ARTICLE IV-PROTEST

2699. Dishonor of foreign bill-Protest.

SEC. 152. Where a foreign bill appearing on its face to be such is dishonored by nonacceptance, it must be duly protested for nonacceptance, and where such a bill which has not previously been dishonored by nonacceptance is dishonored by nonpayment, it must be duly protested for nonpayment. If it is not so protested, the drawer and indorsers are discharged. Where a bill does not appear on its face to be a foreign bill, protest thereof in case of dishonor is unnecessary.

2700. What protest must specify.

SEC. 153. 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.

2701. Protest, by whom made.

SEC. 154. 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.

2702. Protest on day of dishonor.

SEC. 155. 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 subsequently extended as of the date of the noting.

2703. Where protested.

SEC. 156. 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.

2704. Subsequent protest.

SEC. 157. A bill which has been protested for nonacceptance may be sub*sequently protested for nonpayment.

2705. Bankrupt or insolvent.

SEC. 158. 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.

2706. Protest dispensed with, when.

SEC. 159. Protest is dispensed with by any circumstances which would dispense with notice of dishonor. Delay in noting or protesting is excused when delay is caused by circumstances beyond the 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.

2707. Protest on copy.

SEC. 160. When a bill is lost or destroyed or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

ARTICLE V-ACCEPTANCE FOR HONOR

2708. Acceptance supra protest.

SEC. 161. 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 for 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.

2709. Idem-Must be in writing.

SEC. 162. 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.

2710. Honor of drawer.

SEC. 163. 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.

2711. Acceptor for honor liable.

SEC. 164. 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.

2712. Acceptor for honor-Liability.

SEC. 165. 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.

2713. Idem-Maturity, how calculated.

SEC. 166. 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.

2714. Protest to precede presentment to acceptor for honor or referee in need.

SEC. 167. 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.

2715. Presentment for payment, how made.

SEC. 168. 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 specified in section 104.

2716. Provisions of section 81 apply.

SEC. 169. The provisions of section 81 apply where there is delay in making presentment to the acceptor for honor or referee in case of need. 2717. Dishonored by acceptor-Protest.

SEC. 170. When the bill is dishonored by the acceptor for honor it must be protested for nonpayment by him.

ARTICLE VI-PAYMENT FOR HONOR

2718. Who may pay for honor.

SEC. 171. 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. 2719. Payment for honor must be attested.

SEC. 172. 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 form an extension to it. 2720. Notarial act founded on declaration of payer.

SEC. 173. 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.

2721. Preference to payers.

SEC. 174. 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.

2722. Subrogation of payer.

SEC. 175. Where a bill has been paid for honor, all parties subsequent to the party for whose honor it is paid and [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.

2723. Right of recourse, when lost.

SEC. 176. 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.

2724. Payer entitled to documents.

SEC. 177. 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.

ARTICLE VII-BILLS IN A SET

2725. Bills in a set one bill.

SEC. 178. 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 constitutes one bill.

2726. Idem-True owner of bill.

SEC. 179. 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.

2727. Holder by indorsement liable on all parts.

SEC. 180. 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.

2728. Acceptance on one part only.

SEC. 181. 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.

2729. Acceptor liable after payment, when.

SEC. 182. 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.

2730. Whole bill discharged, when.

SEC. 183. Except as herein otherwise provided where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged.

TITLE III

Promissory Notes and Checks
ARTICLE I

2731. Negotiable note defined.

SEC. 184. A negotiable promissory note within the meaning of this act 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 determinable 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. 2732. Check is bill of exchange.

SEC. 185. A check is a bill of exchange drawn on a bank payable on demand. Except as herein otherwise provided, the provisions of this act applicable to a bill of exchange payable on demand apply to a check.

2733. Presentation for payment.

SEC. 186. 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.

2734. Certification constitutes acceptance.

SEC. 187. Where a check is certified by the bank on which it is drawn, the certification is equivalent to an acceptance.

2735. Drawer discharged, when.

SEC. 188. Where the holder of a check procures it to be accepted or certified the drawer and all indorsers are discharged from liability thereon. 2736. Check not assignment.

SEC. 189. A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer with the bank, and the bank is not liable to the holder, unless and until it accepts or certifies the check.

SEC. 190. This act shall be known as "The Negotiable Instruments Law."

2738. Terms defined.

SEC. 191. In this act, unless the context otherwise requires:

"Acceptance" means an acceptance completed by delivery or notification. "Action" includes counter-claim and set-off.

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Bank" includes any person or association of persons carrying on the business of banking, whether incorporated or not.

"Bearer" means the person in possession of a bill or note which is payable to bearer.

"Bill" means bill of exchange, and "note" means negotiable promissory note.

"Delivery" means transfer of possession, actual or constructive, from one person to another.

"Holder" means the payee or indorsee of a bill or note, who is in possession of it, or the bearer thereof.

"Indorsement" means an indorsement completed by delivery. "Instrument" means negotiable instrument.

"Issue" means the first delivery of the instrument, complete in form, to a person who takes it as a holder.

"Person" includes a body of persons, whether incorporated or not. "Value" means valuable consideration.

"Written" includes printed, and "writing" includes print.

2739. Idem.

SEC. 192. The person "primarily" liable on an instrument is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are "secondarily" liable.

2740. Idem.

SEC. 193. In determining what is a "reasonable time" or an "unreasonable time," regard is to be had to the nature of the instrument, the usage of trade or business (if any) with respect to such instruments, and the facts of the particular case.

2741. Performance following holiday.

SEC. 194. Where the day, or the last day, for doing any act herein required or permitted to be done falls on Sunday or on a holiday, the act may be done on the next succeeding secular or business day.

2742. Provisions not retroactive.

SEC. 195. The provisions of this act do not apply to negotiable instruments made and delivered prior to the passage hereof.

2743. Other cases provided for.

SEC. 196. In any case not provided for in this act the rules of the law merchant shall govern.

The citations following are based upon a former act (Stats. 1861, 4). They are here given as possibly of use in construing some of the provisions of the foregoing act:

There can be no strict indorsement of a

negotiable promissory note, except by the payee or indorsee. Van Doren v. Tjader, 1 Nev. 380, 389.

A guarantor of a promissory note will not be discharged by the failure of the holder