To WHOM notice of dishonor be given: (Sec.

When a NI has been dishonored by non-

89 NIL) acceptance or
non-payment, the notice of dishonor must be
given to
the:

• Drawer; and
• To each Indorser

Any Drawer or Indorser to whom such

notice is not given is DISCHARGED.

By WHOM notice of dishonor be given: (Sec. 1. By the holder;

90 NIL) 2. By another in behalf of the holder
3. By a party to the instrument who
might be compelled to pay it and who
has a right of reimbursement from
the party to whom notice is given;
and
4. by another person in behalf of such
party

When instrument considered to be a. If it is not accepted when presented for

dishonored: acceptance;

b. If it is not paid when presented for

payment at maturity; or

c. If presentment is excused or waived and

the instrument is past due and unpaid.

Object of notice of dishonor: i. To inform the parties secondarily liable

that the maker or acceptor has failed to meet
his engagement; and

ii. To advise such parties that they will be

required to make payment.

When notice of dishonor need not be given • Notice of dishonor is not required to be
to the Drawer under Sec. 114. (SF/PRC) given to the Drawer in either of the ff. cases:

i. Drawer and drawee are the SAME person;

ii. Drawee is a FICTITIOUS person or a

person not having capacity to contract;

iii. Drawer is the PERSON to whom the

instrument is presented for payment;

iv. Drawer has no RIGHT to expect or

 require that the drawee or
acceptor will honor the instrument;

v. Drawer has COUNTERMANDED payment.

When notice of dishonor need not be given • Notice of dishonor is not required to be
to the Indorsers under Sec. 115. (FPA) given to the Indorser in either of the ff. cases:

i. Drawee is a FICTITIOUS person or not

having the capacity to
contract, and the Indorser was aware of that
fact at the time he
indorsed the instrument;

ii. Indorser is the person to whom the

instrument is PRESENTED for payment;

iii. The instrument was made or accepted for

his
ACCOMODATION.