suretyship does not appear on the face of the note, are primarily liable.— Robertson-Ruffin Co. v. Spain, 173 N. C. 23, 91 S. S. 361.

Bills and Notes § 491. Where one whose name appeared on a note admitted execution and nonpayment, the burden is upon him to prove any matter in release.-Ibid.

Principal and Surety § 65. A surety on a note is primarily liable thereon within section above, declaring that the person primarily liable on an instrument is the person who by the terms thereof is absolutely required to pay the same.-Rouse v. Wooten, 140 N. C. 557, 53 S. E. 430.

314. What constitutes reasonable time. In determining what is 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.

C. S., s. 2978; Rev., s. 2343; 1899, c. 733, s. 193.

Singer Mfg. Co. v. Summers, 143 N. C. 102, 55 S. E. 522.

315. When law merchant governs. In any case not provided for in this chapter the rules of the law merchant shall govern. C. S., s. 2979; Rev., s. 2344; 1899, c. 733, s. 196.

316. Acts to be done on Sunday or holiday. 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.

C. S., s. 2980; Rev., s. 2839; 1899, c. 733, s. 194.

317. Application of chapter. The provisions of this chapter do not apply to negotiable instruments made and delivered prior to the eighth day of March, one thousand eight hundred and ninetynine.

C. S., s. 2981; Rev., s. 2345; 1899, c. 733, s. 195.

ART. 2. FORM AND INTERPRETATION.

318. Form of negotiable instrument. An instrument to be negotiable must conform to the following requirements: (1) It must be in writing and signed by the maker or drawer; (2) must contain an unconditional promise or order to pay a sum certain in money; (3) must be payable on demand or at a fixed or determinable future time; (4) must be payable to the order of a specified person or to bearer; and (5) where the instrument is addressed to a drawee, he must be named, or otherwise indicated therein with reasonable certainty.

. C. S., s. 2982; Rev., s. 2151; 1899, c. 733, s. 1.

Bills and Notes § 147. A note to be negotiable must be payable to the order of a specified person, or to bearer.-Johnson v. Lassiter, 155 N. C. 47, 71 S. E. 23.

Bills and Notes § 150. A writing providing that for value received the signers jointly and severally promise to pay another or order a certain sum at a certain bank with interest and without any relief from valuation of appraisement law, being duly signed and dated, was a negotiable instru ment. Myers v. Petty, 153 N. C. 462, 69 S. E. 417.

Bills and Notes § 150. A note not payable to order or bearer is non-negotiable. Newland v. Moore, 173 N. C. 728, 92 S. E. 367.

Bills and Notes § 164. A note which recited that it was subject to the provisions of a deed is conditional and not negotiable. Pope & Ballance v. Righter-Parry Lumber Co., 162 N. C. 206; 78 S. E. 65.

Bills and Notes § 151. The negotiability of a note is not destroyed by the fact that it bears on its face the words and figures "No. of Note 2,821. No. of Policy, 654,971.'-Breese v. Crumpton, 121 N. C. 122, 28 S. E. 351.

Bills and Notes § 165. A statement in a promissory note payable to order that it was given for the purchase of a stallion, which the payee warranted, does not destroy the negotiability of the note. Critcher v. Ballard, 180 N. C. 111, 104 S. E. 134.

The

Bernard v. Union Trust Co., 159 Fed. 620, 86 C. C. A. 610, et seq., was tried in the Circuit Court of Appeals, Fourth District, upon appeal from the United States Court for the Eastern District of North Carolina. Court that heard it was composed of Chief Justice Fuller; and Judges Morris and Brawley, and it held that a receiver's certificate is not negotiable within the law merchant, so as to relieve the purchaser or his assignee from equities arising out of the proceedings in the case. The Court said in its opinion, referring to receivers' certificates: "They are not commercial paper, and the purchaser or assignee can only recover upon them to the extent of the rights of the first payee. He is put upon inquiry, as to all that was done in the cause wherein the certificates are issued, and chargeable with notice. As said by the Court in Union Trust Co. v. Ill. Midland Co., 117 U. S. 456, 6 Sup. Ct. 809, 29 L. Ed. 963: 'The receiver and those lending money to him on certificates issued and orders made without prior notice to the parties interested take the risk of the final action of the court in regard to the loans. The court always retains control of the matter; its records are accessible to lenders and subsequent holders, and the certificates are not negotiable instruments.' '

