COURSE OUTLINE

NEGOTIABLE INSTRUMENTS LAW

I NATURE AND COVERAGE OF ACT 2031

1. NIL a complete law
2. Function of Negotiable Instruments
3. Principal features of NI
4. Specific Instruments covered
5. Person Primarily protected by NIL

II FORMAL REQUISITES OF NI
1. Instrument must be in writing
2. It must be signed by the maker or drawer
3. It must contain an unconditional promise or order (to pay sum certain in
money)
4. To pay a sum certain in money
5. It must be payable on demand, or at a fixed or determinable future time
6. It must be payable to order or bearer
7. IN bills of exchange, drawee must be named or otherwise indicated
therein with reasonable certainty
8. Provisions or omissions not affecting negotiability (Secs 5 & 6)
9. Construction on Negotiable Instruments (Section 17)

III ISSUANCE OF NEGOTIABLE INSTRUMENTS

1. PRESUMPTION AS TO DATE
2. CONCEPT OF DELIVERY
3. DELIVERED INCOMPLETE INSTRUMENT (Sec 14)
4. INCOMPLETE INSTRUMENT NOT DELIVERED (Sec 15)
5. MECHANICALLY COMPLETE BUT UNDELIVERED INSTRUMENT (Sec 16)

IV SIGNATURE AND FORGERY

1. RULES ON SIGNATORIES
2. FORGERY (Sec 23)
3. ALTERATIONS (Sec 124)

V CONSIDERATION
1. PRESUMPTION
2. IMPORTANCE OF CONSIDERATION
3. WHO IS DEEMED HOLDER FOR VALUE?
4. ABSENCE OR FAILURE OF CONSIDERATION
5. ACCOMMODATION PARTY

VI - NEGOTIATION
1. CONCEPT OF NEGOTIATION
2. THREE TYOES OF TRANSFEREES
3. METHODS OF NEGOTIATION
4. INDORSEMENT
5. KINDS OF INDORSEMENTS
VII - RIGHTS OF HOLDERS
1. CLASSES OF HOLDERS
2. RIGHTS OF TRANSFEREE OF UNENDORSED NEGOTIABLE INSTRUMENT
3. RIGHTS OF HOLDERS IN GENERAL
4. HOLDER IN DUE COURSE

VIII LIABILITIES OF PARTIES

1. LIABILITY OF MAKER (Sec 60)
2. LIABILITY OF DRAWER (Sec 61)
3. LIABILITY OF ACCEPTOR
4. LIABILITY OF AVALISTA
5. LIABILITY OF INDORSER
6. PROCEDURE TO MAKE PERSONS SECONDARILY LIABLE TO PAY

IX PRESENTMENT FOR PAYMENT

1. DEFINITION OF PRESENTMENT
2. GENERAL PROCEDURES TO CHARGE PERSON SECONDARILY LIABLE
3. WHEN PRESENTATION MUST BE MADE
4. WHAT CONSTITUTE SUFFICIENT PRESENTMENT (Sec 72)
5. PLACE OF PRESENTMENT
6. WHEN PRESENTMENT EXCUSED
7. WHEN DELAY IN PRESENTMENT EXCUSED
8. WHAT CONSTITUTE PAYMENT IN DUE COURSE
9. LIABILITY OF PARTIES SECONDARILY LIABLE WHEN INSTRUMENT IS
DISHONORED
10.WHEN AN INSTRUMENT IS DISHONORED BY NON-PAYMENT (Sec 83)

X NOTICE OF DISHONOR
1. WHAT IS NOTICE OF DISHONOR
2. FORM OF NOTICE
3. TO WHOM NOTICE GIVEN
4. TIME WITHIN WHICH NOTICE GIVEN
5. WAIVER OF NOTICE
6. PROTEST

XI DISCHARGE OF NEGOTIABLE INSTRUMENTS

1. DEFINITION OF DISCHARGE
2. HOW NEGOTIABLE INSTRUMENTS DISCHARGED (Sec 119)
3. WHEN PERSONS SECONDARILY LIABLE ON INSTRUMENT ARE DISCHRGED
(Sec 120)
4. PAYMENT BY PARTY SECONDARILY LIABLE (Sec 121)
5. RENUNCIATION BY HOLDER (Sec 122)
6. UNINTENTIONAL CANCELLATION (Sec 123)
7. MATERIAL ALTERATION (Sec 124)

XII BILL OF EXCHANGE

1. CONCEPTS AND DEFINITIONS
2. RULES PERTAINING TO BILLS OF EXCHANGE
3. PRESENTMENT FOR ACCEPTANCE
4. ACCEPTANCE
 5. ACCEPTANCE FOR HONOR
6. PAYMENT FOR HONOR
7. PROTEST
8. BILL IN SET

XIII CHECKS
1. DEFINITION AND CONCEPTS
2. PRESENTMENT OF CHECKS
3. CERTIFICATION OF CHECK
4. CROSSED CHECKS

XIV - LAWS ON BOUNCING CHECKS

1. ESTAFA THRU THE ISSUANCE OF BOUNCING CHECK (ART 135, Revised
Penal Code, as amended by RA 4885)
2. BOUNCING CHECKS LAW (BP 22)

XV TRUST RECEIPTS LAW

1. GOVERNING LAW PD 115
2. DEFINITION AND NATURE OF TRST RECEIPT
3. PARTIES TO A TRUST RECEIPT AGREEMENT
4. REMEDIES AVAILABLE

XVI LETTERS OF CREDIT

1. GOVERNING LAWS
2. DEFINITION
3. NATURE OF LETTER OF CREDIT
4. PERFECTION
5. PARTIES TO LETTERS OF CREDIT
6. RIGHTS ABD OBLIGATIONS OF PARTIES
7. SUMMARY RULES PERTAINING TO LETTERS OF CREDIT
8. MARGIN FEE
9. LETTERS OF CRDEIT TRUST RECEIPT TTRANSACTIONS
10.LETTERS OF CREDIT DISTINGUISHED FROM OTHER CONTRACTS AND
ARRANGEMENTS

XVII WAREHOUSE RECEIPTS ACT

1. PURPOSE AND COVERAGE
2. NATURE AND FUNCTIONOF WAREHOUSE RECEIPT
3. ASSIGNMENT AND NEGOTIATION OF WAREHOUSE RECEIPTS
4. SUMMARY RULES PERTAINING TO NEGOTIABLE RECEIPTS
5. WAREHOUSEMANS LIEN
6. OVERVIEW OF SECTIONS OF WRA (WITH CIVIL CODE PROVISIONS
COMPARISON)
7. DISTINCTIONS BETWEEN NEGOTIABLE INSTRUMENT AND NEGOTIABLE
WAREHOUSE RECEIPT
8. GENERAL BONDED WAREHOUSE ACT (ACT NO. 3893, AS AMENDED)