THE UNIVERSITY 
 OF ILLINOIS 
 LIBRARY 
 
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M c M ASTER'S Irregular and Regular 
 Commercial Paper 
 
 A TREATISE ON THE LAW OF NOTES, CHECKS AND DRAFTS: WITH TEXT OF 
 THE NEGOTIABLE INSTRUMENTS LAW 
 
 ILLUSTRATED BY FAC SIMILE INSTRUMENTS 
 
 CLEAR — SIMPLE — COMPLETE 
 NEW ANO ENLARGED EDITION 
 
 COPTRISHTeD. 1920. 
 
 BV The McMaster company 
 
 THE MCMASTER COMPANY 
 
 37 WEST 39th ST., NEW YORK CITY 
 
PREFACE. 
 
 This book is to make possible the acquirement of so much of the law 
 of commercial paper as the business man or his assistant finds necessary 
 in the transactions of this commercial day. The books heretofore com- 
 piled on this subject have been designed for lawyers and law students in 
 Jaw offices, and their contents are largely devoted to matter necessary 
 only to the prosecution or defence of lawsuits. They do not meet the 
 requirements of the counting-room for two reasons : 
 
 First. The business man cannot grasp and retain the information so 
 put forth, without several years of study in a lawyer's office, and a :oming 
 in contact with forms and actual cases as set forth in this work. 
 
 Second. The old methods require a personal instructor, and he must, 
 almost necessarily, be a lawyer. 
 
 It is claimed for this book that much technical matter that could 
 only be used in the prosecution of lawsuits is omitted. 
 
 That the necessary matter is simplified in language and is so illus- 
 trated by facsimiles of correct forms and irregular instruments, bearing 
 explanations and cautions, that the business man can carry the informa- 
 tion in his eye and mind until it becomes knowledge. 
 
 As an aid to the better understanding of the subject, considerable 
 space is given to questions on the text and illustrations, and the answers 
 to these questions are so indicated by exact reference to the matter rela- 
 tive to these questions, that one is guided to a full knowledge of all that 
 is to be said in relation to these questions. 
 
CONTENTS 
 
 Preface _ _ . ii 
 
 Definitions and Meanings of Terms 3, 4 
 
 Law of Commercial Paper 5 to 56 
 
 Usual Forms op Commercial Paper A to U, pages 57 to 98 
 
 Negotiable Instruments Law 99 to 464 
 
 Paper, Irregular, Non-Necotiacle or Void . . 1 . . . Numbers 1 to 140, pages 103 to 520 
 
 Questions 566 to 586 
 
 Index 5S7 to 594 
 
DEFINITIONS AND MEANING OF TERMS. 
 
 Bill of Exchange. A written order from one person to another, 
 directing the person to whom it is addressed to pay a third person a 
 certain sum of money therein named. (Bouv. Law Diet.) 
 
 Check. A written order or request, addressed to a bank or persons 
 carrying on the business of banking, by a party having money in their 
 hands, desiring them to pay, on presentment, to a person therein named, 
 or bearer, or to such person, or order, a named sum of money. (Bouv. 
 Law Diet.) 
 
 Promissory Note. A written promise to pay a certain sum of 
 money, at a future time, unconditionally. (Bouv. Law Diet.) 
 
 Drafts, as used in the collection of debts, are not usually nego- 
 tiated. The office of a draft is to collect for the drawer from the drawee, 
 '■'^siding in another place, money to which the former may be entitled, 
 
 either on account of balances due or advances upon consignments; and 
 although they may sometimes be used for raising money (as is a bill of 
 exchange), that is not the necessary or ordinary purpose for which they 
 are employed. 93 N. Y. 280. 
 
 " Bill " means bill of exchange. Sec. 191, post. 
 
 "Note" means negotiable promissory note. Sec. 191, post. 
 
 " Instrument " means negotiable instrument. Sec. 191, post. 
 
 " Commercial Paper " means bill, note, draft, or cheek. 
 
 " Paper " means commercial paper. 
 
 " Person " includes a partnership, or a corporation, or several 
 persons. 
 
 " Principal Obligor " — " Person Primarily Liable." The party 
 wlio by the terms of the instrument is bound, in law, to pay the debt. 
 
and also to save harmless, release and discharge all other parties to the 
 instrument. Sec. 192, post. 
 
 " 140 N. Y. 260" means that the statement preceding such abbrevia- 
 tion is based on a decision of the highest court of the State of New York, 
 and reported in Volume 140, page 260, of the official reports of such 
 
 decisions. Similar abbreviations, with reference to other States, mear> 
 similar kinds of references. 
 
 Negotiable Instruments Law. A uniform statute on the law of ne- 
 gotiable instruments now adopted in forty-five States and the District 
 of Columbia. 
 
CHtCK- Usual Form 
 
 COMMERCIAL PAPER - NEGOTIABLE FNSTRUMENTS. 
 
 THE THREE .PR,INCIPAL FOHMS. 
 
 P^OMissoHY Note Usual Form 
 
 Bill of ExcriANGE-DRAFT- Usual Foi\m 
 
 ^ «<^,iit. 
 
 fry 
 
 I. Negotiable Instruments. Practically every written contract or 
 agreement whicli involves tlie payment of money or property, is nego- 
 tiable in the sense that the owner can sell it to another and that the 
 purchaser can enforce it to the same extent that the original owner 
 could if he had not assigned it. Bonds and mortgages, contracts for 
 
 the sale of real estate or persona! property, building contracts, leases, 
 etc., would be negotiable in the above sense, but they are not " negotiable 
 instruments." 
 
 2. Distinction. The material difference between a non-negotiable 
 instrument and a negotiable instrument is that the party to the non- 
 
negotiable instrument who has agreed to pay money or property under 
 it, may, when the money or consideration is demanded by a purchaser, 
 set off against it any claims that he has against the original owner, which 
 he could have set off if it had not been assigned, — while the bona-fide 
 purchaser, before maturity, of a negotiable instrument can enforce it for 
 its full amount against the maker, regardless of any counter-claim or 
 defenses that the maker has against the original owner. 
 
 As illustrative of this : If Alfred Adams and Barney Bell had made 
 a written contract under which Adams had agreed to pay Bell one thou- 
 sand dollars on the completion of a certain building which Bell had 
 agreed to build for Adams, and if before the completion of the building 
 Bell had assigned the contract or the money to be paid on it to Charles 
 Clark, and had directed Adams to pay the money to Clark, and Clark 
 demanded the one thousand dollars when it was due, Adams could say, 
 if such was the fact, that he had had other dealings with Bell and that 
 in such other dealings there was a balance of five hundred dollars due 
 
 Adams from Bell, and therefore he would pay Clark but $500, — the 
 balance that would have been due Bell if he had not assigned the money 
 due on the building contract ; — and this settlement the law would enforce, 
 as the building contract is a non-negotiable instrument. But if Adams 
 had given Bell his promissory note for one thousand dollars due at a 
 future time, and if before that time Bell had indorsed the note for a 
 valuable consideration to Clark, then Clark could compel Adams to pay 
 him the full one thousand dollars regardless of any sums that Bell might 
 owe Adams on account of other transactions. 
 
 3. Origin — Necessity of — Negotiable Instruments. Originally all in- 
 struments, including checks, notes and bills of exchange were non-nego- 
 tiable, — in the sense that the maker could, when asked for payment, 
 deduct from the amount due on the instrument any just claim that he 
 had against the original owner. Such just claim would then be termed 
 a counter-claim, or set-off. In the revival of commerce in Italy, in the 
 eleventh century, merchants and traders, feeling the necessity of a 
 
moneyed instrument, that could be used in liarter and trade, to a limited 
 extent in the same way that bank bills are now used, — and appreciating 
 that no such instrument could be circulated or sold readily, no matter 
 how financially strong the maker was, if he, the maker, could always in- 
 sist on adjusting accounts with the original owner, — adopted a custom, 
 known as the " custom of merchants," which soon after became, or had 
 the force of, a law known as the " law merchant," under which notes, 
 checks, drafts, and bills of exchange, drawn in certain prescribed forms, 
 and in the hands of a bona-fide purchaser, could be enforced to their full 
 extent against the maker, regardless of any defenses or counter-claims 
 that the maker might have against the original holder; such instruments 
 are " negotiable instruments." 
 
 4. Negotiable instruments are thus given many of the peculiarities 
 of money — i.e., gold and silver coin and bank bills. Neither coined 
 money nor bank bills are termed negotiable instruments or commercial 
 paper, but they are in the highest sense negotiable. 
 
 S- A thief who has stolen coined money or bank bills can pass such 
 money to an innocent party, and the latter has a perfect title to it and 
 cannot be deprived of it even if the party from whom it was stolen could 
 positively identify the money and prove the theft ; such is the case if the 
 stolen property is a valid negotiable instrument. It may be said here 
 that as to all other personal property — gold, silver (except coined 
 money), jewelry, grain, horses, cattle, merchandise, etc., etc. — the true 
 owner from whom it may have been stolen can retake such property 
 wherever found without compensating the holder in any way. although 
 the holder may have purchased the property from the thief or other per- 
 son in perfect good faith and paid full value therefor. 
 
 6. Money has always had this free negotiation. Negotiable instru- 
 ments — commercial paper as they are often termed — are a later favor 
 granted by the law, and it has jealously required rigid restrictions to be 
 used in their issuance. 
 
 7. Money (coin and bank bills) is issued by the government, or 
 
under its supervision, and hence it is uniform, and one who takes it does 
 so freely and witliout examination except to know that is not counter- 
 feit. Every man of full age can issue commercial paper, and of the 
 millions of pieces that are put in circulation and negotiated daily scarcely 
 any two are alike, and close scrutiny and a knowledge of the law is often 
 required in order to ascertain whether they are in fact negotiable instru- 
 ments. 
 
 The importance of this knowledge is appreciated when it is known, 
 as it has been shown by government statistics, that over go per cent, of 
 the daily moneyed transactions of this country are carried on through 
 the medium of commercial paper. 
 
 8. Bona-fide Holder. In order to take advantage of the special 
 privileges attached to a negotiable instrument, the holder must have 
 taken it before it was due, and with no notice of any irregularity in the 
 instrument, or of any valid defenses that the maker had to it, — and the 
 owner must have parted with some thing of value in acquiring it. The 
 
 consideration need not have been money, — it may have been propertj, 
 the granting of credit, or some disadvantage which the holder assumed 
 in acquiring it. Such a holder is a " holder in due course," often spoken 
 of as a bona-lide holder. 
 
 9. What Constitutes a " Holder in Due Course." " A holder in due 
 course " is a holder who has taken the instrument under the following 
 conditions : 
 
 a. That it is complete and regular upon its face ; 
 
 b. That he became the holder of it before it was overdue, and with- 
 out notice that it had been previously dishonored, if such was the fact ; 
 
 c. That he took it in good faith and for value; 
 
 d. That at the time it was negotiated to him he had no notice of any 
 infirmity in the instrument or defect in the title of the person negotiating 
 it." Negotiable Instruments Law. Sec. 52, post. 
 
 10. The terms " bona-fide holder " and " holder in due course " are 
 often used in the same sense, but, technically, there is a difference in the 
 
terms, as a person who takes an instrument in good faith is, properly, a 
 bona-fide holder, even if the instrument is bad on its face ; but if the in- 
 strument or the transaction do not conform to the four requirements set 
 ■ forth in the above definition, the holder is not " a holder in due course," 
 and cannot be protected by all of the safeguards thrown around nego- 
 tiable instruments. The terms " bona-fide holder " and " holder in due 
 course " are hereafter used in the same sense. 
 
 II. Commercial Paper. While the bonds of railroads, manufactur- 
 ing, municipal, and other like corporations, issued for the purpose of 
 securing loans of money, are deemed negotiable, if expressed in apt lan- 
 guage (no N. Y. 469), they are not called " commercial paper," and as 
 this work is confined to the treatment of commercial paper only, such 
 bonds are not hereafter referred to or included in the terms " negotiable 
 instruments " and " commercial paper." Where either of these terms 
 hereafter appears it is treated as synonymous with the other. 
 
 II. Every piece of " commercial paper " is necessarily a " negoti- 
 
 able instrument," but, as in the case of the bonds above mentioned, the 
 term " negotiable," or " negotiable instrument," is sometimes applied to 
 instruments that do not carry with them each and every attribute of 
 commercial paper. 
 
 13. There is no particular language or form to which these instru- 
 ments must conform, but they must be restricted to the single purpose 
 of directing the payment of money, or promising its payment — not of 
 performing some other act. See Forms A, B, C. Sec. i, post. 
 
 14. It is absolutely essential that they be certain in every particular 
 — free from provisos, contingencies, qualifications, doubts, or restric- 
 tions. The time of payment must be fi.xed and capable of compu- 
 tation ; the amount certain and payable only in money. See Forms A, 
 B, C. 
 
 15. A departure from these certainties or an enlargement of the 
 duties to ue performed by the maker or parties to the instrument will 
 relegate the paper to the level of simple contracts which pass only 
 
subject to all equities and coiiiiu-r-clainis, and tlie writing of one's name 
 on the back of wiiicli imposes no financial obligation. 
 
 16. Just what words will or will not destroy the negotiability of a 
 promissory note or bill of exchange is a subject on which the courts dif- 
 fer. It is seldom done by saying too little, but usually in saying too 
 much, — an attempt to make the instrument accomplish more than one 
 purpose, — the unconditional payment of the sum of money for which it 
 is drawn. 
 
 17. Form. There are but three forms of commercial paper in every- 
 day use, — Check, Promissory Note, Bill of E.xchange, or Draft. Their 
 usual form is shown in illustrations A, B, C, D. 
 
 18. While there is no regular, prescribed, form for these instru- 
 ments, there are certain orderly forms which are usually followed, and 
 there are certain prerequisites without which they are non-negotiable 
 instruments: Sec. i, post, et seq. 
 
 a. They must be in writing (ink, pencil, or type impressions), and 
 they must be signed by the maker or drawer ; 
 
 b. They usually state the place from which they are issued, but 
 that is not essential ; they are usually dated, although that is not abso- 
 lutely necessary if their time of payment is not expressed as being a cer- 
 tain period of time " after date " ; 
 
 c. They must be payable on demand, or at a fixed time, or a deter- 
 minable future time, or at a time certain to occur; 
 
 d. The promise or order to pay must be unconditional and not con- 
 tingent on some other duty or act being performed, either by the payee 
 or any one else ; 
 
 e. They must be payable " to order " or " to bearer." If they are 
 payable to order the payee must be named with such certainty that he 
 or it is capable of being identified ; 
 
 f. They must be payable in money; 
 
 g. It is usual to name a place of payment in the instrument. If no 
 place of payment is named, the instrument is deemed to be payable, for 
 the purpose of presenting and protesting for non-payment, at the place 
 
of business of the maker or the acceptor or drawee, or if he have no place 
 of business, then at his residence. If the paper has not been dishonored 
 (not been paid) on the day of its maturity, it then becomes payable at the 
 hands of the owner, and the debtor is bound to hunt him up and tender 
 payment wherever the owner may be. 
 
 h. They must not show any alterations, — erasures or additions on 
 their face. 
 
 1. They must not carry on their face any information that would 
 lead a prudent man to inquire further as to their validity. 
 
 /. The time of payment expressed in the instrument must not have 
 passed, — and if no specific time is expressed they must not have been 
 issued an unreasonable time. 
 
 19. Referring to the foregoing provisions: 
 
 a. The body of the instrument is "in writing" if it is printed or type- 
 written or written with ink or pencil. The signature of the individual 
 executing the instrument, for himself or for a corporation or for another, 
 
 must be in either ink or pencil, although a stamped impression would in 
 many instances be binding ; but one who is entitled to demand or receive 
 a signature to commercial paper can demand that such signature be the 
 written name of the signer notwithstanding the fact that a stamped signa- 
 ture or some abbreviation or other indication might be binding. If 
 the signature is that of a corporation it is not objectionable that the cor- 
 porate name be stamped or printed if the officer's name is written : 23 
 Minn. 263 : 4 Vt. 1 1 : 35 Me. 324 : 1 32 Mass. 227 : 33 111. 424. A signa- 
 ture by initials only will be binding if it can be proved. 33 111. 424 : 6 
 Wend. (N. Y.) 443. Also by an adopted business name. 104 Mass. 336. 
 
 b. It is not necessary to the validity of the instrument that the place 
 of making be given,— but it always should be. 78 111. 558. Absence of 
 date does not make the instrument invalid. 91 Pa. St. 17: 31 111. 306; 
 32 Ind. 375. 
 
 If no date be given, the date is deemed to be that of the delivery 
 of the instrument to the person first entitled to receive it. See No. 1 1 . 
 
If it is an impossible date, as September 31, the date of delivery usu- 
 ally governs, although it has been held that such date is that of Septem- 
 ber 30. It is immaterial as to whether an instrument is dated Sun- 
 day or not, if it was not in fact made and delivered that day. 
 
 The fact that the instrument is post-dated (dated ahead) or ante- 
 dated, does not affect its validity or negotiability; except that a check 
 dated ahead is usually considered as a bill of exchange and not as a check. 
 48 Me. 198: 32 Me. 524: 69 Cal. 550: 17 Ala. 45: 156 Mass. 508: 8 Wend. 
 (N. Y.) 478: 47 Mo. App. 215 : 30 Vt. 11. 
 
 It has been said that a check without a date is a nullity, but there 
 are no decisions to that effect and seemingly no ground for the statement. 
 A bank might possibly be warranted in refusing payment of such an 
 instrument as defective in one of its orderly parts, but it must be, and is, 
 the obligation and order of the drawer payable on demand. 
 
 "An instrument dated on Sunday, but not delivered until a future 
 
 week day, is good. An instrument is not complete, nor does it be.:ome 
 binding, until it is delivered and the consideration passed, and it then, 
 only, takes effect ; — it has its inception only from that latter time, — it is 
 not a complete instrument until then. 
 
 So if an instrument be dated on a week day but is not delivered and 
 the consideration is not passed until Sunday it is a Sunday contract, and 
 it will not be valid except in the hands of one who is ignorant of the 
 Sunday part of the transaction. 48 Me. 198. 
 
 An instrument dated or delivered on a holiday other than Sunday 
 is not thereby prejudiced in any way. 
 
 c. The instrument is usually payable on demand or at sight or 
 at so many months or days after date, or at a fixed day of a certain 
 month. 
 
 The order or promise to pay may be in installments, if the time of 
 payment of the installments is clearly expressed. 
 
 If no time of payment is expressed they are payable on demand. 
 
44 Conn. 300: 24 Cal. 309: 56 Ga. 605: 52 Iowa 570: 146 Mass. 20: 125 
 N. Y. 254: no Pa. St. 318. 
 
 And the same rule prevails where the blank line for time is not filled 
 up. 81 Mo. 275: 25 Mo. App. 170: II Ohio St. 61. 
 
 Where commercial paper is payable on demand the holder can make 
 the demand at once, and he must demand payment within a reasonable 
 time or the indorsers will be released. Just what is a reasonable time 
 depends on the facts of each particular case. Sec. 193, post. 
 
 A check which is payable on demand must be presented not later 
 than the next business day, if the holder lives in the same place as that in 
 which the bank is located on which it is drawn. See Form F. 
 
 If the bank is in a different place the holder must start it there for pay- 
 ment not later than the next business day, or the indorsers will be released. 
 23 N. Y. 41 : 5 Ohio St. 13 ; 95 Mich. 436 : 40 Me. 60 : 103 Ala. 458 : 41 Conn. 
 344: 80 Md. 475: 30 N. J. L. 284: 42 N. Y. 558. Sees. 84, 146, 194, post. 
 
 As to demand instruments other than checks no precise number of 
 
 days is generally fixed by law for presentment in order to charge in- 
 dorsers. 
 
 Sixty days seems to have been the outside limit ever given by any 
 court. The courts of New York have said that the indorser of such 
 instruments has a right to expect the same prompt demand as a check 
 would have. 
 
 The holder of such instrument, who expects to retain the liability 
 of an indorser, should not delay demand for one day even. If he 
 does, he does so at his peril. 100 N. Y. 539; 98 N. Y. 379; 88 N. Y. 
 339; 41 Vt. 387: 48 N. J. L. 513: 27 N. H. 230; 31 Minn. 33: 13 Mass. 
 131 : 44 Me. 459: 40 Cal. 111:31 Conn. 268: 29 Iowa 249: 23 Fed. Rep. 
 710. 
 
 At sight. An instrument payable " at sight " is usually treated as one 
 payable on demand, but in some States days of grace are allowed on 
 instruments drawn payable " at sight," — this is never the case with paper 
 payable " on demand." 
 
Where an instrument is drawn payable at a certain time after sight, 
 sight means the date of acceptance. 
 
 An instrument payable at the death of the maker, or a fixed time 
 thereafter, is negotiable, as the event is sure to happen. But if payable 
 when the maker or some other person should arrive at a certain age, or 
 should marry, or on the arrival of a certain ship, etc., the instrument is 
 non-negotiable, as that event might not happen, — and the rule would 
 not be changed and the instrument become negotiable even if the un- 
 certain event did happen. Sec. 4, post. 
 
 If a time of payment is expressed it must not be coupled with a 
 contingency, and it must be a time certain to arrive. 
 
 The following expressions as to time of payment are bad, as the 
 events may not happen : 
 
 When my son is of age. 13 111. 604. 
 
 When I am in funds. 3 McLean (U. S.) 272. 
 
 When my farm is sold. 22 Wis. 415. 
 
 When my father's estate is settled. 81 111. 172. 
 
 When my crop of wheat is sold. 19 Wall (U. S.) 560. 
 
 When a certain railroad is built. 14 Ohio 455 : 109 N. Y. 63 : 62 
 Tex. 188. Cf. Sec. 5, post. 
 
 If the time as expressed is certain, but the instrument provides that 
 the maker may make indefinite extension, the instrument is not nego- 
 tiable. 126 Pa. St. 194: 59 Iowa 348: 45 Mich. 371: 104 Ind. 278: 39 
 Fed. Rep. 262. 
 
 An instrument payable at death is negotiable, as the event is sure 
 to happen. 131 N. Y. 462: 46 Ala. 587: 105 Ind. 543. 
 
 d. The following conditions coupled with the order or promise to 
 pay would destroy the negotiability of the instrument: " If on or before 
 that date certain bonds are delivered : " " If a certain lease is surren- 
 dered : " " If a certain mortgage is not discharged." 
 
 A check or order on a savings bank which says that the pass book 
 must accompany the order is non-negotiable. 139 Pa. St. 52. 
 
An order or promise to pay out of a special funu is non-negotiable, I 
 as the fund may be insufficient, and the rule is not changed if the fund 
 is, in fact, sufficient. See Forms 12, 13, 15. Sec. 3, post. 
 
 An order to pay a certain sum out of the proceeds of a certain claim 
 is non-negotiable. 28 Ala. 408. 
 
 Or out of the last payment on a certain contract. 
 
 Or out of a sale of certain bonds. 
 
 Or out of money collected or to be collected upon a certain mort- 
 gage. 4 Met. (Mass.) 235: 51 Miss. 631 : 33 Tex. 282: 61 N. Y. 257: 11 
 Neb. 580: 16 N. J. L. 440. 
 
 Or on account of cotton shipped this day. 25 N. Y. 241. 
 
 And the same rule applies to an order to pay a certain sum, " and 
 charge to account of paving " a certain street. Or to pay " and charge 
 to account of labor and materials furnished " for certain building. 81 
 N. Y. 454: 75 N. Y. 370: 43 N. H. 128. 
 
 e. If the instrument is payable " to bearer," or to a person " or uearer." 
 it is not essential that the name preceding the words " or bearer " be that 
 of one capable of identification. But if the instrument be drawn " to the 
 order of," or to one " or order." it is essential that the person or persons 
 or body named, be capable of identification. Sees. 8. 9. post. 
 
 An instrument payable to A. B.. without the words " to order of " 
 or " order of," " or bearer." or their equivalent, is not a negotiable in- 
 strument, except in States where the contrary is provided by statute.. 
 See Form T. 
 
 An instrument, knowingly made by the maker, payable to the order 
 of a fictitious payee, is, in eifect, payable to bearer, and is negotiable. H 
 the bona-r.de holder of such note desires, he may write the name of the 
 fictitious person as indorser on the note. The fictitious payee may he 
 the same name as that of an existent person, — but this does not change 
 the rule. 
 
Paper drawn to fictitious payees does not have the sanction of law 
 and cannot be enforced in the hands of those who take it with notice of 
 its infirmity. 
 
 But paper payable to an impersonal payee, — as " Cash," " Bills Pay- 
 able," etc., — is deemed payable to bearer, and is regular and valid, as is 
 paper payable to the order of one under an assumed business name. 70 
 Miss. 655 : 26 Minn, 336 : 10 Mass. 360. 
 
 A note drawn by a partner payable to tlie firm, or vice versa, can- 
 not be enforced unless transferred and held by a third party; and this 
 rule applies to separate firms if one partner in either firm is a member of 
 the other firm. 
 
 The maker, drawer, payee, drawee, and acceptor of an instrument 
 may be the same person ; and if such person indorses the instrument and 
 puts it in circulation it will be held to be a negotiable instrument. 
 
 If the instrument is payable " to order " the payee must be a per- 
 son, persons, firm, corporation, or body capable of being identified at the 
 
 time the instrument is made, — it is not sufficient that the payee come 
 into being or is capable of identification at the time the instrument is 
 due. 26 Minn. 410: 59 Iowa 649: 16 111. 169. 
 
 Where the instrument is payable " to bearer " there need be no 
 further or closer expression of a payee. 
 
 There may be several payees, but not in the alternative. Thus an 
 instrument payable " to the order of B. or C." is defective as to payee. 
 106 Mass. 561 : 19 III. 81. 
 
 But it is held that a bill of exchange may be properly drawn on " A. 
 or B." 
 
 f. If the amount stated in figures and that stated in words do not 
 agree, the words will govern. The instrument must be payable in 
 money: " Dollars " is the proper expression. " Gold Coin," " Specie," 
 " Legal Tender," are not improper terms. But if payment is directed 
 " in current funds," " in New York Exchange," " in currency," the in- 
 strument is generally held non-negotiable. 
 
The following mediiir.-js of payment have been held to make the in- 
 strument non-negotiable (see No. 86) : 
 
 In United States Bonds. 13 Minn. 90. 
 
 In Current Funds. 76 No. Car. 227: 63 Tex. 48: 18 Wis. 41. 
 In Bank of England Notes. 2 Rose 225. 
 
 " With Exchange." 38 Fed. Rep. 283 : 28 S. C. 504 : 4 N. Dak. 30 -j 
 10 Mo. App. 527: 61 N. W. 584: 44 N. E. 573. 
 
 A promise to pay, or the option to pay, in goods, chattels, bonds, or 
 other commodities, renders the instrument non-negotiable. 
 
 After the instrument is properly drawn payable in money, it will be 
 non-negotiable if it provides for or directs the performance of some other 
 act, or for the further payment of some indefinite amount or account, — 
 and this rule extends to memoranda made on the margin or back of the 
 instrunient, if such memoranda expresses an agreement made by the 
 parties at the inception of the instrument. 
 
 A distinguished jurist has said that the instrument should be " a 
 courier without luggage." 
 
 A note that provides for the payment of attorneys' fees in case of 
 suit being brought is non-negotiable in many States. It has been so 
 held in 103 Cal. 319: 80 Wis. 133: 92 Pa. St. 227: 69 Md. 433: 86 Mich. 
 191 : 29 Minn. 120: 84 No. Car. 24. See No. 124. 
 
 Contracts in the general form of promissory notes, but which are 
 non-negotiable, which provide for the payment at a certain time of a 
 sum of money " or the delivery of 1,000 bushels of corn," or other alter- 
 native act, are enforceable contracts, and up to or on the date of the 
 maturity of the instrument the promisor may have his choice as to the 
 medium in which he will discharge his obligation, but if the instrument 
 is not paid at maturity the holder can demand and enforce the payment 
 of money. 57 N. Y. 573 : 7 III. 461 : 32 Me. 44: 21 Tex. 466. . 
 
 g. In Alabama, Indiana, Kentucky, Virginia, and West Virginia 
 
statutes have been passed which provide that negotiable notes must be 
 payable at a bank in the State, and in Kentucky such notes must also be 
 indorsed to and discounted by a bank in the State. 
 
 The instrument need not express a consideration : the words " value 
 received " and like expressions are valueless. But in Missouri the words 
 " value received " must, by statute, be stated in negotiable notes. See 
 Form B. 
 
 Ii-i. Alteration. Alteration of material parts of the instrument not 
 only destroys the negotiable character of the instrument, but it usu- 
 ally destroys the instrument itself and releases therefrom all par- 
 ties who did not make the alteration or consent to it. Sec. 125, post. 
 
 In order that the alteration may be fatal it is not necessary that it 
 be done with a wrong intent. — or that it increases the amount or the lia- 
 bility of the parties, — it is sufficient that a material part of the instrument 
 be changed, even if the change in itself was immaterial in fact, or even 
 
 if it would work a benefit to the parties to the instrument. But spolia- 
 tion or mutilation by a stranger to the instrument does not release any 
 of the parties. 
 
 The material parts of the instrument which may not be changed 
 
 are: 
 
 Date. 
 
 Time of payment. 
 
 Payee. 
 
 Amount. 
 
 Place of payment. 
 Number of makers. 
 
 The alteration would be fatal if the date or time of payment were 
 changed so as to give the maker and indorser more or less time in which 
 to make payment. 
 
 And so if the payee is made to be another person or additional 
 person 
 
Or if the amount were made less or greater, either of principal or 
 interest. 
 
 Or if a place of payment were changed, or a special place of payment 
 added if none were already expressed. 
 
 Or adding the name of another person as maker, although thereby 
 the paper were strengthened and the liability of the present parties les- 
 sened. 
 
 An alteration can be made by adding words as well as by changing 
 those already written. 
 
 This seemingly harsh rule as to alteration is applied by the courts 
 to all written contracts, — it is not limited to negotiable instruments. 
 
 I. " Notice " of any infirmity, or of defect in the title woulu cove 
 any information that a pru.dent person would gather from looking at the 
 instrument, or information, — oral or written, — that might have come 
 through any other source. Sec. 56, post. 
 
 The purchaser is not bound to inquire if his suspicions are not 
 aroused, but he cannot shut his eyes or ears in the transaction and then 
 be heard to say that he had no " notice " or that he acted in " good 
 faith." 
 
 " Good faith " in such transactions is good faith in its plain, every- 
 day sense, without quibble or evasion, If for any reason the would-be 
 purchaser's suspicions are aroused, he must follow the trail to its end."" 
 
PARTIES. 
 
 Sec Forms A, B, C 
 
 20. Drawer. The drawer, or maker, of a negotiable instrument is the 
 one u iio pruniises to pay or the one who directs another to pay, and 
 thereby promises that such another will pay. 
 
 21. Drawee. The drawee is the one who is directed to pay. 
 
 22. Payee. The payee is the one to whom the promise or direction 
 to pay is made. 
 
 23. Acceptor. If the drawee adopts the direction to pay, and wTites 
 his name on the paper, he becomes an acceptor as well as a drawee. See 
 Forms C-H. 
 
 24. Indorser. If the payee or any other person writes his name on 
 the back of the instrument he is an indorser. See Forms A to U. 
 
 25. The original parties to a Check are (see Form A): 
 Drawer or Maker. 
 Drawee. 
 Payee. 
 
 26. The original parties to a Promissory Note are (see Form B) : 
 Drawer or Maker. 
 Payee. 
 
 27. The original parties to a Bill of Exchange or to a Draft are (see 
 Form C) ; 
 
 Drawer or Maker. 
 Drawee. 
 Payee. 
 
 And if the Drawee accept the instrument he becomes the Acceptor. 
 
28. There is another party that usually appears as soon as the in- 
 strument is negotiated, — the Indorser. 
 
 2g. Drawer of Check. The drawer of check assumes more responsi- 
 bility than does the drawer of other negotiable instruments. 
 
 30. By signing his name to a check the law says that the drawer has 
 said, in effect, to the payee, " I have at this time an account with the 
 bank on which this check is drawn, and there is at least as much money 
 to my credit in that account, and not checked against, as this check calls 
 for." 
 
 31. If such are not the facts the drawer in signing and issuing the 
 check has committed a fraud, and may be punished criminally. The 
 drawer of a check further promises that if the bank does not pay it on its 
 due presentation he will pay. 
 
 32. Drawer of Promissory Note. The drawer of a promissory note 
 in signing and issuing it says that when it is by its terms due and payable 
 he win pay to the lawful holder the amount of money that is due on 
 
 it. He commits no fraud or legal wrong, even if at the time he signs 
 and issues the note he has no means at hand or under his control from 
 which to pay it, nor if he sees no way that he can meet the obligation 
 when it becomes due. He has agreed to pay, and the law, through its 
 forms, will seize his property, if he has any, and have it sold to pay the 
 debt if he does not pay it ; but the law punishes him in no other way for 
 not keeping his promise. 
 
 33. Drawer of Bill or of a Draft. The drawer of a bill of exchange or 
 of a draft says, in legal effect, to the payee, that the drawee will accept the 
 instrument, as soon as presented to him, by writing his name across the 
 face of it, and that the acceptor will pay the amount of the bill or draft 
 when by its terms it is due and payable, and if the drawee or acceptor 
 fails so to pay, that he, the drawer, will then pay. See Forms C-H. 
 
 34. If the drawee fails to accept or the acceptor to pay, the drawer 
 has committed no legal wrong in issuing the paper, even if he had grave 
 doubts as to its payment when he so issued it. 
 
35- Drawee of Check. The drawee of a check is always a bank, 
 banking institution, or banker, — as the instrument is not a check unless 
 drawn on a bank or banker. 
 
 36. If the account of the drawer of the check has a credit balance 
 sufficient to pay the check the drawee, — the bank,— has promised in ad- 
 vance to pay it on presentation, — as a bank in opening an account with 
 a depositor has, in law, without any special or further agreement, prom- 
 ised to pay the depositor's checks as presented if the depositor has suf- 
 ficient funds to his credit to pay the full amount of the check when 
 presented. The bank need not make partial payment of the check if the 
 depositor's credit is not sufficient to pay the full amount, but it may if it 
 choose. 
 
 37- It may be here stated that the promissory notes of the depositor 
 which are by him drawn payable at the bank where he keeps his account 
 are, on the day of their maturity, equivalent to his checks on the bank, 
 and the bank is required to pay them without further order from him. 
 
 And the same rule applies to bills or drafts which he has accepted pay- 
 able at the bank. 
 
 38. drawee of Bill or Draft. As before stated, ii the depositor in a 
 bank has funds there to his credit sufficient to meet his check, the 
 drawee, — the bank, — has made in advance an implied legal promise to 
 pay it. 
 
 39. But this is not so of the drawee of a bill of exchange or of a 
 draft; for even if the drawee of such an instrument is indebted to the 
 drawer the law does not say that the drawee (the debtor) has there- 
 fore promised to accept the bill or draft drawn by the drawer (the cred- 
 itor). 
 
