Negotiable Instrument Sample With Payment
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( ACT NO. XXVI OF 1881 ) 78. Subject to the provisions of section 82, clause (c), payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge the maker or acceptor, be made to the holder of the instrument.
A common example of an order paper is a personal check. When a person writes a personal check, they name a specific payee on the payee line, which is preceded by the phrase ?pay to the order of.? Only the payee named on this line is entitled to receive payment in the monetary amount specified on the check.
The holder presents a note to the maker of the note, while a holder of a draft presents the draft to the third-party payor (such as a drawee bank). The person making presentment must exhibit the instrument, give reasonable identification, and surrender the instrument.
Examples of negotiable instruments include bank checks, promissory notes, certificates of deposit, and bills of exchange.
Presentment for payment must be made during the usual hours of business, and, if at a banker's within banking hours. 66. A promissory note or bill of exchange, made payable at a specified period after date or sight thereof, must be presented for payment at maturity. 67.