PRESENTMENT the production of a bill of exchange to the drawee for his acceptance, or to the drawee or

acceptor for payment or the production of a PN to the party liable for the payment of the same. (Sec. 70)
PRESENTMENT FOR PAYMENT CONSISTS OF:
1. personal demand for payment at the proper place; and
2. readiness to exhibit the instrument if required, and to receive payment and to surrender the instrument if the debtor is
willing to pay.

Note: Hindi na required ang presentment if the drawer and the drawee is
considered a maker HE IS LIABLE
WHEN PRESENTMENT FOR PAYMENT SHOULD BE MADE:
1. Promissory note payable on demand: within reasonable time after its issue;
2. Bill of exchange payable on demand: within reasonable time after its last negotiation;
3. Instrument payable on a specified date: on the date it falls due. (Sec. 71)

What happens if the presentment is done BEFORE the instrument is due?

It was held in William State Bank vs. Clark 208 Pac. 549
that it is not effective and is considered as an improper
presentment.

1.
2.
3.
4.

WHAT CONSTITUTES SUFFICIENT PRESENTMENT:

made by the holder or any person authorized to receive payment on his behalf;
at a reasonable hour on a business day;
at a proper place;
to the person primarily liable or if he is absent or inaccessible, to any person found at the place where the
presentment is made. (Sec. 72)

PRESENTMENT FOR PAYMENT IS MADE AT A PROPER PLACE WHERE:

1. the instrument is presented at the place specified;
2. no place is specified, and the address of the person to make payment is given, and it is there presented;
3. no place is specified, no address is given, and it is presented at the usual place of business or residence of the person
to make payment;
4. 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. (Sec. 73)
[Sec 74]
Valid presentment requires personal or face-to-face demand, at the proper place,
exhibiting the instrument to the maker/acceptor from whom payment is demanded. When
paid, the instrument must be delivered up to the party paying it.

If the instrument is not exhibited, the presentment would be ineffectual, as the

debtor is entitled to see the instrument and demand its surrender upon payment.
Thus, the purpose of exhibition is to enable the debtor:

PURPOSE OF EXHIBITION:

1.To enable the debtor to: determine the genuineness of the instrument and the right of the holder to receive
payment;and
2. to enable him to reclaim possession upon payment.

WHEN EXHIBITION EXCUSED:

1. when debtor does not demand to see the instrument but refuses payment on some other grounds, and
2. when the instrument is lost or destroyed.

If no exhibition **The presentment would be ineffectual *Exhibition is not necessary if the

exhibition is demanded or waived.

61. General rule: Presentment for payment necessary to charge persons secondarily liable
otherwise they are discharged:

Instrument payable at a bank must be made during banking hours unless there are no funds to meet it at any time
during the day, presentment at any hour before the bank is closed on that day is sufficient. (Sec. 75)
If the person liable is dead, presentment may be made to his personal representative, if there be one, and if he can
be found. (Sec. 76)
PRESENTMENT FOR PAYMENT IS NOT REQUIRED:
1. in order to charge the drawer where he has no right to expect or require that the drawee or acceptor will pay the
instrument;(Sec. 79)
2. in order to charge an indorser when the instrument was made or accepted for his accommodation and he has no
reason to expect that the instrument will be paid if presented. (Sec. 80)
WHEN DELAY IN MAKING PRESENTMENT OR OF GIVING NOTICE IS EXCUSED:
1. when caused by circumstances beyond the control of the holder; and

2. not imputable to his default, misconduct, or negligence. (Sec. 81)

WHEN PRESENTMENT FOR PAYMENT IS EXCUSED:
1. after exercise of reasonable diligence, it cannot be made;
2. drawee is a fictitious person;
3. express or implied waiver. (Sec. 82)
THE INSTRUMENT IS DISHONORED BY NON-PAYMENT WHEN:
1. It is duly presented for payment and payment is refused or cannot be obtained;
2. Presentment is excused and the instrument is overdue and unpaid. (Sec. 83)
When instrument is dishonored by non-payment, there is an immediate right of recourse by the holder against
persons secondarily liable. However, notice of dishonor is generally required. (Sec. 84)

1. Presentment for payment is not necessary to charge the person primarily liable **BUT
THIS IS APPLICABLE ONLY TO NOTES PAYABLE ON DEMAND.
2. Suit may be maintained though no presentment or demand for payment has been made.
What is the effect if presentment is not made?
It will not affect the holder but it might put him in the risk if the drawee is INSOLVENT.
Who are secondarily liable? **The drawer and indorsers.
Can the holder go directly after the persons secondarily liable?
**No, demand for payment must first be made upon the
person primarily liable.
What happens if the instrument was not presented to the person primarily liable?
**The secondarily liable parties are discharged (unless presentment is excused).
Note: Notice of non-acceptance or non-payment must begiven to drawers and indorsers,
otherwise kapag hindi sila nabigyan ng notice, they will be RELEASED from liability.