after three years, if within this period no demands or judicial pursuits have been made.

Payments made to account on a bill of exchange, go so far to Part payment. extinguish the obligation on the drawer and indorsers. The

holder is bound to get the bill protested for the surplus.

The judges cannot grant any delay for the payment of a bill

of exchange (a).

Germany. The holder of the bill must prove himself to be the owner of the same by a connected series of indorsements going down to his own name. The first indorsement must, therefore, be signed with the name of the payee, and every following indorsement with the name of the party designated by the preceding indorsement as indorsee. If a further indorsement follows a blank indorsement, it will be understood that the issuer of the former has acquired the bill by the blank indorsement. Any indorsement properly cancelled is regarded as if it was not written, provided the same has been cancelled by the proper party. The payer is not bound to examine the authenticity of the indorsements. If a bill be issued for a specie of coin that has no circulation at the place of payment, or for a standard which has no corresponding coin, the bill may be paid in the money of the country, according to its value on the day of payment, provided the drawer did not expressly require the payment of the bill to be made in the species of coin therein designated, by his employing the word "effective," or any other expression to the same effect. The holder of the bill is not entitled to refuse partial payment if offered to him, even when the bill was accepted for the whole sum. The drawee is only bound to pay on the delivery of the bill receipted. When he makes a partial payment, he can only request that payment to be acknowledged on the bill, and a receipt given to him, or a copy of the same. If the payment of a bill is not demanded on the day of payment, the acceptor is entitled, after the time appointed for the protest for non-payment has elapsed, to deposit at the risk and expense of the holder, the amount of the bill in a court of justice or other establishment authorised to receive such deposits of money. It is not necessary to summons the holder before such deposit is made (b).

(a) French Code, §§ 143-157.

(b) German Law, §§ 36-40.

In what money the bill should

be paid.

Payment of lost or stolen bills.

Holland.-A bill of exchange must be paid in the money indicated in the bill. If, however, the money alluded to is not legally current in the kingdom, and no mention of its course has been made in the bill, payment must be made in the national coin, at the course of exchange of the time when the bill falls due, and of the place where it is payable; and if there be no course of exchange in that locality, then according to that of the commercial place nearest to that where the bill is to be discharged. If the money expressed in a bill of exchange has by legal enactment increased or decreased in value in the place where it is payable, between the time the bill was issued, and the time when it falls due, then the payment of the bill, and, in case of non-payment, the right of recourse against the drawer and indorsers, are regulated according to the value of the money when the bill was issued. The rule of the civil code on the subject being that the obligation which results from a loan of money is never more than the sum stated in the contract. And that if there has been any augmentation or diminution of specie before the time of payment, the debtor is bound to pay the sum lent only, and in the specie in course at the time of payment. The same regulations are applicable, if the value of the specie should be increased or decreased before the bill of exchange was issued, where the drawer was not in a position to know such change in value. The party who pays or discounts a bill before it becomes due, is responsible for the validity of the payment. The regulations in case of a lost bill are the same as those in the French and Portuguese codes (a).

Spain. A bill of exchange should be paid in the money indicated in the bill. If it be issued in money of a special currency, it must be converted into the coin of the country where it is payable. No refusal can be made to the payment of a bill of exchange, excepting in case of loss or theft of the bill, or bankruptcy of the holder. In such cases, a well-known person may, during the remainder of the day of presentation, order the payment to be delayed; but notice of the objection must be given on the same day.

Should a well-known person induce the debtor on a bill of exchange to stop the payment of the amount for any of the pre

(a) Dutch Code of Commerce, §§ 149-174.

ceding causes, the payment shall be deferred during the entire day of presentation, unless notice of objection shall have been given. The holder of a bill who claims payment is compelled, if the drawee or maker exacts it, to prove his identity.

Anticipated payments are valid on bills of exchange not yet fallen due, with or without discount, unless the debtor has become bankrupt within the fifteen days which have preceded the payment. No partial payment can take place without the Partial payconsent of the holder. In such case the bill may be protested for the amount not paid, and the holder shall keep it in his hand, noting upon it the sum paid, and "giving a separate receipt.

ment.

lost bills.

