Liability of Drawer: (Sec. 61 NIL)
Warranties of the Drawer: CDP
i. He admits the existence of the payee and his then CAPACITY to indorse;
ii. He engages that, on DUE presentment, the bill will be accepted or paid, or both, according to its tenor.
iii. That if it is dishonored by non-acceptance or non-payment, he will PAY to the holder of the bill or to any subsequent indorser who was compelled to pay it, provided the necessary
proceedings on dishonor were duly taken.