Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Bill of exchange defined.
SEC. 126. Bill of exchange defined.— A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer.
Bill not an assignment of funds in hands of drawee.
SEC. 127. Bill not an assignment of funds in hands of drawee.— A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for the payment thereof, and the drawee is not liable on the bill unless and until he accepts the same.
Bill addressed to more than one drawee.
SEC. 128. Bill addressed to more than one drawee.— A bill may be addressed to two or more drawees jointly, whether they are partners or not; but not to two or more drawees in the alternative or in succession.
Inland and foreign bills of exchange.
SEC. 129. Inland and foreign bills of exchange.— An inland bill and foreign, of exchange is a bill which is, or on its face purports to be, both drawn and payable within the Philippine Islands. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.
When bill may be treated as promissory note.
SEC. 130. When bill may be treated as promissory note.— Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person, or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or a promissory note.
Referee in case of need.
SEC. 131. Referee in case of need.— The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need; that is to say, in case the bill is dishonored by nonacceptance or nonpayment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not, as he may see fit.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).