(5). Lien Vote.—One, which besides promising to pay, contains a clause giving the payee a lien or claim on the article for which the note was given. In case of failure to pay at maturity, the seller may regain possession of the goods, and the buyer loses what he has paid thereon. The buyer may not sell the article until the note is fully paid ; the note is negotiable. (See Section 79 on negotiability.)
(b) Kinds of Drafts.
A draft commencing " Thirty days after date " or " Thirty days after sight " is called a time draft ; one commencing " At sight " is called a sight draft ; one commencing "On demand" is called a demand draft. We may also speak of time notes and demand notes.
78 (a). Days of Grace and Due Date.
The law allows three days, called days of grace, over and above the time specified, in all notes and drafts, excepting those on demand and those containing such words as without grace.
A note or accepted draft is legally due on the last day of grace, unless that day should be a legal holiday or non-judicial day, in which case it falls due on the next business day thereafter.
(b) Finding the Due Date.
Time to Run in Days.—Reckon the number of days to run, together with the three days of grace, forward from the (late of the note, or from the date of the draft drawn so many days "after date"; but in the case of drafts drawn "at sight" or so many days "after sight," reckon forward from the date of acceptance. Drafts drawn "at sight" may be accepted, which allows the acceptor three days in which to provide the money ; they are usually, however, paid on presentation.
Time to Run in Months.—Reckon as in the following examples : a note, dated Jan. 3 at 3 months, is nominally due on April 3, and legally due and payable on April 6; a note, dated Jan. 31 at 1 month, would be nominally due on Feb. 31, but as there are only twenty-eight days in February, it is nominally due on Feb. 28, and legally due and payable on March 3 ; a note, dated Jan 31 at 3 months, is nominally due on April 30, and legally due and payable on May 3.