238 FEDSBAIi BBFOBTEB. �Fendleton and others v. Eniceebboceeb Lifs Iks. Co. {Circuit Oourt, W. D. Tennessee. January 10, 1881.) �L Lira iKstiBAiîcE — PoBFBiTURB — ^Non-Patment of Pkbmium — Com- mercial Papeb. — If a life insurance company take commercial paper in payment of a premium, it implies an undertaking on its part to present the paper for acceptance or payment, and to give the necessary legal notice of refusai to accept or pay, the same as any other liolder of such paper must have done ; and a failure to do thia will save a forfeiture of the polioy, although the paper and the policy itself contain an express provision that the policy shall be void for any omission to pay at maturity a note, other obligation, or indebted- ness taken for a premium, unless the neglect to make demand and give notice is excused by want of funds and the absence of a reason- able expectation by the drawer of acceptance or payment by the drawee. �2. Same StJBjBcr— No DECLAeATroN op Forpeitubb Nboessary.— If �the policy provide ihat on failure to pay a premium, or any note or other obligation taken for it, at maturity, the failure " shall tfaen and thereafter cause this policy to be void, without notice to any party or parties interested herein," no declaration by the company of the for- feiture, or notice of its daim that the policy has ceased, will be re- quired to give this clause ellcct. �3. Bamb Subject— Retubn of OiSH Payment and Dbaft.— Nor will �the company be required to return that part of the premium paid in cash, and the dishonored draf t, to entitle it to claim the benefit of that clause in the policy forfeiting it for non-paymcnt of the draft at maturity. �4. Commebciai, Papeb— Pbesentatiojî fob Acceptakcb ob Pavmestt �— Laches — Excuse. — A draft liayable "thrce months after date, without grace," drawn on the fourteenth of July, 1871, bccomesdue Octobcr 14, 1871, and cannot be Icgally presented for payment on the third or fourth day after that date. Such a draft nee.d not be pre- sented for acceptance; but if the holder undertake to present for acceptance, he must proceed in ail respects as if the obligation to so present existod. A failure, therefore, to give legal notice of non- acceptance, by protest and notice, will require the holder to subse- quently make legal presentation for payment, and give notice of non-payment. If presentation for payment be legally made on the proper day and at the proper place, protest and notice are required if payment be refused ; and a failure to do this, or a failure to prosent for payment on the proper day, can only be excused by showing a want of funds, and an absence of reasonable ground for expectation of payment. What constitutes such reasonable expectation explained, and these principles applied to the case in judgniont of an insurance ����
