91 Notice given by agent

(a) In his own name; or
(b) In the name of any party entitled to give notice, WON principal
- Not necessary that the agent be authorized by the principal
- May give notice in his name or in the name of his principal
- A collecting bank may give notice; where the cashier of drawee bank which had
refused to pay, gave the check to a notary to protest, the possession of the check by
the cashier was evidence of his agency of the holder to present it for protest (what
case.?)

Sec 92 Effect of notice on behalf holder: it inures to the benefit of all subsequent
holders and all prior parties who have a right of recourse against the party to whom it is
given
- EX.
I promise to pay B or order 100K 12/25/2023
Sgd A
B-C-D-E-F(holder) -G F can send notice of dishonor to E,D,C&B
- IF F sent a notice of dishonor to D, as far as F is concerned E, C & B are
discharged
- As to D, he can send only send notice to B & C
- IF D then sent a notice of dishonor to B & C, it will inure to the benefit of f
(NOW, as far as F is concerned B & C are now charged)
- Is F limited to collect from D alone? NO, now also B & C because of D
- “parties prior to holder, who have a right of recourse against party to whom notice
is given” = B & C
- IF after notice given by F, F negotiated to G-H-I, the notice given by F inures to
the benefit of GHI (parties subsequent to the one and they don’t need to give
another notice of dishonor to BCDE to make them liable
- “holder subsequent to holder giving notice”
o G, H & I as holders subsequent to F who gave the notice of dishonor

Sec 93 Effect where notice is given by party entitled

Inures to the benefit of the holder and all parties subsequent to the party to whom notice
is given
 - the person giving notice is not a holder but a party to the instrument who might be
compelled to pay it to holder, and who upon taking it up would have a right of
reimbursement from the party to whom notice is given ex CB
- 92: F in the previous example; 93: D
- EX. Where D who was sent a notice of dishonor by F, then sent a notice of
dishonor to A it will inure to the benefit of
o Holder = F and
o All parties subsequent to the party to whom notice is given = B & C
(parties subsequent to A) A is not discharged by failure of F to send a notice
to him since A was notified by a person entitled to give notice, like D

Sec 94 When agent may give notice

When dishonored in his hands
- Effect of dishonor in agent’s hands: he may
o Directly give notice to persons secondarily liable
o Give notice to his principal
 Which must be given within time allowed by law as if he were a
holder
 Principal also has the same time to give notice to the persons
secondarily liable
- EX. P-A-B-C(holder). M dishonored the note in the hands of X(C’s agent). X may
give notice either to P, A & B directly or to his principal, C and let C ntify P, A &
B
- Under Sec103 if X, P A B reside in the same place, notice must be given by X
within the next following day. If dishonored on May 29, X must givne notice to P,
A & B not later than May 30
- IF X gives notice to C, his principal, it must be given also not later than May 30 to
give notice to P A & B or until May 31

Sec 95 When notice sufficient

(a) Sufficient description
(b) Statement that it has been presented for payment and for acceptance and that it has
been dishonored
(c) Statement that the party giving notice intends to look for the party addressed for
payment

Sec 96 Form of notice: may be oral or in writing, provided:

(d) Sufficient description
 (e) Statement that it has been presented for payment and for acceptance and that it has
been dishonored
(f) Statement that the party giving notice intends to look for the party addressed for
payment
- Effects of defect:
o if not signed, will not invalidate it
o if written and does not contain (b) and (c), it can be supplemented by oral
communication
o if misdescription, only vitiate if misled
- may be personal or by mail

Sec 97 To whom notice may be given

(a) party himself
(b) his agent
- an accommodation indorser is entitled to notice
- an irregular indorser must also be given notice if he is to be charged
- if given to agent, must be duly authorized to receive the notice of dishonor
- agent vs person presence in absence of party
o in latter may be left with anyone found in charge therein