The holder of another copy than the one on which acceptance has been demanded, cannot exact the payment of it unless he guarantee the value by giving security. If the acceptor should demur to it, the bill should be protested for non-payment. The guarantee ceases as soon as the liability on the acceptance lapses through prescription. Bills not accepted can only be paid after their maturity, and not before, on a second, third, or other copy. No payment can be validly made on copies of the Payment on copies of bills. bills delivered by the indorsers, unless the bearer adds to it one of the copies delivered by the drawer. He who has lost a bill Payment of of exchange, whether accepted or not, and cannot exhibit any other copy of it, can only demand of the debtor to deposit the amount of it. In case of refusal to pay, the owner of the lost bill preserves his rights by an act of protest, in the same form as a protest in default of payment. If the lost bill had been drawn out of the kingdom, or beyond the seas, and the holder proves his ownership by his books, and the letters of the person from whom he received the bill, or by the certificate of the broker who is concerned in the negotiation, he may demand the amount by giving a sufficient security, to continue in force till the presentation of the copy of the bill given to him by the drawer (a).

(a) Spanish Code, §§ 494-510.

Foreign bills must be protested for nonpayment.

Who should protest.

Where and

when the bill should be protested.

Inland bills need not be protested.

SECTION XIII.

PROTEST FOR NON-PAYMENT.

BRITISH LAW.

When the drawee neglects or refuses to pay a foreign bill when due, the holder must cause the bill to be duly protested; the protest being a formal declaration of a new presentment for payment by a public notary, who thereupon makes a minute consisting of his initials, the month, and the year, and the reason for non-payment.

The protest should be made out by a notary-public, or if there be no notary in or near the place where the bill is payable, by an inhabitant in the presence of two witnesses (a). Every consul at any foreign port or place, has power to do all such notarial acts as any notary-public may do (b). And any person residing at any place distant more than ten miles from the Royal Exchange, in the City of London, who shall have been previously admitted as attorney or solicitor, may be a notary-public (c).

The bill must be protested for non-payment at the place where the dishonour occurred (d), and though the noting should be done on the very day of refusal, the protest may be drawn any day after by the notary, dating it the day when the noting was made (e). The protest of any bill or note must be stamped, the following being the duties:-Protest of any bill not amounting to £20,-2s. ; amounting to £20, and not amounting to £100,-38.; amounting to £100, and not amounting to £500, -58.; amounting to £500 or upwards,-10s.

An inland bill need not be protested (ƒ), and in Scotland a protest of inland bill is no longer necessary, except where it is intended to proceed by summary diligence (g).

FOREIGN LAWS.

notaries.

France.-The drawer, indorsers, and securities, are responsi- Protest. ble for the payment of the bill, because they have not only sold a credit, but they have promised that the same shall be paid by the drawee. But as each of them has promised to pay only in case the drawee should not pay, it is necessary to give proof of such a refusal, and to show the cause of it, whether it be death, absence, or bankruptcy. The special act which furnishes this proof is the protest. The protest may be effectually done by a notary or usher without witnesses. It must contain a literal copy of the bill, and note the presence or absence of the party who was to have paid, and the motive of his refusal, if he gives any. When the officer has presented himself at proper hours he may leave the protest with whomsoever he finds in the house. Should the drawee pay after the protest he would have to pay the expense. The notaries are required to leave Duties of an exact copy of the protest with the parties themselves, and to enter it in a special register kept in due form. The protest for non-payment must be made the day after the bill became due, the whole of that day being granted to the holder to take necessary steps to obtain the payment. If the day following the day of maturity is Sunday or holiday, the protest must be made the day after. The object of the protest is to show that the holder has taken care to have the bill presented for payment the day it became due, and that the same was refused. If it be proved that the holder did not present the bill on the day of maturity, and that the drawee failed the day following, or the day when the protest was made, he would lose all right of recourse. The officer must present himself to the drawee, whether he has accepted the bill or not. If the bill has been accepted payable at another place than the domicile of the Where the protest should drawee, the protest must be made at the place so indicated. be made. When the bill has been accepted by a third party for honour, the protest must be made both at the domicile of the drawee and in that of the third party. Where there are persons indicated to pay the bill in case of need, the protest must be also made at the domicile of such persons. All these steps must be taken in the same day, but the holder is only required to take due diligence. Where the notary charged to protest does not