 40. It is true that the law says that the drawee (the debtor) must 
 find the drawer (the creditor) and transmit to him in money the amount 
 he owes him, but this legal duty does not compel the drawee (the debtor) 
 to accept the bills or drafts drawn on him by his creditor. 
 
 41. It follows that until the drawee accepts the bill or draft he has 
 
incurred no liability by reason of it, — and when he does accept it he 
 is called an acceptor, and assumes for the first time any liability. 
 
 42. Acceptor. When the drawee accepts the bill or draft his posi- 
 tion thereon has radically changed. From being a person who has no 
 obligation by reason of the bill being drawn he has assumed the principal 
 obligation, — he is " primarily liable," he is the " principal obligor." See 
 Forms C-H. 
 
 43. He has, by accepting, held out to the holder of the bill, or the 
 successors in ownership to the holder, that he is the principal obligor on 
 the bill, and he promises that he will pay it when it is due. 
 
 44. This representation and promise is also, thereby, made by the 
 acceptor to the drawer, payee, and indorsers on the bill. 
 
 45. He says, in legal efifect, to each of them and all of them : " I will 
 save you from paying the bill, and if you have to pay it I will reimburse 
 you, — it is my debt." 
 
 46. The acceptance is properly made by the drawee writing the 
 
 word " Accepted " across the face of the bill ; adding the date of the ac- 
 ceptance and the drawee's name. See Forms C-H. 
 
 47. If no special place of payment is named in the bill the acceptor 
 may add to his written acceptance a specific place of payment in the city, 
 town, or village in which the bill is addressed to him, See No. 20. 
 
 48. It is usual in accepting a bill or draft for the acceptor to write 
 the word " Accepted " across its face, naming the date of acceptance and 
 adding his signature. It is not essential, however, that the acceptance 
 be on the face of the paper, and the acceptor may be bound even if he do 
 not add his name in writing, or if he write his name across the paper with 
 nothing further. 18 Wall (U. S.) 604: 29 Me. 77; 30 N. H. 64: 2 Hill 
 (N. Y.) 582: 37 Minn. 191: 28 Mich. 197: 118 Mass. 537: 88 Ga. 29. 
 
 49. While incomplete signatures and memoranda and stamped sig- 
 natures may bind an acceptor, maker, or indorser, a holder entitled to 
 demand an acceptance or indorsement may demand that it be the name 
 of the person written in ink. 
 
50. The holder of a bill must not allow the acceptor to qualify or 
 make conditional his acceptance in any way, and if the drawee does so 
 accept, the maker and indorsers will be released it the bill is not pro- 
 tested. Sec. 141, post. 
 
 51. The following qualifications are bad : Accepting so as to make 
 the bill payable at a different time. 37 Minn. 191 : 25 Miss. 376. Vary- 
 ing the amount. 73 Mo. 179. Accepting payable in another city or 
 town. 
 
 52. Acceptor of Check. While the obligation of a bank is to pay 
 the depositor's check if his account is good for it, the holder of the check 
 may for his own convenience desire to have the bank accept or certify 
 it, and this the bank may do if it choose, although under no obligation 
 so to do, by an officer or teller writing his name and title on the check 
 and writing above his name any words of acceptance, as " Good," " Cer- 
 tified," " Accepted." See Form G. 
 
 53. The bank has then made the debt its own and promised abso- 
 lutely to pay it regardless of the state of the depositor's account. 
 
 54. Payee. The payee of a negotiable instrument is the one to 
 whom the promise is made. As payee, he assumes no financial obliga- 
 tion, but he frequently does assume obligations when he sells and trans- 
 fers the instrument. Such obligation is usually that of indorser, and is 
 treated under that head. See Forms A, B, C. 
 
 55. Indorser. A negotiable instrument differs from a non-nego- 
 tiable one in the matter of the liability of one who writes his name on the 
 back thereof. Strictly speaking, there is no such thing as an indorser 
 of a non-negotiable instrument. Such designation applies only to one 
 who writes his name on the back of commercial paper. Sec. 66, post. 
 
 56. Indorser's Contract. An indorser of a negotiable instrument 
 contracts with the present or future holder of it that if the maker does 
 not pay it at maturity, he, the indorser, will, if at that time it is properly 
 
presented for payment and protested for non-payment and notice thereof 
 is duly sent to the indorser. See Forms A to Q. 
 
 57. Except in a very few States, one incurs no responsibility who 
 writes his name on tlie back of a check, note, draft, or bill of exchange, 
 that is non-negotiable by reason of some of the non-negotiable words or 
 clauses hereinbefore mentioned, or which for other reasons is non-nego- 
 tiable. 
 
 58. This distinction in favor of a negotiable instrument is usually 
 of far more importance to the creditor than the provision that he takes 
 the instrument free from the counter-claims and defenses that may exist 
 between the maker and the original holder. 
 
 59. An indorser, broadly termed, is one who writes his name on the 
 back of a negotiable instrument. 
 
 60. If the name is so written on the back of a non-negotiable instru- 
 ment the term " indorser " does not properly or legally apply. Cf. 50. 
 
 61. The indorser says, in legal effect, to the holder thereof, " The 
 makers of this note (if it be a note) or the acceptors of this biil (if it be 
 a bill) or the makers of this check (if it be a check) have promised to 
 me and to you that they will pay this obligation, or cause it to be paid, 
 when it is due. Now, if it is not then paid I will pay it on demand ; but 
 you cannot enforce my (the indorser's) implied promise unless you can 
 show that on the day of the maturity of the instrument it was presented 
 by a proper person at the place where it was payable and payment de- 
 manded and notice given me of its non-payment, and protest of the 
 instrument duly made." 
 
 62. There may be any number of indorsers on a negotiable instru- 
 ment. 
 
 63. The principal function of commercial paper is negotiability, and 
 if is negotiated there is usually one indorser at least on it : for, as com- 
 mercial paper is usually drawn payable to the payee " or order," it is 
 
necessary to the negotiation of the instrument that the payee indorse 
 it, — its negotiation is stopped until he does indorse it. The payee thus 
 usually becomes the first indorser. 
 
 64. The order of indorsers' names on the paper is very essential to 
 the indorsers, for each indorser, in addition to promising the holder that 
 the paper will be paid, says in legal efifect, to each person whose name 
 appears below his on the back of the instrument, " I will save you harm- 
 less by reason of your indorsement of this paper if I am duly notified of 
 its non-payment." 
 
 65. Order of Liability. Indorsers are liable to each other in the 
 order in which their names appear on the paper, unless they have made 
 a separate and specific agreement to the contrary. That is, — each in- 
 dorser is liable for the full amount of the instrument to any of the several 
 indorsers whose names may appear under his, but he is not liable in any 
 way to an indorser appearing above him on the paper. See Forms A 
 to Q. Sec. 68, post. 
 
 66. While this is the rule as between the indorsers, the holder does 
 not have to recognize it ; he may proceed against any of the parties re- 
 gardless of the order of their liability among themselves. And he may 
 compel any one of them to pay whole debt. 
 
 67. Where Written. The indorsement must be on the paper so long 
 as there is room on the back or front to place it there. When there is 
 no further room there it can be placed on a paper properly attached to 
 the instrument, — attached there for that purpose. 
 
 68. Assignment. An assignment on a separate paper, whether in 
 the nature of an indorsement or not, destroys the negotiability of the 
 instrument and leaves it open to any equities the maker may have against 
 it. 
 
 69. For the various forms of indorsement and their legal interpre- 
 tation, see Forms A to U. 
 
 70. Discharge of Indorser. An indorser will be wholly discharged if 
 the paper is not properly protested on the day of its maturity, — if it has 
 
not ihen been paid: if the mai<er releases or surrenders or fails properly 
 to protect any security that he holds for it; if he extends the time of 
 payment without the indorser's assent ; if the maker or any previous in- 
 dorser pays it after it is due. Sec. 182, post. 
 
 71. Misspelled Name. If the name of the payee or indorsee is mis- 
 spelled or wrongly designated, it is proper and usual for such person to 
 indorse first the name as written and then follow with his proper signa- 
 ture. This would be proper even if the misspelled name or wrongly 
 designated person was that of some other existent individual, firm, or 
 corporation. The test in each case is, " Does the instrument belong to 
 me, and was it intended to be drawn or indorsed to me? " 
 
 72. Principal Obligor: Party Primarily Liable. These terms, or either 
 of them, apply to the person who is legally and morally bound to pay 
 the paper in the first instance, — the one who, in law, has said to all the 
 other parties, " I will save you all harmless from any liability or loss by 
 reason of your being a party to this instrument." 
 
 73. The principal obligor to a promissory note is the drawer or 
 maker. See Form B. 
 
 74. To an unaccepted bill of exchange or draft or check, the drawer 
 or maker. See Forms C-H. 
 
 75. To an accepted bill or draft or check, the acceptor. See Forms 
 C-H. 
 
 76. Orderof Liability Among Themselves. Promissory Note. The order 
 of liability among themselves to a promissory note is (see Forms A to 
 H): 
 
 77. Drawer or maker. 
 
 78. First indorser. 
 
 79. Second indorser. 
 
 80. Third indorser, etc. 
 
 81. The maker has said to all of the indorsers, " I will pay this 
 note in all events." The first indorser promised the same to all subse- 
 quent indorsers, but he owes no obligation to the maker. 
 
82. The second indorser promises to save liarmless all indorsers sub- 
 sequent to him on the paper, but he incurs no obHgation to those above 
 him nor to the maker, etc. 
 
 83. If a maker pays the note, he of course can have no claim on the 
 indorser. 
 
 84. If an indorser has to pay the note, he can reimburse himself 
 in full from the maker or any or all parties who indorsed above him, 
 but he can have no contribution from those who have indorsed below 
 him. 
 
 85. Where several, — say, for illustration, three, — persons have 
 signed the note on its face as makers, they, unless a different agreement 
 can be shown, have agreed among themselves each to pay one-third of 
 the amount, and if one has been forced to pay, he can make the others 
 contribute their share. See Form U. 
 
 86. But this is not the rule as to several indorsers. Each has agreed 
 to those under him to pay the whole amount. 
 
 87. The holder of the note need pay no attention to any of these 
 agreements. He can proceed against all of the parties or any of them 
 for the whole amount. 
 
 88. These rules as to liability apply to all commercial paper. 
 
 89. Unaccepted Bill of Exchange or Draft; Order of Liability Among 
 Themselves. See Forms C-H. 
 
 Drawer (Principal Obligor). 
 First Indorser. 
 Second Indorser. 
 Third Indorser, etc. 
 
 90. Accepted Bill of Exchange or Draft; Order of Liability Among 
 
 Themselves. See Forms C-H. 
 
 Acceptor (Principal Obligor). 
 Drawer. 
 First Indorser. 
 Second Indorser, etc. 
 
Qi. Check (not accepted and not paid); Order of Liability Among 
 Themselves. See Form A. 
 Drawer. 
 
 Indorsers in their order. 
 
 (Except in Illinois, Nebraska, Kentucky, Iowa, and South Caro- 
 Hna the holder of a check cannot enforce it against the bank if for any 
 reason or whim the bank does not choose to pay it. In such cases 
 the holder must look to the drawer, who is the only one who can 
 bring an action against the bank.) 124 U. S. 385: 57 Mich. 255: 100 
 Ind. 515: 83 Mo. 337: 134 N. Y. 368: 68 111. 398: 26 Iowa 315: 31 Neb. 
 '07. 
 
 92. Accepted Certified Check; Order of Liability. If the holder of the 
 ■check procures it to be certified the drawer and all of the indorsers are 
 released, — the bank is then the principal and only obligor. 94 U. S. 345 : 
 117 111. 106: 52 N. Y. 350: 156 Mass. 458. See Form G. 
 
 93. The reason for this is. the holder in presenting the check was 
 entitled to demand the money for it, .ind. in legal effect, had promised 
 the drawers and indorsers that he would present it promptly and demand 
 the cash. Now, if instead of demanding cash when he was entitled to do 
 so, he took the bank's acceptance, he has released all other parties to tlie 
 check. 
 
 94. But if the maker before putting the check in circulation has it 
 certified, then the order of liability is: 
 
 Bank. 
 Drawer. 
 
 Indorsers in their order. 160 Mass. 401. 
 
 95. Surety. .Ml of the parties to commercial paper are in a sense 
 sureties for the principal obligor, but they are not usually sureties in the 
 technical application of the term. 
 
 , 96. The strict surety is, in every-day business, a practically obsolete 
 
party to commercial paper. His name, when it does appear, usually ap- 
 pears on the face of the paper below that of the maker, and to his name 
 he usually adds the word " surety." 
 
 97. The obligation of the surety is stricter than that of the indorser. 
 The indorser says, in legal effect, " My contract is separate and distinct 
 from that of the maker or principal obligor; I had nothing to do with 
 the original making of this paper. My contract was made subsequently, 
 and it provides, with other provisions, that you must protest this instru- 
 ment at its maturity or I am released." The indorser is in no sense a 
 partner with the maker in his liability. 
 
 98. The strict surety always becomes a party to the paper at the 
 inception of the debt, — before the first delivery of the paper. He says, 
 in legal effect, to the holder, " While this debt is not my original obliga- 
 tion, I agree that you shall bind me in all respects as firmly as you do 
 [he maker. ' I have added the word ' surety ' to my name, so that if any 
 question arises in the future between the principal obligor and myself. 
 
 or our estates, it will clearly appear that as between ourselves he is tq 
 pay all of this debt." ' 
 
 99. The obligations of the surety and of the indorser differ in that the 
 indorserwarrants to his indorsee, the holder, that the instrument is regu- 
 lar and legal in every respect, and that notwithstanding the fact that the 
 maker has a perfect defense to it and that it cannot be enforced against 
 him, he, the indorser, will pay it. On tbe other hand, the surety 
 assumes no more liability than does the principal, and if the principal 
 has a defense to the instrument the surety can have the same defense . 
 but, as before stated, the indorser warrants to the future holder that the 
 maker or principal obligor has no defense to it. 66 Conn. 65 : 54 la. 79: 
 48 Pa. St. 345: 32 Ind. 309: 3 Denio 70: 18 Pick. 98. 
 
 100. Guarantor. A guarantor, as well as a surety, is an intruder on 
 commercial paper : he has no fixed status as to liability. See Form O. 
 
 101. His contracts must be written in terms above his name, and 
 what is there written will determine his liability. 
 
103. The word " guarantor " has no fixed meaning and liability as 
 have the words " indorser," " acceptor," " drawer," etc. 
 
 103. If one indorses commercial paper, and thus becomes an " in- 
 dorser," the courts will not hear him when he attempts to explain what 
 he meant by the indorsement or what liability he intended to assume. 
 The law says, " What the legal intention and effect of your indorsement 
 is was established centuries ago, — you cannot change or qualify it by 
 what you meant or what was said " • and the same rule applies to one who 
 accepts or draws commercial paper. 
 
 104. The word " surety " has also quite a fixed meaning, although 
 not so inflexible a one as that of " indorser," " acceptor," or " drawer." 
 But the contract of a guarantor may be limited or enlarged by the con- 
 tract that is written above his name; and the contract must there be 
 written and in words that will express just what liability he has under- 
 taken. The law will not spell out or make a liability beyond the one 
 expressed in those words. 
 
 105. " A guarantor is a favorite of the law." Wherever his name 
 appears on negotiable or non-negotiable instruments the law allows him 
 to stand on the precise wording of the guaranty written above his 
 name. 
 
 106. The reason given for this is that he is usually a volunteer to 
 the contract, — has no financial interest in it, has had no benefit from it, 
 and expects none, — and, therefore, he will not be bound except to the 
 precise contract that he signed. 
 
 107. Holder. The holder of commercial paper is under some obli- 
 gations to the parties thereto if he retains their liability. See Forms A 
 to H, Sees. 26, 51-54, 56-59, 150-151, post. 
 
 108. The holder of a promissory note should have it presented at 
 the place of payment on the day of its maturity. 
 
 109. The maker or drawer of the note will remain liable thereon if 
 payment is not then and there demanded, but failure to so present, — and 
 in case of non-payment to protest, — will forever release the indorser. 
 
no. The holder of a check must have it promptly presented for 
 payment and protested or the indorsers will be released. See Form F. 
 
 111. The drawer or maker of a check will be released from liability 
 if presentment for payment is iiot promptly made, if the bank should fail 
 and the depositor should lose the money against which the check was 
 drawn. 
 
 112. But delay in presentation to the bank will not release the 
 drawer or maker if by the delay his money has not been lost to him. 
 
 113. The bank remains liable for the money which the check calls 
 for regardless of any delay in the presentation of the check. 
 
 114. But unless the bank accepts or certifies the check, it owes no 
 duty to the holder which the holder can enforce against it. {But there 
 are exceptions to this rule in Illinois, Nebraska, and some other States.) 
 Sec. 187, sec. 62, post. 
 
 115. If the bank refuses payment to the holder his remedy is against 
 the drawer or maker, who, in drawing the check, has, in legal effect, 
 promised that the bank will pay it, and if it does not that he will. 
 
 116. The holder of a bill of exchange owes it to all of the parties 
 thereto, except the drawee, to have it promptly presented to the drawee 
 for acceptance, and in case of non-acceptance to have it protested for non- 
 acceptance, and if this is not done all of the parties except the drawee 
 are released. (There are exceptions to this rule when the day of pay- 
 ment of the bill is not a given time after sight.) 
 
 117. When the day of payment arrives the bill must be presented 
 for payment and protested for non-payment or all the parties except the 
 acceptor will be released. 
 
 HQ- If the bill has been properly protested for non-acceptance it 
 need not be presented and protested for non-payment. 
 
 120. Who May Issue Commercial Paper. Any male person of full age 
 who is sane or who is not under guardianship may bind himself as a party 
 to negotiable instruments. 
 
 121. Business Corporations, through their officers properly em- 
 powered, can usually bind themselves as parties to commercial paper, 
 
f)ut, unlike individuals, they cannot make or indorse paper simpiy for 
 the accommodation of others. Sec Nos. 87, 4, 5, 6, 7, 8. 38, 30, 31, 29, 
 32, 66. 
 
 122. Minora. Minors do not bind themselves by becoming parties 
 to commercial paper, and it cannot be enforced against them, no matter 
 what benefits have come to them by reason thereof. 
 
 123. Women. Women cannot bind themselves as parties to com- 
 mercial paper except in States where they are empowered to do so by 
 special statutes. 
 
 124. Partners. Each member of a trading partnership has implied 
 authority to sign, indorse, 01 accept commercial paper in the firm name 
 for the purposes of the partnership business. 
 
 125. The presumption is that paper so signed is for the business of 
 tlie partnership unless there is something on the face of the paper that 
 would indicate otherwise. 
 
 126 Trading Partnerships. There is no distinct line that can 
 be drawn between trading and non-trading partnerships. Practically 
 all manufacturing and mercantile partnerships are trading partner- 
 ships. 
 
 127. Partnerships between lawyers, doctors, architects, etc., for the 
 practicing of their profession would not be trading partnerships, and 
 this has been held to include real estate agents, insurance agents, and 
 publishers, and such non-trading partnerships do not have implied power 
 to issue or indorse commercial paper. 
 
 128. Delivery. Commercial paper binds the maker only from the 
 time he voluntarily parts with possession of it with the intention that 
 it be delivered to the payee or the party intended by the maker to put 
 it in circulation. It is a nullity until that time, and if it be taken from 
 the maker before that time it is worthless even in the hands of an inno- 
 cent purchaser. 
 
 Z2'>. But if after its delivery it was stolen from the payee or a subr 
 
se(|uent owner, and it then came into the hands of an innocent purchaser, 
 he could enforce it against the maker for his own benefit. 
 
 130. This rule as to delivery applies to the habihty of an indorser; — 
 and if the payee or subsequent owner of a note should write his name 
 on the bacic thereof with intention to negotiate the note, and before he 
 had voluntarily parted with possession of it an innocent purchaser 
 bought it, such purchaser could not enforce it against such indorser, al- 
 though he could enforce it against the maker and any previous indorsers. 
 
 131. Negotiation. Tile negotiation of the instrument is the act or 
 acts by which the ownership and complete title are passed from the 
 owner to another, and in such a manner as to preserve the negotiabiHty 
 of the paper. 
 
 132. This is done by the owner voluntarily parting with it with in- 
 tention that it pass to another ; and, if the instrument is payable on its 
 face or by an indorsement on the back to his order, by his indorsing it. 
 Such indorsement may be by writing his name in blank on the back of 
 
 this note fa blank indorsement) or by writing above his name on the 
 back the words " Pay to the order of (A, Adams)," — (an indorsement in 
 full — or special indorsement). 
 
 133. If the instrument is payable to bearer, — either originally or by 
 subsequent indorsement, — the negotiation is complete without any fur- 
 ther indorsement by the one who is transferring it, — it can be negotiated 
 then by mere delivery. See Forms L, A, B, C, K, J. 
 
 134. Consideration. In order to bind the maker, drawer, indorser, 
 or acceptor of commercial paper there must have been a consideration 
 for the drawing, making, indorsing, or accepting of the paper. 
 
 I35- But when the instrument is in the hands of a bona-fide pur- 
 chaser this does not mean that the maker, drawer, indorser, or acceptor 
 necessarily received some consideration for the obligation he entered 
 into or that the consideration was full or valuable to him. 
 
 136. It sufficed as a consideration that the holder, seeing their 
 names or any of them on the paper, paid something of value for it. or 
 
put himself to some risk or disadvantage on the strength of their 
 names — and tl»e risk or disadvantage may have been as to matters 
 wholly disconnected with the paper or the parties whose names appear 
 thereon. 
 
 137. It is thus seen that the question of consideration is not one 
 that enters largely into the negotiation of commercial paper. Such 
 question usually arises between the maker and the payee of the note ; — 
 and those parties in actions between themselves do not have many of the 
 special advantages of the laws particularly applicable to commercial 
 paper. 
 
 138. If the consideration for the instrument arose wholly or in part 
 out of some illegal transaction no part of the instrument can be enforced, 
 even if the obligor received ample consideration, 
 
 139 This has been held as to notes given for money to be used in 
 gambling; for the profits or losses in gambling speculations in stocks 
 or products which come under the name of futures or options; for 
 
 liquor sold in violation of law ; for the suppression of a criminal prose- 
 cution. 
 
 140. But such notes are usually good in the hands of a purchaser 
 without knowledge of the consideration. 
 
 141. It is only in a few States that an instrument fair on its face is 
 declared void in the hands of a bona-fide purchaser for the reason that 
 the consideration or the transaction is in violation of law. 
 
 142. In New York State a note out of which the original holder took, 
 or agreed to take, more than the legal rate of interest is utterly void, 
 even in the hands of an innocent purchaser, but this law does not apply 
 to instruments to which a bank or banker was the original holder. 
 
 143. Consideration-Gift. The defense of " no consideration " often 
 comes up where commercial paper is made the subject of a gift. 
 
 144. Where the maker executes and delivers his own note to the 
 donee, as a gift, the note cannot be enforced by the recipient or by any 
 one who has knowledge that the consideration was a gift. 
 
145' But where the donor delivers commercial paper made by a 
 rhird party to the donee the latter, or one who takes title from him, can 
 hold it and enforce it. 
 
 146. The donor's own check as a gift is not effective until paid, and 
 the donor can revoke the gift and stop payment at any time before the 
 check is transferred or paid. 
 
 147. The donor's own note or check, as a gift, becomes ineffectual 
 on his death ; but not so the commercial paper of a third party which has 
 been properly delivered before death. Where the commercial paper of 
 another is made the subject of a gift, the gift must be perfected before 
 the death of the donor, — the recipient of the gift must have come into 
 full possession and control of the paper during the life of the giver. 
 
 « I48. A gift to take effect after the death of the giver, the giver to 
 retain possession and control of the property during Hfe, is ineffectual no 
 matter how fully it can be proved, — unless such gift is the part of a 
 regularly executed will. 
 
 149. Inceptioii. An instrument does not have its inception until 
 the maker has executed it and parted with possession of it with intention 
 that it be put in circulation, and until some one has taken it for a legal 
 consideration : it is at this last point that it has inception. 
 
 150. Release of Parties. Payment of commercial paper or its volun- 
 tary surrender to the principal obligor, by the holder, will discharge all 
 parties to it. An unintentional surrender or cancellation will not release 
 the principal obligor, nor will it release the other parties if their rights 
 or remedies have not been prejudiced thereby. 
 
 IS'- A release of security controlled by the holder or a compromise 
 with the principal obligor will release all of the other parties 
 
 152. A release of one indorser will release all those who have in- 
 dorsed under him, — but not those who have indorsed above him or who 
 are liable by reason of their having written their names on the face of 
 the paper. 
 
 153. An enforceable agreement to extend the time of payment to 
 
the principal obligor will release all of the other parties who did not 
 agree to it. This agreement need not be a direct one, and it is a source 
 through which many indorsers are unwittingly discharged from all lia- 
 bility. Sec. 120, post. 
 
 154. When the debt has matured the holder cannot extend the time 
 of payment one day even to the maker or principal obligor without re- 
 leasing the indorser. 
 
 t5S. The maker may wait. He may refrain from taking any steps 
 whatever against any of the parties to the paper ; he may fold his hands, 
 and thus let the parties gain time, but he must not affirmatively grant it. 
 
 156. In a few States the holder must proceed against the maker in 
 the courts at the first term of court after the maturity of the paper : but 
 in a majority of the States the holder owes no active duty to the indorser. 
 If the indorser is in a hurry he can take up the paper and sue the maker 
 or prior indorsers. See No. 123. 
 
 157. The holder of an indorsed note must not, after the maturity of 
 
 the note, take mterest to a future time, but he may accept partial pay- 
 ments of principal or interest that have accrued. 
 
 158. He must not make any bargain or enter into any transaction by 
 which the maker or principal obligor can show that the holder's right to 
 proceed against him has been suspended for a day. 
 
 159. Any party to past-due commercial pape>- can pay the amount 
 due thereon to the holder and demand a delivery of the paper to him- 
 self; and after he has come into possession of it he can enforce it to its 
 full amount against any party whose liability precedes his. 
 
 160. Such action by any party to the instrument discharges all par- 
 ties whose liability is subsequent to his. 
 
 161. But in that event he has lost nothing, as no indorser can ever 
 gain any benefit or contribution from parties whose liability is subse- 
 quent to his. 
 
 162. Protest. The protesting of a dishonored instrument. — an acc 
 which is performed by a notary public, but which under certain circum- 
 
stances can be performed by an individual, is an act done to preveiit tlie 
 release of the indorsers of all negotiable instruments and also the drawers 
 of bills of exchange, as sucli parties are discharged if the instrument is 
 not protested. Sec. 112, post. 
 
 163. On the day of the maturity of all negotiable instruments, and 
 on the day when a bill of exchange should be presented for acceptance, 
 the notary, with the instrument in his possession, must present it at the 
 place where it is drawn payable, and demand acceptance or payment, as 
 the case may be, — and on failure to receive payment thereon, he is re- 
 quired to notify, by mail or in person, the indorsers and drawers, of the 
 non-payment, and make some formal entries of his official acts. 
 
 164. If no place of payment is mentioned in the instrument it must 
 be presented at the place of business of the person required to pay, — 
 the drawee of the bill or the maker of the note, and if there is no such 
 place of business then at his residence. If the instrument be lost the 
 notary may make the demand by copy or description. 
 
 165. There is only one day on which the presentment and demand 
 of payment and formal protest can be made, — the last day of maturity 
 of the instrument. See page 50. 
 
 166. Contribution. Where several parties have signed a note under 
 the implied or express agreement among themselves that each shall be 
 liable for only his proportionate share thereof, and the holder of the 
 note is not a party to the agreement, he can collect the full amount from 
 any one of them, and such one can then force proportionate contribution 
 from the others. If some of the others are insolvent the solvent ones 
 must bear the whole loss share and share alik... See Forms U, H. 
 
 167. Time. A negotiable instrument that is silent as to time of pay- 
 ment, is payable on demand, without grace, and must be presented for 
 payment forthwith and protested, if the indorsers (or the drawer of a bill 
 of exchange) are to remain liable thereon. 
 
 - 168. On Demand. An instrument written payable " on demand," 
 is payable forthwith and must be presented as above. 
 
169. At Sig&T. An instrument payable " at sight," is payable as is 
 one written payable on demand, and must have the same prompt pre- 
 sentment. In a few States negotiable instruments written payable at 
 sight are entitled to grace. 
 
 170. Months. WTiere an instrument is payable a certain number of 
 months after date, calendar months are meant. 
 
 171. A note dated February 20, payable in three months, is due 
 May 20. 
 
 172. Where an instrument is payable so many months after date, 
 calendar months are meant. Thus a note dated January 31, payable one 
 month after date, is due the last day of February. A note dated Feb- 
 ruary 28, payable in eleven months, is due January 28. Where days 
 are expressed, Sundays and holidays are included, and in the computa- 
 tion the day of date is excluded and the whole of the last day is included. 
 A. note dated May 28, payable in sixty days, is due July 27. 
 
 173. Days. Where the payment is a certain number of days after 
 
 date, the actual number of days is computed, including Sundays and 
 holidays. 
 
 174. In the computation the day of date is omitted and the payor 
 has all of the last day in which to make payment. 
 
 17s. An instrument dated May 20, payable in go days, in States 
 where grace is not allowed, is due August 18. Thus: 
 
 Days in May after May 20th 11 
 
 Days in June 30 
 
 Days in July 31 
 
 Days in August to make the whole number 90. . 18 
 
 90 
 
 176. In computing time the law does not contemplate fractioni of 
 
 days. 
 
( 177- Inconsistent Dates. Where two dates are given, one the day 
 I of the week and one the day of the month, and they are inconsistent, the 
 I day of the month will govern. 
 
 I 178. Holidays. Time instruments falling due on Sunday or a holi- 
 
 day are payable the next business day, and this rule applies to Saturday 
 ( where Saturday is a half-holiday. 
 
 t 179. The holder of a check or an instrument payable on demand 
 p may present it for payment during business hours of a Saturday half- 
 ( holiday, but failure so to do is not negligence on his part. This is the 
 ( rule as to commercial paper. 
 
 n 180. Other private contracts which would fail if not performed on 
 a date certain, and that day is a holiday, must be performed on that day. 
 b 181. This rule does not of course apply to Sundays, in which case 
 tf performance can be made on Monday. 
 
 p I 182. Grace. Except in States where the rule has been changed by 
 n.| special statute, a negotiable instrument payable at a future time is not 
 
 due and payable until the expiration of three additional days following 
 the time of maturity as expressly stated in the instrument. These three 
 days are termed " days of grace." 
 
 183. They came into the law at a time when the means of transpor- 
 tation and communication were indirect and uncertain. 
 
 184. They are gradually being abolished, by statute, in the several 
 States, but in many they yet prevail. 
 
 183. In such States, if a negotiable instrument is written payable 
 ninety days after date, it is not due until ninety-three days after date, 
 and if the time of payment is specifically fixed by drawing the instrument 
 payable at a fixed future date, as " July 20th, 1903, pay," etc., the instru- 
 ment is not due until July 23d. 
 
 186. Accommodation Paper. Accommodation negotiable instru- 
 ments, or indorsements thereon, are those made by one person for the 
 accommodation of another. " 
 
 187. This in no way affects their validity as negotiable instruments 
 
,vhen they are in the hands of third parties, even if such third parties 
 know that the paper was made or indorsed solely as an accommodation. 
 
 i88. But corporations cannot bind themselves as makers, indorsers, 
 or acceptors of accommodation commercial paper. Sec. 29, post. 
 
 189. Neither can one partner bind the firm to such paper ; but if all 
 of the partners consent, then the firm is bound. » 
 
 SI 
 
CHECK. 
 
 All IMknical requirements of a negotiible instrument, hereinbefore mentioned, must be observed in issuing and negotiating checlss. 
 
 190. Check. A check differs from a bill ot exchange or draft in that 
 I it is always drawn on a bank, banker, or banking institution, and in that 
 h it is always payable on demand, and in that it always purports to be drawn 
 li ag-ainst a deposit of funds. The negotiable instruments law says " a check 
 
 is a bill of exchange drawn on a bank payable on demand." Sec. 185. 
 a 191. The fact that the instrument is drawn by one bank on another 
 makes it no less a check, even if drawn in the usual form of a bill of 
 p exchange or draft. 
 
 192. Post-dated Check. If an order in the form of a check is dated 
 Isf ahead it is treated as a bill of exchange, except that it is never entitled 
 *o grace. Except as the foregoing definition from the negotiable 
 
 instruments law may have changed the rule where that law is in force. 
 
 193. But it is held that if a date of payment is indicated in the body 
 of the check, it is entitled to grace in States where grace is allowed 
 on negotiable instruments. 
 
 194. Death of Drawer. The death of the drawer usually revokes the 
 authority of the bank to pay the check, and it has been held that bank- 
 ruptcy or an assignment for the benefit of creditors has the same effect. 
 
 195. Check Not An Assignment. A check does not operate as an 
 assignment to the holder of the amount of the depositor's money that it 
 calls for, and if the bank refuses to pay it the holder has no right of 
 action against the bank, — his remedy is against the drawer, — the latter 
 
IS the only person who has right of action against the bank. See Form A. 
 
 196. This is the rule in most of the States, and the Negotiable In- 
 struments Law so provides. Sec. 189. 
 
 197. For Georgia and Texas see the statutes of those States. 
 
 198. Thus, although banks should pay checks in the order of their 
 presentation, they need not do so, and the drawer is the only one that 
 can legally complain if they do not. 
 
 199. Duty of Holder. Presentation. So far as the drawer of the 
 check is concerned, the holder need not present the check within a rea- 
 sonable time, and the drawer will continue liable for the amount unless 
 he can show actual loss or damage by failure of the bank, or otherwise. 
 
 200. But in order to hold the indorser the check should be presented 
 the day it is delivered to the payee, — and it must be presented by the fol- 
 lowing day, — if the payee lives in the same place as the location of the 
 bank. See Form F. 
 
 201. If the bank is in another place, the payee must start it for col- 
 lection not later than the time of the last mail of the day succeeding the 
 day he received it, and the bank that receives it on this second day must 
 forward it that day. 
 
 202. To send it for collection through various banks or parties in 
 various places is deemed negligence, if the time of presentation is thereby 
 delayed. 
 
 203. If the check is sent to an agent for collection, he is bound to 
 present it on the day of its receipt, if received in business hours. 
 
 204. Sundays and holidays are not counted as days under this rule. 
 
 205. Partial Payments. A bank is not bound to make partial pay- 
 ment on a check if the depositor has not enough funds to make payment 
 in full. 
 
 206. Payment Stopped. At any time before a bank has accepted a 
 check it must not pay it if the maker stops payment. 
 
 207. Certified Check — ^Liability of Parties. If the bank accepts or cer- 
 
<^es the ciieck at the request of the payee or Iiis successors in title, the 
 drawer and the indorsers are thereby released and the bank becomes the 
 only one liable for its payment. See Form G. No. 75. 
 