Sec 98 Notice where party is dead

Given to personal representative
If none, to the last residence or last place of business of the deceased
- requisites for notice to representative
o death known to the party giving notice
o there is personal representative
o if with reasonable diligence, he could be found
- when notice may be sent to last residence or place of business
o if his death is not known to the party giving notice
o or although death known, no personal representative
o if there is one but he cannot be found with reasonable diligence

Sec 99 Notice to partners

Notice to any partner is notice to the firm, even though there is dissolution

Sec 100 Notice to persons jointly liable

Must given to each of them UNLESS one has authority to receive for others

Sec 101 Notice to bankrupt

Scope: adjudged to be bankrupt or insolvent or has made an assignment for the benefit of
creditors
Notice may be given to
(a) party himself
(b) his trustee or assignee

Sec 102 Time within which notice must be given

As soon as instrument is dishonored unless delay is excused (beyond the control of
holder) refer to Secs 103, 104, 107
Purpose: to give persons secondarily liable every opportunity to protect their rights
against prior parties
May notice be given on date of maturity? YES provided presented and dishonored unless
payable at bank in which notice must be given after close of banking hours

Sec 103 Where parties reside in same place

IF given at place of business: before close of business hours on the day following
IF given at residence: before the usual hours of rest on the day following
IF sent by mail: deposited in post office in time to reach him in usual course on the day
following
- “same place” same town/city

Sec 104 Where parties reside in different places

IF sent by mail: deposited in the post office in time to go by mail the day following the
day of dishonor
IF no mail at a convenient hourL by next mail thereafter
IF given other than through post office: within the time that notice would have been
received in due course of mail
- EX. H resides in Manila and R (drawer or indorser) resides in Palawan. It was
dishonored on May 29 2023
- IF by mail, it must be deposited in the mails not later than May 30 so as to go by
mail on May 29 the day following the day of dishonor
- IF no mail or there is mail but at an inconvenient hour at 4am and next mail is
3pm, must be deposited in time for it to go by 3pm on May 31
- If H fails to deposit on time, may still be given in some ways as by personal
messenger. What is important is that R shall receive the notice not later than he
would have received it had it been mailed
- IF it would have been received on June 2 but notice is given by personal
messenger on June 2, notice is inoperative and R is discharged

Sec 105 When sender deemed to have given due notice

Where notice is duly addressed and deposited in the post office (notwithstanding
miscarriage in mails)
- Notice must be properly addressed stamped and mailed

Sec 106 Deposit in post office = when deposited in any branch post office or in any lette
box under the control of the post-office department
- Notice of protest properly addressed and left in a place in a notary office where
mail was usually collected by his postman was held not mailing of the notice
required by the statute

Sec 107 time of Notice to subsequent party

Considered dishonored in the hands of a party who receives a notice from the holder of
the date he receives such notice
- EX. M executed PN to the order of P-A-B-C-D Instrument dishonored on May 29
- D may notify any of or all the indorsers prior to him. D must give notice not later
than May 30
- IF D notifies only C on May 30, C upon receipt of the notice from D, may inturn,
notify any or all of the prior parties not later than May 31
- IF D immediately notifies C on May 29, C must give notice to prior parties not
later than may 30. C cannot take an extra day to notify P, A and/or B
- If ther reside in different places, notice must be given witin time provided in sec
104

Sec 108 Where notice must be sent (order of preference)

(1) Address provided along with the signature
(2) Post office nearest to place of residence or post-office where he is accustomed to
receive his letters
(3) IF lives in one place & place of business in another: EITHER
(4) IF sojourning in another place: in that place
(5) IF actually received within time specified, sufficient though not comply sec 108

Sec 109 Waiver of notice

When:
a) Before the time of giving notice has arrived
b) After the omission to give due notice

