1.

An antedated or a post dated instrument is valid, and it does lot lose it negotiable character just because it is

antedated or post dated, provided this is not done for an illegal or fraudulent purpose.

2.

An instrument where no time for payment is expressed is payable on demand.

3.

Where the instrument is not dated, it will be considered to be dated as of the time it was issued.

4.

Where an incomplete instrument has not been delivered, it will not be completed and negotiated without authority,

be a valid contract in hands of any holder, as against any person whose signature was placed thereon before

delivery.

5.

An indorsement payable upon a contingency is not negotiable and the happening of the event does not cure the

effect.

6.

An instrument payable upon a contingency is not negotiable and the happening of the event does not cure the

effect.

7.

Where a signature is so placed upon the instrument that is not clear in what capacity the person making the same

intended to sign, he is deemed an indorser.

8.

A holder in due course is also a holder for value and vice versa.

9.

The acceptor admits the existence of the drawer, the genuineness of his signature and his capacity and authority to

draw the instrument.

10.

The liability of an indorser is primary.

11.

Where the instrument is payable to order, the payee must be named or otherwise indicated therein with reasonable

certainty.

12.

A check if certified by a bank on which it is drawn, such certification is equivalent to acceptance, where the holder

procures a check to be certified or accepted the drawer and all indorsers are discharged form liability thereon.

13.

Where the instrument is negotiated back to a prior party, such a party may reissue and further negotiate the same

but he is not entitled to enforce payment thereof against any intervening party to whom he was personally liable.

14.

The holder may at any time strike out any indorsement which is not necessary to his title. The indorser whose

signature is struck out, and all subsequent indorsers, are hereby relieved from liability on the instrument.

15.

The bank is not liable to the holder, unless and until it accepts.

16.

A check is required to be presented for payment within reasonable time after its issue or the drawer will be

discharged from liability thereon to the extent of the loss caused its issue or the drawer will be discharged from

liability thereon to the extent of the loss caused by the delay.

17.

Notice of this must be given to the drawer and to each indorser, and any drawer or indorser to whom such notice is

not given is discharged.

18.

Every negotiable instrument is deemed a prima facie to have been issued for a valuable consideration, and every

person whose signature appears thereon to have party thereto for value.

19.

An instrument which is payable to bearer is negotiated by mere delivery.

20.

An accommodation party is liable on the instrument to a holder for value, notwithstanding such holder at the time

of taking the instrument knew him to be only an accommodation party.

21.

A signature by "procuration" operates as notice that the agent has a limited authority to sign, and the principal is

bound only in case the agent in so long doing within the actual limits of his authority.

22.

The liability of an acceptor is secondary.

23.

The drawers liability is primary.

24.

Absence or failure of consideration is a matter of defense as against any person not a holder in due course.

25.

The indorsement or assignment of the instrument by a corporation or by infant passes the property therein,

notwithstanding that from want of capacity, the corporation or infant may occur no liability thereon.

26.

An order or promise to pay out of a particular fund is not negotiable.

27.

An order or promise to pay is unconditional through coupled with an indication on particular fund out of which

reimbursement is to be made, or particular account to be debited with the amount.

28.

The following instrument is negotiable:

" Please pay to Jose Santos or bearer the sum of P60,000 "

(Sgd. Pedro Gil)

29.

There is payment when a negotiable instrument is delivered and accepted by the creditor.

30.

Creditors are bound to accept in payment of the debtor's obligation.

31.

Fraud in inducement is a real defense.

32.

An infant or minor's indorsement is void.