 208. But this is not the rule if the drawer procures its acceptance 
 before its delivery to the payee. 
 
 209. Verbal Acceptance, A verbal acceptance or certification will 
 bind the bank if the drawer has funds on hand sufficient to pay it. 59 
 Barb. (N. Y.) 226: 118 Mass. S39.»75 111. 505; 46 Conn, go: 18 Wall 
 (U. S.) 604: 30 N. H. 256: and this is so held as to certification by tele- 
 graph. 51 Fed. 168. 
 
 210. Forgery. A bank in certifying or paying a check cannot be 
 heard to complain against an innocent party if the drawer's signature is 
 forged; the loss in such cases falls on the bank. See Form G. 
 
 211. But a bank in paying or certifying a check does not warrant 
 I the genuineness of the body of the check or of any of the indorsements 
 
 thereon, — on the contrary, the person presenting the check for payment 
 warrants these matters to the bank, whether he indorses the check or 
 not. See No. 75. * 
 
 212. Payment Rescinded. If a bank once pays a check to the holder 
 without fraud on his part, it cannot recover the money on the ground 
 that it paid under a mistake as to the amount standing to the drawer's 
 credit. 
 
 213. But it is held that by simply giving a depositor credit for the 
 check, on his pass book, without more, the bank can rescind the credit 
 any time that day if the credit was made under mistake as to the 
 condition of the drawer's account. 51 Cal. 64. Text-writers and some 
 courts hold to this doctrine. 
 
 214. The New York courts seem to hold to the contrary. 45 N. Y. 
 741. See No. 127. 
 
 213. Certified Check. A bank in certifying a check says, in legal. 
 
effect, to the bona-fide holder thereof, " The signature of the drawer of 
 this checl< is genuine, and if it turns out to be forged it is our loss, not 
 yours ; the drawer has enough money here to pay it, and we will retain 
 the money and apply it for that purpose only, and if we should fail so 
 to do we, nevertheless, will pay the check; but if it should develop either 
 before or after the actual payment of the check that the amount has 
 been fraudulently raised, — either before or after our certification, — we 
 will pay only the amount it was originally issued for; and if we have 
 paid more than the latter you will have to make good the difference. 
 Further, we have said and warranted to you that the signature of the 
 drawer was genuine (that we are supposed to know), but we do not 
 know anything about the genuineness of the signatures of the indorsers 
 on the check, and you, in asking for this certification, or for subsequent 
 payment thereunder, have said, in law, to us that the indorsers' signa- 
 
 tures are correct, and if they are not that you will make good to us any 
 loss by reason thereof." i8 Wall (U. S.) 604: 64 N. Y. 316: 67 N. Y. 
 458: 67 Ind. 500: 42 111. 245: 30 Md. II : 16 N. Y. 125. 
 
 216. A bank is not bound to know the genuineness of the signature 
 of the indorser, but it is held that if it certifies the check without any 
 indorsement on it, it will have to pay it to the bona-fide holder, and 
 procure the indorsement, if necessary, as best it may. 107 N. Y. 183. 
 See Form G, No. 75. 
 
 217. The certification of a check dated ahead does not bind the bank. 
 52 Barb. (N. Y.) 592. 
 
 218. An officer cannot certify his own check and bind the bank 
 thereby. 25 N. Y. 294. 
 
 219. The president, cashier, or teller may certify. 114 N. Y. 70: 
 25 N. Y. 293 : 110 U. S. 7. 
 
BILL OF EXCHANGE. 
 
 Form C. 
 
 Alt technical requirements of a negotiable instrument, hereinbefore mentioned, must be observed in issuing and negotiating bills of exchange. 
 
 320. Bill of Eichauge. A bill of exchange is an order drawn by one 
 person on another directing the payment on demand or at a future time 
 of the sum of money therein mentioned. 
 
 221. Inland — Foreign Bills. An inland bill of exchange in the 
 United States is one drawn in one State and payable in that State. 
 
 222. A foreign bill is one drawn in one State and payable in another 
 State or another country. 
 
 223. Consideration. It is usually drawn against commodities sold 
 and delivered, or about to be delivered by the drawer to the drawee, but 
 this is not necessarily so. 
 
 224. It is not usually drawn against a deposit of money, but it may 
 
 be, and it may also be drawn and accepted as an accommodation by the 
 drawee to the drawer without any consideration passing. It will be 
 valid in either instance. 
 
 225. Order of Liability. Until a bill of exchange is accepted the 
 drawer is as between the parties, the person primarily liable on it, and 
 the liability of the indorsers follows in the order in which they appear on 
 the bill. See Forms C, H. 
 
 226. After its acceptance the acceptor becomes the person primarily 
 liable and the drawer's liability follows, and then the indorsers in their 
 order. ' 
 
 227. This is the rule as to the persons whose names appear on the 
 
bill, but the holder does not have to recognize this order of liability. He 
 may proceed against any or all of them irrespective of their liability 
 among themselves, or the order in which their names appear. 
 
 228. Warranty of the Parties. The drawer warrants to the indorsers 
 and to the holder that the drawee will accept and pay, and if the drawee 
 does not, that he, the drawer, will pay if the bill is duly and properly 
 presented and protested. 
 
 229. Each indorser warrants the same to the holder and to each 
 subsequent indorser — but not to the maker. 
 
 23" The drawee is bound to know the drawer's signature, and if 
 it is forged he has no recourse against an innocent party. 
 
 231. The holder warrants the signature of the indorsers, and this 
 warranty does not cease on the payment of the instrument. 
 
 232. Duty of Holder— Protest. The duty of the holder of the bill 
 IS to forward it without delay for acceptance by the drawee, and after 
 icceptance to have it duly presented for payment. If the dr?.wee refuses 
 
 lo accept, or it he accepts and refuses to pay, the drawer and indorsers 
 must in each instance be notified of the fact and the bill duly protested 
 or they will be released from all liability. 
 
 233. The drawers or makers of a note are not released if they are 
 not notified of its dishonor,— not so the drawers or makers of the bill of 
 exchange or draft. 
 
 234. Acceptance. The holder of the bill or draft, or his agent, must 
 demand an unconditional, unqualified acceptance of the draft,— an ac- 
 ceptance that does not vary the time or place of payment, nor ihe 
 amount, nor the terms of the bill in any particular. See Nos. 5, 17, 18 
 19, 105, no. 
 
 23s. The acceptance should be in writing and signed by the drawee. 
 
 236. Tt is usual to have it written on the face of the bill, but it is 
 sufficient if it appear anywhere thereon. No particular words or phrases 
 are necessary. It is usual to write " Accepted," — followed by the date 
 and the name of the acceptor. 
 
237- It is said that the holder need not accept an acceptance signed 
 Dy an agent of the drawee, — that he can demand the drawee's own sig- 
 nature. 
 
 238. The bill is often accepted before it leaves the drawer's hands, 
 but this 19- in no way prejudicial to it. 
 
 239. Time to Decide. A drawee has twenty-four hours after a bill 
 
 is presented to him in which to decide whether he will accept or not ; but 
 this time provision does not apply to checks or instruments payable on 
 demand and not requiring acceptance. 
 
 240. Where such time is taken, the acceptance, if dated, must be 
 dated as of the day of presentation. 
 
 at 
 th 
 
DRAFT. 
 
 Form D. 
 
 241. Draft. The word draft is indiscriminately applied to checks, 
 bills of exchange, or to non-negotiable orders for the payment of money. 
 
 242. This application of the word is not entirely erroneous, but it is 
 more correctly applied to instruments in the form of bills of exchange, 
 that are drawn for the purpose of collecting for the drawer's own use 
 and account sums of money due him from sundry persons. 
 
 243. If the drawer procures money on draft before it is paid it be- 
 comes, technically, a bill of exchange. 
 
 344. The payee of the draft is usually the person or institution dele- 
 
 gated by the drawer to make the collection, and it is delivered or sent 
 by mail to the payee for that purpose. Banks or express companies 
 usually perform this service, making a small charge therefor. 
 
 24s. The drawer often places such drafts with his bank for collec- 
 tion ; but in many instances the drawer draws them payable to some bank 
 in the place where the debtor lives, and mails them to such bank with 
 the request that the bank collect and remit the amount less colIecr.cn 
 charges. 
 
PROMISSORY NOTE. 
 
 Form B. 
 
 All lechnical requirements ot a negotiable instrument, hereinbefore mentioned, must be observed in issuing and negotiating promissory notes. 
 
 246. Promissory Note. A negotiable promissory note is an uncon- I maker, in which the maker engages to pay on demand or at a fixed 
 ditional written promise made by one person to another, signed by the | determinable future time a sum certain in money to bearer or to order. 
 
 PROTEST. 
 
 The protesting of a dishonored instrument — an act which is per- | of exchange and checks, as such parties are discharged if the instrument 
 formed by a notary public, but which under certain circumstances can is not protested, ivhen protest is required. 
 
 be performed by another person — is an act done to prevent the release On the day of the maturity of all negotiable instruments, and on 
 
 I 'of the indorsers of all negotiable instruments and also the drawers of bills I the day when a bill of exchange should be presented for acceptance, the 
 
notary, with the instrument in his possession, must present it at the place 
 where it is drawn payable, and demand acceptance or payment, as the 
 case may be, — and on failure to receive acceptance or payment thereon, 
 he is required to notify, by mail or in person, the indorsers and drawers 
 of the demand and non-payment, and formally protest the instrument. 
 
 If no place of payment is mentioned in the instrument it must be 
 presented to the place of business of the person required to pay, — the 
 drawee of the bill or the maker of the note, and if there is no such place 
 of business then at his residence. If the instrument is lost it can be pre- 
 senled and protested by copy or description. The demand should be 
 made personally of the party required to pay or accept, and if he be not 
 present, then of some person in charge of the office or premises. If no 
 person is present the demand can be made of " to whom it may concern." 
 
 The notary must then, that day. note on the instrument the fact 
 that oi Hia* date he had protested the instrument for non-acceptance 
 or non-payment, as the case may be. Then, and in any case not later 
 
 than during business hours of the next day or not later tha lie last 
 outgoing mail of such day, notice of demand, non-paymer >r non- 
 acceptance and of protest must be mailed to each of the pa s to the 
 instrument. If affi.xed to any name is a post-office address e notice 
 must be mailed, post paid, to that address. If no address is en, then 
 inquiry must be made as to the business place or residence ( le parties 
 and the notice sent there. If no address can be found, a nc s for such 
 party or parties must be mailed to the owner or last indo r. Where 
 there is doubt as to the post-olfice address of a party, it is 'tomary, as 
 a precautionary measure, to mail several notices at diffe t places or 
 enclosed to different persons. If any of the parties are -ad, inquiry 
 must be made as to their personal representatives and m e be sent to 
 such representatives, and if no personal representative ' .ound notice 
 must be sent to the last residence or place of business of ^ deceased.- 
 
 There is no particular form of notice required. — it i '"'y necessary 
 that it conveys information sufficient to acquaint the par of the demand 
 
ind nor. yment of t'ue particular instrument. It will be sufficient to 
 have the tice read, for instance: " Canisteo, N. Y., Sept. i, 1902. N. 
 C. Taylo "anisteo, N. Y. Please take notice that a promissory note 
 made by 'otson & Vorhis, dated July i, 1902, due this day, for one 
 thousand lars, and indorsed by you, has this day been protested for 
 iion-paym and that the holders look to you for payment thereof, pay- 
 ment of th ame having been duly demanded and refused. John D. 
 Moore, No ; Public." Notice of protest can be delivered personally, 
 and oral noi may be sufficient. 
 
 At any bsequent time the notary issues a certificate of protest 
 
 under his hand and seal, to which is attached the instrument or a copy 
 thereof or both. 
 
 The certificate must specify the time and place of presentment, the 
 fact of presentment and the manner thereof, the cause or reason for pro- 
 testing the bill, the demand made and the answer given, if any, or the 
 fact that the drawee or acceptor could not be found. 
 
 Protest may be made by: A notary public, or by any respectable 
 resident of the place where the bill is dishonored, in the presence of two 
 or more credible witnesses. Sec. 154. 
 
 LAW. 
 
 The rules d methods by which society compels or restrains the action of its members. — Bouv. Law Diet. 
 
COMMON LAW. 
 
 Those principles, usages, and rules of action applicable to the gov- 
 ernment and security of persons and property, which do not rest for 
 their authority upon any express and positive declaration of the will of 
 the legislature. — i Kent Comm. 492. 
 
 England. — The common law of England consisted of certam max- 
 ims, principles, and forms of legal proceedings which, from long usage, 
 and custom had become interwoven with written laws, and which had 
 for a long time been administered by the courts as the law of the land. 
 
 While the common law was and is an unwritten law in the sense of 
 which we speak of a legislative statute, the " common sense " and the 
 maxims, principles, and usages which went to make up the common law 
 did not and do not become a part of the common law until they have 
 received continual judicial sanction, and they thus, through the printed 
 
 decisions of the courts, have become written laws, althou| the term 
 " written law " does not generally apply to them. 
 
 United States. — The common law of England became, 1 lerally, the 
 common law of the original colonies, and is so to-day i ihe several 
 States except as it has been changed by statute or by th decisions of 
 the highest courts of the several States. Such decisions re ly constitute 
 the law of the State as to the points and matters decided them. 
 
 " Among the first acts of the Continental Congr -s, which as- 
 sembled in Philadelphia on September 4, 1774, was thf adoption of a 
 declaration of rights, affirming ' that the respective co -nies were en- 
 titled to the common law of England, and the benefit f such English 
 statutes as existed at the time of their colonization, anc which they had 
 by experience respectively found to be applicable to the ■ local and other 
 circumstances. 
 
of EnglaJ 
 colony of 
 
 h parts of the common law of England and of the statute law 
 and Great Britain, and of the acts of the legislature of the 
 ew York, as together did form the law of the said colony on 
 
 the 19th of April, 1775,' were made and continued the law of the State 
 by its first Constitution, Const. 1777, Sec. 35." New York. 
 
 STATUTE lAW. 
 
 The lav created from time to time by acts of legislatures. 
 
 Where statute law conflicts with the common law, the latter is, dur- 
 ing the life of the statute, a nullity. 
 
 COURT. 
 
 A body in the government to which the public administration of 
 justice is delej ited. Coke, Litt. 58 a. Courts are the machinery 
 through which ws are interpreted and enforced. 
 
 Each of the several States enacts its own laws. 
 Each of the several States has its own courts. The decisions of the 
 courts of one State are absolutely binding only in that State. The United 
 
States courts have control and jurisdiction in each of the States in mat- 
 ters relating only to the general government; they have no jurisdiction 
 and control over controversies between citizens of the same State; but 
 where citizens of different States have legal controversies, either side to 
 the litigation may generally insist that the case be tried and disposed of 
 in the United States courts, — and this whether the matter in controversy 
 is or is not one in which the United States laws are in question. It thus 
 has sometimes happened that at different times the same question has 
 been decided one way in a certain State in a litigation in its State courts, 
 and another way in another litigation in the United States courts sitting 
 in that State. Each of such conflicting decisions is decisive and con- 
 clusive as to the precise litigation then and there before such court ; but 
 thereafter the decision of the State court on that question becomes the 
 judicial law of that State on that question, and in its bearing on subse- 
 quent lawsuits in that State it is the higher law, and overrules the deci- 
 sion of the United States courts. 
 
 The Supreme Court of the United States has, generall^^io control 
 or jurisdiction over the courts of the several States except iig.^^^^^ where 
 the violation of the Constitution of the United States is in i ^iestion. A 
 State court may wholly ignore a decision of the United St. s Supreme 
 Court except as to questions involving the Constitution or ' statutes of 
 the United States. 
 
 The court system is practically the same in all of the Sy'^^s, and one 
 brief outline will give a general idea of the course of a ^>'S"'t in any 
 State. J 
 
 In the State of New York, if one person have a grjy' ance against 
 another, and he desires the courts to pass on it, he states grievance to 
 a lawyer, who reduces it to a formal written " complain which is for- 
 mally served on the other party to the proposed litigatif If the latter 
 party chooses to contest the matter, he employs a lawy ■ *vho serves on 
 the first party a formal written " answer " to his com' The mat- 
 
 ter is then taken up at a " Trial Term " of the Supr Court of the 
 
State, and '^th parties and their witnesses are heard by twelve jurors 
 and one jud^j. A decision is then and there rendered. If either party 
 is dissatisfie ^wjth such decision he can make formal appeal, and a record 
 of the trial ^taken to the " Appellate Division " of the Supreme Court, 
 where the C e is argued before five Supreme Court judges. At this 
 argument n<) ,rors are present ; no witnesses are heard ; no new evidence 
 is allowed. 1 .^e five judges render a decision saying whether the deci- 
 sion of the CO rt below was right or wrong. 
 
 If either sii^ is dissatisfied with this last decision, he can appeal to the 
 Court of Appe^s (a court of last resort), where the case is finally passed 
 
 on by seven judges. No new evidence is taken nor any witnesses are 
 heard in this court ; the case is there argued and decided on a printed 
 record of what took place in the lower courts. 
 
 If no answer is made to the first written complaint, judgment is 
 entered for the amount of money claimed to be due, and the sheriff seizes 
 on the property of the defaulting debtor and sells it to satisfy the judg- 
 ment. And if from any of the decisions made by the different branches 
 of the court during the litigation no appeal is then taken, a judgment is 
 entered, as above, and the same procedure by the sheriff follows. 
 
 This general form of procedure applies tQ the United States courts. 
 
CHECK-USUAL FORM. 
 
 lis check is drawn payabln to the order of Wm. 
 Carpenter, and thus bears evidence that Car- 
 er is the owner of it; and uniil he writes his 
 ,e on the back thereof, it is not negotiable, 
 any person should advance the money on it 
 lOUt the indorsement of Carpenter, or if the 
 k should pay it without his indorsement, il 
 Id be at their peril. 
 
B. 
 
 PROMISSORY NOTE-USUAL FORM. 
 
 'his note Is drawn payable to the order of Wra. 
 
 Carpenter, and thus bears evidence that he is 
 owner of it ; and until he writes his name on 
 back thereof, it is not negotiable, and a pur- 
 
 iser would take it at bis peril. 
 
 ^A7^.aX ^^^^^ 
 
DRAFT-USUAL FORM. 
 
 he term draft is indiscriminaiely applied to 
 cks, bills of exchange, or any order for Ihe pay- 
 of money,— and such application of the term 
 ol wholly erroneous ; courts recognize the fact 
 word has no precise commercial paper 
 n. If the drawee of this draft was a bank, 
 ument would be strictly a check, — if pay- 
 demand. The term applies usually tc 
 :nts for the collection of money due or pas. 
 ot to an instrument made to discouoc oi 
 
INDORSER: INDORSEE i 
 'indorsement in FULL:' 
 'special INDORSEMENT:" 
 
 NOTICE OF OWNERSHIP 
 
 Js[iN_TlL_\\^RD B ank 
 
 #22 0£^ . ^^^^^^^^^^^^^ 
 
LIABILITY OF PARTIES TO A CHECK: 
 VHEN IT SHOULD Br dreseNTED FOR 
 P4YMENT. 
 
 Ninth W a rti Rank 
 
 (efUHKEROHHAKUJ 
 
G. 
 
 CERTIFIED CHECK: 
 UIABILITV OF BANK I 
 ■ABILITY OP MAKER AND INOORSERS 
 
 Nin th Waro Rank 
 
MLL OF EXCHANGE: DRAFT) 
 LIABILITY OF PARTIES. 
 
ORM OF DRAFT WHERE THE CREDITOR 
 WISHES TO DRAW ON THE DEBTOR. 
 
 The payee might be the bank at which the de- 
 )sitor keeps his account, or any express company 
 ith whom the draft is left for collection, or it 
 ight be the bank where tbe debtor lives and to 
 hom the creditor has enclosed the draft by mail, 
 
 ih the request that such bank collect the draft 
 
 d remit proceeds. 
 
 ■Hwmni 
 
BLANK INDORSEMENT' 
 HOW CHANCED TO SPECIAL 
 INDORSEMENT 
 
SPECIAL INDORSEMENT 
 INDORSEMENT IN FUU. 
 ORDER OP LIABILITV. 
 
 prkvi W A^K-i^A^ y<^^:4^<^^i;yL.S—^/U^^mi:de'^^^^ 
 
 — 29 
 
ilil 
 
 III 
 
 Villi 
 
 IK 
 
 m 
 
 liwii 
 
 iii iiii! 11 
 
 lilP 
 
 ii 
 
NOTE PAYABLE TO BEARER: 
 INDORSEMENT OF SUCH NOTE. 
 SPECIAL INDORSEMENT: 
 RESTRICTIVE INDORSEMENT 
 
RESTRICTIVE INDORSEMENT: 
 lORSEMENT "WITHOUT RECOURSE. 
 
 00 
 
I " » 
 
 ,° ^ • 
 
 2 : s ^ ^ •& 
 
 !»< ■rf 
 
 ^ ^ k w 
 
 •I -s ■§ g -g I . 
 
 5 E 
 
 ; .tf 
 
 ; m 5 S 
 
 '• S b= ' 
 
 i ■£ e 8 
 
 E i 
 
N. 
 
 nmCCULAII INOORSEMBNT. 
 
INDORSEMENT BY CUARAim 
 GUARANTY 
 
 -J±.%. 
 
CORPORATE SIGNATURE AND 
 INDORSEMENT. 
 
 00, 
 
SIGNATURE BY AN ACENT. 
 
D0R8EMENT "WITHOUT RECOV^aE 
 
INDORSEMENT "PROTEST Wxfvtt 
 
 00 
 
 .^.f^v^i^x (3/i^^</. QcmAV. G^Jr.^ . 
 
 (S^^^:^ ^/o-cA/gA/ iSC^^-^-^-^ 
 
1. 
 
 re PAYABLE TO C.-NOT TO "C. Oh 
 RDER" NOR TO "c OR BEARER ' 
 INDORSEMENT OF SUCH NOTE. 
 
 00 
 
 £y b -oaiH:w/.> ^i 2., m ^. ^ mu ui'ny ^1 - y,P^^ 
 
 %;uvi^. <^?^aA. ^ ^'^/ 
 
u. 
 
 The bolder of this note can co lect the full amouni. 
 ,500, from any one of the three signers. As be- 
 een themselves each one is liatile for one-third — 
 there IS a special coniracL to the contrary ; 
 d if one has paid the full amount he can compel 
 ch of the others to contribute one-third, and if one> 
 two is insolveni the solvent one must con- 
 ibute one half Ttie rule would not be changed if 
 imise lead "I" promise, &c.. instead of 
 jromise,&c. This note as drawn is a " joint" 
 i distinguished from a " several" note. Tht 
 incipal distinction between such notes is that in 
 inging an action on a joint note all of the makers 
 to be joined in one action, while on stveral 
 any of the makers may be sued alone. If the 
 lise in this note read " I " instead of "we " the 
 would be a "several" note although signed by 
 or more parties. If the promise read "we 01 
 her of us," the note would he both joint and 
 13 N. H. 385; 100 Mich. 339. 
 
 MM 
 
 00 
 
ILLUSTRATED IRREGULAR PAPER 
 
 IN CONNECTION WITH 
 
 THE UNIFORM NEGOTIABLE INSTRUMENTS LAW 
 
 99 
 
Where a statute is intended to embody in a code a particular branch of the law, and has specifically dealt with any point, the 
 law on that point should be ascertained by interpreting the language used, instead of doing as before the statute was passed — 
 roaming over a vast number of authorities in order to discover what the law is and extracting it by a minute, critical examina- 
 tion of prior decisions. Lord Bramwill, in Bank vs. Vogleano, App. ^as. 107, 144. 
 
TITLE I. 
 
 NEGOTIABLE INSTRUMENTS IN GENERAL. 
 
 ARTICLE I. 
 FORM AND INTERPRETATION. 
 
Sec. I. Form of Negotiable Instnunent. An instrument to be nego- 
 tiable must conform to the following requirements : 
 
 1. It must be in writing and signed by the maker or drawer; 
 
 2. Must contain an unconditional promise or order to pay a sum 
 certain in money; 
 
 3. Must be payable on demand, or at a fixed or determinable future 
 time; 
 
 4. Must be payable to order or bearer ; and 
 
 5. Where the instrument is addressed to a drawer, he must be named 
 or otherwise indicated therein with reasonable certainty. 
 
 Cf. sees. 2, 3, 4, 7 and 9. 
 
NO. 1. 
 
 New York, N.Y. 
 
 February 3rd, 19Q5j 
 
 As por verbal agreement made between Mr, John Euitoh.Jr, 
 NEGOTIABILITY. ^ Vamey . we hereby agree to pay you the sura of $1,039.19 
 
 McMASTER'S COMMERCIAL CASES, 
 1907. PAGE 204A, 
 117APP. DIV. (N. Y. ) 572. 
 
 ninety days from date; this amount to be paid out of our profits on 
 the ? East 40th Street Job, s:^L^e<r *^ ^^^^^""^^ 
 
0 w 
 
 ^ P 5 5 
 
 < > 
 
 m »• Q 
 
 XI c/) CI, -o .12 
 
NO. 2 
 
 PARTNERSHIP: FIRM NAME i 
 PARTNERSHIP NOTE. 
 
 tVhere one partner seeks (o bind the firm by a 
 le. the precise firm name must be used m the 
 
 leSA. VOL. 1, MCMASTER'S REVERSED CASES: 
 61 S. W. REP. 606. 
 
 : I : 
 
Sec. 2. Certainty as to Sum; What Constitutes. Tlie sum payable 
 is a sum certain witiiin tlie meaning of ttie Act, altliougli it is to be paid: 
 
 1. With interest; or 
 
 2. By stated instalments ; or 
 
 3. By stated instalments with a provision that upon default in pay- 
 ment of any instalment or of interest, the whole shall become due; or 
 
 4. With exchange, whether at a fixed rate or at the current rate; or 
 
 5. With cost of collection for an attorney's fee, in case payment 
 shall not be made at maturity. 
 
 Nebraska and South Dakota construe clause 5. Clause 3 is slightly 
 varied in the law of Idaho, Iowa, Minnesota, North Carolina and 
 Wyoming. , 
 
NO. 3. 
 
 WITH EXCHANGE. 
 
 a1 urser not liable when the words " in New YorI< 
 aiige *' are used. 
 
 McMASTER S COMMERCIAL CASES. 
 1906. 2A. 
 104 N. W. 369. 
 
 (/ ■ 
 
 <4xc/^ eccc^oLn^^ a-rKiZ CG^/ec/c^^ e^a^^^d a/ •Jj^t/}<4Z ^^ctZe ^^an^ t^^/tit, x^^i^cryn. w</A, 
 cn/e^€4/ ^^tn k/^o/. a/ //te -xaA: S /tcie annum, tcn/c/ /ttztcZ. _ 
 
Sec. 3. When Promise is Unconditional. An unqualified order or 
 promise to pay is unconditional within the meaning of this Act, though 
 coupled with : 
 
 1. An indication of a particular fund, out of which reimbursement is 
 to be made, or a particular account to be debited with the amount; or 
 
 2. A statement of the transaction, which gives rise to the instrument. 
 But an order or promise to pay out of a particular fund is not uncon- 
 ditional. 
 
No. 6. 
 
 IRAFT ON SPECIAL FUND,-" NEITHEK 
 ACCEPTORS OR INDORSERS 
 LIABLE. 
 
 HASTCR'S COMMERCIAL DIUST 
 PAGE 4B4A; 
 60 N. W. REP 440. 
 
 -U9- 
 
 ~Fci\f to 
 
 ■fh ct ya^-ra^ G r. 71 Wa <f OjacjitH anil ES EcKirSOTL 
 
 <jihic 2aJii—6oo . an<. ait my cauTraet 
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 JJoiiars 
 
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NO. 7. 
 DRAFT ON SPECIAL FUND 
 
 TbiB check was held to be non*oegoUabIe. 
 
 ITIA, VOL. 1, HeMASTCR'S REVERSED CAUSi 
 4a AT. REP 4SB. 
 
 What- mayOeOCue on m.y dCefosil 6oo H y^o laSt 
 

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No. 8. 
 
 □ RAFT ON SPECIAL FUND: 
 NON-NECOTIABLE INSTRUMENT. 
 
 ^cMASTER'S COMMERCIAL DIGEST. 
 PAGE 42A, 
 3Z N. Y. 239. 
 
 dJ/Soo 
 
 Ten. cLgyjS a^ter tXa-te. 
 
 SteantCi- Co2orz . 
 
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Sec. Determinable Future Time ; What Constitutes. An instrument 
 is payable at a determinable future time, within the meaning of this Act, 
 which is expressed to be payable ; 
 
 1. At a fixed period after date or sight; or 
 
 2. On or before a fixed or determinable future time specified therein; 
 
 or 
 
 3. On or at a fixed period after the occurrence of a specified event, 
 which is certain to happen, though the time of happening be uncertain. 
 
 An instrument payable upon a contingency is not negotiable, and the 
 happening of the event does not cure the defect. 
 See Wisconsin, Laws 1906. ch. 78, sec. 1678. 
 
No. 9. 
 
 April 3, 1902 
 
 FUTURE TIME: 
 
 on the death of Eliza M. Smith, I promise to pay t 
 
 EVENT THAT DETERMINES. , , 
 
 her estate the svua of five hundred aollars* 
 
 MCMASTER S COMMERCIAL CASES. 
 1914. PAGE 7A. 
 156 APP. DIV. (N. Y. ) 807. 
 
« OJ 
 
 1 < 
 
No. 10. 
 
 $900.00 
 
 No. 0187- 
 Cam'brlclge, Idaho, May 8, 190}. 
 
 NON-NEGOTIABLE NOTE. 
 
 ank holds note subject to all the equities, counter- 
 ms and defenses that existed between Boland, the 
 :er, and the Cattle Co., the payee. 
 
 MCMASTER'S COMMERCIAL CASES. 
 I908, PAGE 221A. 
 93 PAC. SOS. 
 
 Six moathB after date, for value received, I, we, or either of us Joint- 
 ly and severally promise to pay to the order of Unita Hereford Cattle Com- 
 pany the sum of nine hundred dollars, with interest at the rate of ten 
 per centu.n per annum from date until paid. 
 
 Payable at the office of the Peoples' Bank, Saluliria, Idaho. 
 
 Should this note be collected by suit, ten per cent, shall be 
 allowed holder as attorney fee. The sureties, guarantors and indorsers 
 of this note severally waive presentation for payment, protest and notice 
 of protest. No extension of time of payment with or without our knowl- 
 edge by the receipt of interest or otherwise shall release us or either 
 of us from the obligation of payment. ^^ ^Z 
 
Sec. 5. Additional Provisions not Affecting Negotiability. An instru- 
 ment which contains an order or promise to do any act in addition to the 
 payment of money is not negotiable. But the negotiable character of an 
 instrument otherwise negotiable is not affected by a provision which : 
 
 1. Authorizes the sale of collateral securities in case the instrument 
 be not paid at maturity; or 
 
 2. Authorizes a confession of judgment if the instrument be not 
 paid at maturity; or 
 
 3. Waives the benefit of any law intended for the advantage or 
 protection of the obligor; or 
 
 4. Gives the holder an election to require something to be done in 
 lieu of payment of money. 
 
 But nothing in this section shall validate any provision or stipula- 
 tion otherwise illegal. 
 
 Sec. 6. Omissions; Seal; Particular Money. The validity and nego- 
 tiable character of an instrument are not affected by the fact that: 
 
 I. It is not dated ; or 
 
 2. Does not specify the value given, or that any value has been 
 given therefor; or 
 
 3. Does not specify the place where it is drawn or the place where 
 it is payable; or 
 
 4. Bears a seal ; or 
 
 5. Designates a particular kind of current money in which payment 
 is to be made. 
 
 But nothing in this section shall alter or repeal any statute requiring 
 in certain cases the nature of the consideration to be stated in the 
 instrument. 
 
 Clause I, if undated, cf. sec. 17. CI. 3, for place of presentment, cf. 
 sec. 73 and No. 1 1, infra. 
 
 See Illinois Rev. Stats., 1909, p. 1532, sec. 6. Kentucky Stats. 1909, 
 art. 9, sec. 1903. North Carolina Laws 1908, ch. 54, sec. 2156. Pell. 
 South Dakota Laws 1913, ch. 273, sec. 6. Wisconsin Laws 1906, ch. 78, 
 sec. 1670. 
 
to 
 
 *-^ JZ U 
 > 
 
 ro 03 
 
 132 
 
Sec. 7. When Payable on Demand. An instrument is payable on 
 demand : 
 
 1. Where it is expressed to be payable on demand, or at sight, or on 
 presentation ; or 
 
 2. In which no time for payment is expressed. 
 
 Where an instrument is issued, accepted or indorsed when overdue, 
 it is, as regards the person so issuing, accepting or mdorsmg it, payable 
 on demand. 
 
 Sec 8 When Payable to Order. The instrument is payable to order 
 where it is drawn payable to the order of a specified person or to hira or 
 his order. It may be drawn payable to the order of; 
 
 1. A payee who is not maker, drawer or drawee ; or 
 
 2. The drawer or maker ; or 
 
 3. The drawee; or 
 
 4. Two or more payees jointly; or 
 
 5. One or some of several payees ; or 
 
 6 The holder of an office for the time being. 
 
 Where the instrument is payable to order the payee must be named 
 or otherwise indicated therein with reasonable certainty. 
 
 Sec. 9. When Payable to Bearer. The instrument is payable to 
 bearer ; 
 
 1. When it is expressed to be so payable; or 
 
 2. When it is payable to a person named therein or bearer ; or 
 
 3. When it is payable to the order of a fictitious or non-e.xisting 
 person, and such fact was known to the person making it as payable ; or 
 
 4. When the name of the payee does not purport to be the name o€ 
 any person ; or 
 
 5. When the only or last indorsement is an indorsement in blank. 
 Clause 4, cf. sec. 34; cl. 5, cf. sec. 30; cl. i, sec. 40. 
 
 For text changes, see Illinois Rev. Stats., 1909, page 1532, sec. 9. 
 
 Sec. 10. Terms When Sufficient. The instrument need not follow 
 the language of this Act, but any terms are sufficient which clearly 
 indicate an intention to conform to the requirements hereof. Cf. sec. 40. 
 
 For text changes see Alabama Civ. Code No. 107, sec. 496S. Idaho 
 Civ. Code 1908, Title XIII, sec. 3468. Illinois Rev. Stats., 1909, page 
 1534, sec. 10. Iowa Code Supp. 1902, ch. 3a, Title XV, sec. 3070. West 
 Virginia Code Supp. 1917, ch. 99, sec. 3456-a-io. Wisconsin Supp. Laws 
 1906 ch. 78, sec. 1686. Wyoming Comp. Stats. 1910, ch. 210, sec. 3169. 
 
Sec. ir. Date, Presumption as to. Where the instrument or an 
 acceptance or any indorsement thereon is dated, such date is deemed 
 prima facie to be the true date of the making, drawing, acceptance or 
 indorsement, as the case may be. 
 
 Sec. 12. Ante-dated and Post-dated. The instrument is not invalid 
 
 for the reason only that it is ante-dated or post-dated, provided this is 
 not done for an illegal or fraudulent purpose. The person to whom an 
 instrument so dated is delivered acquires the title thereto as of the date 
 of delivery. 
 
No. 12. 
 