Sec 110 Whom affected by waiver: all parties

E: where it is written above the signature of the indorser, it binds him only

Sec 111 Waiver of protest

Deemed to be a waiver of a formal protest + presentment + notice of dishonor
Protest = notice of dishonor given by a notary public
- Where presentment is waived, notice f dishonor is also waived
- Where notice of dishonor is waived, presentment is not waived

Sec 112 When notice is dispensed with:

(a) After exercise of reasonable diligence
(b) Notice of dishonor cannot be given to or does not reach the parties sought to be
charged

Sec 113 Delay in giving notice, how excused

When delay is caused by circumstances beyond the control of holder and not imputable to
his default, misconduct or negligence

Sec 114 When notice need not be given to drawer

(a) Drawer & drawee, the same
(b) Drawee is a fictitious person or person not having capacity to contract
(c) Drawer is the person to whom the instrument is presented for payment
(d) Drawer has no right to expect or to require that the drawee or acceptor will honor
the instrument
(e) Drawer has countermanded payment
- In (a) & (b) drawer is regarded is a maker and a primary party
- In (c), drawer has knowledge already of the dishonor since he is the one who
dishonored it
- In (d) drawer knew that it would be dishonored like when he has no account with
drawee bank
- In (e), drawer knows that the instrument will be dishonored. When drawer
countermands payment, he orders drawee not to pay

Sec 115 When notice need not be given to indorser

(a) Drawee is a fictitious person or person not having capacity to contract AND
indorser is aware of such at the time he indorsed it
(b) Indorser is the person to whom instrument is presented for payment
(c) Instrument was made or accepted for his accommodation
- In (a) indorser already knew
- In (b) indorser already has knowledge about the dishonor because he is the one
who dishonored it
- In (c), the accommodated indorser is in fact the principal debtor and thus not
entitled to notice
Sec 116 Notice of non-payment where acceptance refused
GR: notice of subsequent dishonor by nonpayment is NOT necessary
E: instrument has been accepted
- EX. Note is payable on Dec 25 2023 and F, the holder present it for acceptance to
X on Dec 1 2023. X refuses to accept. F then gives a notice of dishonor to drawer
A and to indorsers BCS and E
- Under Sec 151, there is necessity for presentment for payment and under sec 116
need not give a notice of dishonor by non payment
- BUT IF X accepts on Dec 15, F must then present for payment on dec 25. If X
refuses to pay, F MUST give notice of dishonor to ABCDE in order to charge
them, as in the meantime the instrument has been accepted

Sec 117 Effect of omission to give notice of non-acceptance

- Will not prejudice rights of HDC subsequent to omission
- EX.
Pay to B or order 100K on dec 25 2023
Sgd A
To: X
B-C-D-E-F-G(HDC)
F, when the instrument was still in his hands, presented for acceptance to X and X refuses
to accept. F fails to give notice to B,C,D and E
- B, C,D and E are NOT discharged with regard to G because omission to give
notice of dishonor by non-acceptance doesn’t prejudice the rights of HDC
subsequent to the omission

GR: notice of dishonor to secondarily liable is NECESSARY

E:
- Waived
- Sec 112 after exercise of reasonable diligence notice cannot be given
- Sec 114 as to drawer
o Drawer & drawee, the same
o Drawee is a fictitious person or person not having capacity to contract
o Drawer is the person to whom the instrument is presented for payment
o Drawer has no right to expect or to require that the drawee or acceptor will
honor the instrument
o Drawer has countermanded payment
- Sec 115 as to indorser
o Drawee is a fictitious person or person not having capacity to contract AND
indorser is aware of such at the time he indorsed it
 o Indorser is the person to whom instrument is presented for payment
o Instrument was made or accepted for his accommodation
- Sec 116 Due notice of dishonor by non acceptance has been given
- HDC without notice

Sec 118 When protest NECESSARY: Foreign bills of exchange

- Mere fact of protest is NOT conclusive upon the dishonor of the instrument and
due notice to the indorser; other evidence is competent on these Qs
- Not required for notes but most convenient and certain mode to prove facts