Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1916-07-14
NEGOTIABLE PAPER ACT
New Law in Effect Relating to Com
nlercIdl Papers

MissiSslppl'S new negotiable in.
struments act went into effect
July 6, and is now a part and
parcel of the laws of the common
wealth.
The new chapter on negotiable
instruments, ole of the longest
enacted at the recent legislative
session, makes some radical
changes in the old laws applicable
to commercial paper.
For instance, here's something
that will be sad news to the fell
lows who are not prompt in meet.
ing their notes on the date when
due:
Suppose you owe Bill Smith
500, and have given your note
in payment for same, payable at
some designated bank.
If Bill knows you have money
on deposit in the bank he's not
going to worry about whether
you are going to pay that 500
note. Not a bit of it, Bill will
simply take that note to the
bank and have it cashed, just like
it was a check. The bank is com.
PEELED to pay it out of the funds
you have on deposit, providinS
they are sufficient to cancel the
principal and interest.
Another effect of the new law
will be to require banking in.
stitutions to close at the noon
hour on Saturday.
The negotiable instruments act
was framed by State Senator Muir.
ray of Warren county. It's pur,
pose is to make the Mississippi
laws relative to all forms of com,
mercial paper conform to the uni
form negotiable instruments
statutes of other states. All
states in the Union, with but two
or three exceptions, have enacted
this law.
Here are some of the provisions
of the new law that should be
carefully studied by all business
men:
"Every negotiable instrument
is payable at the time fixed there
in without grace. When the day
of maturity falls on Sunday o. q
holiday, the inst, IIncn; is pay.
able Oh the next succeeding busi-
ness day. instruments falling
due or becoming payable on Sat
urday are to be presented for pay
ment on the next succeeding bust.
ness day, except that instruments
payable on demand may at the
option of the holder, be presented
before 12 O'Clock noon on Satur-
day when that entire day is not
holiday"
"An instrument is payable on
demand where it is expressed to
be payable On demand, rat sight,
or on presentation, or in which
10 time for payment is expressed. "
Notes do not bear three days of
grace. Sight and demand drafts
may not be accepted as formerly;
they will bear only such grace as
they specify, for example, zone
day after sight" or cat three
days sight" When a draft is
payable after sight or note falls
due on Sunday or a holiday it is
payable on the next business day
following; and when due on Sat
urday the payer has the option
of deferring payment until Mon
day Cor, if Monday is a holiday
until the next business day fol
lowing), but this option in re
gard to paper maturing on Satur-
day does not apply to demand
drafts presented before II O'Clock
that day.
"The drawee is allowed twenty,
four hours after presentment in
which to decide whether or not
he will accept the bill (of ex
change, but the acceptance if
given dates as of the day of pres
'entation.'
This applies to drafts payable
latter sight, not to drafts payable
ION demand. If the draft is pres
tented on the Sth of the month,
isay, the person on whom it is
drawn may wait until the 9th to
decide whether he will accept 1T,
|Ibut if he accepts it after this
delay his acceptance must be
dated as the Sth.
"Where the instrument is
made payable at a bank it IS
equivalent to an order to the
bank to pay the same for the &C,
kount of the principal debtor
thereon.
That is, if a person signs note
IN favor of another person Cor a
&6rm or organization and makes
e payable at the bank where he
/ 1oeps his account, the holder OF
4 o+o nav nresent il at the