Grace. Three

days directly following the maturity of a promi ory note or bill of exchange (draft) allowed debtors by law in some states in which to make payment. In most states grace has been abolished on all forms of paper. In some states grace is not allowed on demand drafts, but is allowed on sight drafts; in other states it is allowed on both. A note payable on January 1, with grace, is in all respects the equivalent of a note payable on January 4, without grace. The first named note is not due in fact or in law until January 4. Interest is to be paid for the three days of grace as for any other portion of the time the note has to run. The holder cannot demand payment until the days of grace of payment have expired and the debtor cannot make payment, except with the consent of the holder, until such time. Should the note be paid before the last day of grace and not be taken up any purchaser who might obtain it from the holder for a valuable consideration before the last day of grace in ignorance of the fact that payment of it had been made could enforce it notwithstanding such payment. He would be a holder who had taken the note before maturity. The effect of grace is simply to postpone the date of payment precisely as might be done in a jurisdiction where grace did not prevail by making the paper payable upon its face and by its expre terms upon the date upon which the last day of grace falls.