 POST-DATED CHECK: 
 
 PAST DUE PAPER: INDORSER. 
 
 McMASTER'S COMMEBCIAL CASES. 
 I906, PAGE 146A. 
 74 N. E. 926. 
 
 .y^>^^ Salem. Mass. ^ ^^^ a- ^f/ycC 
 
 National Exchange Bank ofSalem. 
 
Sec. 13. When Date May be Inserted. Where an instrument 
 expressed to be payable at a fixed period after date, is issued undated, or 
 where the acceptance of an instrument payable at a fixed period after 
 sight is undated, any holder may insert therein the true date of issue or 
 acceptance, and the instrument shall be payable accordingly. The inser- 
 tion of a wrong date does not avoid the instrument in the hands of a 
 subsequent holder in due course; but as to him the date so inserted is 
 to be regarded as the true date. 
 
 Sec. 14. Blanks; When May Be Filled. Where the instrument is 
 wanting in any material particular, the person in possession thereof has 
 a prima facie authority to complete it by filling up the blanks therein. 
 And a signature on a blank paper delivered by the person making the 
 signature in order that the paper may be converted into a negotiable 
 
 instrument operates as a prima facie authority to fill it up as such for 
 any amount. In order, however, that any such instrument when com- 
 pleted, may be enforced against any person who became a party thereto 
 prior to its completion, it must be filled up strictly in accordance with 
 the authority given and within a reasonable time. But if any such 
 instrument after completion, is negotiated to a holder in due course, it 
 is valid and effectual for all purposes in his hands, and he may enforce 
 it as if it had been filled up strictly in accordance with the authority 
 given and within a reasonable time. Cf. sec. 13. 
 
 Variants: Illinois Rev. Stats. 1909, sec. 14. Kentucky Stats. 1909, 
 art. 9, sec. 191 1. South Dakota Ch. 279, sec. 14. Wisconsin Laws 1906, 
 ch. 78, sec. 1689 
 
I ■ 
 
 "I 
 
 inim 
 
 Himiil H.' 
 
 I 
 
 Mi 
 
 litl 
 
 II 
 
Sec. 15. Incomplete Instrument not Delivered. Where an incom- 
 plete instrument has not been delivered it will not, if completed and 
 negotiated, without authority, be a valid contract in the hands of any 
 holder, as against any person whose signature was placed thereon before 
 delivery. Cf. sec. 30 and sec. 16. 
 
 Sec. 16. Delivery; When Effectual; When Presumed. Every con- 
 tract on a negotiable instrument is incomplete and revocable until deliv- 
 ery of the instrument for the purpose of giving effect thereto. As 
 between immediate parties, and as regards a remote party other than a 
 holder in due course, the delivery, in order to be effectual, must be made 
 either by or under the authority of the party making, drawing, accepting 
 
 or indorsing, as the case may be; and in such case the delivery may be 
 shown to have been conditional, or for a special purpose only, and not 
 for the purpose of transferring the property in the instrument. But 
 where the instrument is in the hands of a holder in due course, a valid 
 delivery thereof by all parties prior to him so as to make them liable to 
 him is conclusively presumed. And where the instrument is no longer 
 in the possession of a party whose signature appears thereon, a valid and 
 intentional delivery by him is presumed until- the contrary is proved. 
 
 For text changes, see Kansas Laws 1909, ch. 84, sec. 16. North 
 Carolina Laws 1908, ch. 54, Pell. South Dakota Laws 1913, ch. 279, 
 sec. 16. 
 
 / 
 
ate— — =^^—^^^— 
 
Sec. 17. Construction Where Instrument is Ambiguous. Where 
 the language of the instrument is ambiguous, or there are omissions 
 therein, the following rules of construction apply: 
 
 1. Where the sum payable is expressed in words and also in figures 
 and there is a discrepancy between the two, the sum denoted by the 
 words is the sum payable; but if the words are ambiguous or uncertain, 
 reference may be had to the figures to fix the amount ; 
 
 2. Where the instrument provides for the payment of interest, with- 
 out specifying the date from which interest is to run, the interest runs 
 from the date of the instrument, and if the instrument is undated, from 
 the issue thereof; 
 
 3. Where the instrument is not dated, it will be considered to be 
 dated as of the time it was issued ; 
 
 4. Where there is a conflict between the written and printed pro- 
 visions of the instrument, the written provisions prevail; 
 
 5. Where the instrument is so ambiguous that there is doubt 
 
 whether it is a bill or note, the holder may treat it as either at his 
 election ; 
 
 6. Where a signature is so placed upon an instrument that it is not 
 clear in what capacity the person making the same intended to sign, he 
 is to be deemed an indorser; 
 
 7. Where an instrument containing the words " I promise to pay " 
 is signed by two or more persons, they are deemed to be jointly and 
 severally liable thereon. 
 
 Wisconsin Laws igo6, ch. 78, sec. 1692. 
 
 Sec. 18. Liability of Person Signing in Trade or Assumed Name. 
 
 No person is liable on the instrument whose signature does not appear 
 thereon, except as herein otherwise expressly provided. But one who 
 signs in a trade or assumed name will be liable to the same'extent as 
 if he had signed in his own name. 
 
NO. 15. 
 
 ASSUMED NAMES. 
 
 MCMASTER'S COMMERCIAL CASES, 
 1911. PAGE 50A. 
 77 ATL. REP. 869. 
 
Sec. 19. Signature by Agent; Authority; How Shown. The sig- 
 nature of any party may be made by a duly authorized agent. No par- 
 ticular form of appointment is necessary for this purpose ; and the author- 
 ity of the agent may be established as in other cases of agency. 
 
 See Kentucky Laws 1909, art. 9, sec. 1915. South Dakota Laws 
 1913, ch. 279, sec. 19. 
 
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NO. Id. 
 
 CORPORATION! Accommodation 
 
 IK'DORSER. 
 
 is held here that a president of a corporation, 
 I bad authority to make and indorse paper. 
 Id iioi bind the corporation by an accommo- 
 ioa indorsement, even if a bonus was received 
 tefor. 
 
 le directors would probably be powerless to 
 Idale Bucb Indorsements. 
 
 MeMASTER-S COMMERCIAL DIQEST, 
 
 PAcr 44a a; 
 
 tie N V. 28! 
 
 fj-CLOOO //• 
 
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Sec. 20. Liability of Person Signing as Agent. Where the instru- 
 ment contains or a person adds to his signature words indicating that 
 he signs for or on behalf of a principal, or in a representative capacity, 
 he is not liable on the instrument if he was duly authorized; but the 
 
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NO. 20. 
 
 CORPORATION NOTE. 
 
 ) fix liability the corporation must promise and 
 its name and seal as signature. 
 
 McMASTER'S COMMERCIAL CASES. 
 1906. PAGE 40A, 
 SO PAC. 811. 
 
 /K <7 German-American Investment Company, Inc. 
 
 
 " ^^^yU^ -..^^Y-^t.^-'i^^^-e^^l^ '• * ^Jn//^/^^ 
 
 ^/e Ay^A. /^^<y ^Oi^iO^^A^. /in ^rr^. — f^'^^^C^ ^'^^^^-t^^^ i^r^^yit f7^y/k /^U^. 
 
 
 . — ^ — / — 
 
 ISl 
 
NO. 21. 
 CORPORATE SIGNATURE 
 
 r affixing improper siffnature lo acceptance tb 
 I became liable for debt of principal 
 
 >3 ^ State 51. Boston. . Aifoz^r mo 7i7as. ^'-'^^ ^^'f^ 
 
 JJoUars. 
 
 00 
 
NO. 22. 
 
 CORPORATE SIGNATURE. 
 
 ertain signature intended to be official, held to 
 individual. 
 
 McMASTER S COMMERCIAL DIGEST. 
 PAGE 60A. 
 162 ILL. 241. 
 
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NO. 23. 
 
 CORPORATE SIGNATURE. 
 
 his note was given for the purposes of the 
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NO. 24. 
 
 CORPORATE NOTE : FORM OF 
 SIGNATURE. 
 
 ote was held to be tlie individual note ot 
 
 llace and Smith, although the owner had de- 
 1 on a note by the same parties — with the 
 signatures — as the note of the Wallace Iron 
 
 irts. 
 
 V) 
 
 / /(id - 
 
 ^fcvcn J/77 77 ctrccX. ■ - 
 
NO. 25 
 
 CORPORATE NOTE : FORM OF 
 SIGNATURE. 
 
 Tbis noie was held to be the individcal note ot 
 jigners. 
 
 00 
 
 o^Jf.'S: Poy/vers . SindfanctreO. Uollais 
 
 TtZtsiecS . 
 
NO. 26. 
 
 EXECUTORS : ADMINISTRATORS : 
 TRUSTEES : 
 ICK OF POWER TO BIND THEIR TRUST 
 ESTATES BY COMMERCIAL PAPER 
 OR ANY NEW CONTRACTS. 
 
 MCMASTER'S COMMERCIAL DIGEST, 
 PAGES 63 A ; 1 62 A ; 
 IND. 269; 101 N. Y. SSA] 30 SO. E. REP. 331 J 
 IMINN. 42T: 132 MASS. 286: 66 ALA. 607 « 
 

 
 
 
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NO. 28. 
 
 GUARDIAN: EXECUTOII. 
 
 [etc made by guardian under illegal order oi 
 rt, held to bind the guardian individually, 
 lough made in good faith and under proper 
 signature. 
 
 taSA, VOL. 1, MCMASTCR'S REV 
 
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Sec. 21. Signature by Procuration; Effect of. A signature by " pro- 
 curation " operates as notice that tlie agent has but a limited authority 
 to sign, and the principal is bound only in case the agent in so signing 
 acted within the actual limits of his authority. 
 
 Sec. 22. Effect of Indorsement by Infant or Corporation. The in- 
 dorsement or assignment of the instrument by a corporation or by an 
 infant passes the property therein, notwithstanding that from want of 
 capacity the corporation or infant may incur no liability thereon. 
 
 For text change, see South Dakota Laws 191 3, ch. 279, sec. 22. 
 
 Sec. 23. Forged Signature; Effect of. Where a signature is forged 
 or made without authority of person whose signature it purports to be, 
 it is wholly inoperative, and no right to retain the instrument, or to 
 give a discharge therefor, or to enforce payment thereof against any 
 party thereto, can be acquired through or under such signature, unless 
 the party, against whom it is sought to enforce such right, is precluded 
 from setting up the forgery or want of authority. 
 
 For text variations, see Illinois Rev. Stats. 1909, page 1536; South 
 Dakota Laws 1913, ch. 279. 
 
NO. 30. 
 
 FORGED INDORSEMENT: 
 TWO PERSONS SAME NAME. 
 
 K middle initial letter, in law, is not recognized as 
 rt of a person's name. 
 
 McMASTER'S COMMERCIAL DIGEST, 
 PAGE 290A. 
 
 51 N. E. REP. 602. » . -^O 
 
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NO. 31. 
 
 INDORSEMENT: WARRANTY ^ 
 FORGERY. 
 
 ;e where indorsement was not warrantj 
 previous indorsement. 
 
 U, VOL. 1, McMASTCR'8 REVERSED CASES 
 
ISC 
 
NO. 32. 
 
 PARTNEHSH'" 
 
 ijhi ol partners in non-trajing partnerships to 
 ihe firm by promissory note. 
 
 CMASTER S COMMERCIAL DIGEST. 
 PAGE 252A, 
 
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NO. 33. 
 
 OWER OF ATTORNEY: SIGNATURE. 
 
 iia power of attorney to carry on business 
 1 authorize the execution of notes. 
 
 «A, VOL. 1, McMilSTCR-S RCVCRSCD CASEa 
 

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NO. 36. 
 
 POWER OF ATTORNEY! 
 ACCEPTANCE. 
 
 Power of attorney to siga checks did not gin 
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NO. 37. 
 
 lOWER OF ATTORNEY: SICNATUREi 
 iBILITY OF PAYEE OF CHECKS WHICH 
 BEARS LECAL INDORSEMENT 
 OF PAYEE. 
 
 103A, VOU 2, MCMASTER'S REVTRBCD CASES. 
 
 y^t%rr>f \/ >/^^f*-rr, ^r.>,rxnnl pani/ 
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ARTICLE II. 
 
 CONSIDERATION OF NEGOTIABLE INSTRUMENTS. 
 
Sec. 24. Presumption of Consideration. Every negotiable instru- 
 ment is deemed prima facie to have been issued for a valuable consid- 
 eration; and every person whose signature appears thereon to have 
 become a party thereto for value. 
 
 Sec. 25. Consideration; What Constitutes. Value is any considera- 
 
 tion sufficient to support a simple contract. An antecedent or pre-exist- 
 ing debt constitutes value; and is deemed such whether the instrument 
 is payable on demand or at a future time. 
 
 For text changes, see Illinois Rev. Stats. 1909, sec. 25, page 1538; 
 Wisconsin Laws 1906, ch. 78, sec. 1676. 
 
NO. 38. 
 
 CONSIDERATION. 
 
 holder of a note as collateral security is a 
 er for value to the extent of the amount due him. 
 
 McMASTER'S COMMERCIAL CASES, 
 igoa, PAGE 212A, 
 IIS N. W. 726. 
 
 M Dm_ . ^ / — 
 
202 
 
Sec. 26. What Constitutes Holder for Value. Where value has at 
 any time been given for the instrument, the holder is deemed a holder 
 for value in respect to all parties who became such prior to that time. 
 Cf. sec. 52. 
 
Sec. 27. When Lien on Instrument Constitutes Holder for Value. 
 Where the holder has a lien on the instrument, arising either from con- 
 tract or by implication of law, he is deemed a holder for value to the 
 extent of his lien. 
 
 Sec. 28. Effect of Want of Consideration. Absence or failure of con- 
 sideration is matter of defense as against any person not a holder in due 
 course ; and partial failure of consideration is a defense pro tanto, 
 whether the failure is an ascertained and liquidated amount or otherwise. 
 
 Sec. 29. Liability of Accommodation Party. An accommodation 
 party is one who has signed the instrument as maker, drawer, acceptor 
 or indorser, without receiving value therefor, and for the purpose of 
 lending his name to some other person. Such a person is liable on the 
 instrument to a holder for value, notwithstanding such holder at the 
 time of taking the instrument knew him to be only an accommodation 
 party. 
 
 See Illinois Rev. Stats., page 1538, sec. 29. 
 
NO. 40. 
 
 ACCOMMODATION: 
 IRREGULAR PAPER. 
 
 McMASTER'S COMMERCIAL CASES, 
 1913. PAGE 102A. 
 N. 1. L. . SEC. 64. 
 
 / 
 
NO. 41. 
 
 PARTNERSHIP INDORSEMENT 
 ACCOMMODATION PAPER: 
 RENEWAL. 
 
 'aper indorsed by one partner, — renewal i 
 lorsed by other partner. 
 
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NO. 42. 
 
 CORPORATION: INDOHSER: 
 DIRECTORS: STOCKHOLDERS: 
 
 )ffer of directors and stockholders to bind 
 Diation by accommodation indorsemeaL 
 
 McMABTER'8 COMKERCtAL DIGEST. 
 PAGE GEO A. 
 
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NO. 44. 
 
 COLLATERAL: 
 CHANCE OF TITLE; 
 INDORSER. 
 
 ndorscr released, for reason that owner of note 
 sented to change of title and possession of 
 aieral, although same amount and kind of lien 
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 McMASTER-8 COMMERCIAL DIGEST. 
 PAGE 327 A ; 
 
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ARTICLE III. 
 NEGOTIATION. 
 
Sec. 30. What Constitutes Negotiation. An instrument is negotiated 
 when it is transferred from one person to anotlier in such manner as to 
 constitute the tranferee the holder thereof. If payable to bearer it is 
 negotiated by delivery ; if payable to order it is negotiated by the indorse- 
 ment of the holder completed by delivery. 
 
NO. 45. 
 
 HOLDER: NEGOTIATION: 
 PAYMENT OF A CHECK. 
 
 )istinction drawn between " payment " and " nego- 
 of a check. 
 
 McMASTER'S COMMERCIAU CASES. 
 1911, PAGE 79A, 
 129 N. W. 279. 
 
 So* 
 
 sOTenty-tJjree SO/lOO dol 
 Gross 
 
 Net Itis. 
 
 Bat 1 A 12 10 buB. 
 
 G I L T i E R, NEB. 2/29/1906 
 Pay to th^ oij^r of fh^nsr, $573.80, five hundred 
 
 per t>u 
 
 ^ aay^4?^9B Elevator Co 
 
NO. 46. 
 
 wJARANTY; indorsemeni 
 
 nain guaranty held to destroy the negotia. 
 
 ■of a note. 
 
 CMASTER'S COMMERCIAL DIGEST, 
 PAGE I3A. 
 I01 U. 5. 68. 
 
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Sec. 31, Indorsement; How Made. The indorsement must be writ- 
 ten on the instrument itself or on a paper attached thereto. The sig- 
 nature of the indorser, without additional words, is a sufficient indorse- 
 ment 
 
 For text changes, see Illinois Rev. Stats. 1909, sec. 31. 
 
O C J, 
 
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Sec. 32. Indorsement Must Be of Entire Instrument. The indorse- 
 ment must be an indorsement of the entire instrument. An indorsement, 
 which purports to transfer to the indorsee a part only of the amount 
 payble, or which purports to transfer the instrument to two or more 
 indorsees severally, does not operate as a negotiation of the instrument. 
 But where the instrument has been paid in part, it may be indorsed as 
 to the residue. 
 
 Sec. 33. Kinds of Indorsement. An indorsement may be either spe- 
 
 cial or in blank; and it may also be either restrictive or qualified, or 
 conditional. 
 
 Sec. 34. Special Indorsement; Indorsement in Blank. A special in- 
 dorsement specifies the person to whom, or to whose order the instru- 
 ment is to be payable ; and the indorsement of such indorsee is necessary 
 to the further negotiation of the instrument. An indorsement in blank 
 specifies no indorsee, and an instrument so indorsed is payable to bearer, 
 and may be negotiated by delivery. Ct, sec. 9. 
 
NO. 48. 
 
 INDORSEMENT IN BLANK: 
 TITLE. 
 
 HcMASTER'S COMMERCIAL CASES. 
 190S. PAGE 181A. 
 
 Johnson City, TEm.-^.^^^^'J^-. /<Pr^3 
 
 ^ l iiiiM 
 
Sec. 35. Blank Indorsement; How Changed to Special Indorsement. 
 
 The holder may convert a blank indorsement into a special indorsement 
 by writing over the signature of the indorser in blank any contract con- 
 sistent -with the character of the indorsement. 
 
 Sec. 36. When Indorsement Restrictive. An indorsement is restrict- 
 ive which either : 
 
 1. Prohibits the further negotiation of the instrument; or 
 
 2. Constitutes the indorsee the agent of the indorser; or 
 
 3. Vests the title in the indorsee in trust for or to the use of some 
 other person. 
 
 But the mere absence of words implying power to negotiate does 
 not make an indorsement restrictive. 
 
NO. 49. 
 
 RESTRICTIVE INDORSEMENT. 
 
 ndorsement for collection. Sec. 36, Clause 2. 
 
 McMASTER'S COMMERCIAL CASES, 
 109S. PAGE 13SA, 
 83 S. W. 537. 
 
S 3 J'"6e"-s'S»o-S«Ej;3'S« >.2-g-Ss5S| ii".Sv^S 
 
 Jiliii ! li III! 
 
 ■ol I. aSsgS^ * o lgI.EE*?S 
 
 236 
 
Sec. 37. Effect of Restrictive Indorsement; Rights of Indorsee. A 
 
 restrictive indorsement confers upon the indorsee the right : 
 
 1. To receive payment of the instrument; 
 
 2. To bring any action thereon that the indorser could bring; 
 
 3. To transfer his rights to such indorsee, where the form of the 
 indorsement authories him to do so. 
 
 But all subsequent indorsees acquire only the title of the first 
 indorsee under the restrictive indorsement. 
 
 For additions and changes in text, see Illinois Rev. Stats. 1909, 
 sec. 37. 
 
 Sec. 38. Qualified Indorsement. A qualified indorsement constitutes 
 the indorser a mere assignor of the title of the instrument. It may be 
 made by adding to the indorser's signature the words " without re- 
 course," or any words of similar import. Such an indorsement does not 
 impair the negotiable character of the instrument. 
 
NO. SO. 
 
 WITHCUT RECOURSE: WARRANTY. 
 
 Warranty of one who indorses " without 
 icourse." 
 
 CMASTER'S COMMERCIAL. DIGEST. 
 
 PAGE I37A. 
 KAN. 137, 20 N. Y. 226. 48 VT. SOS. 
 27 ME. 225. 38 IOWA. 329. 
 
Sec. 39. Conditional Indorsement. Where an indorsement is con- 
 ditional, a party required to pay the instrument may disregard the con- 
 dition, and make payment to the indorsee or this transferee whether the 
 condition has been fulfilled or not. But any person to whom an instru- 
 ment so indorsed is negotiated, will hold the same, or the proceeds 
 thereof, suject to the right of the person indorsing conditionally. 
 
 Sec. 40. Indorsement of Instrument Payable to Bearer. Where an 
 instrument, payable to bearer, is indorsed specially, it may nevertheless 
 be further negotiated by delivery ; but the person indorsing specially is 
 liable as indorser to only such holders as make title through his 
 indorsement. 
 
 For variation in text, see Rev. Stats. 1909, sec. 40. 
 
NO. 51 
 
 PAYABLE TO BEARER: 
 EFFECT OF INDORSEMENT. 
 
 nee a bearer instrument a special indorsement 
 not change its character. 
 
 McMASTER'S COMMERCIAL CASES. 
 1913. PAGE 77. 
 
 fMtn) 1 
 
Sec. 41. Indorsement Where Payable to Two or More Persons. 
 Where an instrument is payable to the order of two or more payees or 
 indorsees who are not partners, all must indorse, unless the one indorsing 
 has authority to indorse for the others. 
 
 Text change, Missouri Rev. Stats. 1909, ch. 86, sec. icon. Wiscon- 
 sin Laws 1906, ch. 78, sec. 1687. 
 
 Sec. 42. Effect of Instrument Drawn or Indorsed to a Person as 
 Cashier. Where an instrument is drawn or indorsed to a person as 
 " cashier " or other fiscal officer of a bank or corporation, it is deemed 
 prima facie to be payable to the bank or corporation of which he is such 
 officer; and may be negotiated by either the indorsement of the bank or 
 corporation, or the indorsement of the officer. 
 
NO. 52. 
 
 CORPORATION NOTE: 
 PAYEE. 
 
 McMASTER'S COMMERCIAL CASES, 
 1914. PACE 76A, 
 136 PAC. 418. 
 
Sec. 43. Indorsement Where Name is Misspelled or Wrongly Des- 
 ignated. Where the name of a payee or indorsee is wrongly designated 
 or misspelled, he may indorse the instrument as therein described, add- 
 ing, if he thinks fit, his proper signature. 
 
 Sec. 44. Indorsement in Representative Capacity. Where any per- 
 son is under obligation to indorse in a representative capacity, he may 
 indorse in such terms as to negative personal liability. Cf. sec. 20. 
 
 Sec. 45, Time of Indorsement; Presumption. Except where an 
 indorsement bears date after maturity of the instrument, every negotia- 
 tion is deemed prima facie to have been effected before the instrument 
 was overdue. Cf. sec. 52. 
 
 Sec. 46. Place of Indorsement; Presumption. Except where the con- 
 trary appears, every instrument is presumed prima facie to have been 
 made at the place where the instrument is dated. 
 
Sec. 47. Continuation of Negotiable Character. An instrument 
 negotiable in its origin continues to be negotiable until it has been 
 restrictively indorsed or discharged by payment or otherwise. 
 
 Sec. 4S. Striking Out Indorsement. The holder may at any time 
 strike out any indorsement which is not necessary to his title. The 
 indorser whose indorsement is struck out, and all indorsers subsequent 
 to him, are thereby relieved from liability on the instrument. 
 
 Sec. 49. Transfer Without Indorsement; Effect of. Where the 
 holder of an instrument payable to his order transfers it for value 
 
 without indorsing it, the transfer vests in the transferee such title as 
 the transferrer had therein, and the transferee acquires, in addition, the 
 right to have the indorsement of the transferrer. But for the purpose 
 of determining whether the transferee is a holder in due course, the 
 negotiation takes effect as of the time when the indorsement is actually 
 made. 
 
 For text changes, see Colorado Laws 1897, ch. 64, sec. 49 ; Missouri 
 Rev. Stats, 1909, ch. 86, sec. 10019; Illinois Rev. Stats. 1909, page 1565, 
 sec. 49; Wisconsin Laws 1906, ch. 78, sec. 1695. 
 
NO. 55. 
 
 INDORSEMENT: 
 
 PARTNERSHIP SIGNATURE. 
 
 'urchaser of nule payable "to order," — which 
 e has neglected lo indorse, geis title to the 
 I he takes it as a non-negotiable instru- 
 ;ubiect to the offsets of the maker. 
 
 MeMASTER'S COMMERCIAL OiaKST, 
 PAGE 614 a; 
 81 N. W. REP. TSB. 
 
 u 
 
 Six HvjncLiLSia. 
 
 jBMS : 
 
Sec. 50. When Prior Party May Negotiate Instrument. Where an 
 instrument is negotiated back to a prior party, such party may, subject 
 to the provisions of this Act, reissue and further negotiate the same. 
 But he is not entitled to enforce payment thereof against any intervening 
 party to whom he was personally liable. 
 
ARTICLE IV. 
 RIGHTS OF HOLDER. 
 
Sec. 51. Rights of Holder to Sue; Payment. The holder of a nego- 
 tiable instrument may sue thereon in his own name; and payment to 
 him in due course discharges the instrument 
 
 Sec. 52. What Constitutes a Holder in Due Course. A holder in 
 due course is a holder who has taken the instrument under thi following 
 conditions : 
 
 I. That it is complete and regular on its face : 
 
 2. That he became holder of it before it was overdue, and without 
 notice that it had been previously dishonored, if such was the fact ; 
 
 3. That he took it in good faith and for value ; 
 
 4. That at the time it was negotiated to him he had no notice of 
 any infirmity in the instrument or defect in the title of the person nego- 
 tiating it. 
 
 For text change, see Wisconsin Laws 1906, ch. 78, sec. 1677. 
 
NO. 57. 
 
 INDORSEMENT: 
 BONA-FIDE PURCHASER. 
 
 indorsement as follows was held not to be a 
 ink indorsement, and to be evidence that the 
 ioRer was yet the owner of the note : 
 "Pay to the order of 
 
 Mary W. Graylord." 
 
 MCMASTER'B COMMERCIAL DIGEST, 
 PAGE 1 14 a: 
 
 T4 NO. W. REP. 416. 
 
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 80NA-FIDE HOLDER: 
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NO. 59. 
 
 BONA-FIDE HOLDER: CREDIT. 
 
 Bank does not become bona-fide holder by simply 
 tdiiing a oote to the iadorser's account. 
 
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Sec. 53. When Person Not Deemed Holder in Due Course. Where 
 an instrument is defective within the meaning of this Act when he 
 of time after its issue, the holder is not deemed a holder in due course. 
 
 Sec. 54. Notice Before Full Amount Paid. Where the transferee 
 receives notice of any infirmity in the instrument or defect in the title 
 of the person negotiating the same before he has paid the full amount 
 agreed to be paid therefor, he will be deemed a holder in due course only 
 to the extent of the amount theretofore paid by him. 
 
 Sec. 55. When Title Defective. The title of a person who negotiates 
 an instrument payable on demand is negotiated an unreasonable length 
 obtained the instrument, or any signature thereto, by fraud, duress, or 
 force and fear, or other unlawful means, or for an illegal consideration, 
 or when he negotiates it in breach of faith, or under such circumstances 
 as amount to a fraud. 
 
 For variation in text, see Kansas Laws 19C9, ch. 84, sec. 55 ; Wiscon- 
 sin Laws 1906, ch. 78, sec. 1681. 
 
Sec. 56. What Constitutes Notice of Defect. To constitute notice 
 of an infirmity in the instrument or defect in title of person negotiating 
 the same, the person to whom it is negotiated must have had actual 
 knowledge of the infirmity or defect, or knowledge of such facts that 
 his action on taking the instrument amounted to bad faith. Cf. sec. 52, 
 cl. 4- 
 
NO. 61. 
 
 PARTNERSHIP ! 
 lAYMENT OF INDIVIDUAL DEBT WITH 
 FIRM'S CHECK. 
 
 IHMASTER'S COMMERCIAL DIQEB*' 
 PAQE 206 a; 
 41 S. W. REP. tas. 
 42 PET. 221. 
 
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NO. 62. 
 
 PARTNERSHIP: 
 BONA-FIDE HOLDER. 
 
 Ine who takes In payment of an individual 
 ., ihe check of a firm, signed in Ihe firm name 
 ibe debtor who is a member of the firm,— takes 
 ,[h notice that a partner cannot use partner, 
 p properly to pay individual debLs. 
 
 MCMASTER'S COMMERCIAL DIGEST. 
 PAGE 20SA: 
 12 PET. 221 ; 
 
 . A ^qj.':t^ -<'^r>ry»cArj. Ohm Of .iu. 
 
 iSernncl ^A ^ahn"^^ 'FSnnl'T 
 
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No. 63. 
 
 COLLATERAL: CORPORATION. 
 
 Instance where corporation was not bound 1 ^ 
 latementof president that certain of iis proper < 
 ad been transferred to him,— or by the writu< 
 issignment of the property by the secretary. 
 
 3TA, VOL. 1, MCMABTER'S REVERSED CASES; 
 6B NO E. REP. 598. 
 
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No. 64. 
 
 NOTE PAYABLE TO A TRUSTEE - 
 NON-NEGOTIABLE. 
 
 MCMASTER'S COMMERCIAL DIGt>V 
 PAGE 226 a; 
 51 MD. ISB. 
 
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 COLLATERAL : 
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NO. 67. 
 
 INDORSEMENT: CORPORATION-. 
 WER OF OFFICER TO INDORSE HELD 
 NOT TO BE POWER TO RECEIVE 
 PROCEEDS OF PAPER. 
 
 ERRORS AND APPEALS, N. J MOV W, IB8T. 
 
 Second ^a.izon.al'Bo.nlC 
 
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 »»»»«»»m,»— ..u;^i«im..^wm PiiMimnii uniii^^i<ft?fit; 
 
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NO, 70. 
 
 HECK OF PRINCIPAL DRAWN BY 
 AGENT IN PAYMENT OF 
 AGENT'S DEBTS. 
 
 166A, VOL. 2. 
 McMASTER S REVERSED CASES. 
 
 /^o.^OSSI. TermAmhoyyMJ. McU. 13. ISqq 
 
 laytdlh^orclero^ John 7i AAiller. Ailomey 
 
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 JDoUars 
 
Sec. 57. Rights of Holder in Due Course. A holder in due course 
 holds the instrument free from any defect of title of prior parties, and 
 free from defense available to prior parties among themselves, and may 
 enforce payment of the instrument for the full amount thereof against all 
 parties liable thereon. 
 
 For changes in text, see Illinois Rev. Stats. 1909, sec. 57 ; Wisconsin 
 Laws 1906, ch. 78, sec. 1886. 
 

 
 
 
 
 
 
 
 
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Sec. 58. When Subject to Original Defenses. In the hands of any 
 holder other than a holder in due course, a negotiable instrument is sub- 
 ject to the same defenses as if it were non-negotiable. But a holder 
 who derives his title through a holder in due course, and who is riot him- 
 self a party to any fraud or illegality affecting the instrument, has all 
 the rights of such former holder in respect of all parties prior to the 
 latter. 
 
 Sec. 59. Who is Deemed a Holder in Due Course. Every holder is 
 deemed prima facie to be a holder in due course; but when it is shown 
 that the title of any person who has negotiated the instrument was 
 defective, the burden is on the holder to prove that he or some person 
 under whom he claims acquired the title as holder in due course. But 
 the last mentioned rule does not apply in favor of a party who becomes 
 bound on the mstrument prior to the acquisition of such title. 
 
ARTICLE V. 
 LIABILITIES OF PARTIES. 
 
Sec. 60. Liability of Maker. The maker of a negotiable instrument 
 by making it engages that he will pay it according to its tenor; and 
 admits the existence of the payee and his then capacity to indorse. 
 
 Sec. 61. Liability of Drawer. The drawer by drawing the instru- 
 ment admits the existence of the payee and his then capacity to indorse; 
 and engages that on due presentment the instrument will be accepted 
 and paid, or both, according to the tenor, and that if it be dishonored, 
 and the necessary proceedings on dishonor be duly taken, he will pay 
 the amount thereof to the holder, or to any subsequent indorser who 
 
 may be compelled to pay it. But the drawer may insert in the instru- 
 ment an express stipulation negotiating or limiting his own liability to 
 the holder. 
 
 Sec. 62. Liability of Acceptor. The acceptor by accepting the in- 
 strument engages that he will pay it according to the tenor of his 
 acceptance, and admits : 
 
 1. The existence of the drawer, the genuineness of his signature^ 
 and his capacity and authority to draw the instrument; and 
 
 2. The existence of the payee and his then capacity to indorse. 
 
NO. 73. 
 
 DRAFTS: 
 LIABILITY OF ACCEPTOR. 
 
 iliere commission men wired a bank that they 
 ii Iionor draft for cost of cattle consigned to] 
 was held, their agreement to accept thi 
 ft before it was drawn made their liability the' 
 that it would have been had they accepted 
 presentation. 133 111. 234. 
 
 133 ILL. 234. 
 McMASTER S COMMERCIAL CASES. 
 1909, PAGE 11A. 
 84 N. E. 910. 
 
NO. 74. 
 
 FORCED INDORSEMENT 
 
 ■net of draft, on receiving payment thereof 
 ihe acceptor, held not bound to furnish gen- 
 indorsement of payee, if lack of such genuine 
 
 Ddorsement could work no advantage to the 
 
 fceptor or payor. 
 
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NO. 75. 
 
 CERTIFIED CHECK: RAISED CHECK. 
 
 iiok that certifies raised check is only liable for 
 )rigloat amount of check before it was raised. 
 
 MCMASTIR-S COMMERCIAL DIQCVT; 
 PKQL 143 a; 
 69 N. V. fiT, 
 
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Sec. 63. When Person Deemed Indorser. A person placing his sig- 
 nature upon an instrument otherwise than as maker, drawer or acceptor 
 is deemed to be an indorser, unless he clearly indicates by appropriate 
 words his intention to be bound in some other capacity. Cf. sec. 17. 
 
NO. 76. 
 
 LOUISVILLE DEPOSIT BANK. 
 
 Louisville, Ky. , January 28, 1903 
 
 CERTIFICATE OF DEPOSIT: 
 INDORSER. 
 
 ing not in accord with statute. 
 
 MCMASTER'S COMMERCIAL CASES. 
 1910. PAGE 51A. 
 121 S. W. 426. 
 
