The sea coast echo. [volume] (Bay Saint Louis, Miss.) 1892-current, 1916-07-15
YOU MUST PAI THAT
OLD N|)IER RIGHT UP
Negotiable instruments Act
Makes Some Radical Chan
ges in Laws Relative to
Commercial Paper.

Mississippis new negotiable instru-
ments act went into effect on July 6,
and is now part and parcel of the laws
of the commonwealth. The new chapter
on negotiative session, makes radical
changes in the old laws applicable to
commercial paper.
For instance, here's something that
will be sad news to the fellows who are
not prompt in meeting their notes on
the date when due:
Suppose you owe Bill Smith Slo0,
and have been given your note in pay
ment for same, payable tomorrow morn
ing.
II Bill knows you have money on de-
posit in the bank he'sNnot going to
| worry about WHETHER You are going to
pay that slOO note. Not bit of it.
| Bill will simply take that note to the
bank and have it cashed, just like it
was cheek. The bank Is compelled
| to pay it out of the funds you have on
deposit, providing they are sufficient to
cancel the principal and interests.
Another effect of the new law will be
to require banking Institutions to close
at the noon hour on Saturday. This
has not been finally agreed upon by the
banks of Jackson, but will probably go
into effect on Saturday, July 18th. This
virtually makes Saturday half holiday
for the banking institutions.
The negotiable instruments act was
framed by State Senator Murray, of
Warren county. Its purpose is to make
the Mississippi laws relatiyeto all forms
of commercial paper conform to the uni
form negotiable instruments statutes OF
other states. All states in the Union,
with but two OF three exceptions, have
enacted this law.
Very few members of ether branch
of the lawmaking body seemed to realize
the Importance of the Murray bill while
it was being considered. ii fact it was
never read in full in eitler body on
final passage, the ressg erks killing
snIany sectloas or 81 Efloss ssiae
committees that the. pssEispns Of the
bill were satisfactory.
Here are some of the provisions OF
the new law that should be carefully
studied by all business men:
"Every negotiable Instruments is Ipay-
able at the time fixed therein without
grace. When the day of maturity falls on
Sunday or holiday, the instrument is
payable on the next succeeding business
day. instruments falling,due or becom-
ng payable on Saturday are to be
presented for payment on the next
succeeding payable on demand may at
the option of the holder, be presented
for payment before II o'clock noon on
Saturday when that entire day is not
holiday"
San instrument is payable on demand
where it is expressed to be payable on
demand, or at sight, or on presentation,
or in which no time for payment is ex-
pressed
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 ex-
ample. "One day after sight," or "At
three days sight," When a draft pay
able after sight or note falls due on
Sunday or holiday it is payable on
the next business day following; and
when due on Saturday the payer has
the option of .deferring payment until
Monday Cor, if Monday Is holiday un-
til the next business day foliowing),
but this option in regard to paper
maturing on Saturday does not apply
to demand drafts presented before IL
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 exchange), but the acceptance
if given dates as of the day OF presenta
ton"
This applies to drafts payable after
sight, not to drafts payable on demand.
II the draft is presented on the 9Th of
the month, say, the person on whom it
is drawn may wait until the 9Th to de-
eide whether he will accepts it after
this. delay his acceptance must be dated
as OF the Ssh.
| "Where the instrument is made pay
BILE at bank it is equivalent to an or
der to the bank to pay the same for the
account of the principal debtor thereon. y
| That is, if a person signs note in
favor of another person Cor a firm or
organization5 and makes it payable at
| the bank where he keeps his account,
the holder of the note may present it at
the bank named on due date and ii the
person who signed the note has SUFFICIENT
funds and has not given a stop pay
ment order the bank must pay the note
and charge it to his the signerss ac-
eout,) and is not required to obtain his
consegt before doing so.
i ssWheTe the instrument contains or
the person adds to his signature words
indicating that he signs for or on be-
half Of a principal, or in Representative
Icaracity, he Is not liable on the instru-
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