Lawyers Oath I _________ do solemnly swear that I will maintain allegiance to the Republic of the Philippines.

I will support its Constitution and obey the laws as well as the legal orders of the duly constituted authorities therein;

1. Signature of any party may be made my a duly authorized agent 2. No particular form of appointment is necessary 3. Authority of the agent may be established as in other cases of agency

Sec.184 DEFINITION OF A PROMISSORY NOTE I will do no falsehood, nor consent to the doing of any in court; 1. An unconditional promise in writing I will not willingly or wittingly sue any groundless, false or unlawful suit nor give aid, nor consent to the same; I will delay no man for money or malice, and will conduct myself as a lawyer according to the best of my knowledge and discretion with all good fidelity as well to the courts as my clients. And I impose upon myself this voluntary obligation without mental reservation or purpose of evasion. So help me God. 2. Made by one person to another 3. Signed by the maker 4. Engaging to pay upon demand or at a fixed or determinable future time. 5. A sum certain in money to order or to bearer. Parties to Promissory Note Sec.1 FORM OF NEGOTIABLE INSTRUMENTS An instrument to be negotiable must conform to the following requirements (a) It must be in writing and signed by the maker or drawer. (b) Must contain an unconditional promise or order to pay a sum certain in money. (c) Must be payable upon demand or at a fixed or determinable future time. 3. Signed by the person giving it (drawer) (d) Must be payable to order or to bearer and (e) When the instrument is addressed to a drawee, he must be named or otherwise indicated with reasonable certainty. Sec.18 TRADE OR ASSUMED NAME PARTIES TO A BILL OF EXCHANGE x x x One who signs in a trade or assumed name will be liable to the same extent as if he signed his own name. Sec.19 SIGNATURE BY AGENT 1. Drawer 2. Drawee 4. Requiring the person to whom it is addressed (drawee) to pay on demand or at a fixed or determinable future time 5. A Sum certain in money to order or to bearer. 1. Maker 2. Payee Sec.126 DEFINITION OF A BILL OF EXCHANGE 1. An unconditional order in writing 2. Addressed by one person (drawer) to another (drawee)

3. Payee Sec.3 WHEN PROMISE IS UNCONDITIONAL A promise is unconditional although coupled with: 1. An indication of a particular fund out of which reimbursement is to be made 2. An indication of a particular account to be debited with the amount 3. Statement of the transaction which gives rise to the instrument

3. On or at a fixed period after the occurrence of a specified event (which is certain to happen although the time of the happening is uncertain) 4. Payable upon contingency is NOT negotiable

Sec. 11. PRESUMPTION AS TO DATE When an instrument/acceptance/indorsement is dated such date is prima facie to be the true date of the making/drawing/acceptance/indorsement Section 17. CONSTRUCTION WHEN INSTRUMENT IS AMBIGUOUS

Sec.2 WHAT CONSTITUTES A CERTAINTY AS TO SUM Sum payable be certain although it is to be paid a) with interest b) stated installment c) stated installment with provision that upon default in payment (installment/interest) the whole shall become due d) with Exchange, whether at current or fixed rate e) with costs of collection or Attorneys fees in case payment shall not be on maturity Sec.7 WHEN PAYABLE ON DEMAND 1. Expressed to be payable upon demand, sight or presentation 2. Where NO TIME for payment is expressed 3. An instrument issued, accepted or indorsed when overdue is payable on demand as to the person issuing, accepting or indorsing. Sec.4 WHAT CONSTITUTES DETERMINABLE FUTURE TIME 1. At a fixed period after date or sight 2. On or before a fixed or determinable future time

a.) where the sum payable is expressed in words and figures and there is a discrepancy, the sum denoted in words is the sum payable. b.) When there is interest and no date is specified when it will run: the interest runs from the date of the instrument or the date of issue if the instrument is undated. c.) Where the instrument is not dated it will be dated as of the time it was issued. d.) Where there is a conflict between the written and printed provisions of the instrument, the written provisions will prevail. e.) Where the instrument is ambiguous whether it is a bill or a note, the holder may treat it at his election. f.) Where a signature is placed and it is not clear in what capacity, he is deemed to be an indorser. g.) If an instrument contain the words I promise to pay and signed by two or more persons they are jointly and severally liable. Sec.8 WHEN PAYABLE TO ORDER 1. Payable to the order of a specified person 2. Payee who is not the maker, drawer or drawee 3. Maker or drawer 4. Drawee

5. 2 or more payees jointly 6. 1 or more several payees 7. Holder of an office for the time being

4. Gives the holder an election to require something to be done in lieu of payment of money Sec.6 OMMISSIONS, SEAL, PARTICULAR MONEY Validity is not affected by a. It is not date