 THIS IS TO CERTIFY that Andrew Krebs has deposited in this 
 bank $1,473.32 payable to bis order six months after date on the 
 return on the certificate with interest at the rate oi four per 
 cent per annum, interest then to ces 
 
Sec. 64. Liability of Irregular Indorser. Where a person, not other- 
 wise a party to an instrument, places thereon his signature in blank 
 before delivery, he is liable as indorser in accordance with the following 
 rules : 
 
 I. If the instrument is payable to the order of a third person, he is 
 liable to the payee and to all subsequent parties ; 
 
 2. If the instrument is payable to the order of the maker or drawer, 
 or is payable to bearer, he is liable to all parties subsequent to the 
 maker or drawer; 
 
 3. If he signs for the accommodation of the payee, he is liable to all 
 parties subsequent to the payee. 
 
 For text change, see Rev. Stats. 1909, sec. 64. 
 
NO. 77. 
 
 DRAFTS: IRREGULAR 
 INDORSER: LIABILITY. 
 
 leg, Insts. Law, Sees. 63, 68, 29. 
 
 McMASTER'S COMMERCfAL CASES, 
 1909, PAGE 19IA, 
 85 N. E. 682. 
 
 41 V 
 
 COAL OE?I CgJ 05^3 ADDO CK , BLANOIAJiD, k CO., INCORPORATED. 
 
 w York, Apria 28, 1902. 
 
 Four months af^er^^a?e~pa y- tT ^Jip^prder of ourselves 
 
 geyen ancigll Dollars 
 
 To Montauk Coal Co. ^ '^Po- 
 Brooklyn. N*>4«)-^ 
 
 Thirteen hundred twi 
 Value received 
 
 to the account of 
 
Sec. 65. Warranty; Where Negotiation by Delivery, et Cetera. 
 Every person negotiating an instrument by delivery or by a qualified 
 indorsement, warrants: 
 
 1. That the instrument is genuine and in all respects what it pur- 
 ports to be; 
 
 2. That he has good title to it ; 
 
 3. That all prior parties had capacity to contract ; 
 
 4. That he has no knowledge of any fact which would impair the 
 validity of the instrument or render it valueless. 
 
 But when the negotiation is by delivery only, the warranty extends 
 in favor of no holder other than the immediate transferee. The pro- 
 visions of subdivision three of this section do not apply to persons nego- 
 tiating public or corporate securities, other than bills and notes. 
 
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Sec, 66. Liability of General Indorser. Every indorser who indorses 
 without qualification, warrants to all subsequent holders in due course: 
 
 1. The matter and things mentioned in subdivisions one, two and 
 three of the next preceding section ; and 
 
 2. That the instrument is at the time of his indorsement valid and 
 subsisting. 
 
 And, in addition, he engages that on due presentment, it shall be 
 
 accepted or paid, or both, as the case may be, according to its tenor, and 
 that if it be dishonored and the necessary proceedings on dishonor be 
 duly taken, he will pay the amount thereof to the holder, or any sub- 
 sequent indorser who may be compelled to pay it. 
 
 For text changes, see Illinois Rev. Stats. 1909, sec. 66; South Dakota 
 Laws 1913, ch. 279, sec. 66. 
 
NO. 79. 
 
 NATURE OF CONTRACT OF 
 INDORSER. 
 
 The obligation o£ an indorser is a new and inde- | 
 ndent contract separate and distinct from the co 
 d evidenced by the note. 
 
 McMASTER'S COMMERCIAL CASES. 
 1909. PAGE 19A, 
 tlO N. Y. SUPP. 972. 
 
 Jj( /yifyijyfl^ji %ef Ju/r^ da^ wTv.vi date. 
 
 -PROMISE TO PAYTO i 
 
 THE ORDER OF_ 
 
 a^ A^ ^--y^ o g OLLARsI 
 
 VuUE RECEIVED 
 
Sec. 67. Liability of Indorser Where Paper Negotiable by Delivery. 
 When a person places his indorsement on an instrument negotiable by 
 delivery he incurs all the liabilities of an indorser. Cf. sees. 8, 9 and 30. 
 
 For text changes, see Illinois Rev. Stats. 1909, sec. 68. 
 
 Sec. 68. Order in which Indorsers Are Liable. As respects one 
 
 another, indorsers are liable prima facie in the order in which they 
 indorse; but evidence is admissible to show that as between or among 
 themselves they have agreed otherwise. Joint payees or joint indorsees 
 who indorse are deemed to indorse jointly and severally. 
 Illinois Rev. Stats. 1909, sec. 69a. 
 
NO. SO. 
 
 EVIDENCE ADMISSIBUE AS BE- 
 TWEEN IMMEDIATE PARTIES 
 TO SHOW TRUE RE- 
 LATIONSHIP. 
 
 MCMASTER'S COMMERCIAL CASES. 
 1906. PAGE leSA. 
 62 ATL. 410. 
 
 JIDm<B 
 
Sec. 69. Liability of Agent or Broker. Where a broker or other 
 agent negotiates an instrument without indorsement, he incurs all the 
 liabilities prescribed by section 65 of this Act, unless he discloses the 
 name of his principal, and the fact that he is acting only as agent. 
 Cf. sec. 20. 
 
ARTICLE VI. 
 PRESENTMENT FOR PAYMENT. 
 
Sec. 70. Effect of Want of Demand on Principal Debtor. Present- 
 ment for payment is not necessary in order to charge the person pri- 
 marily liable on the instrument; but if the instrument is, by its terms, 
 payable at a special place, and he is willing and able to pay it there at 
 maturity and has funds there available for that purpose, such ability and 
 willingness are equivalent to a tender of payment upon his part. But 
 
 except as herein otherwise provided, presentment for payment is neces- 
 sary in order to charge the drawer and indorsers, Payable at a Bank, 
 sec. 87. 
 
 See Illinois Rev. Stats. 1909, sec. 70; Kansas Laws 1909, ch. 84, 
 sec. 70; New York Consol. Laws, ch. 38; Ohio Civil Code, 1910, sec. 
 1806; Wisconsin Laws 1906, ch. 78, sec. 1678. 
 
Sec. 71. Presentment Where Instrument is not Payable on Demand. 
 Where the instrument is not payable on demand, presentment must be 
 made on the day it falls due. Where it is payable on demand, present- 
 ment must be made within a reasonable time after its issue, except that 
 in the case of a bill of exchange, presentment for payment will be suf- 
 ficient if made within a reasonable time after the last negotiation thereof. 
 
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NO. 84. 
 
 BONA-FIDE HOLDER: 
 OFFSET: STALE DEMAND PAPER 
 
 Mker's draft which is not presented in reason- 
 (Ime, held to be past due paper and subject lo 
 
 tts of the bank against previous holder, — 
 igh the draft subsequently passed to innocent 
 
 rdasers. 
 
 McMASTKR'S COMMERCIAL DIGCtT, 
 PAGE 1 1 1 A ; 
 31 MINN. 33. 
 
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Sec. 72. What Constitutes a Sufficient Presentment. Presentment 
 for payment to be sufficient, must be made; 
 
 1. By the holder, or by some person authorized to receive payment 
 on his behalf; 
 
 2. At a reasonable hour on a business day ; 
 
 3. At a proper place as herein defined ; 
 
 4. To a person primarily liable on the instrument, or if he is absent 
 or inaccessible, to any person found at the place where the presentment 
 is made. A proper place, post. 
 
 Sec. 73. Place of Presentment. Presentment for payment is made 
 at the proper place: 
 
 1. Where the place of payment is specified in the instrument and it 
 is there presented; 
 
 2. Where no place of payment is specified, but the address of the 
 person to make payment is given in the instrument and it is there 
 presented; 
 
 3. Where no place of payment is specified and no address is given 
 and the instrument is presented at the usual place of business or resi- 
 dence of the person to make payment. 
 
 4. In any other case if presented to the person to make payment 
 wherever he can be found, or if presented to his last known place of 
 business or residence. 
 
 Sec. 74. Instrument Must Be Exhibited. The instrument must be 
 exhibited to the person from whom payment is demanded, and when it 
 is paid must be delivered up to the party paying it. 
 
 Sec. 75. Presentment Where Instrument Payable at Bank. Where 
 the instrument is payable at a bank, presentment for payment must be 
 made during banking hours, unless the person to make payment has no 
 funds there to meet it at any time during the day, in which case pre- 
 sentment at any hour before the bank is closed on that day is sufficient. 
 
 For text change, see Nebraska Comp. Stat. 1912, ch. 41, sec. 75. 
 
Sec. 76, Presentment When Principal Debtor is Dead. Where the 
 person primarily liable on the instrument is dead, and no place of pay- 
 ment is specified, presentment for payment must be made to his personal 
 representative, if such there be, and if with the exercise of reasonable 
 diligence he can be found. 
 
 Sec. 77. Presentment to Persons Liable as Partners. Where the 
 persons primarily liable on the instrument are liable as partners, and 
 no place of payment is specified, presentment for payment may be made 
 to any one of them, even though there has been a dissolution of the firm. 
 
 Sec. 78. Presentment to Joint Debtors. Where there are several 
 persons not partners primarily liable on the instrument, and no place of 
 payment is specified, presentment must be made to them all. 
 
 Sec. 79. When Presentment not Required to Charge the Drawer. 
 Presentment for payment is not required in order to charge the drawer 
 where he has no right to expect or require that the drawee or acceptor 
 will pay the instrument. 
 
 Sec. 80. When Presentment not Required to Charge the Indorser. 
 
 Presentment for payment is not required to charge an indorser where 
 the instrument was made or accepted for his accommodation, and he has 
 no reason to expect that the instrument will be paid if presented. 
 
 Sec. 81. Where Delay in Making Presentment is Excused. Delay 
 in making presentment for payment is excused when the delay is caused 
 by circumstances beyond the control of the holder and not imputable to 
 his fault, misconduct or negligence. When the causes of delay cease 
 to operate, presentment must be made with reasonable diligence. 
 
Sec. 82. When Presentment May be Dispensed With. Presentment 
 for payment is dispensed with : 
 
 1. Where after the exercise of reasonable diligence presentment as 
 required by this Act cannot be made ; 
 
 2. Where the drawee is a fictitious person ; 
 
 3. By waiver of presentment express or implied. Notice dispensed 
 with, sec. 112. 
 
 Sec. 83. When Instrument Dishonored by Non-Payment. The in- 
 strument is dishonored by non-payment when : 
 
 1. It is duly presented for payment and payment is refused or can- 
 not be obtained ; or 
 
 2. Presentment is excused and the instrument is overdue and unpaid. 
 Cf. sec. III. 
 
Sec. 84. Liability of Person Secondarily Liable, When Instrument 
 Dishonored. Subject to the provisions of the Act, when the instrument 
 is dishonored by non-payment, an immediate right of recourse to all 
 parties secondarily liable thereon, accrues to the holder. 
 
 Sec. 85. Time of Maturity. Every negotiable instrument is payable 
 at the time fixed therein without grace. When the day of maturity 
 falls upon Sunday, or a holiday, the instrument is payable on the next 
 succeeding business day. Instruments falling due or becoming payable 
 on Saturday are to be presented for payment on the next succeeding 
 business day, except that instruments payable on demand may, at the 
 option of the holder, be presented for payment before twelve o'clock 
 noon on Saturday when that entire day is not a holiday. 
 
 Many of the states adopting the Negotiable Instruments Law have 
 changed the text of this section by introducing exceptions. See Laws. 
 .Ma. 
 
 Sec. 86. Time; How Computed. Where the instrument is payable 
 at a fixed period after date, after sight, or after the happening of a speci- 
 fied event, the time of payment is determined by excluding the day from 
 which the time is to begin to run, and by including the date of payment. 
 
 Sec. 87. Rule Where Instrument Payable at Bank. Where the 
 instrument is made payable at a bank it is equivalent to an order to the 
 bank to pay the same for the account of the principal debtor thereon. 
 
 In Illinois, Nebraska and South Dakota this section is omitted. A 
 slight change in South Dakota. 
 
Sec. 88. What Constitutes Payment in Due Course. Payment is 
 made in due course when it is made at or after the maturity of the 
 instrument to the holder thereof in good faith and without notice that 
 his title is defective. 
 
ARTICLE VII. 
 NOTICE OF DISHONOR. 
 
Sec. 89. To Whom Notice of Dishonor Must be Given. Except as 
 herein otherwise provided, when a negotiable instrument has been dis- 
 honored by non-acceptance or non-payment, notice of dishonor must 
 be given to the drawer and to each indorser, and any drawer or indorser 
 to whom such notice is not given is discharged. 
 
NO. 88. 
 
 DISHONOR: 
 SUFFICIENCY OF NOTICE. 
 
 MCMASTER'S COMMERCIAL CASES, 
 1907, PAGE 98 A. 
 64 ATL. 874. 
 
 '6 
 
Sec. 90. By Whom Given. The notice may be given by or on behalf 
 of the holder, or by or on behalf of any party to the instrument who 
 might be compelled to pay it to the holder, and who, upon taking it up, 
 would have a right to reimbursement from the party to whom the notice 
 is given. 
 
 Sec. 91. Notice Given by Agent. Notice of dishonor may be given 
 by an agent either in his own name or in the name of any party entitled 
 to give notice, whether that party be his principal or not. 
 
 Sec. 92. Effect of Notice Given on Behalf of Holder. Where notice 
 is given by or on behalf of the holder it inures to the benefit of all subse- 
 quent holders and all prior parties who have a right of recourse against 
 the party to whom it is given. Read in connection with section, post. 
 
 Sec. 93. Effect Where Notice is Given by Party Entitled Thereto. 
 When notice is given by or on behalf of a party entitled to give notice. 
 
 it inures to the benefit of the holder and all parties subsequent to the 
 party to whom notice is given. 
 
 Sec. 94. When Agent May Give Notice. Where the instrument has 
 been dishonored in the hands of an agent, he may either himself give 
 notice to the parties liable thereon, or he may give notice to his principal. 
 If he give notice to his principal, he must do so within the same time as if 
 he were the holder, and the principal upon the receipt of such notice has 
 himself the same time for giving notice as if the agent had been an 
 independent holder. 
 
 Sec. 95. What Notice Sufficient. A written notice need not be 
 signed, and an insufficient written notice may be supplemented and vali- 
 dated by verbal communication. A misdescription of the instrument 
 does not vitiate the notice unless the party to whom the notice is given 
 is in fact misled thereby. Cf. section, post. 
 
 Sec. 96. Form of Notice. The notice may be in writing or merely 
 
oral and may be given in any terms whicli sufficiently identify the instru- ; 
 ment, and indicate that it has been dishonored by non-acceptance or 
 non-payment. It may in all cases be given by delivering it personally or 
 through the mails. . . 
 
 Sec. 97. To Whom Notice May be Given. Notice of dishonor may 
 be given either to the party himself or to his agent in that behalf. 
 
 Sec. 98. Notice Where Party is Dead. When any party is dead, and 
 his death is known to the party giving notice, the notice must be given 
 to a personal representative, if there be one, and if with reasonable dili- 
 gence, he can be found. If there be no personal representative, notice 
 may be sent to the last residence or last place of business of the deceased. 
 
 Sec. 99. Notice lo Partners. Where the parties to be notified are 
 partners notice to any one partner is notice to the firm even though there 
 has been a dissolution. 
 
 Sec. 100. Notice to Persons Jointly Liable. Notice to joint parties 
 who are not partners must be given to each of them, unless one of them 
 has authority to receive such notice for the others. ' 
 
 Sec. 101. Notice to Bankrupt. Where a party has been adjudged a 
 bankrupt or is insolvent, or has made an assignment for the benefit of 
 creditors, notice, may be given either to the , party .himself or .to- his 
 trustee or assignee, , ' ' 
 
 Sec. 102. Time Within Which Notice Must be Given. Notice may 
 be given as soon as the instrument is dishonored; and unless delay is 
 excused as hereinafter provided, must be given within the times fixed by 
 this Act. 
 
 Sec. 103. Where Parties Reside in the Same Place. Where the per- 
 son giving and the person to receive notice reside in the same place, 
 notice must be given within the following times ; . ■\' " 
 
1. If given at the place of business of the person to receive notice, 
 it must be given before the close of business hours on the day following. 
 
 Sec. 104. Where Parties Reside in Different Places. Where the 
 person giving and the person to receive notice reside in different places, 
 the notice must be given within the following times : 
 
 r. If sent by mail, it must be deposited in the post-office in time to 
 go by mail the day following the day of dishonor, or if there be no mail 
 at a convenient hour on that day, by the next mail thereafter. 
 
 2. If given otherwise than through the post-office, then within the 
 time that notice would have been received in due course of mail, if it 
 had been deposited in the post-office within the time specified in the last 
 subdivision. _ _ 
 
 Sec. 105. When Sender Deemed to Have Given Due Notice. Where 
 notice of dishonor is duly addressed and deposited in the post-office, the 
 sender is deemed to have given due notice, notwithstanding any mis- 
 carriage in the mails. 
 
 Sec. 106. Deposit in Post-Office; What Constitutes. Notice is 
 deemed to have been deposited in the post-office when deposited in any 
 branch post-office or in any letter box under the control of the post- 
 office department. 
 
 Sec. 107. Notice to Antecedent Party; Time of. Where a party 
 receives notice of dishonor, he has, after the receipt of such notice, the 
 same time for giving notice to antecedent parties that the holder has 
 after the dishonor. 
 
 Sec. 108. Where Notice Must be Sent. Where a party has added 
 an address to his signature, notice of dishonor must be sent to that 
 address; but if he has not given such address, then the notice must be 
 sent as follows : 
 
 1. Either to the post-office nearest to his place of residence, or to 
 the post-office where he is accustomed to receive his letters; or 
 
 2. If he live in one place, and have his place of business in another, 
 notice may be sent to either place; or 
 
3- If he is sojourning in another place, notice may be sent to the 
 place where he is so sojourning. 
 
 But where the notice is actually received by the party within the 
 time specified in this Act, it will be sufficient, though not sent in accord- 
 ance with the requirements of this section. 
 
 Sec. 109. Waiver of Notice. Notice of dishonor may be waived 
 either before the time of giving notice has arrived, or after the omission 
 to give due notice, and the waiver may be express or implied. 
 
Sec. no. Whom Affected by Waiver. Where the waiver is embodied 
 in the instrument itself, it is binding upon all parties; but where it is 
 written above the signature of an indorser, it binds him only. 
 
 Sec. III. Waiver of Protest. A waiver of protest, whether in the 
 case of a foreign bill of exchange or other negotiable instrument, is 
 deemed to be a waiver not only of a formal protest, but also of presenta- 
 tion and notice of dishonor. 
 
NO. 90. 
 
 PROTEST. 
 
 waiver of demand not a waiver of notice as a 
 :ij o£ law. 
 
 McMASTER S COMMERCIAL CASES, 
 1913, PAGE 117A, 
 too N. E. 554. 
 
 Z .Mb Winnns f>^>^ Ownfiai^ Kiyiitfon S>..vy. 
 
Sec. 112. When Notice is Dispensed With. Notice of dishonor is 
 dispensed with when, after the exercise of reasonable diligence, it cannot 
 be given to or does not reach the parties sought to be charged. Cf. 
 sec. 82. 
 
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NO. 92. 
 
 PROTEST. 
 
 ;closing notice for prior iadorsers to last 
 
 9IA. VOL. I. 
 McMASTER S REVERSED CASES. 
 
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Sec 113 Delay in Giving Notice; How Excused. Delay in giving 
 notice of dishonor is excused when the delay is caused by circumstances 
 beyond the control of the holder and not imputable to his default, mis- 
 conduct or negligence. When the cause of delay ceases to operate, 
 notice must be given with reasonable diligence. Cf. sec. 81. 
 
 Sec 114 When Notice Need not be Given to Drawer. Notice of 
 dishonor is not required to be given to the drawer in either of the follow- 
 ing cases: ^ 
 
 I Where the drawer and drawee are the same person ; 
 
 2. Where the drawee is a fictitious person or a person not having 
 capacity to contract; ... 
 
 3. Where the drawer is the person to whom the instrument is pre- 
 sented for payment; 
 
 4. Where the drawer has no right to expect or require that the 
 drawee or acceptor will honor the instrument ; 
 
 5. Where the drawer has countermanded payment. 
 
 Sec 115 When Notice Need not be Given to Indorser. Notice of 
 dishonor is not required to be given to an indorser in either of the fol- 
 lowing cases : . 
 
 I Where the drawee is a fictitious person or a person not having 
 capacity to contract, and the indorser was aware of the fact at the time 
 he indorsed the instrument; 
 
 2. Where the indorser is the person to whom the instrument is pre- 
 sented for payment ; , , , . „„j, 
 
 3. Where the instrument was made or accepted for his accommoda- 
 tion. 
 
Sec. Ii6. Notice of Non-Payment Where Acceptance Refused. 
 Where due notice of dishonor by non-acceptance has been given, notice 
 of a subsequent dishonor by non-payment is not necessary, unless in the 
 meantime the instrument has been accepted. 
 
 Sec. 117. Effect of Omission to Give Notice of Non-Acceptance. An 
 omission to give notice of dishonor by non-acceptance does not prejudice 
 the rights of a holder in due course subsequent to the omission. 
 
 For text change, see Wisconsin Laws 1906, ch. 78, sees. 1679-20. 
 
 Sec. 118. When Protest Need not be Made; When Must be Made. 
 
 Where any negotiable instrument has been dishonored it may be pro- 
 tested for non-acceptance or non-payment, as the case may be ; but pro- 
 test is not required, except in the case of foreign bills of exchange. Cf. 
 sec. 129. 
 
ARTICLE VIII. 
 DISCHARGE OF NEGOTIABLE INSTRUMENTS. 
 
Sec. 119. Instrument; How Discharged. A negotiable instrument 
 is discliarged : 
 
 1. By payment in due course by or on behalf of the principal 
 debtor; 
 
 2. By payment in due course by the party accommodated, where the 
 instrument is made or accepted for accommodation; 
 
 3. By the intentional concellation thereof by the holder; 
 
 4. By any other act which will discharge a simple contract for the 
 payment of money; 
 
 5. When the principal debtor becomes the holder of the instrument 
 at or after maturity in his own right. 
 
 For omission, see Illinois Rev. Stats. 1909, sec. 119. 
 
NO. 94 
 
 ISCHARGE: MAKER AS SURETY. 
 
 [inderford's executors set up a claim that testator j 
 signed this note as a surety, and not as a joint 
 ^ti, and that he had been discharged by reason 
 in extension of time granted by the cashier of the 
 t no claim was made that he was discharged , 
 >r the other particular way specified in the i 
 
 McMASTER'S COMMERCIAL CASES. 
 1907. PAGE 223A, 
 66 ATU. 47. 
 
 gflat.mlnat.ar , M<i . 
 
 AHgllHt dth, 
 
 . , jointly and severall;^ 
 
 Tmn mnnt.ha 
 
 ^fi'/y/y/l//: ^ •Vtirm.f'.r^. Machanins -ffattonal TlanV of Tentm i nst.er . Mrt 
 
 TVirse hun<<ri»(^ and -- - no/lOQ . 
 
 rnrRB nuniiiEu aim — - -— 
 
 payable at the banking house of the said Faraers & Mechanics National 
 "bank of Westminister. For value received, hereby waiving the right 
 of all homestead, stay, and exemption laws. - — 
 
 1^ 
 
NO. 96. 
 
 PARTNERSHIP: 
 SURETY RELEASED. 
 
 ■archase by a firm of a note of one of the part- 
 1 extinguishes the note both as to the maker 
 
 indorsers. 
 
 McMABTER-B COMMERCIAL DIOUT, 
 
 PAGE lesA; 
 46 SO. w. REP. era. 
 
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Sec. 120. When Persons Secondarily Liable Are Discharged. A 
 person secondarily liable on the instrument is discharged: 
 
 1. By any act which discharges the instrument; 
 
 2. By the intentional cancellation of his signature by the holder; 
 
 3. By the discharge of a prior party; 
 
 4. By a valid tender of payment made by a prior party; 
 
 5. By a release of the principal debtor, unless the holder's right of 
 recourse against the party secondarily liable is expressly reserved. 
 
 But any agreement binding upon the holder to extend the time of 
 payment or to postpone the holder's right to enforce the instrument, 
 unless the rights of recourse against such party is expressly reserved. 
 
 A number of the States having enacted a Negotiable Instruments 
 Law omit substitute clauses and except. See Laws. 
 
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Sec. 121. Right of Party Who Discharges Instrument. Where the 
 instrument is paid by a party secondarily liable thereon, it is not dis- 
 charged ; but the party so paying it is remitted to his former rights as 
 regards all prior parties, and he may strike out his own and all subse- 
 quent indorsements, and again negotiate the instrument, except: 
 
 1. Where it is payable to the order of a third person, and has been 
 paid by the drawer; and 
 
 2. Where it was made or accepted for accommodation, and has 
 been paid by the party accommodated. 
 
 Sec. 122. Renunciation by Holder. The holder may expressly re- 
 nounce his rights against any party to the instrument, before, at or after 
 its maturity. An absolute and unconditional renunciation of his rights 
 against the principal debtor, made at or after the maturity of the instru- 
 ment, discharges the instrument. But a renunciation does not affect the 
 rights of a holder in due course without notice. A renunciation must 
 
 be in writing, unless the instrument is delivered up to the person pri- 
 marily liable thereon. 
 
 Sec. 123. Cancellation; Unintentional; Burden of Proof. A cancel- 
 lation made unintentionally, or under a mistake, or without the authority 
 of the holder, is inoperative; but where an instrument or any signature 
 thereon appears to have been canceled the burden of proof lies on the 
 party who alleges that the cancellation was made unintentionally, or 
 under a mistake or without authority. 
 
 Sec. 124. Alteration of Instrument; Effect of. Where a negotiable 
 instrument is materially altered without the assent of all parties liable 
 thereon, it is avoided, except as against a party who has himself made, 
 authorized or assented to the alteration, and subsequent indorsers. But 
 when an instrument has been materially altered and is in the hands of 
 
a holder in due course, not a party to the alteration, he may enforce 
 payment thereof according to its original tenor. 
 
 For text changes, see Illinois Rev. Stats. 1909, sec. 124; New Mexico 
 Laws 1907, ch, 83, sec. 124; Wisconsin Laws 1906, ch. 78, sec. 1660-131. 
 
 Sec. 125. What Constitutes a Material Alteration. Any alteration 
 which changes: 
 I. The date : 
 
 2. The sum payable, either for principal or interest; 
 
 3. The time or place of payment; 
 
 4. The number or relation of the parties ; 
 
 5. The medium or currency in which payment is to be made; or 
 which adds a place of payment where no place of payment is specified, 
 or any other change or addition which alters the effect of the instrument 
 in any respect, is a material alteration. \ 
 
NO. 103. 
 
 ALTERATION. 
 
 A material aTteration of cotnmerclal paper Is 
 
 j], even if innocently made, and the liability of 
 iters and lodoi^ers reduced in amouDL 
 
 MMHAaTER'S COMMERCIAL DKinT. 
 
 PAQE 26 A. 
 
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 iDserting name of second ladorser as additional 
 
 MCMASTER'S COMMCRCIAL DIQE8T. 
 PAGE 30 A : 
 3T MICH. 468 
 
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TITLE II. BILLS OF EXCHANGE. 
 ARTICLE I. 
 FORM AND INTERPRETATION. 
 
Sec. 126. Bill of Exchange Defined. A bill of exchange is an uncon- 
 ditional order in writing addressed by one person to another, signed by 
 the person giving it, requiring the person to whom it is addressed to 
 pay on demand or at a fixed or determinable future time a sum certain 
 in money to order or to bearer. 
 
 Sec. 127. Bill not an Assignment of Funds in Hands of Drawee. A 
 bill of itself does not operate as an assignment of the funds in the hands 
 of the drawee available for the payment thereof and the drawee is not 
 liable on the bill unless and until he accepts the same. Checks, cf. 
 sec. 189. 
 
 Sec. 128. Bill Addressed to More Than One Drawee. A bill may 
 be addressed to two or more drawees jointly, whether they are partners 
 or not; but not to two or more drawees in the alternative or in suc- 
 cession. 
 
 Sec. 129 Inland and Foreign Bills of Exchange. An inland bill of 
 exchange is a bill which is, or on its face purports to be, both drawn and 
 payable within the State. Any other bill is a foreign bill. Unless the 
 contrary appears on the face of the bill, the holder may treat it as an 
 inland bill. 
 
NO. 107. 
 
 CONFLICT OF LAWS. 
 
 liN. I. L., sec. 46. 
 
 UcMASTER'S COMMERCIAL CASES. 
 I908. PAGE 166A. 
 82 N. E. 134. 
 
 "New York, Jan. 8, 1901. 
 
 "Exchange for i 2,058 6/8. 
 
 "On demand of this original cheque (duplicate unpaid) pay 
 to the order of Rogers, Brovm & Company, Twenty-two hundred and fifty- 
 eight pounds 6/8, pavatle at rate for bamkers cheques on London value 
 received and charge the same to account of plg-lron per S.S.Quarnero. 
 
 \^ ■ ^ 
 
 "To MesB. A. Herm. Praanclcl Soehno, 
 
 "Ruepgasse, Vienna, Austria. 
 "Ho. 75." 
 
Sec. 130. When Bill May be Treated as a Promissory Note. Where 
 in a bill the drawer and drawee are the same person, or when the drawee 
 is a fictitious person, or a person not having capacity to contract, the 
 holder may treat the instrument at his option, either as a bill of exchange 
 or a promissory note. Cf. sec. 17, cl. 5. 
 
 Sec. 131. Referee in Case of Need. The drawer of a bill and any 
 indorser may insert thereon the name of a person to whom the holder 
 may resort in case of need, that is to say, in case the bill is dishonored by 
 non-acceptance or non-payment. Such person is called the referee in 
 case of need or not as he may see fit. 
 
ARTICLE II. 
 ACCEPTANCE. 
 
Sec. 132. Acceptance; How Made. The acceptance of a bill is the 
 signification by the drawee of his assent to the order of the drawer. The 
 acceptance must be in writing and signed by the drawee. It must not 
 express that the drawee will perform his promise by any other means 
 than the payment of money. For Liability, cf. sec. 62. 
 
 Sec. 133. Holder Entitled to Acceptance on Face of Bill. The holder 
 of a bill presenting the same for acceptance may require that the accept- 
 ance may be written on the bill and if such request is refused, may treat 
 the bill as dishonored. Cf. sec, post. 
 
NO. 108. 
 
 No.. 
 
 FORM OF ACCEPTANCE. 
 
 McMASTER'S COMMERCIAL CASES. 
 r907, PAGE a7A. 
 87 PAC. 746. 
 
 BVYTOTHE ORDER of lli d^a. (^'^b vU c Mt (T^ ji^CUXtA. 
 
 PLajul Ut^urLx/A '^^4^ D 0 LIARS 
 
Sec. 134. Acceptance by Separate Instrument. Where an accept- 
 ance is written on a paper other than the bill itself, it does not bind the 
 acceptor except in favor of a person to whom it is shown and who, upon 
 the faith thereof, receives the bill for value. 
 
 For alteration in text, Illinois Rev. Stat. 1909, sec. 133; South Da- 
 kota Laws 1913, ch. 279, sec. 133. 
 
 Sec. 135. Promise to Accept; When Equivalent to Acceptance. An 
 unconditional promise in writing to accept a bill before it is drawn is 
 deemed an actual acceptance in favor of every person who, upon the 
 faith thereof, receives the bill for value. 
 
 Sec. 136. Time Allowed Drawee to Accept. The drawee is allowed 
 twenty-four hours after presentment in which to decide whether or not 
 he will accept the bill ; but the acceptance if given dates as of the day 
 of presentation. 
 
 Sec. 137. Liability of Drawee Retaining or Destroying Bill. Where 
 
 a drawee to whom a bill is delivered for acceptance destroys the same, 
 or refuses within twenty-four hours after such delivery, or within such 
 other period as the holder may allow, to return the bill accepted or non- 
 accepted to to the holder, he will be deemed to have accepted the same, 
 For variation in text, see Illinois Rev. Stats. 1909, section omitted ; 
 likewise South Dakota Laws 1913, ch. 279. 
 
 Sec. 138. Acceptance of Incomplete Bill. A bill may be accepted 
 before it has been signed by the drawer, or while otherwise incomplete, 
 or when it is overdue, or after it has been dishonored by a previous 
 refusal to accept, or by non-payment. But when a bill payable after 
 sight is dishonored by non-acceptance and the drawee subsequently 
 accepts it, the holder, in the absence of any different agreement, is 
 entitled to have the bill accepted as of the date of the first presentment. 
 
 Illinois makes two sections of this te.xt and varies by using the 
 word " payable " in the second section so formed. 
 
Sec. 139. Kinds of Acceptance. An acceptance is either general or 
 qualified. A general acceptance assents without qualification to the 
 order of the drawer. A qualified acceptance in express terms varies the 
 effect of the bill as drawn. 
 
 Sec. 140. What Constitutes a General Acceptance. An acceptance 
 to pay at a particular place is a general acceptance unless it expressly 
 states that the bill is to be paid there only and not elsewhere. 
 
 Sec. 141. Qualified Acceptance. An acceptance is qualified which is: 
 
 1. Conditional, that is to say, which makes payment by the acceptor 
 dependent on the fulfillment of a condition therein stated: 
 
 2. Partial, that is to say, an acceptance to pay part only of the 
 amount for which the bill is drawn ; 
 
 3. Local, that is to say, an acceptance to pay only at a particular 
 place ; 
 
 4. Qualified as to time; 
 
 5. The acceptance of one or more of the drawees, but not of all. 
 
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Sec. 142. Eights of Parties as to Qiulified Acceptance. The holder 
 may refuse to take a qualified acceptance, and if he does not obtain an 
 unqualified acceptance, he may treat the bill as dishonored by non- 
 acceptance. Where a qualified acceptance is taken, the drawer and 
 indorsers are discharged from liability on the bill, unless they have 
 expressly or impliedly authorized the holder to take a qualified accept- 
 ance, or subsequently assent thereto. When the drawer or an indorser 
 receives notice of a qualified acceptance, he must within a reasonable 
 time express his dissent to the holder, or he will be deemed to have 
 assented thereto. 
 
NO. no. 
 
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ARTICLE III. 
 PRESENTMENT FOR ACCEPTANCE. 
 
Sec. 143. When Presentment for Acceptance Must be Made. Pre- 
 sentment for acceptance must be made : 
 
 1. When the bill is payable after sight, or in any other case where 
 presentment for acceptance is necessary in order to fix the maturity of 
 the instrument; or 
 
 2. Where the bill expressly stipulates that it shall be presented for 
 acceptance: or 
 
 3. Where the bill is drawn payable elsewhere than at the residence 
 or place of business of the drawee. 
 
 In no other case is presentment for acceptance necessary in order 
 to render any party to the bill liable. 
 
 Sec. 144. When Failure to Present Releases Drawer and Indorser. 
 
 Except as herein otherwise provided, the holder of a bill which is re- 
 quired by the next preceding section to be presented for acceptance must 
 either present it for acceptance or negotiate it within a reasonable time. 
 
 If he fails to do so, the drawer and all indorsers are discharged. Rea- 
 sonable time, cf. sec. 193. 
 
