Protest

Protest refers to the formal instrument executed by a notary public or other competent person certifying
that the facts necessary to the dishonor of the instrument by non-acceptance and non-payment have taken
place. Protest is necessary only in the case of foreign bills of exchange which has been dishonored by non-
acceptance or non-payment. The two reasons for requiring protest in case of foreign bills is that: first, it is in
uniform with international transactions because most countries require it; and second is that it furnishes
authentic and satisfactory evidence of the dishonor to the drawer who resides abroad.
The main purpose of the certificate of protest is to do away with the necessity of proving the fact of
presentment, demand, non-payment, and notice of dishonor by witnesses in court. However the certificate of
protest is merely prima facie evidence of the fact stated therein and may be disproved by competent
evidence to the contrary.
The protest must be annexed to the bill or must have a copy and it must be under the hand and seal of
the notary making it, and it must specify the time and place of payment, the fact that the presentment was
made, the cause or reason for protesting the bill, and the demand made and the answer receive from it.
Protest may be made by the notary public or by any respectable resident of the place where the bill is
dishonored in the presence of at least two credible witnesses. And it must be made on the day of its dishonor,
but it may be extended, provided that the matters required to be stated including the date of dishonor of the
bill has been duly noted. However, in the case of place where the protest must be made, it must be made at
the place where it is dishonored.
When the acceptor has been bankrupt or insolvent, or has made an assignment for the benefit of the
creditors, the holder may make the bill to be protested for better security against the drawer and indorsers.
This protest is purely optional and its omission will not affect the holder’s remedy against the drawer and
indorsers.