In a creditors' suit against a private corporation to which neither the bondholders of the corporation nor the trustee in the mortgage securing the same are parties, the court has no authority to issue receivers' certificates for pre-existing debts of the corporation and make the same a first lien on its property. Union Trust Co. v. Southern Sawmills & Lumber Co., 166 Fed. 193, 92 C. C. A., 101. This case was heard in the Circuit Court of Ap peals before Judges Waddill, Boyd and Dayton; and this case likewise was a North Carolina case coming up from the U. S. Circuit Court for the Eastern District of North Carolina at Raleigh.

319. What constitutes certainty as to sum. The sum payable is a sum certain within the meaning of this chapter, although it is to be paid (1) with interest; or (2) by stated installments; (3) by stated installments with a provision that upon default in

payment of any installment the whole shall become due; or (4) with exchange; whether at a fixed rate or at the current rate; or (5) with costs of collection or an attorney's fee in case payment shall not be made at maturity. But a provision incorporated in the instrument to pay counsel fees for collection is not enforceable, but does not affect the other terms of the instrument or the negotiability thereof.

C. S., s. 2983; Rev., ss. 2152, 2346; 1899, c. 733, ss. 2, 197; 1905, c. 327.

Bills and Notes § 110. Where suit was instituted in North Carolina on a note executed and payable in Georgia, the validity of a provision in it for attorney's fees in case of suit must be determined by the laws of North Carolina, and such provision is void in this state and cannot be enforced. Exchange Bank v. Appalachian Land & Lumber Co., 128 N. C. 193, 38 S. E. 813.

320. When promise is unconditional. An unqualified order or promise to pay is unconditional within the meaning of this chapter, though coupled with (1) an indication of a particular fund out of which reimbursement is to be made, or a particular account to be debited with the amount; or (2) a statement of the transaction which gives rise to the instrument. But an order or promise to pay out of a particular fund is not unconditional.

C. S., s. 2984; Rev., s. 2153; 1899, c. 733, s. 3.

Bills and Notes § 342. A note that indicated on its face the purpose for which it was given did not make it conditional. Bank of Sampson v. Hatcher, 151 N. C. 359, 66 S. E. 308.

Municipal Corporations § 938. Bonds issued by a municipality which specify the fund from which they are to be paid, held negotiable within the negotiable instruments act. Commissioners of Cleveland County v. Citizens Natl. Bank of Gastonia, 157 N. C. 191, 72 S. E. 996.

Bills and Notes § 164. A note which recited that it was subject to the provisions of a deed is conditional and not negotiable. Pope & Ballance V. Righter-Parry Lumber Co., 162 N. C. 206, 78 S. E. 65.

321. What constitutes determinable future time. An instrument is payable at a determinable future time, within the meaning of this chapter, which is expressed to be payable (1) at a fixed period after date or sight; or (2) on or before a fixed or determinable future time specified therein; or (3) on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain. An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the defect.

C. S., s. 2985; Rev., s. 2156; 1899, c. 733, s. 4.

Bills and Notes § 109. A stipulation in a note that it shall become due where there is a default in the payment of interest for ten days after demand is valid. Newbern Banking & Trust Co. v. Duffy, 153 N. C. 62, 68 S. E. 915.

Bills and Notes § 109. Notes, stipulating that, if the interest thereon shall not be paid when due, the whole indebtedness shall become due, mature on such default in interest.-Battery Park Bank v. Loughran, 122 N. C. 668, 30 S. E. 17.

