44 BILLS OF EXCHANGE AND PROMISSORY NOTES. [ART. 13

5. Where the drawer has countermanded payment.

134. Notice of dishonor is not required to be given to an
indorser in either of the following cases:

1. Where the drawee is a fictitious person or a person not hav-
ing capacity to contract, and the indorser was aware of the fact
at the time he indorsed the instrument;

2. Where the indorser is the person to whom the instrument
is presented for payment;

3. Where the instalment was made or accepted for his accom-
modation.

135. Where due notice of dishonor by non-acceptance has
been given, notice of a subsequent dishonor by non-payment is
not necessary, unless in the meantime the instrument has been
accepted.

136. An omission to give notice of dishonor by non-accept-
ance does not prejudice the rights of a holder in due course sub-
sequent to the omission.

137. Where any negotiable instrument has been dishonored
it may be protested for non-acceptance or non-payment, as the
case may be; but protest is not required, except in the case of
foreign bills of exchange.

CHAPTER IX—Discharge of Negotiable Instruments.

138. A negotiable instrument is discharged:
1. By payment in due course by or on behalf of the principal
debtor:

2. By payment in due course by the party accommodated,
where the instrument is made or accepted for accommodation;

3. By the intentional cancellation thereof by the holder;

4. By any other act which will discharge a simple contract for
the payment of money;

5. When the principal debtor becomes the holder of the instru-
ment at or after maturity in his own right.

139. A person secondarily liable on the instrument is dis-
charged: