CHAPTER VI:

PRESENTMENT

Bihag, Kristel Jane

Butastas, Marcia
Lacida, Lara Mae
Singanon, Rexile Tashanny
Tan, Shannen Keisha

WHAT IS PRESENTMENT FOR

PAYMENT?
The presentation of an instrument,
i.e., promissory note or bill, to the
person primarily liable for the
purpose of demanding and receiving
payment

SECTION 70
Presentment for payment to
person primarily liable not necessary
Presentment for payment to
persons secondarily liable necessary

SECTION 71 DATE OF
PRESENTMENT OF THE
INSTRUMENT
Payable at a fixed or determinable
future time
Payable on demand
Reasonable time after issue
Reasonable time after last negotiation

SECTION 72 REQUISITES
FOR A SUFFICIENT
PRESENTMENT
Must be made by the holder or by some person
authorized to receive payment on his behalf;
Must be made at a reasonable hour on a business
day;
Must be made at a proper place as herein defined;
Must be made to the person primarily liable on the
instrument or if he is absent or inaccessible, to any
person found at the place where presentment is made

SECTION 73 PROPER
PLACE OF PRESENTMENT
Place of payment is specified in the instrument;
No place of payment is specified, but the address of the person to
make payment is given in the instrument;
No place of payment is specified and no address is given and the
instrument is presented at the usual place of business or residence
of the person to make payment;
In any other case if presented to the person to make payment
wherever he can be found or if presented at his last known place of
business or residence

SECTION 74
Instrument must be exhibited

SEC. 75 PRESENTMENT
WHERE INSTRUMENT
PAYABLE AT BANK
Equivalent to an order to bank to make
payment
Presentment for payment must be made
during banking hours.

TO WHOM PRESENTMENT BE
MADE IF NO PLACE IS
SPECIFIED AND:
Principal Debtor is dead?
Persons liable are partners?
Persons liable are not partners?

PRINCIPAL DEBTOR IS DEAD? (SEC.

76)

Presentment must be made to his personal

representative, if there is one, and if with the
exercise of reasonable diligence, he can be
found.

PERSONS LIABLE ARE

PARTNERS? (SEC. 77)
Presentment may be made to any one of
them, even though there has been a
dissolution of the firm.

PERSONS LIABLE ARE NOT

PARTNERS?
(SEC. 78)
Presentment must be made to them all,
unless one is authorized by the others.

SEC. 79 WHEN PRESENTMENT

NOT REQUIRED IN ORDER TO
CHARGE THE DRAWER
When he has no right to require/expect that
the drawer or acceptor will pay the instrument

INSTANCES ARE:
He has no funds with the drawer unless
arrangement has been made
He has stopped payment of the check
He has withdrawn all funds from drawee
bank
Drawer and drawee are the same person

TIME OF MATURITY
Section 85:
Every Negotiable Instrument is payable at the time
fixed therein without grace.
When the day of maturity falls upon Sunday or a
holiday, the instrument is payable on the next
succeeding business day.
Instruments falling due or becoming payable on
Saturday are to be presented for payment on the
next succeeding business day except that

TIME OF MATURITY

Section 85:
1. Every Negotiable Instrument is payable at the time fixed
therein without grace.
. -if grace is provided in the instrument, the instrument is
payable on the last day of the grace.
.Example:
.An instrument payable on September 26, 2016 must be
presented for payment on September 26,2016. It shall be
considered dishonored if it is not paid on that date.
.-IF a grace period of 3 days is provided in the instrument, then
the presentment must be made on September 29, 2016, the

TIME OF MATURITY
Section 85:
2. When the day of maturity falls upon Sunday or a
holiday, the instrument is payable on the next
succeeding business day.
WHY?
Example:
If in the preceding example, September 26, 2016 is
a Sunday or a holiday, the holder must present the
instrument on the next succeeding business day.

TIME OF MATURITY
Section 85:
3. General Rule: Instruments falling due or
becoming payable on Saturday are to be presented
for payment on the next succeeding business day
Exception: instruments payable on demand may,
at the option of the holder, be presented for
payment before 12:00 noon on Saturday when that
entire day is not a holiday.
WHY for the general rule? WHY for the Exception?

TIME OF MATURITY
Section 85:
Example:
If the instrument falls due on Saturday, being a
time for Instrument, it should be presented on
Monday, or the next succeeding business day if
Monday is a holiday.
*If the instrument is payable on demand and
September 26, 2016 is a Saturday, presentment for
payment may be made before 12:00 noon on

TIME OF MATURITY; HOW

COMPUTED?
Section 86:
Where the instrument is payable at a fixed period
after date, after sight, or after the happening of a
specified event, the time of payment is determined
by excluding the day from which time is to begin to
run (even if the said date is a holiday), and by
including the date of payment.

TIME OF MATURITY; HOW

COMPUTED?
Section 86:
Examples:
1. An instrument dated April 5, 2016 and payable 3
months after date, the due date is July 5, 2016
2. An instrument dated Nov. 8, 2016 and payable
after 12 months, the due date is Nov. 8, 2016
3. But one dated Jan. 31, 2016 and payable one
month after date will mature on Feb. 29 (leap

RULE WHERE INSTRUMENT

PAYABLE AT BANK
Section 87:
Where the instrument is payable at a bank it is
equivalent to an order to the bank to pay the
same for the account of the principal debtor
thereon.
-this section applies only where the instrument

PAYMENT IN DUE COURSE

Section 88:
Payment is made in due course when it is made at
or after the maturity of the instrument to the holder
thereof in good faith and without notice that his
title is defective.
REQUISITES:
1. Payment must be made at or after the date of
maturity.
2. Payment must be made to the holder.