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Philippine National Bank v. Picornell [G.R. No. L-18751. September 26, 1922]

30 Jul

FACTS

Picornell delivered a bill of exchange to Philippine National Bank (PNB) which was later presented to and accepted by Hyndman Tavera Y Ventura. The drawee-acceptor refused to pay PNB.

 

ISSUE

Whether or not a drawee is liable to the payee upon acceptance.

 

RULING

 

YES. The drawee, by acceptance, becomes liable to the payee or his indorsee and also to the drawer himself. Here, the drawee accepted the bill and is primarily liable for the value of the negotiable instrument, while the drawer, Picornell, is secondarily liable. Upon the non-payment of the bill by the drawee-acceptor, the bank had the right of recourse, which it exercised, against the drawer. (Sec. 84, Negotiable Instruments Law)

 

 

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