ADDITIONS TO CHAPTER VI.

Time of Maturity of Notes and Bills.

To prevent mistakes in counting the time when a note or bill arrives at maturity, we make the following additional remarks to Chapter VI.: When the time is computed by days, the day on which the event happens is to be excluded; hence, where a bill or note is payable at so many days after date, or after sight, the day of the date, or the day of the acceptance, must be excluded. For instance, a note dated the 1st of January, payable ten days after date, without grace, falls due on the 11th; and if with grace, would fall due on the 14th of January. So a bill payable thirty days after sight, without grace, if accepted on the 1st of January, would be due on the 31st of that month; and if with grace, it would fall due on the 3d of February.

If the time is computed by months, the bill or note falls due, if the days of grace are not counted, on the corresponding day of the month which completed the number of months stated. For instance, a note dated the 1st of January, payable one month after date, without grace, falls due on the 1st of February, and if dated the 10th of January, payable one month after date, without grace, it falls due on the 10th of Febru ary; and if with grace, on the 13th.

And it is a rule not to go into the computation, whether the intervening months are shorter or longer. For instance, a note dated 1st January, payable six months after date, without grace, or a bill payable six months after sight, without grace, if accepted on the 1st of January, falls due on the 1st of July following; and if with grace, on the 4th of July; and as this is a holiday in the United States, on the 3d of July.

A note dated on the 28th, 29th, 30th or 31st of January, payable in a month, without grace, falls due on the 28th of February in common years; and in those latter cases in a leap year, on the 29th of February. If a note be dated the 29th February, in a leap year, payable in one month, without grace, it will be due on the 29th March; and with grace, on the 1st April.

If a note is dated 30th April, payable in one month, without grace, it will be due on the 30th of May; and with grace, on the 2d June.

A note dated 29th August, payable six months after date, will be due, including days of grace, on the 3d of March following; and without grace it will be due, in common years, on the 28th day of February. [See Chitty on Bills, ch. 9, 406 (9th ed.); Strong on Notes, p. 213, d.; Bayley on Bills, ch. 7, sect. 1, page 238 (2d Amer. ed.); Wood v. Mullen, 3 Rob. Louis. R., p. 395; and Wagner v. Renner, 2 Rob. Louis. R., 120.] A note being due six months after the 29th of August, is so on the 28th of February following, and does not become payable till after the expiration of the three days of grace-to wit, on the 3d of March. (Wood v. Mullen, 3 Rob. Louisiana R., p. 395.)

In the case of Wagner v. Kenner, 2 Rob. Louis. R., 120, it was held, that a note dated 31st of September will be considered as having beer

made on the 30th of that month; and if payable six months after date, 1 will be due on the 30th of March, and, allowing days of grace, would be presented on the 2d April following.

The court in this case said: The computation of bills or notes drawŁ one or more months from date, is made according to the Gregorian calendar-that is to say, from the day of the month it bears date to the corresponding day of the month of its maturity, without any attention to long or short months. For instance, a note drawn on the 28th, 29th, 30th or 31st of January, and due a month from date, will be due on the 28th of February, if the year be not bissextile, because the month of February has no other corresponding day: those drawn on the 28th or 29th of February, and due one month after date, will be due on the 28th or 29th of March, because the corresponding days are found in the month of March. A bill drawn the 31st of March, and due one month from date, will be due on the 30th of April; and on the other hand, one drawn on the 30th of April will be payable on the 30th of May, and not on the 31st.

It must also be stated, that in the case of Dunnford v. Patterson et al., 7 Martin, 460, before cited, where a note dated 1st April, 1819, was made payable" on the first day of May next fixed," the word "fixed" was held to be an expression peculiar to the State of Louisiana, and tantamount to "without grace." The court said: "It appears that this mode of making notes payable on a certain day, with the addition of the word 'fixed,' is not usual in the United States. This is a usage peculiar to our own State. If the bill says at so many days fixed, or at so many days without further term, there are no days of grace, and the bill must be paid on the day it becomes due."

