Protest:

It seems that it just copied sone of the provisions pertaining to notice of dishonor.
It is just a formal form of notice cof dishonor
But what is important is the procedure in how the protest is conducted

First and foremost, what are the intsturmets rquired to be protested?

1)Only a bill of exchange
2)It has to be a foreign bill

Does that mean that you cannot protest all other bills?
-No. That’s not the effect. It’s just that it is not required.

But can you protest

-Yes you can.

Can you protest a promissory note?

-Yes if you want to.

Or perharps you want to pay an acceptor for honor or want a payment for honor annd these instances it
requires protest prior for them to exist.

The law providess that only of foregin bills are required to be protested.

What is the reason for the protesst? Why is it necessary in case of foregin bills?
-To etablish international practice or standarads and
-In order to give satisfaction to the person who may not know about the fact of the dishonor in some
other country. At least when it is duly authenticated by a notary public then he would be appeased that
this actually happened.

How do you do a protest?

-Section 153 says the contents of the protest.
-So in the book of de leon, it detailed how it is supposed to be done
-So ocne the instrument has been dishonored you go to the notary public bringing with you the
insturment that was dishonored.

That notary public suppoed to present it again.

In other words, once you presented it for payment or for acceptance, now there is another person
who’ll have to do it all over again.

And then when it is dishonored on his hands, its when he makes the notation on the day that it was
dishonored. He could write it wherever it maybe, (journal notebooks etc) So he’ll just have to make
notations on when the instrumetn was actually dishonored and the circumstances sorrounding the
dishonor of the insturment. Better if he can write all the needed facts provided under Section 153, but it
need not be a final draft yet. He’ll just make notations. The final draft can be provided after the notation
happened. What is important is that on the day the instrument was dishonored noting actually
happened.
Is it really necessary that the notary public is the one who presents it or make this protest?
-Nowadays YES because according to sir, NO MORE RESPECTABLE PERSON hahaha although you cannot
also be sure that a Notary Public is respectable. (No requirement that he is respectable or not)
-Supposedly any respectable resident of the place where the place is dishonored in the presence of two
or more credible witnesses.
-On the 2nd requirement that he is a respectable resident, you have to prove that he is respectable
person.
-Section 153 is actually self-explanatory so no need for sir to discuss one by one daw. So READ.
What is important is for you to noted that once the instrument has been dishonored, the notary public is
supposed to present the instrument again to confirm that it is really dishonored and only then he’ll
make the noting.
The noting will have to happen on the day of dishonor. But the actual certificate of it need not be issued
on that date, it could be issued on some other date maybe next day or 2 days after.

When are you supposed to make the protest?

It must be made on the day of its dishonor unless delay is excused as herein provided.

Protest begins the moment you go to the notary public. This FACT must be established on the day itself
and the notary public on the same day is supposed to present the instrument for payment.
That’s why, it has to be established where are you supposed to make the protest

And the reason why it has to be made on the place it was dishonored cause imagine the notary public is
supposed to present it on the same day that it was dishonored.. So, the law deemed it necessary that if
ever you need to protest, it should be at the place where the instrument was dishonored to allow the
notary public or to allow such respectable person to go to the person primarily liable and confirm the
fact of dishonor.

EXCEPTION to this: When the instrument is dishonored by NON-ACCEPTANCE at a place different from
the place where it is payable.

How are you suppose to make the protest? What are the 2 protests?
1)Protest by non-acceptance
2)Protest by non-payment

Supposedly if the instrument is dishonored by non-acceptance, what type of protest will you do?
-Protest of dishonor (But I think ang pasabot ni sir here kay protest by non-acceptance

But if payment:
-Protest of non-payment

EXCEPTION: that is when the instrument is supposed to be presented at the place different from where
it is supposed to be paid. The residence of the drawee then is different from the place of payment.

In the case, when the instrument is dishonored by non-acceptance, are you supposed to make the
protest by non-acceptance?
-No. You are suppose to make the protest by NON-PAYMENT at the place where the instrument is
supposed to be paid.
In summary: you do protest for non-acceptance if the instrument is dishonored by non-acceptance and
protest by non-payment if the dishonor is by non-paymment and then protest has to be made at the
place where the instrument was actually dishonored.

Exception to this is when the insturment is dishonoed by non-acceptance at the place different from the
place where it is payable then you do the protest by NON-PAYMENT at the place where the instrument
is supposed to be payable.

Example: The instrument is issued abroad to be presented for acceptance here in Cebu City but payable
in Manila.

In this case it is a foreign bill, you would know it is a foreign bill when one of the incidents -the issuance
or the payment is somewhere else other than in the Philippines. So if issued and payable abroad,
foreign bill. Either one of this will suffice.

In reference to the problem, it is a foreign bill to be presented in Cebu City then it was dishonored here
in Cebu City, then you do protest by NON-PAYMENT in Manila. Hence exception to the rule.

Is it possible to protesst an instrument even before it matures?

-Yes. When the person primarily liable is adjudged bankrupt or insolvent or has made an assignment for
the benefit of the creditors.

What type of protest will you do?