 Sec. 145. Presentment; How Made. Presentment for acceptance 
 must be made by or on behalf of the holder at a reasonable hour, on a 
 business day, and before the bill is overdue, to the drawee or some 
 person authorized to accept or refuse acceptance on his behalf; and 
 
 1. Where a bill is addressed to two or more drawers who are not 
 partners, presentment must be made to them all, unless one has authority 
 to accept or refuse acceptance for all, in which case presentment may 
 be made to him only; 
 
 2. Where the drawee is dead, presentment may me made to his 
 personal representative ; 
 
 3. Where the drawee has been adjudged a bankrupt or an insolvent, 
 or has made an assignment for the benefit of creditors, presentment may 
 be made to him or to his trustee or assignee. Cf. sec. 72. 
 
Sec. 146. On What Days Presentment May be Made. A bill may be 
 presented for acceptance on any day on which negotiable instruments 
 may be presented for payment under the provisions of sections 72 and 
 85 of this Act. When Saturday is not otherwise a holiday, presentment 
 for acceptance may be made before 12 o'clock noon on that day. 
 
 Sec. 147. Presentment When Time is Insufficient. Where the holder 
 of a bill drawn elsewhere than at the place of business or the residence 
 of the drawee, has not time with the exercise of reasonable diligence to 
 present the bill for acceptance before presenting it for payment on the 
 day that it falls due, the delay caused by presenting the bill for accept- 
 ance before presenting it for payment is excused and does not discharge 
 the drawers and indorsers. 
 
 Sec. 148. When Presentment is Excused. Presentment for accept- 
 
 ance is excused and a bill may be treated as dishonored by non-accept- 
 ance in either of the following cases: 
 
 1. Where the drawee is dead, or has absconded, or is a fictitious 
 person or a person not having capacity to contract by bill ; 
 
 2. Where, after the excise of reasonable diligence, presentment 
 cannot be made ; 
 
 3. Where, although presentment has been irregular, acceptance has 
 been refused on some other ground. Clause 2, cf. sec. 82. 
 
 Sec. 149. When Dishonored by Non-Acceptance. A bill is dishon- 
 ored by non-acceptance. 
 
 1. When it is duly presented for acceptance, and such an acceptance 
 as is prescribed by this Act is refused or cannot be obtained ; or 
 
 2. When presentment for acceptance is excused and the bill is not 
 accepted. 
 
Sec. 150. Duty of Holder Where Bill is not Accepted. Where a bill 
 is duly presented for acceptance and is not accepted within the pre- 
 scribed time, the person presenting it must treat the bill as dishonored 
 Ijy non-acceptance or he loses the right of recourse against the drawer 
 and indorsers. Prescribed time, cf. sec. 136. 
 
 Sec. 151. Rights of Holder Where Bill is not Accepted. When a 
 bill is dishonored by non-acceptance, an immediate right of recourse 
 against the drawers and indorsers accrues to the holder and no present- 
 ment for payment is necessary. 
 
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ARTICLE IV. 
 PROTEST. 
 
Sec. 152. In What Cases Protest Necessary. Where a foreign bill 
 appearing on its face to be such is dishonored by non-acceptance, it 
 must be duly protested for non-acceptance, and where such a bill which 
 has not been previously dishonored by non-acceptance, is dishonored 
 by non-payment, it must be duly presented for non-payment. If it is 
 not so protested, the drawer and indorsers are discharged. Where 
 a bill does not appear on its face to be a foreign bill, protest thereof in 
 case of dishonor is unnecessary. Cf. sec. 118. 
 
 See Wisconsin Laws 1906, ch. 78, sees. 1681-9. 
 
 Sec. 153. Protest, How Made. The protest must be annexed to the 
 bill, or must contain a copy thereof, and must be under the hand and 
 seal of the notary making it, and must specify: 
 
 1. The time and place of presentment; 
 
 2. The fact that presentment was made and the manner thereof; 
 
 3. The cause or reason for protesting the bill ; 
 
 4. The demand made and the answer given, if any, or the fact that 
 the drawee or acceptor could not be found. 
 
 Sec. 154. Protest; by Whom Made. Protest may be made by: 
 
 1. A notary public; or 
 
 2. By any respectable resident of the place where the bill is dishon- 
 ored in the presence of two or more credible witnesses. 
 
 Sec. 155. Protest; When to be Made. When a bill is protested, such 
 protest must be made on the day of its dishonor, unless delay is excused 
 as herein provided. When a bill has been duly noted, the protest may 
 be subsequently extended as of the date of the noting. 
 
 Sec. 156. Protest; Where Made. A bill must be protested at the 
 place where it is dishonored, except that when a bill drawn payable at 
 the place of business or residence of some persons other than the drawee, 
 has been dishonored by non-acceptance, it must be protested for non- 
 
payment at the place where it is expressed to be payable, and no further 
 presentment for payment to, or demand on, the drawee is necessary. 
 
 Sec. 157. Protest Both for Non-Acceptance and Non-Payment. A 
 bill which has been protested for non-acceptance may be subsequently 
 protested for non-payment. 
 
 Sec. 158. Protest Before Maturity Where Acceptor Insolv^nt.g 
 Where the acceptor has been adjudged a bankrupt or an insolvent or 
 has made an assignment for the benefit of creditors, before the bill 
 matures, the holder may cause the bill to be protested for bafir'sei:iiri?)P 
 against the drawer and indorsers. 
 
 Sec. 159. When Protest Dispensed With. Protest is dispensed with 
 by any circumstances which would dispense with notice of dishonor. 
 Delay in noting or protesting is excused when delay is caused by cir- 
 cumstances beyond the control of the holder and not imputable to his 
 default, misconduct, or negligence. When the cause of delay ceases to 
 operate, the bill must be noted or protested with reasonable diligence. 
 
 J3l'Be(!?.i6o. Protest Where Bill is Lost. Where bill is lost destroyed 
 or is wrongly detained from the person entitled to hold it, protest may 
 ^be,g^e^QO a-Ojpy or written particulars thereof. 
 
ARTICLE V. 
 ACCEPTANCE FOR HONOR. 
 
Sec. l6i. When BiU May be Accepted for Honor. Where a bill ot 
 exchange has been protested for dishonor by non-acceptance or pro- 
 tested for better security and is not overdue, any person not being a 
 person already liable thereon, may, with the consent of the holder, inter- 
 vene and accept the bill supra protest for the honor of any party liable 
 thereon or for the honor of the person for whose account the bill is 
 drawn. The acceptance for honor may be for part only of the sum for 
 which the bill is drawn ; and where there has been an acceptance for 
 honor for one party, there may be a further acceptance by a different 
 person for the honor of another party. 
 
 Sec. 162. Acceptance for Honor; How Made. An acceptance for 
 honor supra protest must be in writing and indicate that it is an accept- 
 ance for honor, and must be signed by the acceptor for honor. 
 
 Sec. 163. When Deemed to be an Acceptance for Honor of the 
 Drawer. Where an acceptance for honor does not expressly state for 
 
 whose honor it is made, it is deemed to be an acceptance for the honor 
 of the drawer. 
 
 Sec. 164. Liability of Acceptor for Honor. The acceptor for honor 
 is liable to the holder and to all parties to the bill subsequent to the 
 party for whose honor he has accepted. 
 
 Sec. 165. Agreement of Acceptor for Honor. The acceptor for honor 
 by such acceptance engages that he will on due presentation pay the bill 
 according to the terms of his acceptance, provided it shall not have been 
 paid by the drawee, and provided also, that it shall have been duly pre- 
 sented for payment and protested for non-payment and notice of dis- 
 honor been given to him. 
 
 Sec. 166. Maturity of Bill Payable After Sight; Accepted for Honor. 
 Where a bill payable after sight is accepted for honor, its maturity is 
 calculated from the date of the noting for non-acceptance and not from 
 the date of the acceptance for honor. 
 
Sec. 167. Protest of Bill Accepted for Honor or Containing a Refer- 
 ence in Case of Need. Where a dishonorod bill has been accepted for 
 honor supra protest or contains a reference in case of need, it must be 
 protested for non-payment before it is presented for payment to the 
 acceptor for honor or referee in case of need. 
 
 Sec. 168. Presentment for Payment to Acceptor for Honor; How 
 Made. Presentment for payment to the acceptor for honor must be 
 made as follows: 
 
 I. If it is to be presented in the place where the protest for non- 
 payment was made, it must be presented not later than the day follow- 
 ing the maturity; 
 
 2. If it is to be presented in some other place than the place where 
 it was protested, then it must be forwarded within the time specified in 
 section 104, 
 
 Sec. 169. When Delay in Making Presentment is Excused. The 
 
 provisions of section 81 apply where there is delay in making present- 
 ment to the acceptor for honor or referee in case of need. 
 
 Sec. 170. Dishonor of Bill by Acceptor for Honor. When the bill 
 is dishonored by the acceptor for honor it must be protested for non- 
 payment by him. 
 
ARTICLE VI. 
 PAYMENT FOR HONOR. 
 
Sec. 171. Who May Make Payment for Honor. Where a bill has 
 been protested for non-payment, any person may intervene and pay it 
 supra protest for the honor of any person liable thereon or for the honor 
 of the person for whose account it was drawn. 
 
 Sec. 172. Payment for Honor; How Made. The payment for honor 
 supra protest in order to operate as such and not as a mere voluntary 
 payment must be attested by a notarial act of honor which may* be: 
 appended to the protest or form an extension of it. 
 
 Sec. 173. Declaration Before Payment for Honor. The notarial act 
 of honor must be founded on a declaration made by the payer for honor 
 or by his agent in that behalf declaring his intention to pay the bill for 
 honor and for whose honor he pays. 
 
 Sec. 174. Preference of Parties Offering to Pay for Honor. Where 
 two or more persons offer to pay a bill for the honor of different parties, 
 the person whose payment will discharge most parties to the bill is to 
 be given the preference.. 
 
 Sec. 175. Effect on Subsequent Parties Where Bill is Paid for Honor. 
 
 Where a bill has been paid for honor all parties subsequent to the parties 
 for whose honor it is paid are discharged, but the payer for honor is 
 subrogated for, and succeeds to, both the rights and duties of the holder 
 as regards the party for whose honor he pays and all parties liable to the 
 latter. 
 
 Sec. 176. Where Holder Refuses to Receive Payment Supra Protest. 
 
 Where the holder of a bill refuses to receive payment supra protest, he 
 loses his right of recourse against any party who would have been dis- 
 charged by such payment. 
 
 Sec. 177. Rights of Payer for Honor. The payer for honor on pay- 
 ment to the holder the amount of the bill and the notarial expenses inci- 
 dent to its dishonor, is entitled to receive both the bill itself and the 
 protest. 
 
ARTICLE VII. 
 
 BILLS IN SETS. 
 
Sec. 178. Bill in Sets Constitute One Bill. Where a bill is drawn 
 in a set, each part of the set being numbered and containing a reference 
 to the other parts, the whole of the parts constitutes one bill. 
 
 Sec. 179. Rights of Holder vVhere Different Parts are Negotiated. 
 
 Where two or more parts of a set are negotiated to different holders in 
 due course, the holder whose title first accrues is as between such 
 holders the true owner of the bill. But nothing in this section affects 
 the rights of a person who in due course accepts or pays the part first 
 presented to him. 
 
 Sec. 180. Liability of a Holder Who Indorses Two or More Parts 
 of a Set to Different Persons. Where the holder of a set indorses two 
 or more parts to different persons he is liable on every such part, and 
 every indorser subsequent to him is liable on the part he has himself 
 indorsed, as if such parts were separate bills. 
 
 Sec. 181. Acceptance of Bills Drawn in Sets. The acceptance may 
 be written on any part and it must be written on one part only. If the 
 drawee accepts more than one part, and such accepted parts are nogo- 
 tiated to different holders in due course, he is liable on every such part 
 as if it were a separate bill. 
 
 Sec. 182. Payment by Acceptor of Bills Drawn in Sets. When the 
 acceptor of a bill drawn in a set pays it without requiring the part bear- 
 ing his acceptance to be delivered up to him, and that part at maturity 
 is outstanding in the hands of a holder in due course, he is liable to the 
 holder thereon. 
 
 Sec. 183. Effect of Discharging One of a Set. Except as herein other- 
 wise provided, where any one part of a bill drawn in a set is discharged by 
 payment or otherwise the whole bill is discharged. 
 
TITLE 111. 
 ARTICLE I. 
 PROMISSORY NOTES AND CHECKS. 
 
Sec. 184. Promissory Note Defined. A negotiable promissory note 
 within the meaning of this Act is an unconditional promise in writing 
 made by one person to another signed by the maker engaging to pay 
 on demand or at a fixed or determinable future time, a sum certain in 
 money to order or to bearer. Where a note is drawn to the maker's own 
 order, it is not complete until indorsed by him. 
 
 Sec. 185. Check Defined. A'check is a bill of exchange drawn on 
 a bank payable on demand. Except as herein otherwise provided, the 
 provisions of this Act applicable to a bill of exchange payable on demand 
 apply to a check. 
 
 Sec. i86. Within What Time a Check Must be Presented. A check 
 must be presented for payment within a reasonable time after the issue 
 or the drawer will be discharged from liability thereon to the extent of 
 the loss caused by the delay. 
 
 See Illinois for text change, Rev. Stats. 1909, sec. 184. 
 
 Sec. 187. Certification of Check; Effect of. Where a check is certi- 
 fied by the bank on which it is drawn the certification is equivalent to 
 an acceptance. 
 
 Sec. 188. Effect Where Holder of a Check Procures It to be Certi- 
 fied. Where the holder of a check procures it to be accepted or certified 
 the drawer and all indorsers are discharged from liability thereon. 
 
 Sec. 189. When Check Operates as an Assignment. A check of 
 itself does not operate as an assignment of any part of the funds to the 
 credit of the drawer with the bank, and the bank is not liable to the 
 holder, unlesS and until it accepts or certifies the check. 
 
 See California Laws 1905, ch. 258; Michigan Laws 1907, ch. 95; 
 Montana Laws 1905, ch. 78; New York Laws 1904, ch. 287; Oregon 
 Laws 1907, ch. 138; Washington Laws 1907, ch. 27; Wisconsin Laws 
 1915, ch. 262. Sec. 1676-24. 
 
TITLE IV. 
 GENERAL PROVISIONS. 
 ARTICLE I. 
 
Sec. 1S4. Promissory Note Defined. A negotiable promissory note 
 within the meaning of this Act is an unconditional promise in writing 
 made by one person to another signed by the maker engaging to pay 
 on demand or at a fixed or determinable future time, a sum certain in 
 money to order or to bearer. Where a note is drawn to the maker's own 
 order, it is not complete until indorsed by him. 
 
 Sec. 185. Check Defined. A'check is a bill of exchange drawn on 
 a bank payable on demand. Except as herein otherwise provided, the 
 provisions of this Act applicable to a bill of exchange payable on demand 
 apply to a check. 
 
 Sec. 186. Within What Time a Check Must be Presented. A check 
 must be presented for payment within a reasonable time after the issue 
 or the drawer will be discharged from liability thereon to the extent of 
 the loss caused by the delay- 
 See Illinois for text change. Rev. Stats. 1909, sec. 184. 
 
 Sec. 187. Certification of Check; Effect of. Where a check is certi- 
 fied by the bank on which it is drawn the certification is equivalent to 
 an acceptance. 
 
 Sec. 188. Effect Where Holder of a Check Procures It to be Certi- 
 fied. Where the holder of a check procures it to be accepted or certified 
 the drawer and all indorsers are discharged from liability thereon. 
 
 Sec. 189. When Check Operates as an Assignment. A check of 
 itself does not operate as an assignment of any part of the funds to the 
 credit of the drawer with the bank, and the bank is not liable to the 
 holder, unless and until it accepts or certifies the check. 
 
 See California Laws 1905, ch. 258; Michigan Laws 1907, ch. 95; 
 Montana Laws 1905. ch. 78; New York Laws 1904, ch. 287; Oregon 
 Laws 1907. ch. 138: Washington Laws 1907, ch. 27; Wisconsin Laws 
 1915, ch. 262. Sec. 1676-24. 
 
TITLE IV. 
 GENERAL PROVISIONS. 
 ARTICLE I. 
 
Sec. 190. Short Title. This Act shall be known as the Negotiable 
 Instruments Law. 
 
 Sec. 191. Definitions and Meaning of Terms. In this Act unless the 
 context otherwise requires: 
 
 "Acceptance" means an acceptance completed by delivery or notifi- 
 cation. 
 
 "Action " includes counter-claim and set-off. 
 
 " Bank " includes any person or association of persons carrying on 
 the business of banking, whether incorporated or not. 
 
 " Bearer " means the person in possession of a bill or note which is 
 payable to bearer. 
 
 " Bill " means bill of exchange, and "note " means negotiable prom- 
 issory note. 
 
 " Delivery " means transfer of possession, actual or constructive, 
 from one person to another. 
 
 " Holder " means the payee or indorsee of a bill or note, who is in 
 possession of it, or the bearer thereof. 
 
 " Indorsement " means an indorsement completed by delivery. 
 
 " Instrument " means negotiable instrument. 
 
 " Issue " means the first delivery of the instrument, complete in 
 form, to a person who takes it as a holder. 
 
 " Person " includes a body of persons, whether incorporated or not. 
 
 " Value " means valuable consideration. 
 
 " Written " includes printed, and " writing " includes print. 
 
 Sec. 193. Reasonable Time, What Constitutes. In determining what 
 is " reasonable time " or an " unreasonable time " regard is to be had to 
 the nature of the instrument, the usage of trade or business (if any) with 
 respect to such instruments, and the facts of the particular case. 
 
 Sec. 194. Time, How Computed; When Last Day Falls on Holiday. 
 Where the day or the last day for doing an act herein required or per- 
 mitted to be done falls on Sunday or on a holiday, the act may be done 
 on the next succeeding secular or business day. 
 
 Sec. 195. Application of Chapter. The provisions of this act do 
 nott apply to negotiable instruments made and delivered prior to the 
 passage hereof. 
 
 Sec. 196. Law Merchant, When Governs. In any case not provided. 
 
The following are Illustrations of Instruments Declared 
 Irregular, Non-Negotiable, or Void, by the Highest Courts 
 of the several States. 
 
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WABASH RAILROAD COMPANY. 
 
 ^eceboed, subject to the classification in effect on the date of issue of 
 ihis Bill of Lading, at MinneapoHs, Mm. Station. A"' ^' — 1900, 
 frnm ^- LuHgcn & Co. the property described below, in apparent 
 good order, except as noted (contents and condition of contents of packages 
 unknown), marked, consigned and destined as indicated below, which said 
 Company agrees to carry to said destination, &c., &c. 
 
 Zanfsinger ^$ Co., 
 
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WABASH RAILROAD COMPANY. 
 
 Received, subject to the classification in effect on the date of issue of 
 this Bill of Lading, at Minneapolis. Minn. siatinn, 7^^- ^> ignn 
 
 Irom ^- L^ttgen & Co. the property described below, in apparent 
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 MARKS: 
 
 XXX 
 
 DESCRIPTION OF ARTICLES. 
 
 Weight— Subject 
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NO. 117. 
 
 SUNDAY CONTRACT. 
 
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 Kequent day. 
 
 McMASTER'S COMMERCIAL DIGEST, 
 PAGE 493A. 
 44 ATU. REP. S60. 
 
 ^^^^^^ 
 
NO. 118. 
 SURETY: GUARANTY. 
 
 kny security given by the principal lo one of 
 [tral sureties, is for the benefit of all. 
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 3 change this rule. 
 
 MCMAVTER'S COMMERCIAL DIQEST, 
 
 PAGE laeA: 
 
 48 8. W. REP. 291 
 
 yen I h.ansaTic(. 
 
NO. 119. 
 HECK MADE BY INSANE DEPOSITOR. 
 
 :heck made by insane depositors said to be void 
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 banlc could not have known of the insanity. 
 
 MeMAsnn's commercial digest, 
 
 PAGE 1 1 8 A ; 
 »S. E. REP. lea; 49 MICH. 192; 83 ME. 48t 
 
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NO. 123. 
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 MOMABTCR'S COMMERCIAL OIQUT. 
 PAGE T4A; 
 «S S. W. REP. 1068. 
 
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NO. 126. 
 
 CERTIFICATE OF DEPOSIT: 
 TWO PAYEES: DEATH OF ONE. 
 
 MeMASTER'S COMMERCIAL DIGEST 
 PAGE 61 3 a; 
 
 ea MD. Bi 
 
 Hi 
 
 Second J^cttional '3a7ilC 
 
 Uover.TJCa. Cct^<^ . isqif- 
 Samz2c7 S^^^ CS hns tiefinstieet /nfhis JBanK. 
 
 OttefbonsanO. UoUars. 
 
 payable fixe artter h'l mscif or JEiien nes on yehim fhts, 
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NO. 128. 
 
 DEPOSIT: 
 RIGHT TO RESCIND CREDIT. 
 
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NO. 129. 
 
 SEAL. 
 
 A Dote formally Issued under seal, held not to be 
 legotlable iostnimeoc. 
 
 VOL. 1. HCMASTER-S REVERSED CASES. 
 
 DEC NO. B1 3- 
 
 ■V-tV fltxXjUy/-^ Co 
 
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NO. 130. 
 
 PROTEST: NOTICE. 
 
 Each indorser bound, under eommon iaw rule. 
 see that prior indorser is notified of nonpayment ; 
 ^ creditor may only notify such indorsers as he 
 «ose5 to hold. 
 
NO. 131. 
 
 USURY: BANKS: 
 ACCOMMODATION INDORSER. 
 
 1 some stales the taking of more than lega. 
 irest by a bank is held to entirely release accom- 
 ditlon indorsers. 
 
 ISaA, VOL. 1. MCMASTEH'S REVERSED C»8ia 
 118 ALA. 441 . 
 
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NO. 132. 
 
 JTRUMENTS PAYABLE "IN CURRENT 
 FUNDS" NON-NECOTIABLE. 
 
 Certificate Ueposzt 
 
 vSe veaiee n Jfim^Cr ccL 
 
 Ororc(cV.anYeTli>-ii a) this Ceftificafe^rafierly In^orSCiZ 
 
 Dotla 
 
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NO. 136. 
 
 tFERENCE ON NOTE TO MORTGAGE 
 GIVEN TO SEGUBE IT: NON-NEGOTIA- 
 BLE CLAUSES IN MORTGAGE HELD TO 
 PRE.IUDICE NEGOTIABILITY OF NOTE. 
 
 60 A, VOL, Z, MCMABTER9 REyERBED CASES. 
 
 66> 
 
NO. 137. 
 
 ATTACHING COLLATERAL HELD IN 
 PLEOCE-WAIVER OP PLEDGE. 
 
 14A. VOL. 2, 
 McMASTER'S REVERSED CASES, 
 
NO. 139. 
 
 ISHIER'S CHECK: RICHT OF ORIGINAL yj 
 PAYEE TO STOP PAYMENT FOR 
 
 FRAUD IN TRANSFER. ^ 
 
 or 
 
 UJ 
 
 1ISikVOI-2 McMASTER-B nCVERSEO CA8C3. 
 
 tSt'yf^/^'^ri/^ _ 
 
 ^7oo^ 
 
 Cashier- 
 
618 
 
obblos, who made this guaranty, and who lived 
 distant city, died soon after signing it, and 
 his death Jordan, Marsh & Co., who were 
 jrant of bis death, sold goods to Moore. It 
 held that the guaranty could not be enforced, 
 ough no notice, as required in the guaranty, 
 beea given Jordan, Marsh & Co, 
 
 the receipt whereof is hereby acknowledged, the undersigned does hereby 
 guaranty to Jordan, Marsh & Co. the prompt payment by George E. Moore to Jordan, Marsh & Co., on maturity, of 
 all sums of money and debts which he may hereafter owe Jordan, Marsh & Co. for merchandise, which they may from 
 time to time sell to him, whether such debts be on book account, by note, draft or otherwise, and also any and all 
 renewals of any such debt. The undersigned shall not be compelled to pay on this guaranty a sum exceeding $i,ooo, 
 but this guaranty shall be a continuing guaranty, and apply to and be available to said Jordan, Marsh & Co., for all 
 sales of merchandise they may make to said George E. Moore, until wrilten notice shall have been given by the undersigned 
 to said Jordan, Marsh &• Co. and received by them, that it shall not apply at future purchases. Notice of the acceptance 
 of this guaranty aud of sales under the same, and demand upon said George E. Moore for payment, and notice to me 
 of non-payment, is hereby waived. 
 
 ^^ittlCSS my hand, seal, this 20th day June, 1879. 
 
 WILLIAM DOBBINS. 
 
 S(«l. 
 
GUARANTY. 
 
 Immediately after receiving this guaranty, Reid, 
 M. & F. commenced selling goods to Mrs. Zucker- 
 maii, 'and the account continued to grow until Nov. 
 24. 1SS7, when she failed. No notice was given the 
 t^uarantors of her defaults until 15 days after her 
 ailure. This lack of notice released the guarantors. 
 
 McMASTER S COMMERCIAL DIGEST 
 PAGE 48 A- 
 
 sn 
 
 TReib, ^IDurbock Si jFisber, Chicago. 
 
 Chicago, January t4, 1887. 
 
 I hereby guarantee the prompt payment at maturity of any indebted- 
 ness owing to Reid, Murdock & Fisher by Mrs. Mathilde Zuckerman, of 370 State Street and 214 and 216 North 
 Clark Street, Chicago, for goods purciiased, or which may be purchased hereafter of them, to the amount of 
 fifteen hundred dollars ($1,500.00), with interest on all the above indebtedness, according to the tenor and effect 
 thereof, at the rate of eight per cent, per annum, and I agree to pay all costs or expenses paid or incurred in 
 collecting the same. 
 
 "Signed at Chicago, this 14th day of January, 1887. 
 
 ''■smitneBs: THOs. Johnson/' COHR 
 
 WM. TAGGERT. 
 
GUARANTY. 
 
 )n the strength of this guaranty, Webb bought 
 ooo worth of goods of Carson, Pirie, Scott & 
 and did not pay for them. The guaranty 
 lid not be enforced. Neither the cashier or all 
 ihe directors could bind a bank as guarantor for 
 lird party. 
 
 Cherryvale, January 2nd, 1898. 
 
 CARSON, PIRIE, SCOTT & CO. , Chicago, 111.! 
 
 GENTLEMEN — We will guaranty the payment of any bill of goods which 
 Mr. R. T. Webb may buy of you while in Chicago during the present week. If 
 this guaranty is not specific enough we will make it satisfactory to you. 
 
 Yours very truly, 
 
 THE CHERRYVALE NATIONAL BANK, 
 
 B. W. WARD, 
 
 Cashier. 
 
The E. P. Dodge Co. sold goods to Hill after 
 receiving tiiis guaranty. Tile court lield tiiat tite 
 guaranty was to cover goods consigned, — not Wfl". 
 
 The guarantor couid not be tield. 
 
 ^11 C^OttSidCtntiOlI of goods, wares, and merchandise which may hereafter be consigned, shipped, 
 and delivered by E. P. Dodge Mfg. Co. to George E. Hilt, of Dallas, Texas, as agent of the E. P. Dodge Mfg. 
 Co., upon such terms as may be agreed upon between the said E. P. Dodge Mfg. Co. and the said Adam Schuab, 
 do hereby guaranty that said. George E. Hilt will hold and dispose of and account to said E. P. Dodge Mfg. Co. 
 for all goods, wares, and merchandise as the said E. P. Dodge Mfg. Co. may hereafter consign, ship and deliver to 
 and require of the said George E. Hilt to hold, dispose of, and account for within twelve months after date of 
 this instrument in strict accordance with the terms and agreement which may be entered into and agreed upon 
 between said E. P. Dodge Mfg. Co., of the value not to exceed, however, five hundred dollars, of all goods, 
 wares, and merchandise that may hereafter be consigned, shipped and delivered, by said E. P. Dodge Mfg. Co. 
 to the said George E. Hilt, to be held, disposed of, and accounted for to the said E. P. Dodge Mfg. Co. by the 
 said George E. Hilt within twelve months after this date. 
 
 Dallas, Texas, Jan. 9, 1898. 
 
 ADAM SCHUAB. 
 
Surety released for the so}e reason that the duties 
 , clerk who was employed as bookkeeper and 
 Hector were also made to include that of cashier. 
 
 «4 «▼ BEP 
 
 5Cbc Supreme Court of fl5(cbigan sa?, tn action against the CSuarantor 
 in this dase: 
 
 " MOORE, J. March 20, 1890, the plaintiff made a contract with defendant Rogers to sell him 'all the lager beer 
 he may need m car Iciis, at five dollars per barrel, delivered on board of tne cars at the city of Toledo, at the rate and 
 price of five dollars per barrel.' Rogers, on his part, agreed to use his best endeavors to market the beer, ' and that he 
 will pay for the beer so delivered, in car lots, by remittance or honoring and paying drafts drawn on him therefor, in 
 such manner that he * * * shall not be indebted to said Crasser and Brand Brewing Company at any one time for 
 more than the oiice of one lot or shipment; that is to say, that, upon making any order for beer, he will remit or honor 
 and pay the sight draft drawn on him to the full amount of all indebtedness then existing.' Defendant Doherty became 
 surely for the performance of this contract on the part of Rogers, limiting the amount for which he would be liable to $t,ooo. 
 Two days after this contract was made, one car load (^i beer, consisting of 250 quarter barrels, was shipped to Rogers. 
 This was the only car-load lot shipped. Other beer was shipped to Rogers in smaller quantities than car-load lots, as 
 ordered by him. The value of all the beer shipped him was $910.50. He made remittances, which were credited upon 
 his account, amounting to $517.14, leaving a balance due to plaintiff from Rogers of $393-3^. for which amount the suit 
 was brought. It was shown that, if beer was shipped in smaller quantities than car lots, the freight was proportionately 
 much higher. Defendant Doherty claimed that he was liable onlv for the beer sold in car-load lots, and that, as the 
 remittances would more than pay for the car load that was shipped, he was not liable. The judge sustained the 
 defendant in both positions, and the guaranty was held worthless." 
 
GUARANTY. 
 
 Guarantor of purchases of beer in car-load lots, 
 held released for the reason that the beer was deliv- 
 ered in less than car-load lots. 
 
 MCMASTER'S COMMERCIAL DIGEST. 
 TO N w REP 4«5 
 
 TRosanna j6. Iftsb Slgneft a Bonft, tbe fiDatertal part of wbtcb rea&s as 
 
 follow© : 
 
 "WHEREAS, the above bounden Frank M. Scott, is about to act as bookkeeper and collector for the above- 
 named Andrew H. Kellogg, and by reason thereof will have the control of sums of money, and be required to 
 perform various acts : Now, the condition of this obligation is that if the above-bounden. Frank M. Scott shall 
 well and truly account for and pay over and dispose of all moneys and property of the said Andrew H. Kellogg 
 which may come into his possession or under his control, and shall well and truly discharge and perform all his 
 duties as such bookkeeper and collector, and if the said obligors, or either of them, shall pay over to the said Andrew 
 H. Kellogg the sum and amount of any and all loss, damages, costs, and expenses suffered or incurred by the said 
 Andrew H. Kellogg by reason of the failure of said Frank M. Scott to pay over and account for all moneys and 
 property, or his failure to discharge and perform all his duties as aforesaid, within ten days after notice is given to 
 the said Rosanna E. Fish of the sum and amount so to be paid, then this obligation to be void," etc. 
 
 Scott entered on his duties and soon after he was given the additional duties of cashier. He defaulted, but 
 this bond could not be enforced on account of the addition to his duties. 
 
GUARANTY. 
 
 Guaranty broadly drawn to cover any indebted- 
 ness of T,, did not cover paper of firm of which T. 
 was member, although paper was signed by T. in 
 the firm name. 
 
 MeMASTER'S COMMERCIAL DIGEST 
 
 PAGE =8 a: 
 
 12t N. Y. 280 
 
 John Thompson, a customer of the Bank of 
 own name. To secxire the bank of — 
 
 — , was carrying on mercantile business in his 
 for any indebtedness they might have against 
 him, he made a mortgage on real estate conditioned as follows: 
 
 " Provided always, and these presents are upon this express condition, that if the said Thompson, his heirs, 
 
 executors or administrators shall and do well and truly pay or cause to be paid unto the said Bank of or 
 
 its assi<^ns the just and full sum of all promissory notes, checks, or bills of exchange which have been or shall at 
 any time hereafter be made, drawn, indorsed or accepted by the said Thompson and which have been or shall at 
 any time be discounted by the said bank for his benefit, when and as the same shall become due and payable, and 
 shall also pay upon demand any and all overdrafts made by him and all balances of account, and all sums of 
 money which now are or shall at any time become due or owing by him to said bank upon any account whatever, 
 j this conveyance shall be void, otherwise to remain in full force and virtue. This mortgage being given and 
 intended as a collateral and continuing security for the payment of such indebtedness to the amount of S/S'OOO.' 
 Thompson continued to deal with the bank for some time. He then organized the firm of Thompson, Reynolds 
 & Co., who kept their account at the same bank. The bank held paper of the firm signed by Thompson in the 
 firm name, but it was decided that this mortgage would not cover it. 
 
Certain guaranty given to a firm, held to be 
 inoperative to succeeding partner. 
 
 The Fillmore County Bank was the depositary of the funds of Fillmore County, Minnesota, 
 and, as such depositary, gave a bond for $10,000 with several sureties. 
 
 The bank failed to pay over all of the funds belonging to the county and the sureties were sued on the bond. 
 
 On the trial it was conclusively established that when the sureties executed and delivered the bond its condition 
 was (stating it according to its legal effect) that the principals would pay interest on all public money deposited with 
 them at the rate of 3 per cent, per annum upon the monthly balances of such deposits. But after the delivery of the 
 bond by the sureties, and without their knowledge or consent, Todd, one of the principals, with the consent of the 
 county commissioners, changed the condition of the bond so as to make the rate of interest 2 per cent, per annum 
 instead of 3. The sureties could not be held. 
 
 The court said in part : 
 
 "The plaintiff further claims that the alteration in the terms of the bond was not material because it reduced the 
 rate of interest; hence it was not prejudicial to the sureties. It is unnecessary to inquire or speculate whether the 
 alteration was prejudicial to the sureties or not, for the bond, after it was materially altered without their consent, was 
 no longer their bond. Its identity was destroyed by the alteration. It is clear, upon principle and authority, that if a 
 material alteration is made in a contract without the surety's consent he is discharged, even if the alteration may have been 
 for his benefit" 
 
GUARANTY. 
 
 Extension oi ti 
 obtained on guar 
 although the gua 
 notes guaranteed. 
 
 ne of paymen 
 meed note released gu 
 anty allowed renewals 
 
 of judgment 
 of ih: 
 
 Daniel J. Townsend was indebted to Oliver, Lee & Co/s Bank at Buffalo, and at the request of the 
 bank the wife of Townsend executed a mortgage on property of hers, conditioned: — 
 
 "To pay or cause to be paid all checks, notes, drafts, overdrafts and acceptances, and all indebtedness of any kind 
 whatsoever, which had theretofore or should thereafter be incurred by the said Townsend, or Buffalo Car Co., and which 
 then were or might thereafter be held or owned by the bank, upon which the said Daniel J. Townsend or the said Buffalo 
 Car Co. should be in any manner liable either directly or contingently, either as drawer, maker, indorser, acceptor or 
 otherwise, whenever the same or ariy renewals thereof or any part thereof should fall due or become payable, with all 
 costs and expenses thereof or in anywise connected therewith." 
 