This decision, therefore, does not conflict with the general law, that a note or bill made payable on a given day-i. e., “I promise to pay, on the 1st of May, &c.," is allowed days of grace, and this general rule also prevails in Louisiana.

Usance.

Sometimes bills are drawn payable at usance, or at a half usance, or at double or treble usance. By usance is meant the common period, fixed by the usage or custom of dealing between the country where the bill is drawn and that where it is payable, for the payment of bills. The usage or custom as to the time of payment, is different in different countries, and hence the same phrase imports different periods of time, from fourteen days to one, two, or even three months after the date of the bill. Double or treble usance is double or treble the usual time, and half usance is half that time; when it is necessary to divide a month upon a half usance, the division, notwithstanding the difference in the length of the month, contains fifteen days. The usance is always calculated exclusively of the day of the date of the bill, as it is in cases where the bill is payable a certai number of days after date or after sight. [See Chitty on Bills, ch. 9, p. 104, 405 (8th edit.); Story on Bills, s. 332.]

Computation of Time according to the Old Style.

Some countries-for instance, Russia-reckon according to the old style, or Julian Calendar, whilst almost all others reckon according to the new style, or Gregorian Calendar. The difference between the two styles is, at the present time, twelve days-that is to say, twelve days are added to the time reckoned by the old style, to bring the time to the corresponding day of the new style. Thus a bill dated the 1st of May, old style, corresponds to the 13th day, new style; and a bill dated the 1st of May, new style, corresponds to the 19th of April, old style.

The rule is, that upon a bill, drawn at a place using old style, and payable at a place using the new style, if the time is to be reckoned from the date, it shall be computed according to the style of the place at which it is drawn; otherwise, according to the style of the place where it is payable; and in former case the date must be reduced or carried forward to the style of the place where the bill is payable, and the time reckoned from thence. (Bayley on Bills, ch. 7, sec. 1, p. 238.) Thus, on a bill dated the 1st of May, old style, and payable here two months after, the time must be computed from the corresponding day of May, new stylenamely, 13th of May and on a bill dated the 1st of May, new style, and payable at St. Petersburg in Russia, two months after date, from the corresponding day of April, old style-namely, 19th of April. [Chitty on Bills, ch. 9, p. 403 (8th edit.); Story on Bills, s. 331.]

Bills and Notes Payable by Instalments.

It is said by Judge Story, that the rule of allowing days of grace seems also to apply to bills payable by instalment; and the days of grace are allowed on the falling due of each instalment. (Story on Notes, s. 224; Bridge v. Sherborne, 11 Mees & Wels, 374.)

When no time of payment is expressed on the face of the note, it is payable on demand, and no days of grace are allowed.

District of Columbia.

Formerly four days of grace were allowed in the District of Columbia but at present only three days.

13 At what Time a Bill or Note falls due, and at what Time Actions may be brought thereon by the Different Parties.

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1. The maker of a promissory note is bound to pay it, upon demand made at any seasonable hour of the last day of grace, and may be sued on that day, if he fail to pay on such demand. Staples v. Franklin Bank, 1 Met. 43; Henry v. Jones, 8 Mass. 453; Farnum v. Fowle, 12 Mass. 89; Shed v. Brett, 1 Pick. 401; New England Bank v. Lewis, 2 Pick. 125; City Bank v. Cutter, 3 Pick. 414; Boston Bank v. Hodges, 9 Pick. 420; Church v. Clark, 21 Pick. 310.

2. If a note is made payable at a bank, there is no default of payment on the part of the maker until the close of the usual banking hours, on the last day of grace, at such bank. Church v. Clark, 21 Pick. 310.

3. If no particular bank is named, the hour will be determined by the usual banking hours at the bank, or several banks, in the place where the note is payable. Ibid.

4. In the absence of proof to the contrary, the legal presumption is, that throughout the United States three days' grace is allowed by law on bills of exchange and promissory notes. Wood v. Corl, 4 Met. 203.

5. Post-notes, issued by a bank, are payable on demand made at any time, on the last day of grace, after the known and usual hour of opening the bank for business, and may be put in suit on that day, if payment is refused. Staples v. Franklin Bank, 1 Met. 43.

6. Under the Rev. Stat. c. 33, § 5, grace is to be allowed on postnotes issued by a bank and made payable at a day certain, "with interest until due, and no interest after," though the bank insert a memorandum on the margin of the note that it is "due on such day. Mechanics' Bank v. Merchants' Bank, 6 Met. 13.

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7. A bank post-note was made payable in a certain period of time, with interest" until due, and no interest after," and a memorandum on the margin stated that it was due on a day named, which was the last day of such period. It was held, that the bank was entitled to grace on such note. French v. Franklin Bank, 21 Pick. 483.

8. No usage, nor any agreement, tacit or express, of the parties to a promissory note, as to presentment, demand, and notice, will accelerate the time of payment, and bind the maker to pay it at an earlier day than that which is fixed by the law that applies to the note. Mechanics' Bank v. Merchants' Bank, 6 Met. 13.

9. A usage among banks to regard a bank post-note payable at a future day certain as payable without grace, (there being no express stipulation to that effect in the note itself,) would be invalid, inasmuch as it would be contrary to the provision in Rev. Stat. c. 33, § 5, that on all promissory negotiable notes, payable at a future day certain, in which there is no express stipulation to the contrary, grace shall be allowed. French v. Franklin Bank, 21 Pick. 483.

10. The acceptor of a bill of exchange for the accommodation of the drawer, may pay it on the last day of grace before the commencemen of business hours, and forthwith bring his action against the drawer to recover an indemnity. Whitwell v. Brigham, 19 Pick. 117.

11. A payment of such a bill of the acceptor on the second day of grace, may take effect as a payment at the commencement of the last day of grace, as against the drawer. Ibid.

12. An action may be maintained upon a note against the maker, where the writ is made after sunset on the last day of grace, and is delivered to an officer on the next day, although there is no demand of payment before the writ is made. Butler v. Kimball, 5 Met. 94.

13. An action was sustained which was commenced against the indorser on the day the note was due, but after notice had been put into the post-office, though before it could be received by due course of mail. Shed v. Brett, 1 Pick. 401.

14. Where a writ against the indorser of a note was delivered to an officer, with instructions not to serve it until after he had given the indorser notice of the non-payment of the note by the maker, and the writ was not in fact served until after such notice had been given, it was held, that the action was not commenced until the service of the writ. Seaver v. Lincoln, 21 Pick. 267.

15. In an action by the indorsee of a note against the indorser, both of whom had their place of business in the same town, the writ was served on the day when the note became due, before notice to the indorser. Held, that the action was prematurely brought, and that it was an immaterial circumstance, that the notice had been put into the hands of the notary before the writ was in the hands of the officer. New England Bank v. Lewis, 2 Pick. 125.

16. Where a note was made without the knowledge of the payee, who was liable as a surety for the maker for a debt due, but not paid, against which liability the maker had promised to secure the payee, and the maker caused his own property to be attached for the purpose of securing the payment of the note; it was held, that the note, until assented to by the payee, did not constitute a debt "justly due" to him, within the meaning of Rev. Stat. c. 90, § 83 et seq., and that therefore the attachment might be vacated under that statute, on the petition of a creditor of the maker, who had attached the same property subsequently, but before such assent was given. Baird v. Williams, 19 Pick. 381.

17. An action will lie against the drawer and indorsers of a bill of exchange protested for non-acceptance, before the time of payment has come. Watson v. Loring, 3 Mass. 557.

18. Where a bill of exchange is protested for non-acceptance, a right of action accrues immediately to the holder: he is not bound to present it for payment, or protest it for non-payment, nor, if he does so, does he thereby affect his right of action on the non-acceptance. Lenox v. Cook, 8 Mass. 460.

19. A note payable on demand is not regarded as dishonored within one month after its date. Ranger v. Cary, 1 Met. 369.

20. A promissory note made payable in a given number of days, is payable in so many days from the day of the date, and exclusive of the day of the date. Henry v. Jones,' 8 Mass. 453.

21. Upon a note payable in eight years, with interest payable annually, en action lies for the interest as it falls due, and before the principal is