322. Additional provisions as affecting negotiability. An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which (1) authorizes the sale of collateral securities in case the instrument be not paid at maturity; or (2) authorizes a confession of judgment if the instrument be not paid at maturity; or (3) waives the benefit of any law intended for the advantage or protection of obligor; or (4) gives the holder an election to require something to be done in lieu of payment of money. But nothing in this section shall validate any provision or stipulation otherwise illegal, nor authorize the enforcement of an authorization to confess judgment or a waiver of homestead and personal property exemptions.

C. S., s. 2986; Rev., ss. 2154, 2346; 1899, c. 733, ss. 5, 197; 1905, c. 327. As to counsel fees, see Sec. 319.

Bills and Notes § 99. Where suit was instituted in North Carolina on a note executed and payable in Georgia, the validity of a provision waiving homestead exemption must be determined by the laws of North Carolina, and such provision cannot be enforced. Exchange Bank v. Appalachian Land & Lumber Co., 128 N. C. 193, 38 S. E. 813.

323. Effect of omissions; seal; designation of particular money. The validity and negotiable character of an instrument are not affected by the fact that (1) it is not dated; or (2) does not specifiy the value given, or that any value has been given therefor; or (3) does not specify the place where it is drawn or the place where it is payable; or (4) bears a seal; or (5) designates a particular kind of current money in which payment is to be made. But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the consideration to be stated in the instrument.

C. S., s. 2987; Rev., s. 2155; 1899, c. 733, s. 6.

324. When payable on demand. An instrument is payable on demand (1) when it is expressed to be payable on demand, or at sight or on presentation; or (2) in which no time for payment is expressed. Where an instrument is issued, accepted, or indorsed when overdue, it is, as regards the person so issuing, accepting, or indorsing it, payable on demand.

C. S., s. 2988; Rev., s. 2157; 1899, c. 733, s. 7.

Bills and Notes § 129. A note payable on demand is due on the day of its date. Causey v. Snow, 122 N. C. 326, 29 S. E. 359.

Limitation of Actions § 48. When no time is specified for the payment of a bond it is due at its execution, and the statute of limitations begins to run at once. Ervin v. Brooks, 111 N. C. 358, 16 S. E. 240.

325. When payable to order. The instrument is payable to order when it is drawn payable to the order of a specified person, or to him or his order. It may be drawn payable to the order of (1) a payee who is not maker, drawer or drawee; or (2) the drawer or maker; or (3) the drawee; or (4) two or more payees jointly; or (5) one or more of several payees; or (6) the holder of an office for the time being. When the instrument is payable to order, the payee must be named or otherwise indicated therein with reasonable certainty.

C. S., s. 2989; Rev., s. 2158; 1899, c. 733, s. 8.

Bills and Notes § 147. A note to be negotiable must be payable to the order of a specified person, or to bearer.-Johnson v. Lassiter, 155 N. C. 47,

71 S. E. 23.

Bills and Notes § 150. A note not payable to order or bearer is nonnegotiable.-Newland v. Moore, 173 N. C. 728, 92 S. E. 367.

326. When payable to bearer. The instrument is payable to bearer (1) when it is expressed to be so payable; or (2) when it is payable to a person named therein or to bearer; or (3) when it is payable to the order of a fictitious or nonexisting person, and such fact was known to the person making it so payable; or (4) when the name of the payee does not purport to be the name of any person; or (5) when the only or last indorsement is an indorsement in blank.

C. S., s. 2990; Rev., s. 2159; 1899, c. 733, s. 9.

327. No formal language required. The negotiable instrument need not follow the language of this chapter, but any terms are sufficient which clearly indicate an intention to conform to the requirements hereof.

C. S., s. 2991; Rev., s. 2160; 1899, c. 733, s. 10.

328. Presumption as to date. Where the instrument or an acceptance or any indorsement thereon is dated, such date is deemed prima facie to be the true date of the making, drawing, acceptance or indorsement, as the case may be.

C. S., s. 2992; Rev., s. 2161; 1899, c. 733, s. 11.

329. Antedated and postdated. The instrument is not invalid for the reason only that it is antedated or postdated, provided that this is not done for an illegal or fraudulent purpose. The