The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-10-10
LIABILITY OF THE DRAWER.
Attorney General Hord's Opinion of What
Constitutes a Reasonable Time for
Presenting a Check.

The following question relating to the Indiana
Banking Company was submitted to the Attor-
neygeneral by tine President of the State Be-
nevolent Board for opinion:
"When a check is drawn a bank in favor of
person to whom the board is indebted on
funds belonging to the board, on deposit in such
bank, and the check is delivered on Wednesday,
Sept. ), SS3, TO the payee ana the check is not
presented to the bank and demand made thereon
until after Thursday. the 9th, the bank being
open and doing business on the whole of the
9TH and 9th of September, during banking hours,
and il the bank does not open on the 9TH, and
fails, is the drawer of the check, under such cir
cumstauces, released by the neglect of the payee
TO present the check and demand payment
thereof before che failure of the bankP
"All commercial Instruments" Attorney gen
eral Hord says in his opinion, in reply TO the
question, 'in which no time OF payment is ex-
pressed are understood to be, and implicitly are,
payable on demand, and when so payable by i'm
pncatlon, or i'll express terms, they are payable
Instantly, without the allowance of grace. q
Daniels Neg. Instruments, I,572-I. SIS, Sd ed !;
Edwards on Rills, 396; Smith Miller,
43 N. Y, 172, 175; Smith VS.. Miller, 81 Ind. $40
the general rule in respect to checks is that the
holder, in order to change the drawer, in case of
a dlshonor, Is bound to present the same for pay
ment within reasonable true, and TO give no
tlce thereof to the drawer within a like reason
able time. Otherwise the delay is at his own
peril. What is reasonable time will depend
upon circumstances and in many cases, depend
upon the time, the mode and the place Of
receiving the check II the payee or other
holder OF the check receives 1T from the
where it is payable, and the drawer has
money in the bank which the check is made,
he Is bound to present it for payment to the
bank at least on the next succeeding secular day
after 1t is received, before the close of the usual
banking hours. He may, however, although he
Is not bound to do so, present 1t for payment the
same day on which II is delivered to him, hut lie
is at liberty to wait until the next succeeding
day. Where he received the check from the
drawer i'll place distant from the place of pay
ment 1t will be sufficient for him to forward
1t by mail to some person at
the latter place the next secular
day after 1T is received, and the person TO whom
1t is thus forwarded will not be bound to present
it for payment until the day after it has reached
him by the course of the mail. Ii the payment
is not thus regularly demanded, and the bank or
bankers should fail before the check is pre-
sented, the loss must be borne by the holder. aud
not by the drawer. q Daniels, Neg. Instru-
ments 1870 1892; Story PromissOry Notes,
493; Edwards on Bills, 376 49, Guin VS..
Kemp 40 Ind, 1885; Sinclair vs.. johnson,
80 Ind 527) The holder OF the check has the
whole of the banking hours of the next day
after the delivery of the check to him within
which to present it, and the stoppage of payment
by the bank before the close of business hours
on that day would be full excuse for want of
presentment and the holder would not be
deemed guilty Of negligence at the time of the
suspension"