 The bank afterwards obtained judgment on indebtedness which the mortgage was given to secure, against Townsend, 
 in the sum of $87,000. After the recovery of the judgment the bank agreed to extend the time of payment of the debt to 
 the first day of June next, and Townsend personally consented to the extension, but his wife was not asked to. It sub- 
 sequently transpired that a portion of the land mortgaged was deeded to the wife. The mortgage as drawn was 
 sufficient to bind her property as security for the debt, but the extension of time without her consent released it. 
 
 This decision negatives the idea that extension of time is equivalent to renewal, as the mortgage expressly provided 
 that renewals could be made. 
 
GUARANTY. 
 
 Certain guaranty of dividends held, 
 aot to snrvive the benficiary. 
 
 MCMASTER-S COMMERCIAL DIGEST, 
 PAGE 66S a; 
 17^ M*SS. '25. 
 
 Chicagop January f, J 886, 
 
 " We hereby guaranty the payment to Mr. William J. Rotch of a dividend of 6 per cent, per annum on 
 stock subscribed to this day in the corporation of French, Potter & Wilson." 
 
 T, J. FRENCH. 
 VM. POTTER. 
 L. D. WILSON. 
 
 This guaranty was given to induce Rotch to take the above stock. The dividends were regularly paid until 
 the death of Rotch, when they ceased. The executor of Rotch 's estate then brought an action on the guaranty 
 and succeeded in the lower court, but on appeal to the Supreme Judicial Court of Massachusetts it was decided 
 that the guaranty was to be construed at the longest as running for a reasonable time, and that whether for a 
 longer or a shorter time, it would in no event, as worded, survive the death of the beneficiary. 
 
 "The promise guaranties a payment 'to Mr. William J. Rotch,' personally, without mention of executors, 
 administrators or assigns. It guaranties no more in terms. A promise to pay a like sum annually to Rotch or 
 Seabury would be limited to payments during their lives." 
 
 If the guaranty was intended to have survived Rotch it should have run to him, " /lis heirs, executors, 
 administrators and assigns." 
 
Guarantors releai 
 alteration of bond. 
 
 ed by reducing their liability i 
 
 j Anamosa, Iowa, May 25, 1894» " 
 
 j " I hereby agree to be security to Shaw & Schoonover for whatever sum of money they or may hereafter let 
 
 ) my sons, Osborne Brothers, have to use in their business. 
 
 ! "DAVID OSBORNE." 
 
 Shaw & Schoonover, bankers, dissolved partnership some time after receiving this guaranty. Osborne Bros, 
 then owed them $16,000. Schoonover succeeded to the banking business and continued the account with 
 Osborne Bros, until they owed him $34,000, when they failed. 
 
 Schoonover sued David Osborne on his guaranty, seeking to charge him with the full debt of Osborne Bros., 
 about $34,000, and he succeeded in his action in the lower courts. But on appeal it was held that the letter of the 
 guaranty would not cover advances made by Schoonover after the withdrawal of his partner from the firm. As to 
 the balance that was due at the time of the dissolution of the firm, $16,585.85, and which was fully covered by 
 the guaranty, it was held to have been paid, in law, by the credits subsequently made to the account, although the 
 subsequent debits to the account equalled or exceeded the subsequent credits; the rule being that in the absence 
 of specific instructions as to the application of credits, the credits apply to and extinguish the oldest items in the 
 account. The guaranty of David Osborne was held to be of no effect in the hands of Schoonover. The opinion 
 discusses at length decisions in similar cases in the U. S. Supreme Court and in the courts of other States. 
 
Guaranty of paper made " from date hereof " - 
 (Jan. 17), did not cover paper made on that date. 
 
 McMASTCR'S COMMERCIAL DIGEST, 
 PAGE 66 a; 
 45 NO. E. REP. 1083. 
 
 Peoria, ML, January 17, f893/ 
 
 Eo the IPeoria Savinge, !lLoan anb ^rust Companip: 
 
 "Gentlemen — We make this request and guaranty, to viz : That the Peoria Pump and Implement Co., of this 
 city (incorporated), may from time to time, from date hereof \xx^\\\ further notice, present to you its promissory notes and 
 business paper for discount or advance, to the extent of $12,000.00, In case that it shall do so, we request to discount 
 such notes or said paper indorsed by them, or to make such advance to them, and in consideration of the terms, and one 
 dollar to us in hand paid by you, the receipt of which is hereby acknowledged, we hereby guarantee the prompt pay- 
 ment at maturity of the principal and interest of all promissory notes and business paper or open account made or 
 indorsed by said Peoria Pump and Implement Co., and discounted or advanced upon you for said company; and we 
 waive notice of the acceptance of this guarantee, and of any and all indebtedness at any time covered by same. 
 
 '"^litWCBS our hands and seals at Peoria, Illinois, the 17th day of January, 1893. "G, G. Geiger. [seal] 
 
 " G. H. WvMOND. [seal] 
 *'E. T. Brawley. [seal] 
 *' Joseph Elder. [seal]" 
 
 On the date of this guaranty the Peoria Savings ard Loan Co. discounted paper for the Peoria Pump and Imple- 
 ment Co. It was held that the guaranty would not cover this paper — but only paper made after its date. 
 
GUARANTY r 
 VOID BECAUSE GUARANTORS >^ ERE NOT 
 NOTIFIED OF ITS ACCEPTANCE. 
 
 1 he Urake Roofing Ciuiipany, desiring to extend 
 liieircisdit ai the German Savings Bank, and nui 
 wishing ro be annoyed by furnishing indorsers from 
 time to time, the secretary of the company proposed 
 to the bank that the ompany furnish a written 
 guaranty of several parties to the amount of $500. 
 to which proposition the bank agreed and there- 
 after the secretary deposiied with the bank this 
 guaranty. The company got behind at the bank 
 but the guaranty could not be enforced as the bank 
 lirtd not notified the guarantors of if; acceptance. 
 
 , McMASTfTR'S HeVERSED CASES. 
 
 " For the purpose of inducing the German Savings Bank of Des Moines, Polk county, Iowa, to extend 
 credit to the Drake Roofing Company, the undersigned, J. F. N. Drake, F. O. Drake, A. T. Cottrell and R. T. C. 
 Lord, hereby guaranty to the said German Savings Bank payment of all notes, checks, drafts, overdrafts, and 
 other evidences of indebtedness which may accrue from the said Drake Roofing Company to the said German 
 Savings Bank, within six months from the date of this guaranty, not to exceed the sum of five hundred dollars, it 
 being the intention of this contract to secure payment to the said German Savings Bank, and the undersigned 
 hereby agree to pay to the said German Savings Bank all notes, checks, drafts, overdrafts, and other evidences of 
 indebtedness from said Drake Roofing Company to said German Savings Bank, which may accrue within six 
 months from the date hereof, not to exceed five hundred dollars, waiving demand, notice and protest on the part 
 of the said German Savings Bank in collecting said sums from said Drake Roofing Company." 
 
 Des Moines, Oct. 2, 1895. 
 
 J. F. N. Drake, [seal] 
 
 F. O. Drake. [seal] 
 
 A. P. Cottrell. [seal] 
 
 R. T. C. Lord. [seal] 
 
GUARANTY— PERSONAL — NOT ASSIGNABLE. 
 
 54 MoMASTER'S COMMERCIAL DIGEST,* 
 61 N. V. 40. 
 
 John W, Barnes agreed to furnish Edward F. Barrow flour to be sold on com- 
 mission. John Barrow gave guaranty in writing that he would become responsible 
 for such goods as went into E. F. Barrow's hands under this agreement. There was 
 a default, and it appeared that the flour furnished was furnished by John W. Barnes 
 & Co., a firm cf which John W. Barnes was a member. The court held that John 
 Barrow could not, for this reason, be held on his guaranty, and said in part ; " In the 
 Roman law, the rule now under consideration assumes the form of a maxim." "An 
 agreement of guarantee made with one person cannot be extended to another 
 person." Some of the English cases which turn upon this principle are : Lord 
 Arlington v. Merricke (2 Saund., 414) ; Wright v. Russel (2 W. Black., 934); Myers v. 
 Edge (7 T. R., 254); Barker v. Parker (Ibd. 287); Simson v. Cooke (1 Bing., 452); 
 Shang V .Lee (3 East. 484); Spies v. Houston (4 Bligh [N. S. ] 515); Dey v. Davy 
 (10 Ad. & Ell., 30). The rules governing letters of credit depend upon the same 
 clortrine. The whole subject is well illustrated by the case of Philip v. Melville 
 
 (cited in Burge on Suretyship, p. 68). In that case, Melville recommended one Tells 
 to Dusie for a supply of spirits, and guaranteeing the payment. Dusie wrote on the 
 back of the letter of credit an assurance to C. & J Philip, plaintiffs, that, not hiving 
 the article himself, he had sent Tells with the letter of credit, on which they might 
 rely. They having furnished the spirits sued Melville. The Court held, that a letter 
 of credit addressed to a particular person is limited to him, and that the writer must 
 be held to have granted it in reliance on his prudence and discretion in acting upon 
 it ; that such a letter contains no general power to interpose the writer's credit, or 
 transmit his guarantee ; and this is specially to be observed where the general terms 
 bf the letter made the personal limitation the only restraint on the responsibility 
 of the writer. 
 
 " In the case at bar the defendant agreed that Edward F. Barrow should account 
 to John W. Barnes for goods received, and should sell on commission for him, and 
 be accountable for the proceeds, after deducting commissions to be allowed him by 
 Barnes. It is not possible on any principle of construction established by the com- 
 mentators and the cases cited, to add to the name of John AV. Barnes those of William 
 and Charles Barnes, his copartners, it not being made to appear that the defendant 
 knew, at the time of the execution of the contract, that it was entered into by John 
 W. Barnes, not for himself merely, but also for his copartners." 
 
GUARANTY— BUILDING CONTRACT. 
 aeoA; mcmaster s commercial digest- 
 
 64 PAC. 11 22. 
 
 A surety on a bond of a building contractor, conditioned to complete the building according 
 to the contract, is not liable thereon where the provision in ihe building contract that the first 
 three installments of the price were to be for only 75 per cent, of the value of the woik done was 
 violated by a payment on the third installment of a sum which was in excess of the 75 per cent, of 
 the value of the work, more than the amount sued for. 
 
 "Reavis, J. Defendant Mackay entered into a building contract with Heilbron, now repre- 
 sented by the appellants as executors, for the sum of $1,545. Mackay agreed to furnish all labor 
 and material necessary for the construction of a house, and to complete the same on or before 
 December 22, 1893. The work was to be performed and finished under Ihe direction and to t'.e 
 satisfaction of architects acting as agents of Heilbron, and the contract contained, among others, 
 "hfi following stipulation, with reference to the payment of the contractor, Mackay, viz. ; That the 
 whole iimount should be p^id in four installments, i.ccording t^ "lie progress of ihe building, and 
 
 upon certificates of the architects, and all but the last payment to be to the amount ot but 75 per 
 cent, of the value of the work done and material furnished, as estimated by the certificate. At 
 the time the contract was executed, Mackay, with Hinckley as surety, executed and delivered to 
 Heilbron a bond for the faithful performance of the contract, which contained the following con- 
 dition : ' If the said E. A. Mackay shall fulfill said contract according to the terms as therein set 
 forth, and pay or cause 10 be paid all bills for material and labor in the construction of said build- 
 ing, then the above obligation 10 be void.'" *■***" It appears from the record that, after 
 the payment of the first and second installments, the payments were made to the contractor ia 
 excess of the 75 per cent, estimate of the whole contract before the completion of the building,— 
 an excess greater than the amount claimed here. The contract to build and the bond securing a 
 faithful performance of the contract are to be read together; and, under the stipulation contained 
 in the contract, but 75 per cent, of the amount earned should have been paid on the third install, 
 ment, and none on the last installment, until the completion of the building, and production o( 
 evidence that all laborers and material men had been paid. The surety is released where the pay- 
 ments of the contractor are in excess of the amounts provided for under the contract. (Bragg v. 
 Shain, 49 Cal. 131 ; Brennan v. Clark. [Neb.] 45 N. W. 472; Gray v. School Dist. [N'cb.] 53 N. 
 W. 377; Simonson v. Thori. [Minn.] 31 N. W. 861 ; Evans v. Graden. [Mo. Sup.j 23 S. W. 439: 
 Board v. Branham, 57 Fed. 179; St. M:.ry*s Collcse v. Meagher. [Ky.] 11 S. W. 6aS.) Tlie 
 judgment of the Superior Court is alTirmcd," 
 
r 
 
 GUARANTY- BUILDING CONTRACT. 
 
 236 a; McMASTER-a COMMERCIAL DrGEST; 
 47 8. W. A09. 
 
 "The facts in ihis case are as follows: The plainliff, Michael Kelley, on the 28th day of 
 April, 1894. entered into a contract with defendant, C. A. O'Neal, by which O'Neal, for the sum 
 of $2,000. 10 be paid by Kelley, agreed to furnish materials and erect for said Kelley a two-story 
 brick house in the city of Texarkana. The contract required that the building should be con- 
 structed according to specifications named therein, and that it should be completed and turned 
 over to Kelley free of all liens on or before the ist day of July, 1894. The defendants, C. C. 
 Dorrian. H. Wolf. W. L. Snow and T. J. Wheeler, became sureties on the bond of O'Neal for the 
 performance of such contract. O'Neal having failed to perform his contract, Kelley brought thin 
 action on his bond to recover ihe sum of $1,000 as damages suffered by him on account of such 
 failure. The sureties set up that ihere had been a material alteration of the contract. On this 
 point Kelley testified at the trial as follows : "The contract called for a building 96 feet long for 
 lower story, and 75 feet long for upper story. After the Webber building had given away, 1 said 
 to O'Neal: 'I wish the upper story of my building had been Ihe same length as the lower stor^', 
 because I was afraid we would have the same trouble they were having with the Webber building.' 
 Mr. O'Neal said it would only take a lillle extra work, and would in no way affect the contract to 
 make the chanpe. I told him I did not want to do anything th^t would change the contract, and 
 if it could be done so as not to change the contract, 10 figure it up, and say how much it would 
 cost. He did so, and said it would cost me $25, and I gave him a check immediately. The only 
 extra work was the ceiling, flooring and upper joists. The longitudinal walls were already there. 
 
 and I estimated that $25 was a reaso-iablc price for extra work, and iherelore paid it." There 
 was a judgment against the defendants for the sum of $500, from which thi'y appealed." 
 
 The opinion reads in part: "The obligor and lUe obligee are bound to know that, if they 
 find it convenient to change or vary the terms of the original contract, they must seek the assent 
 of the surety, because it is his contr.ict as well as theirs. And if they will not do so they take 
 upon themselves the hazard, and thus loosen the bonds of the surety."' (Hibbs v. Rue, 4 Pa. St. 
 348). Any material alteration in the terms of such a contract discharges the surety if he has not 
 consented to the change ; and this is so even if the alteration be for the benefit of th? surety, for, 
 although the principals may change their contract to suit their pleasure or convenience, they can- 
 not thus bind the surety, and as the new contract abrogates the old, Ihe surety is discharged from 
 all liability unless he has consented to the alteration. (Warden v. Ryan, 37 Mo. App. 466; Judah 
 V. Zimmerman, 22 Ind. 3S8; Simonson v. Grant, 36 Minn. 439, 31 N. W. 861; Bethune v. Dozier, 
 10 Ga. 235; 24 Am. & Eng. Enc. Law, 837; 2 Brandt, Sur.. 278, 288.) 
 
 The alteration of the contract shown in this case was material, and there is nothing to show that 
 the sureties consented thereto. It required that O'Neal should erect a building of dimensions 
 different from that required by the original contract, and for which he was to receive a different 
 consideration. 
 
 The fact that Kelley refused to agree to the alteration until O'Neal, the contractor, had 
 assured him that it would not affect the original contract is a matter of no moment; for O'Neal did 
 not represent the sureties, and they are not bound by his opinion on a question of law. Nor does 
 the fact that he afterwards failed to carry out the contract as altered affect Ihe question. It is the 
 execution of the new contract, and not the performance thereof, that discharges the sureties. 
 There is no dispute about the facts of this case, and after considering same, we are of the opinion 
 that the judgment of the Circuit Court against the sureties of O'Neal is not supported bv the evi- 
 dence. The judgment as to them is reversed, and the case is dismissed, but ns to O .Niil it is 
 affirmed," 
 
GUARANTY— DEPARTURE FROM TERMS OF CONTRACT. 
 
 SaaAi MCMASTKR-S COMMERCIAL DiaEST 
 64 BO. W. RKP. a03. 
 
 Henry House entered into a written contract on July ii, 1895, with the firm of 
 Bonnell, Matthews & Harding, for the performance by them, under the direction and 
 to the satisfaction of the architects, acting as the agents of the owner, "of the work 
 included in the erection, construction, and completion of one certain three-story brick 
 
 building, agreeably to the drawings and specifications made by 
 
 the said architects, including all labor and material incident thereto," 
 
 for the price of $20,500, payable in specified installments. The contract, among 
 other things, provided : 
 
 " 3rd. Should any alteration be required in the work as shown or described by 
 the drawings or specifications, a fair and reasonable valuation of the work added or 
 omitted shall be made by the architects, and the sum herein agreed to be paid for the 
 work according to the original specifications shall be increased or diminished, as the 
 case may be. . . . • ^ 
 
 The contractors gave a bond with sureties for their jjerfortnance of the contract. 
 The bond given by the contractors, with defendant as surety, bore date August 6, 
 1895, and was conditioned in the usual way for the faithful performance by the con- 
 tractors of their undertaking. By supplemental agreement between the owner and 
 contractors, bearing date October 16, 1895, which was indorsed on the original, it was 
 provided that the contractors should put a fourth story on the building for the addi- 
 tional "sum of $4,500, in accordance with the third clause of this agreement;" the 
 contractors to have additional time of thirty days to complete the building. 
 
 In a suit against the sureties they were held released ; the court said in part : 
 "We affirm the judgment of the court below upon the ground that the supple- 
 mental agreement of Henry House with the contractors, Bonnell, Matthews & Hard- 
 ing, for the addition of a fourth story to the building, was not contemplated by the 
 third paragraph of the contract, and was a material alteration thereof. In so far as 
 this was a question of fact, we approve the implied finding of the court below. The 
 identity of the work was changed. Miller-Jones Furnitare Co. v. Ft. Smith Ice & 
 Cold-Storage Co., (Ark.) 50 S. W. 508. 
 
GUARANTOR — DEATH — EXTENSION OF TIME 
 OF PAYMENT. 
 
 boa; McMASTCR'S COMMERCrAL DtaEST; 
 16 R. I. 148. 
 
 S. P. Carpenter gave a guaranty under seal to the Eagle Bank by which he agreed to become 
 responsible to the bank for any paper of his son which the bank might discount or purchase. The 
 goaraniei-' provided that ii should be binding until Carpenter notified the bank in writing of its 
 termination, and that the bank could extend time of payment or renew any of the paper and that 
 the guaranty should cover such renewals. 
 
 Carpenter died, and after his death the bank renewed one of such notes. The court said the 
 guaranty could not be held on the original note or the renewal. Death terminated the guaranty 
 so far as any future transactions were concerned, and the extension of time of the original note 
 released the guaranty as to it, as death would also terminate any right to make new extensions. 
 
 The court said, in this case: "Guaranties have been divided into two classes: one where 
 the consideration is entire, that is, where it passes wholly at one time ; the other, where it passes 
 at different times, and is, therefore, separable or divisible. The former are not revocable by the 
 guarantor, and are not terminated by his death and notice of that fact, 8 Me. 14 ; 18 Ala. 458 ; 
 40 Iowa, 46g ; 113 111. 390. The latter, on the contrary, may be revoked as to subsequent tnns- 
 actions by the guarantor, upon notice to that effect, and are determined by his death and notice of 
 that event. 
 
 "The distinction between these two classes of guarantees is well illustrated by Lush, Lord 
 Justice, in Llovli v. Harper, L. R., 16 Ch. Div. son -jtq. ' /\n instance of the first.' he remarks. 
 
 ' is where a person enters into a guaranty that, in consideration of the lessor granting a lease to a 
 third person, he will be answerable for the performance of the covenants. The moment the lease 
 is granted there is nothing more for the lessor to do, and such a guaranty as that of necessity runs 
 on throughout the duration of the lease The lease was intended to be a guaranteed lease, and it 
 is impossible to say that the guarantor could put an end to the guaranty at his pleasure, or that it 
 could be put an end to by his death, contrary to the manifest intention of the parties.' 
 
 "Instances of the second class are more familiar. They are where a guaranty is given to 
 secure the balance of a running account at a banker's, or the balance of a money account for 
 goods supplied. There the consideration is supplied from time to time, and it is reasonable to 
 hold, unless the guaranty stipulates to the contrary, that the guarantor may at any time terminate 
 the guaranty. He remains answerable for all the advances made on all the goods supplied upon 
 his guaranty before the notice to determine it is given ; but at any time he may say ' I put a stop 
 to this ; I do not intend to be answerable any longer ; therefore do not make any more advances 
 or supply any more goods upon my guaranty.' 
 
 " The guarantees in the case at bar come within the second class above considered. Thej 
 were, therefore, upon the authorities cited, terminated by the death of the guarantor and notice of 
 it to the plaintiff, as to all subsequent transactions. As, however, the note described in the 
 declaration had been discounted, and the net proceeds had been paid to the maker prior to the 
 death of the guarantor, the plaintiff would have been entitled to recover but for the fact, set up in 
 the pleas, that after notice of the death of the guarantor it extended the time of payment for a 
 further period by taking a new note from the principal debtor and receiving the interest thereon 
 in advance, without the consent of the defendant, and without any reservation of hia right assented 
 to by the principal, and, in default of such payment, to pay the debt himself, and proceed at once 
 against the principal. That such action on the part of the plaintiff was sufficient to release the 
 estate of the guarantor, and the defendant as his representative, from liability, is too well estab> 
 lished to need the citation of authority." 
 
GUARANTY — LACK OF CONSIDERATION — ASSIGNMENT 
 OF GUARANTY. 
 
 L.essrs. Abaye, Vison Bimar & Co. assigned the " new account " mentionod in thi3 guaranty to Charles Brum, 
 and authorized him to collect anything due on ibe guaranty. The principal was in default and the guarantor was 
 sued, It was held that the guaranty was void for the reason that no consideration was expressed in the writing. 
 It was claimed that extension oi time of payment was a good consideration, but the court held that there was no 
 forbearance to sue expressed or implied here that the creditor could enforce. It was further held on appeal that the 
 guaranty was personal and could not be assigned so as to give the assignee a right of action against the guarantor. 
 24A, VOL. 1, McMASTER'S COMMERCIAL CASES. 
 98 N. Y. S. REP. 144. 
 
 "I guaranty the 'new account' of Mr. W. C. Gilbert, my husband, with Messrs, Ab.iye, 
 Vison Bimar & Co,, amounting to this dale to one hundred and twenty thousand francs, repie 
 senting the disbursements made by the firm of Abnye, Vison Bimar & Co. since the first day of 
 January, one thousand eight hundred and ninety-one. 
 
 " It is well understood ; 
 
 "(i) Thai all the profits obtained from Mr. Gilbert's business from and after this day shall be 
 applied to the discharge of this account. 
 
 " (2) That, in case of the dealh of Mr. Gilbert, Messrs, Abaye, Vison Bimar & Co.. who are lo 
 collect his life insurance, will discharge me completely from the present guaranty. 
 
 "(3) In case that, contrary to the expectation of Mr. Gilbert, he should not be able to pay off 
 th = s account l-i'twcen now and the end of December, iSg6, and should oblige you to require l!ic 
 excctirinn of this uuarantv. I shall only be able to acquit myself towards you by paying you ohl-- 
 hai; of my income, amounting to si.t ihous.ii.d fi'ancs a year; not possessing any capital of which 
 
 1 cjn di^iiij -c. I >\ ill iliirulurv; n-tjuifu luv i.i;i.i.?3.iiy .ind prD|i.iinijii..i ; <,.i y 
 
 " Madt; at Paris the fourteenth day of January, one thousand eight liundii.d ;iiid ninety-five. 
 
 [Signed] M. Gilbert. 
 
 '■ I authorize the above. [Signed] \V. C. Gilbert." 
 
 The court said in part : " It is argued that this guaranty clearly imports an agreement on the 
 part of the promisees to forbear to enforce payment of the principal indebtedness from the date 
 of the instrument, January 14, 1895, until the end of December, ibg6, It is well settled that an 
 aureement of forbearance to sue is a good considerauon for a promise lo pay the debt of anoilnr. 
 Bank v. Parker, 130 N. Y. 415; 29 N. E. 1094, and cases iherein cited. These authorities, then, 
 would sustain the position of the apptliaius, if wc could find in the insKument in question any 
 evidence of the existence of a legal consideialiun, in the shape of an agreement to foibcar the 
 enforcement of payment as against th.e principal debtor. This, however, we aic unable to dis- 
 cover. There was notliing in the guaranty which prevented llic prunusees from suing Mr. Gilbert 
 immediately. The terms of liie inslrun.cnt did preclude thcni from enforcing the guaranty, as 
 ag.ninst Mrs. Gilbert, until the end of December. iSc)6, but ihcy imported no intent to grant anv 
 indulgence whatever to Mr. Gilbert. Indeed, the p ovision th.it all the profiis obtained from his 
 business from and after the date of the gUiiranty should be apiilicd lo the disclinri,'e of the gnaraii- 
 tied account implied that the payment of his indebtedness, instead of bt-iii;^ po^iponed at all, was 
 to be begun at once, 
 
 "Another question is involved in the derision of lh<- cmiri below, ahlmn,.!] ii v-.ms not ex- 
 pressly passed upon, The defendant contends tliat the pl.unt i 1 = h i <■■<.; .ii iinin.d im n ■ l 1 1.1 enforce 
 the guaranty by virtue of ihc assifrnment of the inslrumt-iii in lliuin l ■. iln i.n.in I lunniisccs, 
 Messrs. Abaye, Vison Himar Co. This depends on ihr . Ii..i-.,.:i.-r . .i in- v'M'-r.- ! it was 
 special, it wis not assignable until a ^i^'ht of action had aii^i 'i > > Bui^, \ ^ . i..iiin, <)3 
 
 N. Y. 273; Shelman & Northrup, 109 N. V. 473. In our opLuion, the guar-mf in r.iiHrovcis> 
 heie may fairly be regarded as thus restricted, 98 N. Y. St. R' p. 1 j i," 
 
GUARANTY — APPLICATIJN OF PAYMENT. 
 
 64 a; vol. I. MoMASTER>S COMMERCIAL CASES; 
 47 AT. REP. 160. 
 
 The Cheshire Beef Company sued George C. Thrall on ihe following siaiement of facts ; 
 
 "Prior 10 Otiober 31, 1S95. ihe plaintiff (The Cheshire Beef Co.) had sold beef lo one Judson 
 H. Gram. On ihat day ihe plaintiff and Grant senled, and their accounts were closed and paid 
 up to that date, and thereupon the defendant executed and delivered to the plaintiff the following 
 writing : ' Rutland, Vt., October 31, 1895. This is to certify that 1, George C. Thrall, of Rut- 
 land, Vt., will he responsible 10 the amount of $700,00 10 the Cheshire Beef Co. for goods 
 purchased by Judson H. Grant, of Rutland, Vi. In case of failure of said Grant to meet this 
 obligation, I guarantee its payment. Geo. C. Thrall, Surety." On the same day the plaintifif sold 
 and delivered 10 Grant a bill of beef amounting to ihe sum of $404.66. Between said last-named 
 date and January 2S. 1896, the plaintiff sold and delivered to Gram beef 10 the amount of $3,212.05, 
 and between said dates Grant paid to the plaintiff $2,528.23. at different times and in different 
 sums. On said 2Sth day of January, 1896, there was due the plainliff for beef thus sold and 
 delivered to Grant $653.82, which sum remained unpaid at the time of the trial. The beef in 
 quesiion was sold and delivered to Grant by Ihe plainliff on the strength of the defendant's 
 guaraniy." 
 
 The rnurt held that the guaranty only covered the first $700 worth of beef sold ; and under 
 the rule of the appliration of payments, when Grant had paid in $700 on account the guaranty 
 tvould be released. The appellate court said : 
 
 " .Munson. J. The defendant agieed in writing to be responsible to the plaintiff as a guaran- 
 tor ' to the amount of $700.' ' lor goods purchased by Judson H. Grant.' The question raised is 
 whether this was a limited or a continuing guar.mty. The circumstances connected with the giving 
 of Ihe guaranty plainly require that the words 'goods purchased ' be given a future significance. 
 The language thus construed is equally applicable to both kinds of guaranty. We find nothing in 
 the case that affords further aid in determining what was intended. *«**»» 
 
 "It is said by some authorities that the contract of guaranty should be construed liberally in 
 favor of its purpose; that the words used should be taken as sirongly against the guarantor as 
 their sense will permit; and that if one intends to be surety only for a single dealing he should be 
 careful to say so. It is said by olhcr authorities that the scope of a guaranty should be restricted 
 to the plain and obvious import of its language ; that a mere surety should not be held to pay the 
 debt of another by any forced construction ; and that in a doubtful case the presumption should 
 be asainst the construction that the guaranty is continuing. It is said by some that the courts seem 
 inclined to favor an extension of the liability in cases of doubt, while others say that the decided 
 weight of auihority is in favor of the restrictive rule. We are not aware that this court has passed 
 upon the matter, although an expression of Judge Bennett in Noyes v. Nichols, 28 Vt. 159, has 
 led a text writer to infer that it favored the view first stated. Bui we think it is the more reason- 
 able conclusion that one who becomes a guarantor without valuable consideration should not be 
 su' jccied to an increased liability by leg.1l implication, and that ihe buiden should be upon the 
 one who desires a continuing guaranty to see that the language employed is sufficient to Indicate 
 ii. We hold that the defendant's liability was limned to the first $700 worth of goods purchasea 
 Judgment afliTmcd " 
 
Ciiiuriiiity ol" any Liability— 
 Baul^ing^; Brolcers. 
 
 This ^aranty is intended to cover points 
 which, it not specifically mentioned, are not 
 included in many forms of general guaranty. 
 They are drawn to cover individual indebted- 
 ness, and, as worded, would not probably 
 cover indebtedness of a firm of which the 
 principal debtor was a member; or indebted- 
 ness purchased of other parties. If these 
 points are to be covered they should be par- 
 ticularly mentioned. The pnncipal points, 
 which are often held to release a guarantor if 
 not specifically waived, and which are sought 
 tobe covered here, are: Waiver of acceptance; 
 notice of default; clianre or release of other 
 security; extension of time of payment; re- 
 newal; application of certain payments; ad- 
 vances made a. ier death of guarantor, and 
 the covering of various forms of the original 
 or subsequently changed indebtedness. 
 
 Guaranty of any Liability— Banliiug; liroUers 
 
 Whereas A. B. has or may become indebted or liable to C. D., in open account or by reasoti of C. D. purchasing, discounting, advandng 
 money on, negotiating or selling negotiable or non-negotiable instruments on which A. B, is directly or contingently liable, or for any other 
 reason or account whatever; Now, therefore, for value received, 1 hereby, to the extent ol dollars, do guaranty the payment of and 
 
 all such liability or indebtedness or of any ultimate balance that may be due by A, B. to C. D., his heirs, executors, administrators, transferees or 
 assigns, by reason of the premises aforesaid. Acceptance of this guaranty by any beneficiary is hereby waived, as is also any notice of default. 
 The renewal or extension of time of payment of any of the aforesaid liability or indebtedness or ultimate balance IS hereby agreed to, as is also 
 any release, addition to, or change of other security. The application, made in the discretion of the beneficiary, of any payments made by A. B. 
 to any beneficiary hereof, whether applied on any of the above mentioned indebtedness or on other indebtedness of A, B, to such beneficiary, is 
 hereby agreed to, as is also any and all acts of A. B. in relation to the aforesaid liabilities or indebtedness. 
 
 This guaranty shall apply first to any indebtedness or liability ultimately owned by C. D.; second, to liability or indebtedness on which 
 C. D. may be liable as indorser, guarantor or surety, or which he may have pledged ; third, to any other such indebtedness or liability which C. D. 
 may have negotiated or transferred. This guaranty is a continuing one, binding mystlf, my heirs, executors, administrators, and in case of my 
 death with this guaranty previously unrevoked, it shall cover all transactions made previous to the time when C. D. shall he actually informed of 
 my .death. 
 
 Witness my hand and seal this 
 day of , 1 9 , 
 
 [Seal.] 
 
Guaranty of any Liability — 
 Mercantile or Banking*. 
 
 This guaranty is intended to cover points 
 which, if not specifically mentioned, are not 
 included in many forms of general guaranty. 
 They are drawn to cover' individual indebted- 
 ness, and, as worded, would not probably 
 cover indebtedness of a firm of which the 
 principal debtor was a member or indebt- 
 edness purchased of other parties. If those 
 poinls are to be covered they should be par- 
 ticularly mentioned. The principal points, 
 which are often held to release a guarantor if 
 not specifically waived, and which are sought 
 lo be covered here, are; Waiver of acceptance; 
 notice of default; change or release of other 
 security; extension of time of payment; re- 
 newel; application of certain payments; atl- 
 vancesmade after death of guarantor, and 
 tlie covering of various forms of the original 
 or subsequently changed indebtedness. 
 
 Guaranty ot any Liability— Mercantile or Jiaukin^. 
 
 For value received, and in consideration of credit heretofore extended or which may hereafter be extended 
 by A. B. to C D., I hereby to the extent of dollars guaranty to A. B., his heirs, executors, adminis- 
 
 trators, transferees and assigns, the payment of any liability or indebtedness now incurred or which may here- 
 after be incurred by C. D. to A. B., and any ultimate balance that may be due by reason of such liability or 
 indebtedness, either by open account or by negotiable or non-negotiable instrument on which C D. is or may be 
 directly or contingently liable, or for any other account or reason whatever. This guaranty shall extend and 
 cover, in such amounts and places as A. B., his heirs, executors or administrators may elect, any liability or in- 
 debtedness of C. D. that A. B. may have sold, discounted, pledged, negotiated or transferred. Acceptance of 
 this guaranty by any beneficiary is hereby waived, as is also any notice of default. The renewal or extension of 
 time of payment of any of the aforesaid liability or indebtedness is hereby agreed to, as is also any release, ad- 
 dition to, or change of other security. The application of any payments made in the discretion of any beneficiary, 
 whether applied on the above mentioned liability or indebtedness or on other indebtedness of C. D., is hereby 
 confirmed, as is also any and all acts of C. D. in relation to such liability, indebtedness or ultimate balance. 
 This guaranty is a continuing one, binding myself, my heirs, executors, administrators; and in case of my death 
 with this guaranty previously unrevoked, it shall coverall transactions made previous to the time when A. B. shall 
 be actually informed of ray death. 
 