Sec.9 WHEN PAYABLE TO BEARER b. Does not specify the value given or that any value had been given 1. Expressed c. 2. Payable to Person named therein or bearer 3. Payable to order of a ficititious/non-existent person and such fact is known to the person making it payable 4. Name of payee does not purport to be the name of any person 5. When only or last indorsement is indorsement in blank. Sec.128 BILL ADDRESSED TO MORE THAN ONE DRAWEE Bill MAY BE addressed to two or more drawees jointly but not in the alternative or in succession. Sec.130 WHEN BILL MAY BE TREATED AS A PROMISSORY NOTE 1. Drawer and drawee are the same person 2. Drawee is a fictitious person 3. Drawee is a person not having capacity to contract Sec.5 PROVISIONS NOT AFFECTING NEGOTIABILITY 1. Authorizes the sale of collateral securities in case the instrument be not paid at maturity 2. Authorizes a confession of judgment if the instrument be not paid at maturity 3. Waives the benefit of any law intended for the advantage or protection of the obligor. Sec.191 DEFINITION OF TERMS Acceptance an acceptance completed by delivery or notification Action includes counterclaim and set-off Bank any person or association of persons carrying on the business of banking whether incorporated or not. Bearer person in possession of a bill or note which is payable to bearer Bill bill of exchange If payable to bearer negotiated by delivery If payable to order negotiated by the indorsement of holder; completed by delivery Does not specify the place where it is drawn or the place where it is payable

d. Bears a seal e. Designates particular kind of current money in which payment is to be made. Sec. 16. DELIVERY WHEN EFFECTUAL Every contract on a negotiable instrument is incomplete and revocable until delivery of the instrument for the purpose of giving effect thereto. Sec.30 WHAT CONSTITUTES NEGOTIATION An instrument is negotiated when it is transferred from one person to another in such manner as to constitute the holder thereof

Note negotiable promissory note Delivery transfer of possession, actual or constructive, from one person to another Holder payee or indorser of a bill or note who is in possession of it, or the bearer therof Indorsement indorsement completed by delivery Instrument means negotiable instrument Issue first delivery of the instrument, complete in form, to a person who takes it as a holder Person includes a body of persons, whether incorporated or not Value means valuable consideration Written includes printed Print includes writing

In Blank Restrictive Qualified Conditional

Sec.34 SPECIAL INDORSEMENT; INDORSEMENT IN BLANK Special Indorsement - specifies the person to whom/whose order the instrument is to be payable - Indorsement of such person is necessary for further negotiation Indorsement in Blank - specifies no indorsee - payable to bearer - negotiated by delivery Sec.40 INDORSEMENT OF INSTRUMENT PAYABLE TO BEARER Instrument payable to bearer is indorsed specially - may be further negotiated by delivery - person indorsing specially is LIABLE as indorser to only such holders as make title through his indorsement Sec.35 HOW TO CHANGE BLANK INDORSEMENT TO SPECIAL INDORSEMENT - By writing over the signature of the indorser in blank any contract consistent with the character of the indorsement. Sec. 38 QUALIFIED INDORSEMENT Constitutes the indorser a mere assignor of the title of the instrument May be made by adding the words without recourse or any words of similar import Does not impair negotiable character

Sec.31 HOW TO MAKE AN INDORSEMENT The indorsement must be written on the instrument itself or upon a paper attached thereto. Signature of indorser is sufficient. Sec.43 MISSPELLED NAME If name of payee is misspelled he may indorse adding, if he thinks fit, his proper signature. Sec. 32 INDORSEMENT MUST BE OF ENTIRE INSTRUMENT Indorsement must be of entire instrument Indorsement that does not operate as a negotiation of instrument o Transfer a part only of the amount payable o Transfer to two or more indorsees severally Indorsement paid in part may be indorsed as to the residue

Sec.39 CONDITIONAL INDORSEMENT party required to pay may disregard condition and pay the the indorsee or transferee whether the conditions have been fulfilled or not person to whom the instrument so indorsed is negotiated will hold the same, or the proceeds thereof, subject to the rights of the person indorsing conditionally

