Presentment where instrument is not payable on demand and payable on demand

Sec. 71. Presentment where instrument is not payable on demand and  where  payable  on  demand.  -  Where  the  instrument  is  not payable on demand, presentment must be made on the day it falls due.  Where  it  is  payable  on  demand,  presentment  must  be  made within a reasonable time after its issue, except that in the case of a bill of exchange, presentment for payment will be sufficient if made within a reasonable time after the last negotiation thereof.
 

WHEN PAYABLE AT A FIXED OR DETERMINABLE FUTURE TIME

•      The presentment must be made at the date of maturity
 

WHEN PAYABLE ON DEMAND IN CASE OF NOTES

•      The time for presentment depends upon whether the  instrument is  a bill or a note
•      If it is a note, it must be presented for payment within reasonable time for issue
•      If it is a bill, it must be presented for payment within reasonable time from last negotiation and not for issue, as in the case of notes
 
CASE DIGESTS: SECTION 71

 

FACTS:

Private  respondents  approached  petitioner  and  asked  the  latter  to  extend to  them  an  accommodation  loan.    They  proposed  to  pay  with  interest.  They  even  gave  a  check,  signed  by  Tat,  drawn  against  Chinabank,  and signed  at  the  back  by  the  private  respondents.    They  said  that  they  will change the check with cash after one month and if not, the check could be presented  for  payment  and  it  would  be  paid.    The  loan  was  actually extended  but  when  the  check  was  presented  for  payment,  it  was dishonored—the account on which it is drawn has long been closed.   The
trial courts held in favor of petitioner but this was reversed by the appellate court  by  ruling  that  the  check  has  passed  through  other  hands  before reaching  the  petitioner  and  the  said  check  wasn’t  presented  within reasonable time and after its issuance.
 

HELD:

Where  the  instrument  is  not  payable  on  demand,  presentment  must  be made on the day it falls due.  Where it is payable on demand, presentment must be made within a reasonable time after issue, except that in case of a bill  of  exchange,  presentment  for  payment  is  sufficient  if  made  within
reasonable time after the last negotiation thereof.
 
Notice  may  be  given  as  soon  as  instrument  has  been  dishonored  and unless delay is excused must be given within the time fixed by law.   
 
In  this  case,  presentment  and  notice  of  dishonor  were  not  made  within reasonable time.
 
September 1960—date when the check was drawn
March 1964—presented to drawee bank
April 1968—notice of dishonor