-Protest for better security

Reason: the instrument has not been dishonored yet cause it has not reached its maturity yet.

Can you dispensed with protest?

-Yes. The same way as when you can dispensed with notice of dishonor.

Can you also excuse the delay in the protest?

-Yes the same situations as when you can excuse the delay for notice of dishonor.

Supposedly the protest certificate is to be attached on the bill so that people would know that it has
already been protested.

But what if the bill is lost?

-The law says protest may be made on a copy or a written particulars thereof. But GODBLESS pangitag
copy kay di uso sauna ang photocopy

Written particular means a description of the bill, who issued it, when, how much, payable to bearer or
order or basically you state what is provided in Section 1.

After the instrument is protested for non-acceptance, do you have to protest it for non-payment?
-No. The same way that the instrument is dishonoed by non-acceptance you don’t have to give notice of
dishonor for non-payment unless of course the instrument has been accepted in the meantime
-Hence you are not required to give a protest for non-payment if the instrument has already been
protested for non-acceptance.
ACCEPTANCE FOR HONOR
-This is otherwise known as acceptance supra protest. It is called such because it will happen after a
protest has been made.
-In other words it is not limited to foreign bills. But no preventing a person if he wants to accept the
instrument for the honor some other person.

So if the instrument is not required to be protested then you have to protest if you want parties to
become Acceptor for honor.

What is the history behind this acceptance for honor and payment for honor?
-It is actually the intention to preserve the credit of the drawer (credit standing)
-Because the moment there is dishonor of the instruent by non-acceptance, whose reputation will be
tarnished? -It is the person who signed the insturment, the one who created the instrument

Hence if you want to preserve the good name, you may accept the instrument in his or her honor.

Caveat by sir: Don’t believe sa acceptor for honor – PAASA rani sila daw. Unlike payor for honor.

There is another person related to an acceptor for honor or even a payor for honor and that is the
referee in case of need (Section.131),it is when the person will indicate another person whom you can
go after in case the instrument is dishonored by non-payment but it is OPTIONAL on the part of the
holder if he will go to him.

This person can be resorted to even without protesting the instrument. Unlike these accpetor for honor
or payor for honor, it requires protest. But more or less, they occupt the same position that they will
only become liable to the instrumetn in case the insutrment is dishonored.

How to make an acceptance for honor?

1)It must be in writing
2)Indicate that it is acceptance for honor and must be signed by the acceptor for honor

Do you have to go to a notary public?

-The contemplation of the law is YES, you have to go to a notary public and declares intention that you
are willing to accept the instrument for the honor of this particular person.

Who could be person whom you can accept the instrument for honor?
-Any of the parties secondary liable. That means the drawer or indorsers. Any of them.

Can there be more than one acceptor for honor?

-Yes. What is necessary is that it must have the consent of the holder.

Is it required that the acceptance be for the full amount?

-No. it could also be partially.

Later you will realize that you can only go after the acceptor for honor if the insturment has been duly
presented for payment and then gi protest ang insturment for non-payment and you have to give him
notice of dishonor. In other words, there are a lot of conditions before you can go after him. Look at
Section 165.

But if ever he accepts the instrument, to whom he will be liable?

-He’ll be liable to the holder and all parties subsequent to the person in whose honor he accepted the
instrument

Section 166 seems to be a special provision intended only for a bill that is payable after sight.

Take note that an acceptance of honor will have to happen prior to maturity of the instrument but of
course it supposes that it is AFTER the instrument has been dishonored.

So if there is an instrument thatis due for payment, lets say 10 days after sight. Then you presented
payment for example on Nov 5. So the due date if accepted today is Nov. 15.

If the instrument was dishonored on Nov. 5, you’ll have to protest it. So when? On the same date.

Example an insturment was accepted for honor on Nov 10. The reckoning point for the maturity of the
instrument is Nov 5 cause then you will not be able to establish when will be the maturity date..

Ang acceptance for honor will always be considered as before the maturity. Hence the law deemed it
that if the instrument is supposed to be payable at a certain period after sight then it should be the date
at the time the insturment was dishonored as the reckoning point for purposes of determining maturity.

Section 167 is just repetition of sec 165. (A surplusage) Difference is in Section 165 no mention of
referree in case of neeed

So a referee in case of need, it requires a protest for non-payment before it is presented for payment to
the referee in case of need.

Section 168. How do you present for payment to an acceptor for honor?
-The same way as you when give a notice of dishonor to a particular party secondary liable

So if it is to be presented in the place where protest for non payment is made then it must be presented
not later than the date following its maturity. If some other place, look at Sec 104.

Could there be a delay in making presentment for payment to the acceptor for honor?
-Possiblle. But can it be excused? Yes the same way as it is excusable in case of presentment for
payment or even giving notice of dishonor.

What is the meaning of protested for non-payment by him?

-It is like protesting again the instrument again for non-payment.

So kapila nanin na protest for non-payment?

THREE TIMES.
1st (Protest by non-acceptance)
2nd ( Protest for non-payment)
3rd (Protest for non-payment of the Acceptor for honor)