Sec.33 KINDS OF INDORSEMENT Special

Sec.45. PRESUMPTION AS TO TIME OF INDORSEMENT Sec.36 WHEN INDORSEMENT IS RESTRICTIVE a) Prohibits further negotiation of the instrument b) Constitutes the indorsee as agent of the indorser c) Vests the title in the indorsee in trust for or to the use of some other person d) Mere absence of words implying power to negotiate DOES NOT make indorsement restrictive Sec.37 EFFECT OF RESTRICTIVE INDORSEMENT; RIGHTS OF INDORSEE a) to receive payment of the instrument b) to bring any action thereon that the indorser could bring c) to transfer his rights as such indorsee where the form of the instrument authorizes him to do so. d) All subsequent indorsees acquire only the title of the first indorsee under the restrictive indorsement Sec. 41 INDORSEMENT WHERE PAYABLE TO TWO OR MORE PERSONS All must indorse unless the one indorsing has authority to indorse for others. instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed or discharged by payment or service. Deemed prima facie to be payable to the bank or corporation of which he is such officer May be negotiated by either the indorsement of the bank or corporation or the indorsement of the officer. Except where indorsement bears date after the maturity of the instrument Every negotiation is deemed prima facie to have been effected before instrument was overdue. Sec.46. PRESUMPTION AS TO PLACE OF INDORSEMENT Except where the contrary appears. Every indorsement is presumed to have been made where the instrument is dated Sec.42 EFFECT OF INSTRUMENT DRAWN OR INDORSED TO A PERSON AS CASHIER

Sec. 47 CONTINUATION OF NEGOTIABLE CHARACTER

SEC.52 WHAT CONSTITUTES A HOLDER IN DUE COURSE Sec.49 EFFECT OF TRANSFER WITHOUT INDORSEMENT a) THAT IT IS COMPLETE AND REGULAR UPON ITS FACE Transferor vests in the transferee such title as the transferor had Transferee acquires the right to have the indorsement of the transferor For the purpose of whether transferee is a holder in due course: negotiation takes effect as of the time when the indorsement is actually made. b) THAT HE BECAME THE HOLDER OF IT BEGORE IT WAS OVERDUE, AND WITHOUT NOTICE THAT IT HAS BEEN PREVIOUSLY DISHONORED, IF SUCH WAS THE FACT; c) THAT HE TOOK IN GOOD FAITH AND FOR VALUE d) THAT AT THE TIME IT WAS NEGOTIATED TO HIM, HE HAD NO NOTICE OF ANY INFIRMITY IN THE INSTRUMENT OR DEFECT IN THE TITLE OF THE PERSON NEGOTIATING IT Sec.57 RIGHTS OF A HOLDER IN DUE COURSE

Sec.48 STRIKING OUT INDORSEMENT Holder may strike out any unnecessary indorsement Indorser whose name is struck out and all indorsers subsequent to him are relieved from liability.

Free from any defect of title of prior parties Free from defenses of prior parties among themselves May enforce payment for the full amount against all parties liable

1. He obtained the instrument, or any signature thereto, by fraud, duress, or force and fear, or other unlawful means 2. Or for an illegal consideration

Sec.58 WHEN SUBJECT TO ORIGINAL DEFENSE In the hands of a holder not a holder in due course: - negotiable instrument is subject to the defenses as if it were nonnegotiable - But a holder who derives his title through a holder in due course o And is not a party to any fraud or illegality affecting the instrument o Has all the rights of such former holder in respect of all parties prior to the latter Sec.24 PRESUMPTION OF CONSIDERATION Every negotiable instrument is deemed prima facie to have been issued for a valuable consideration Every person whose signature appears thereon to have become a party thereto for value

3. When he negotiates it in breach of faith 4. Under such circumstances as amount to a fraud Sec.56 WHAT CONSTITUTES NOTICE OF DEFECT To constitute notice of an infirmity in the instrument or defect in the title of the person negotiating the same, the person to whom it is negotiated must have: had actual knowledge of the infirmity or defect knowledge of such facts that his action in taking the instrument amounted to bad faith.

Sec.54 NOTICE BEFORE FULL AMOUNT IS PAID Where the transferee receives notice of any infirmity in the instrument or defect in the title of the person negotiating the same before he has paid the full amount agreed to be paid for, he will be deemed a holder in due course only to the extent of the amount therefore paid by him.

Sec.25 WHAT CONSTITUTES VALUE Value is any consideration sufficient to support a simple contract An antecedent or pre-existing debt constitutes value Deemed such whether the instrument is payable on demand or at a future time

Sec.29 LIABILITY OF ACCOMMODATION PARTY An accommodation party is one who has signed the instrument as maker, drawer, acceptor or indorser without receiving value therefore For the purpose of lending his name to some other person Person is liable on the instrument to a holder for value Notwithstanding, such holder, knew him only to be an accommodation party at the time of the taking.

Sec.26 WHAT CONSTITUTES HOLDER FOR VALUE Where value has at any time been given for the instrument deemed a holder for value in respect to all parties who become such prior to that time.

Sec.27 WHEN LIEN ON INSTRUMENT CONSTITUTES HOLDER FOR VALUE - where the holder has a lien on the instrument arising either from contract or implication of law, he is deemed a holder for value to the extent of his lien. Sec.55 WHEN TITLE DEFECTIVE The title of a person who negotiates an instrument is defective within the meaning of this Act when: