The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-03-28
NEW BANK REGULATIONS.
INSTRUMENTS LAW
OPERATIVE.
Measure Passed by the General AS
scmbly is Piece of Uniform Lcgis-
latiOn.

Tuesday the negotiable instru-
rlents law, a piece OF uniform leg
i;latiOn became operative in South
Carolina. The law was passed by the
general assembly March and is iden-
tcally the same in several paragraphs
as similar laws in other States. While
tle provisions are of chief concern to
bankers, the public is also interested
in the changes.
According to the negotiable in
Sruments law, unless a check is pre-
sented for payment q reasonable time
after its issue the drawer is relieved
or liability to the extent of the loss
occaSioned by tardincss. This is con-
dered very important. 1t is said that
some people have a habit of holding
checks, drawn in their favor for
considerable period and that this
practice is very bothersome. When
checks are held back the matter Of
adjusting balances at the bank is at
times Of some concern. The provisions
! OF law do not, Of course, apply to
notes, drafts and checks drawn before
its passage.
/ Under the new law the three days
OF grace" convenience has been abol-
ished and negotiable instruments be-
come due and payable on the date
specified. a note payable at a bank
is equivalent to an order to the bank
90 make payment for the account of
the maker. South Carolina has been
the only State in the Union where a
bank has had to consider the sigma
ture Of a check as transferring to the
payee the amount stipulated in the
check. A bank was without author
ity TO withhold payment even in cases
where the makers requested such ac-
tiNn. Under the new law "a cneck OF
Itself does not operate as an assign.
mant OF any part OF the funds to the
craoit OF the drawer with the banl.
and the bank is not liable to the hold.
er unless and until il accepts or certi.
fies the check / quote this part YER
"a tim.
! 1t is believed that the negotiable
instruments law, such as the one
1T ~ enacted by the General Assem-
bly, of South Carolina, will before
! long be adopted by all the States in
the Union. 1t is a piece Of uniform
legislation that is sorely wanted. and
viii operate TO the benefit and protec-
ton Of banks and individuals. In
this state the new law applies to
day, not to transactions that have al
ready been made.
Paragraph S5-Every negotiable in
strument is payable at the time fixed
therein, without grace. When day of
maturity falls upon Sunday or holi-
day the instrument is payable on the
next succeeding business day. In
struments falling due on Saturday are
to be presented for payment on the
next succeeding business day, except
that instruments payable on demand,
at the option OF the holder, be pre-
sented for payment before - o'clock
noon on Saturday, when that entire
day is not a holiday.
Paragraph S7-Where the instru-
ment (cither note or an acceptance)
is made payable at Il bank it is equi-
valcnt to an order TO the bank to pay
the same fer the account Of the
principal debtor thereon.
Paragraph lila waiver of pro-
Dill of exchange or other negotiable
instrument, is deemed TO be a waiver
not only of a formal protest, but also
OF presentment and notice of dishon-
or.
Paragraph 127--A bill of itself does
not operate as an assignment of the
funds in the hands OF the drawee
available for the payment thereof.
and the drawco is not liable on the
bill unless and until he accepts the
same.
Paragraph 1S9-A check of itself
does not operate as an assignment of
any part of the funds to the credit
Of the drawer with the bank, and the
bank is not liable to the holder. un-
less and until it accepts or ccrtilies
the check