Section 903.- No days of grace are allowed for the payment of a bill.

 

Section 904.- Holder means a person who is in possession of a bill as a payee or endorsee, or the bearer of the bill if the bill is payable to bearer.

 

 Section 905.- Subject to the provisions of Section 1008 the possessor of a bill is deemed to be the lawful holder if he shows his title through an uninterrupted series of indorsement, even if the last indorsement is in blank. When an indorsement in blank is followed by another indorsement, the person who signed this last indorsement is deemed to have acquired the bill by the indorsement in blank. Cancelled indorsements are deemed to be non-existent.

Where a person has been dispossessed of a bill, the holder, who shows his right thereto in the manner mentioned in the foregoing paragraph, is not bound to give up the bill unless he has acquired it in bad faith, or unless in acquiring it, he has been guilty of gross negligence.

The foregoing paragraph applies also to the holder of a bill payable to bearer.

 

Section 906.- The expression prior parties includes the drawer or maker of the bill and the prior indorsers.

 

Section 907.- When there is no room on a bill for further indorsement, a slip of paper, called an allonge, may be attached thereto. It becomes part of the bill.

The first endorsement on the allonge must be written partly on the bill itself and partly on the allonge.

 

CHAPTER II

BILLS OF EXCHANGE

PART I

DRAWING AND ENDORSEMENT

 

Section 908.- A bill of exchange is a written instrument by which a person, called the drawer, orders another person, called the drawee, to pay a sum of money to, or to the order of, a person, called payee.

 

Section 909.- A bill of exchange must contain the following particulars :

(1)   The designation of it as a bill of exchange ;

(2)   An unconditional order to pay a sum certain in money ;

(3)   The name or trade name of the drawee ;

(4)   A day of maturity ;

(5)   The place of payment ;

(6)   The name or trade name of the payee, or a mention that it is payable to bearer ;

(7)   The date and place where the bill is issued ;

(8)   The signature of the drawer.