Life of negotiable instruments; 11 stages

A negotiable instrument is a written contract for the payment of money which complies with the requirements of Sec. 1 of the Negotiable Instruments Law, which by its form and on its face, is intended as a substitute for money and passes from hand to hand as money, so as to give the holder in due course the right to hold the instrument free from defenses available to prior parties. (Sundiang and Aquino)
The following are 11 stages in the life of a negotiable instrument:

1. Preparation and signing
2. Issue
3. Negotiation
4. Presentment for acceptance, in certain kinds of bills of exchange
5. Acceptance
6. Dishonor by non-acceptance
7. Presentment for payment
8. Dishonor by non-payment
9. Notice of dishonor
10. Protest, in some cases
11. Discharge

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