Академический Документы
Профессиональный Документы
Культура Документы
Meaning of a holder
Sec. 51
Sec. 26. What constitutes
holder for value. Where value
has at any time been given for
the instrument, the holder is
deemed a holder for value in
respect to all parties who
become such prior to that time.
-
3.
Classes of Holders
Holders
simply
Holders for
value
Holders in due
course
He
takes
the
instrument free of
most defenses, or
adverse claims to it by
other parties.
c.
Shows
the
commercial
importance of due
course holding.
Principles of public
policy, with regard to
the
utility,
free
circulation, and credit
of negotiable paper in
the commercial world
Protection of holder
in due course as an
estoppel
(1) To sue
(2) To receive payment
Payment in due course (if, then instrument is
discharged) payment made at or after the
maturity of the instrument to the holder thereof
in good faith and without notice that his title is
defective. (Sec.88)
2.
3.
B.
Rules:
(a) Authority to fill up the blanks
i.
Holder/person in possession
ii.
Material particular any particular
proper to be inserted in a negotiable
instrument to make it complete
iii.
Authority to complete is not authority to
alter. Neither may authority be
presumed, unless the character of the
instrument directly indicates it, to add at
the end of the instrument the words
with interest.
(b) Authority to put any amount
i.
If a blank document is delivered by the
person making the signature, the holder
has prima facie authority to fill it up for
any amount if the person making the
signature intended to convert it into a
negotiable instrument.
ii.
The person who signed his name has the
burden to rebut the presumption.
iii.
reasonable time reckoned from the
time of the issuance of the instrument
(because the interest involved is that of
the issuer, and not from the time of each
successive negotiation)
2.
ii.
iii.
4.
C.
Cases:
Pavilis vs. Livestock Co., 68 S.D. 96 (S.D. 1941)
(Check:
https://casetext.com/case/pavilis-vlivestock-co )
Weiner vs. Pennsylvania Co., 160 Pa Super 320
(Check:
https://casetext.com/case/weiner-v-thepenna-co-etc)
Linick vs. A.J. Nutting & Co., 125 N.Y.S. 93 (Check:
https://casetext.com/case/linick-v-nutting-co )
Bank of America NT & SA vs. Phil. Racing Club,
G.R. No. 150228, July 30, 2009.
Samson Ching vs. Nicdao, G.R. No. 141181, April
27, 2007.
Rules
(a) GR: DELIVERY- to give effect to the instrument;
means transfer of possession, actual or
constructive, from one person to another with
intent to transfer title thereto
(b)
(c)
(d)
(e)
1.
IV.
INTERPRETATION OF INSTRUMENTS
A. CONSTRUCTION
WHERE
AMBIGUOUS Sec. 17
1.
B.
Cases:
INSTRUMENT
IS