XVI.
PROMISSORY NOTES AND CHECKS
Sec. 184. Promissory note, defined. - A negotiable promissory note within the meaning of
this Act is an unconditional promise in writing made by one person to another, signed by the
maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in
money to order or to bearer. Where a note is drawn to the maker's own order, it is not
complete until indorsed by him.
Sec. 185. Check, defined. - A check is a bill of exchange drawn on a bank payable on
demand. Except as herein otherwise provided, the provisions of this Act applicable to a bill of
exchange payable on demand apply to a check.
Sec. 186. Within what time a check must be presented. - A check must be presented for
payment within a reasonable time after its issue or the drawer will be discharged from
liability thereon to the extent of the loss caused by the delay.
Sec. 187. Certification of check; effect of. - Where a check is certified by the bank on which it
is drawn, the certification is equivalent to an acceptance.
Sec. 188. Effect where the holder of check procures it to be certified. - Where the holder of a
check procures it to be accepted or certified, the drawer and all indorsers are discharged from
liability thereon.
Sec. 189. When check operates as an assignment. - 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 unless and until it accepts or certifies the check.
XVII. GENERAL PROVISIONS
Sec. 190. Short title. - This Act shall be known as the Negotiable Instruments Law.
Sec. 191. Definition and meaning of terms. - In this Act, unless the contract otherwise
requires:
"Acceptance" means an acceptance completed by delivery or notification;
"Action" includes counterclaim and set-off;
"Bank" includes any person or association of persons carrying on the business of banking,
whether incorporated or not;
"Bearer" means the person in possession of a bill or note which is payable to bearer;
"Bill" means bill of exchange, and "note" means negotiable promissory note;
"Delivery" means transfer of possession, actual or constructive, from one person to another;
"Holder" means the payee or indorsee of a bill or note who is in possession of it, or the bearer
thereof;
"Indorsement" means an indorsement completed by delivery;
"Instrument" means negotiable instrument;
"Issue" means the first delivery of the instrument, complete in form, to a person who takes it
as a holder;
"Person" includes a body of persons, whether incorporated or not;
"Value" means valuable consideration;
"Written" includes printed, and "writing" includes print.
Sec. 192. Persons primarily liable on instrument. - The person "primarily" liable on an
instrument is the person who, by the terms of the instrument, is absolutely required to pay the
same. All other parties are "secondarily" liable.
Sec. 193. Reasonable time, what constitutes. - In determining what is a "reasonable
time" regard is to be had to the nature of the instrument, the usage of trade or business with
respect to such instruments, and the facts of the particular case.
Sec. 194. Time, how computed; when last day falls on holiday. - Where the day, or the last
day for doing any act herein required or permitted to be done falls on a Sunday or on a
holiday, the act may be done on the next succeeding secular or business day.
Sec. 195. Application of Act. - The provisions of this Act do not apply to negotiable
instruments made and delivered prior to the taking effect hereof.
Sec. 196. Cases not provided for in Act. - Any case not provided for in this Act shall be
governed by the provisions of existing legislation or in default thereof, by the rules of the law
merchant.
Sec. 197. Repeals. - All acts and laws and parts thereof inconsistent with this Act are hereby
repealed.
Sec. 198. Time when Act takes effect. - This Act shall take effect ninety days after its
publication in the Official Gazette of the Philippine Islands shall have been completed.
Enacted: February 3, 1911
