Note payable on demand

(1) Where a note payable on demand has been indorsed, it must be presented for payment within a reasonable time of the endorsement, and if it is not so presented, the indorser is discharged. (2) In determining what is reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case. (3) Where a note payable on demand is negotiated, it is not deemed to be overdue for the purpose of affecting the holder with defects of title of which he had no notice by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.