 "Witness my hand and seal this ) 
 > day of , 19 , at . f [Seal.] 
 
Collateral Guaranty ot Third 
 Farty. 
 
 The specific points covered in 
 this form are: Extension of time of 
 Payment: Compromise: Release of 
 Other Security: Applications of 
 Payments: Partnership Indebted- 
 ness: Paper Purchased of Other 
 Parties. 
 
 Collateral Guaranty of Third Party. 
 
 For value received, hereby, to the extent of dollars and of any interest, costs and expanses which may accrue or 
 
 be incurred in addition thereto on account of the indebtedness or Uability hereby guaranteed, hereby guaranty to {Bank) of . . the 
 
 payment, when due, of any indebtedness or liability now existing or which may hereafter exist from , heremafter called pnncipal 
 
 debtor to the (Bank)and herebyagree that the said (, Bank) may grant any extension of time to, or renew any obhgation 
 
 or make any compromise with, the said principal debtor, or with any other person or persons liable on my instrument or debt with the said prm- 
 cipal debtor, and that the said (Bank : may, for or without value therefor, release or omit to perfect or enforce any securities held or controlled by 
 it now or hereafter, and shall not thereby, or by any neglect as to any securities, be prejudiced or m any way affected in its claim hereunder, or 
 "•—r any liability to f " me " or " us or any of us and further agree that said (.Bank) may advance and discount any amount be- 
 
 . .-' .. ■' . -> ■ ■ 1,1. ...1. 1 : 1 r.n« tUa .r-iA n.-lnr-iii4l Hahtni- nr nn Hfi-niinh of [ 
 
 yond thi said sum for the said principal debtor, and tliat no payment wltitli may be received from the said principal debtor, or on account ol any 
 indebtedness or liability from [" him " or " them or either of them ") to the said (Bank) shall be applied in reduetlon of the liability of [■' me 
 or "us or any of us "] hereunder until after the payment and satisfaction of any indebtedness or liability of said principal debtor beyond the said 
 amount This shall be a continuing guaranty to the extent aforesaid, and shall apply to and secure any ultimate balance that shall remain owing 
 to the said (Bank) and this guaranty shall not bediscontinued until written notice is Eiven to the saidlBank). If at any time any sum owing 
 from the»aid principal debtor to thesaid(Bankl shall not be paid, when payable, the whole amount then owing from the said principal debtor 
 shallbedeemed, for the purpose ofthis instilment and the liability created thereby, as forthwith pay.able, and said (Bank) may recover from 
 fme" or "US or any ofus"ltbe wholeamount hereby guaranteed, or somnch thereof as said principal debtor may be owing This guaranty 
 shall run in favor of said (Bmk) and any assignee of its said demand or demands. The indebtedness or liability of the pnncipal debtor, hereto- 
 fore mentioned, is understood to include habilities orindehtedness purchased from third parties, as well as indebtedness or liablbly as principal, 
 indorser, guarantor or surety for others or for a firm of which said debtor was a member ivlien such indebtedness accrued or was " 
 extended. The said Bank may in its discretion make application of any pavn.enis made by the pnncipal debtor or us or either of ns, or which 
 may be entitled to be applied on any indebtedness or liability of the principal debtor. Notice of acceptance of this guaranty ot any default ot the 
 debtor is waived. 
 
 id (Bank) the following described securities; 
 
 5 collateral s 
 
 f to this guaranty I have depo; 
 
Assiftnment as Coilateral Secarity for 
 any IndebtedncBS of ThirdParty, 
 
 This assignment specifically 
 covers certain liabilities which it 
 has been held are not covered un- 
 less specially mentioned: (i) In- 
 debtedness of firm of which the 
 debtor is a member: {2) Indebted- 
 ness or liability accruing to third 
 parties and purchased by the cred- 
 itor: {3) Transactions accuring 
 after the death of the surety and 
 until the debtor has knowledge of 
 such death: (4) Extension of time 
 of payment or renewals granted by 
 the creditor. 
 
 Assig-nment as Collateral Security for any Indebtedness of Third Party. ^ 
 
 In consideration of the sura of one dollar and of other valuable considerations, the receipt whereof is here- 
 by acknowledged, I hereby sell, assign, transfer and set over to B, his heirs, executors, administrators and as- 
 signs, [follow here with description of collateral to be assigns]. But this assigraent is made as collateral security 
 for the payment of any liability or indebtedness whatever, now existing or which may hereafter exist, from A to 
 B; And the liability or indebtedness hereby secured and intended to be secured includes that of A, either as 
 maker, indorser, acceptor, surety or guarantor for others as well as [himself]; and on instruments or accounts 
 made by A or on which he is liable, which may be purchased from other parties as well as those made directly to 
 or with B. And this security shall apply to all of the above forms of liability and indebtedness where the princi- 
 pal indorser, acceptor, surety or guarantor shall be a firm or co-partnership of which A is or may become a mem- 
 ber. This security is intended as a continuing security, binding, in case of my death, my heirs, executors, ad- 
 ministrators and assigns as to all transactions, liability and indebtedness incurred before my death, and also in- 
 curred after my death, until actual notice of my death shall be brought to B, 
 
 The extension of time of payment or the renewal of any of the forms of liability or indebtedness heretofore 
 mentioned shall in no way release me, my heirs or assigns, nor shall the release of any other security, sureties, 
 indorsers or guarantors in any way release me, my heirs or assigns, if such release is made at the request of or 
 with the consent of A. 
 
 The application of any payments on the indebtedness or liability of A, to B. made in the discretion of either 
 of them is hereby confirmed. Notice of acceptance of this assignment or guaranty or of any default thereunder 
 is waived. Ail of the foregoing forms of liability or indebtedness ceasing to exist, this assignment may be 
 withdrawn on my written demand, and at such time and on such demand B. is to give full written discharge or re- 
 assignment hereof. Witness my hand and seal this day of 19 , at [Seal.] 
 
Guaranty of Payment— To be Indorsed on Note. 
 
 For value received, I hereby guaranty the payment at maturity 
 of the within note (or instrument) to the then holder thereof or his 
 assigns, together with all costs and expenses incurred in the collection 
 of the same from the maker and myself, or either of us. 
 
 Guaranty of Collection— To be Indorsed on Note. 
 
 For value received, I hereby guaranty the collection of the 
 within note (or instrument) to tlie then holder thereoi or his assigns^ 
 together with all costs and expenses incurred in the collection of the 
 same from the malter and myself, or either of us. 
 
 Guaranty of Performance— To be Indorsed on 
 Lease Bond, Agreement or Other Contract. 
 
 For value received, i hereby guaranty to the legal or equitable 
 owner of the withm contract, his heirs or assigns, the full performance 
 thereof on the part of (A. B.), together with all costs and expenses 
 incurred in enforcing siich performance from A. B. and myself, or 
 either of us. 
 
 Guaranty ot the Payment ot the Honey Part of 
 Contract, Lease or Other Agreement. 
 
 For value received, I hereby guaranty the payment on the part 
 of (A. B.) of the sums of money contracted to be paid by him in the 
 within contract, and at the times and manner therein mentioned, to- 
 gether with all costs and expenses incurred in collecting the same 
 from (A. B,) and myself, or either of us. 
 
 Waiver of Protest with Consent to Delay Payment 
 
 Presentation, demand, protest and notice waived, and consent 
 given that time of payment of this instrument may be delayed oi 
 extended vnthout prejudice to my liability as indorser. 
 
 Indorsement Without Recourse. 
 
 Without recourse to me, and without impliedly or expressly 
 warranting any of the matters contained in or which go to the 
 making up of this instrument. 
 
Bond; Officer— Employee of 
 Bank, Corporation or Firm. 
 
 The specific points covered in this form 
 are; (i) That of additional or changed duties of 
 Employse: (i) Failure to take new bond at the 
 expiration of the first term of empioyment; 
 It has been held that where an employee of a 
 bank gave a bond in which he was mentioned 
 as bookkeeper that the sureties could not be 
 held if he defaulted when be was acting as 
 assistant to the teller; and the sanae has been 
 held where a bookkeeper and collector in a 
 mannfacturing concern was made cashier and 
 hajidled all the money of the corporation and 
 was temporarily detailed to act as cashier: 
 TJnleaa carefnlly worded a bond expires with 
 fh» origlul term of emplorment. 
 
 Indemnity Bond: Officer or Other Kniployee of Bank, Corporation or Firm, 
 
 Know all men by these presents, That we, A. B. of , and C. D, of , and E, F. of , are held and firmly 
 
 bound unto (The Bank) of in the penal sum of dollars, lawful money of the United States of America, to be paid to the 
 
 said (The , Bank, its sulccssofs or assigns) for which payment, well and truly to be made, we bind ourselves, our heirs, executors and ad- 
 ministrators firmly by these presents. Sealed with our seals. Dated the day of , one thousand hundred 
 
 Whereas, the above bounden A. B. has been chosen, appointed or elected cashier (or general clerk, bookkeeper, collector; travelling sales- 
 man or other position, naming it) of the said (Bank,) and now is in its employ in some capacity, or is about to be employed by the said 
 
 f Bank) in some capacity, by reason whereof he will receive or have control or have access to, or be chargeable with money, property, or 
 other things of said (bank,) and others. 
 
 Now, the condition of this obligation is such that-if the said A. B,, his executors or administrators, shall well and truly serve the said 
 (bank) as such cashier (or other officer or position, naming it) during his continuance in office, whether by reason of the above appointment or 
 election, or by its continuance, or by a subsequent appointment or election and continuance, and well and truly perform and discharge all his 
 duties as such officer (or employee), and shall when requested by said (bank,) its agents, successors or assigns, account for and pay over to said 
 (bank,) its agents, successors and assigns, all money and property with which he is chargeable, as such officer or with which he is chargeable by 
 reason of having improperly taken or misapplied any of said (bank's) money or property, or tor which it is liable, outside of his acts or duties as 
 cashier (or other officer, or employee): (to the end that this bond and obligation shall also be a security to said bank, its successors and assigns, for 
 any money and propertythat may come into the hands of the said A. B. or be misapplied by him, notwithstanding the fact that he may be 
 directed or assigned by said (bank), its successors or assigns to other duties than those contemplated when this instrument was executed,) then 
 this obligation to be null and void : otherwise to remain in full force and effect Notice of acceptance of this bond or any default thereunder is 
 waived. 
 
 [S«l.] 
 
 [Seal.] 
 
 ' ' [Seal.] 
 
Collateral M^ote. 
 
 The Bpecific provisions in this form are; 
 I. The provision that "as collateral secur- 
 ?■ for this or any other liability," etc., shall 
 
 ,9(ss No. E. kep. 252; McMaster's Dec. No. 
 33^i) that the usual provision as to the collat- 
 eral being held as security for "any other in- 
 debtedness" did not contemplate liabilities 
 purchased of third parties. 
 
 2. The provision that extenott the collateral 
 to firm indebtedness, etc. It hasbc" icided 
 that security for "any liability what,.,er"of an 
 individual did not cover indebtedness of a firm 
 of which he was a member; nor his indorse- 
 ment of his firm's paper; nor would it secure 
 an indebtedness held by a firm of which the 
 creditor was a member, m N. Y. 180: 40 Ohio, 
 
 3. The provision for renewals and 
 of time of payment. This provisnj 
 cept where the collateral i 
 
 unnecessary except where the collateral is to 
 cover indorsements or engagements for other 
 forties. In such cases it has been held that 
 there must be a provision for such renewals 
 and extensions. 46 N, Y. 170; 25 N. Y. 479. 68a, 69a 
 4. The provision as to eppUcatlon o£ paj* 
 ments. 
 
 Vork, 19 
 
 Collateral Note. 
 
 $ 
 
 , tho nndcrsfgnod, for valnorecelved promlHo to pay the 
 
 Bank, or order at 
 
 Dollars wtliilnterCHt at lltc rate of. per cent. peraDuam. 
 
 Having deposited with said bank the following described property ; 
 
 as collateral security for thu payment of this or any otherlndebtedDesa, liability or liabilities of the nndereignsd to the said bank, dne or to become due, or whfoh 
 luay hereafter be contracted or exlstinn against the underi <^ued ur either of them. The liabilities and iadebtedueBS herebv secured and intended to be secured in- 
 cludes that of maker, indorser, acceptor, surety, or guurautur fur others as well as for the tmderalgned or either of theoi, and on insirum- uts or accoanta which mar b 
 
 Surchased from others as well as thuse made to or with soidbuuk or for tho direct benefit o( the undersigned or eithpr of thinu:and this security shall apply to all o 
 la above mentioned forms of liobtlity or indebtedness where thw uiuker, indorser, acceptor, surety, orauarnntor sbnll be a lirm on 
 signed or either of them is then a member. The esteoaion of the time of payiueutor the renewal uf any of the furms of liability or 
 shall in no way release the undersigned or either of theuj. The release of any other security to uiy of the abovu uientiuned furms 
 la^ release the nndersl^ned if such release is made with their consent or the consent of either of theoi. 
 
 Si; 
 
 The undorsign . _ 
 
 ) tothesuid Buuitalien II. 
 1 b.'iiik by the undersiguud, and 
 
 (1(1 the uon-perfi 
 
 Buy agree to deposit with the 
 
 tho 
 
 ofeithi 
 
 -h additional collateral s ^ 
 
 Ihd liabilities aforesaiil, uponalllha property or securities 
 balance of tho deposit account of the undersigned 
 
 the etLid Bank n 
 the snidBuu'k. 
 
 , .„e foregfiug agreeuicnls as to furnishing additional collateral , 1 
 
 . . _n either such case the said Bunk is hereby autborizeil t".- sell, assign, and deliver, the whole or any pan o: 
 
 aduUiuus thereto, or any other property at any time given unto or left in Eho possession of the said I ank by the nuucisiLii' > 1 
 broker's board or at publloor private sale, at the option of the said Bank, or of either of its offlcera, without either ailverii-Hrnn m i 
 waived. If such securities or property are sold at public snio, tho said Bank may itself purchase tho whole or any part tiieri'Mi. fn.-i 
 the part of the undersigned, which is hereby waived and released. In the ease olany sui h sale the said Hank nmv first dcdnct all the 
 deltiery.of tho property or so. nrities go sold; and may then apply the residno to anyone, or morp, or all, of the wild liahilitiL-s, whvt 
 officers shall deem proper, making proper rebate for interest on liabilities not then oue, ond relurniin; the overplus, if on v. In tli 
 liable to the said Bank for anv deflrtency arisiog upon any such sale. The undersigned do hereby further authorize Iho said Bank 
 propria te and apply to the payment of any of the said liabilities, whether now eiisflncor hereafter eoniracted. any ond ail moneys 
 said Bunk on deposit, or otherwise, to the credit of orbelonginf! to the undersigned, whether the said liabtlitieB are then dne or not 
 agree that, upon any transfer of this note, the Bank may deliver the said eoiraterals, or any part thereof, t<i tho transferree, who sin 
 
 an the powers and ri-*^ . I . , ■■ 
 
 or responsibility in t 
 undersignefi. 
 
 The undersigned further agree 
 with a reasonable attorney's fee. 
 
 i-paymeot of any of the above mentioned liabilities, to pay all coat of collection 
 
 _eit'herohta 
 rho shall remain 
 
 . r-iirned further 
 
 vested with 
 
 ra aay liability 
 liLihUIty of the 
 
 i .orred, together 
 
Bankers Continuing- Agreement 
 
 The matter after the • in this form is in 
 addition to that appearing in some printed 
 forms. It is added to cover the follovfing 
 
 1. it has been decided that security for any 
 liability of an individual did not cover indebt- 
 edness of a firm of which such individual was 
 a member; nor did it secure his individual in- 
 dorsement o£ his firm's paper (McMaster's 
 Dec.Xos. 46,47,65.) 
 
 a. It has been held that the ordinary col- 
 lateral agreement accompanyinK a stock col- 
 lateral note did not cover paper purchased 
 from third parties, unless it was so specifically 
 stated. (N. Y. tJt. of App., 1B99.) 
 
 3, The lien of collateral as security tor 
 others would not attach to transactions taking 
 
 K lace after the death of the owner of the col- 
 iterul. unless sospecifically stated, even if the 
 creditor was ignorant of such death. t^c- 
 Master's Dec Nos. 49, 50. 
 
 4. Where collateral Jeft to secure any lia- 
 bility of a third party has once attached to such 
 liability, the extension of time of payment or 
 the renewal of the liability will release the 
 lien of the collateral, and it will not attach to 
 the new liability unless so specially provided. 
 The words "to secure any liability whatever" 
 will not of themselves cover the extended or 
 renewed liability. cMcMaster's Dec. Nos. 64-66) 
 
 Banker's Continaing Agreement. 
 
 Know all men by these presents, that the undersigned, in consideration of financial accommodations given, or to be given, or continued to the 
 undersigned by the Bank hereby agree with the said Bank that whenever the undersigned shall become or remain, directly or 
 
 contingently, indebted to the said Bank for money lent, or for money paid for the use or account of the undersigned, or for any everdraft or upon 
 any indorsement, draft, guarantee or in any other manner whatsoever, or upon any other claim, the said Bank shall then and thereafter have the 
 following riehts, in addition to those created by the circumstances from which such indebtedness may arise against the undersigned, or his, or their 
 executors, administrators or assigns, namely: 
 
 I, Allsecurities deposited by the undersigned with said Bank, ns collateral to any such loan or indebtedness of the undersigned to said Bank, 
 shall also be held by said Bank as security for any other liability of the undersigned to said Bank, whether then existing or thereafter contracted; ana 
 said Bank shall also have a lien upon any balance of the deposit account of the undersigned with said Hank existing from time to time, and upon all 
 property of the undersigned of every description left with said Bank for sate keeping or otherwise, or coming to the hands of said Bank in any way, 
 as security for any liability of the undersigned to said Bank now existing or hereafter contracted. 
 
 a. Said Bank shall at all times have the right to require from the undersigned that there shall be lodged with said Bank as security for all existing 
 liabilities of the undersigned to said Bank, approved collateral securities to an amount -.atistactory to said Bank; and upon the failure of the under- 
 signed at all times to keep a margin of securities with said Bank for such liabilities of the undersigned, satisfactory to said Bank, or upon any failure 
 in business or making of an insolvent assigment by the undersigned, then and in either event all liabilities of the undersigned to said Bank shall at 
 the option of said Bank become immediately due and payable, notwithstanding any credit or time allowed to the undersigned by any instrument 
 evidencing any of the said liabilities. 
 
 3. V\>^n fiilluro of the nndersli^ned either to pny any iiidebtodnoss to sftid Bank when becoming or made due, or to keep up the margin of collateral socuritieH 
 above pro. idbd for, then and In eitberevent said Dank may Immediately witliout advertlsomeut, and without uolice to the undersigned, tiell any of the securitien 
 hold by it as against any or all of the liabilities of the undersigned, at private sale or Broker's Board or otherwise and apply the nroteeds of such sale as far as needed 
 toward tiie payment ol any or all of such liabilities together \vith Interest and eiptnsys of sale, lioldinK the undersiKneiT responsible for any deficiency remaining un- 
 paid after sucu application. If any such sale he at Broker's Board or at public auclion, said Bunk m;iy itself be a purchaser at such sate free from any right or ennlty 
 or redemption oithe undcrsiKned, such right and equity being hereby expressly waived ami released. Upon default as aforesaid, said Bank may also apply toward 
 the payment of the said liabilities all balances of any deposit account of the undersii^iud with mwl Bank then existing. 
 
 It is further agreed that these presents constitute a continuing agreement, upplyiuti to uuy and all future as well as to existing transactions between the 
 underslinied and said Hunk. 
 
 •■ And the liuliiliiies or iudelitedness hereby senired and in tented to secured includes liability or indebtedness either as maker, Indorser, acceptor, surety or 
 
 cuiiniiiT'T fi)r iHli-TS ns well iis fur , and on iiisirumeuis or accounts wbiclimuy be purchased Iron, others, nn well as those nude to or with said bank or for 
 ilir-ci i..iiiiii; 1111.1 iliis - r .iiriiv ;iiul afreeineut abitU Hiiply to ail of the above mentioned forms of liublllty or indobtednesa where the principal maker, indorser, acceptor 
 ^.nr - ti T ^'^i.iriuiior siiiiil I"^ ;. linii i-r cn' arinersbip of wlileh or either ofusis or may become a member, 
 
 I IMS s.-i iirnv i-< iiiNuili ii iis it rnntittuinii security bindlnoin the case of the death or either of , our heirs, cxecntors, admlnistmtors and assigns, as 
 
 ■ - - ........ ,...11.3. . _ before ' death or the death of either of us, bat which may not be transferred to said bank nnttl after s" ' 
 
 The i-:Heii?.i.iiiof ilie tim^ nf [■iiviuent or the renewal nf any of the forms of .lability or indebtedness heretofore mentioned shall in no way release , our 
 
 , Iwirs, -^lecutiirs, adiiiinistriitors and assigns, nor shall the release of any other security, sureties, RUarantora, indorsers, makers or acceptors in any way 
 release our . heirs, executors, administrators "r assigns, if such releas-' is made with our cimpent or the "onsent of either of na. Application of any 
 payments may be made to any of the forms of indebtedness or liability uf the undersigned in the discretion of suld Bank, ■ LSeal.) 
 
Acknowledgment — Corporation - 
 All States. 
 
 This form of acknowledgment by a corporation, 
 while containing much that is not needed in many 
 states, contains all o! the particular requirements of 
 all states 
 
 ACKNOWLEDGMENT — CORPORATION — ALL STATES. 
 
 Sta"^^ of — ■ I To wit: 
 
 County of .-, \ 
 
 On this day of 190 , before me, a in and for the of State of 
 
 personally came (Williatn E. Bonham), known to me to be such identical person, and known to me to be the president of the 
 (naming the corporation), and at the same time personally came before me (Horace Hemis) known to me to be such identical 
 person, and known to m; to be the secretary of the (naming the corporation), and they each being duly sworn, acknowledged, 
 deposed and said that iliiL.-y reside in the of ; that they, each, and the other, were, and are, respectively, 
 
 the officers as above stati-d of the (naming the corporation); that they each were and are well acquainted with the common or 
 corporate seal of the (naming the corporation): That the seal hereto affixed is such seal that they in the presence nf each oihei 
 affixed such seal hereto by order and direction of the (naming Che corporation), and by order and direction of its board of direc- 
 tors ■ that they, in the presence of each other, signed the name of the (naming the corporation) hereto, and tlieir names a*^ 
 officers, respectively, to this identure, and executed and delivered it by order and direction of the (naming the corporation) and 
 by order and direction of its board of directors, and that all such act and acts they did as the free, voluntary deed, act and acts 
 of the (naming the corporation), and as their free, voluntary deed, act and acts, and for the uses and purposes therein set forth, 
 and that the name of each as applied to this instrument is in the proper handwriting of each. 
 
 In testimony whereof 1 have hereunto set my hand and official seal this day of 1902, at in the of 
 
 [SEAL] ^ , - 
 
 ^ ^ Official Tille 
 
 (There should ue two witnesses to the execution Residing at 
 
 of the instrument). My Commission Expires 
 
This form of acknowledgment by a wife, 
 -vhile containing much that is not needed in 
 many states, contains all that is needed in any 
 state. 
 
 ACKNOWLEDGMENT— WIFE— ALL STATES. 
 
 State of — 
 County of- 
 
 ■ To wit : 
 
 I, , a in and for the do hereby certify that on the day of 190 
 
 came before me, known to me to be such identical person, and known to me to be of full age, and known by 
 
 me to be the wife of , who, being examined by me separate and apart from her husband touching her signature 
 
 10 and voluntary execution of the within instrument, the contents of tlie same having been made known to her by me, acknow- 
 ledged to me that she executed, signed, sealed and delivered [he same as her act and deed, and for tlie purposes and consideration 
 therein expressed ; that she executed the same freely, understandingly and voluntarily, without fear, constraint, compulsion, or 
 dread of displeasure or undue influence of her husband or any other person ; that she doth still voluntarily assent thereto and is 
 still satisfied therewith as her act and deed, and does not wish to retract the execution of the same, and doth renounce, release, 
 and forever relinquish to the within named grantee, , his heirs and assigns, all her interest and estate, and also all 
 
 her right and claim of dower, of, in, or to all and singular the premises within mentioned and released. 
 
 In testimony and witness whereof I have aflSxcd my official seal this day of 190 , at in the of 
 
 [SEAL] 
 
 (There should lie two witnesses to the execution 
 of the instrument). 
 
 Official Title.. 
 Residing at.. 
 My Commission Expires. 
 
This form of acknowledgment, while con- 
 taining much that is not needed in many 
 states, contains all that is needed in any State. 
 
 To wit: 
 
 Acknowledgment — All States. 
 
 State of... 
 County of-- 
 
 ^ a , in and for , do hereby certify that on the day of , personally appeared before , known by me 
 to be such identical person, and after I had made known to him the contents of the foregoing instrument, he acknowledged 
 that he executed, signed, sealed and delivered the said instrument bearing date as his free and voluntary act and deed, for 
 the uses, purposes and consideration therein expressed, and prays that it m.iy be admitted to record : 
 
 In testimony and witness whereof, I have affixed my official seal this 
 
 day of 
 
 1902, at 
 
 in the 
 
 of 
 
 Official title. 
 
 (There should be two witnesses to the Residence - 
 
 execution of the instrument.) My commission expires. 
 
Bank Account: 
 
 Deposit Payable to Either of Two 
 Persons. 
 
 fin 
 
 In opening the account the title of the account in the pass book might be '* Helena Roche or Henry Schwoon ; Payable 
 to Either or Survivor." At the time of opening the account Helena Roche and Henry Schwoon would sign the following 
 writing, — which might appear in the signature book or elsewhere : 
 
 "We, Helena Roche and Henry Schwoon, do hereby open 
 and direct (he Bank lo open an account with us in the na 
 
 Survivor," or under such other designation : 
 agree with each other to become and be cop; 
 and o( al! moneys hereafter lo be deposited 
 them may at any and all times draw and rece 
 authorized and empowered to sign their res] 
 voucher for (he moneys so drawn." 
 
 unt with the Bank and do hereby authorize, empower 
 
 Helena Roche and Henry Schwoon, Payable to Either or the 
 lid bank may employ, and we, the said Helena Roche and Henry Schwoon, do hereby 
 ers in the ownership of said moneys, and of all accrued and accruing interest thereon, 
 said account ; and it is agreed that each and either of said parties and the survivor of 
 from said bank the whole or any part of said moneys, and that each of said parties is 
 ive names of Helena Roche or Henry Schwoon to any receipt, check, draft, or other 
 
 The above form protects the banks in paying to either aftei 
 to the survivor of what their respective interests are. If the di 
 balance "he writing could read : "We, Helena Roche and Henry Sch' 
 the Bank, in the name of or such other name and title a 
 
 made by either of us to said account or any interest accrued or credited thereto shall be and 
 or after the death of the other, may sign checks, drafts or orders on said account and receive thi 
 
 and at the death of either the s 
 
 r shall take abso! 
 
 death of the other, but it is not much evidence to the heirs of the deceased or 
 lors wish to make the deposit so that the survivor can take and hold the entire 
 n, declare that we are joint owners of the money this day deposited in 
 d bank may designate, and we further declare that any further deposits 
 joint property ; that is, either one of us, before 
 ney thereon before or after the death of the other, 
 
 and single ownership of the balance then due the 3 
 
 nt. 
 
Guaranty of Collateral Note. 
 In consideration of one dollar paid to the undersigned, the receipt of 
 which is hereby acknowledged, and of the making, at the request of the 
 undersigned, of the loan evidenced by the within note and contract, the 
 undersigneo Hereby jointly and severally guarantee to the National Bank of 
 in New York, its successors, endorsees or assigns the punc- 
 tual payment, at maturity, of said note and contract and of the said loan, and 
 hereby assent to all the terms and conditions of the said note and contract, 
 
 expressly agreeing that so long as the maker is bound by said note and con- 
 tract and the conditions therein contained that we will remain bound, — 
 waiving any defences that the maker or makers could not maintain as maker. 
 
 The undersigned hereby waives demand of payment, and also waives 
 the protest, and notice of protest of the within note. 
 
96. Assignment of Account. 
 
 In consideration of dollars to me paid by of , llie receipt of which is hereby- 
 acknowledged, I do hereby sell, assign, transfer and set over to the said , his executors, 
 administrators and assigns, the annexed account [or. bill], and all sums of money now due or to 
 become due upon the same, and upon any and all of the items therein mentioned, together with 
 all my right, title and interest therein, and I hereby certify that the various entries in said account 
 are correct and that the balance slated as due is due. And I hereby authorize the said in my 
 name, or in his own, but at his own cost, to take all necessary and proper legal measures to col- 
 lect, receive and enjoy the same. 
 
 Witness my hand and seal this day of , lo , at 
 
 [Seal.] 
 
 [Signature.] 
 
 For fom of acknowh dgment see " Acknowledgment." 
 
 If the assi;rnment is of various accounts, it should tnention them by name and amount, as 
 near as may be. for the purpose of identification, or it should refer lo an annexed schedule where 
 they are so listed. 
 
 87. Affidavit to Account by Individual Creditor. 
 
 State of ) 
 
 Couniyof , f 
 
 1, A. B. C. being duly sworn, do depose and say as follows : The foregoing, [01, annexed] 
 account is a true and jusi statement of the account of with me, as shown by my books of 
 original entry, which I know to be correct. 
 
 For form of acknowledgment, see " Acknowledgment." 
 
 [S'ignature.] 
 
 88. Affidavit to Account by Partner. 
 
 State cf _ ) „ , 
 
 County of -, ^ 
 
 I, A. B. C. being duly s«'orn, do depose and say as follows ; I am one of the general part" 
 ners of the firm of , doing business under that name at ; 1 caused the foregoing [or, 
 
 annexed] account to be prepared from the books of original entry of said firm, and I have com- 
 pared said account with such original entries, and know it to be a true and just statement of 6uch 
 entries and all of them, and that the balance, as stated, is due and unpaid. 
 
 For form of acknowledgment, see "Acknowledgment." 
 
 [Signature, iodividaal.] 
 
 89. Affidavit to Account by Officer or Employee. 
 
 State of , ) , 
 
 Coumy of , T"^'- 
 
 I, A. B. C, of , being duly sworn, do depose and say as follows ; I am the bookkeeper 
 
 [or other officer or employee] of . I made up the annexed [or, foregoing] account from (he 
 books of original entry of , and I know [or, believe] that the said original entries were cor- 
 rectly made, and know that the annexed [or, foregoing] account is a true statement of such entries, 
 and of all of them. 
 
 For form of acknowledgment, see " Acknowledgment."* 
 
 [Signature.] 
 
97* Assignment of Wages. 
 
 For value received, I do hereby sell, assign, transfer and set over to A- B. C. of , any 
 
 and all sums of money due, or coming due, to me from D. E. F. of , as wages for my 
 services as [describe services] between the day of , 19 . and the day of » 19 . 
 And I hereby authorize said A. B. C., or his assigns, to demand, collect, receive and receipt for 
 the s'ime or any part thereof, and if said sum, or any part thereof, should be paid to me, or 
 slioiild co'iie into my hands, I will receive the same solely as the agent of A. B. C, and will trans- 
 11 It ihe same forthwith to him. 
 
 Witness my hand this day of , 19 , at 
 
 98. Assignment by a Corporation. 
 
 Know all men, that the A. B. C. Company, of , a corporation orRanized under the laws 
 of the Siaie of , in pursuance of a resoluiion of the Board of Directors of said company, 
 
 passed on the day of . 19 . in consideration of dollars, to it paid by D, E. F. 
 
 of , the receipt whereof is hereby acknowledged, does hereby sell, assign, transfer and set 
 
 over to said D. E. F. and his assigns, all [full description of all property assigned]. 
 
 In witness whereof, the said company has caused these presents to be signed in its name, by 
 its president, and sealed with its corporate seal, attested by its secretary, this day of , 
 ig , at . 
 
 A. B. C. Company, by G. H. I., President. 
 [Corporate seal.] Attest : J. K. L. Secretary. 
 
 For form of acknowledgment, see "Acknowledgment." 
 
 93. Assignment as Collateral for Debt of Maker. 
 
 In consideration of the sum of one dollar and of other valuable considerations I hereby sell, 
 assign, transfer and set over to , his heirs, executors, administrators and assigns, [here 
 describe the collateral lo be assigned]. 
 
 But this assignment is made as collateral and additional security for Ihe payment of [follow 
 with a description of the note, or, if not a note, with a description of the principal debt to be 
 secured], and such note [or debt] being paid this assignment is to be void, and the patty of the 
 second part agrees to cancel the same of record, if recorded, and deliver the same to the party of 
 the first part. 
 
 Witness my hand and seal this day of i lO 1 at 
 
 [Seal.] 
 
 [Signature.] 
 
 For form of acknowledgment, see " Acknowledgment." 
 
 92. Assignment — General. 
 
 In consideration of the sum of dollars, to me paid by C. D., of . the receipt 
 whereof is hereby acknowledged, I liereby sell, assign, transfer and set over to the said C. D., his 
 executors, administrators and assigns [here describe the instrument assigned], together with the 
 money due and 10 grow due thereon. And I hereby covenant that there is due and unpaid 
 thereon the sum of dollars, and interest on such sum from . , 
 
 In witness whereof, I have hereunto set my hand and seal the day of . 19 - 
 
 A. B. [Seal.] 
 
 For form of acknowledgment, see '■ Acknowledgment." 
 
108. Assignment of an undivided one-half interest in an invention 
 before the issue of letters patent. 
 
 Whereas I, A. B., of L., county of M., State of N., have invented a certain new and useful 
 improvement in harvesters [giving title of the same], for which I am about to malte application 
 for letters patent of the United Slates; and whereas G. D., of R., county of S., State of N., is 
 desirous of acquiring an interest in said invention and in the letters patent to be obtained therefor : 
 
 Now, therefore, to ail whom it may concern, be it known that, for and in consideration of the 
 sum of dollars to me in hand paid, the receipt of which is hereby acltnowledged, I, the said 
 A. B., have sold, assigned, and transferred, and by these present do sell, assign, and transfer 
 unto the said G. D. an undivided one-half right to the said invention, as fully set forth and de- 
 scribed in the specification prepared and executed by me on the day of , 19 , pre- 
 paratory 10 obtaining letters patent of the United States therefor ; and I do hereby authoriie and 
 request the Commissioner of Patents to issue the said letters patent to A. B. and G. D. 
 
 In testimony whereof I have hereunto set my hand and afflsed my seal this 41h day of May 
 A. D. 19 . 
 
 , , A. B. [Seal.] 
 
 Id presence of — i -J 
 
 O. P. 
 
 S, T. 
 
 109. Assignment^of the entire interest in letters patent. 
 
 Whereas I, A. B., of L., county of M., State of N., did obtain letters patent of the United 
 States for an iinprovement in car-wheels, which letters patent are numbered , and bear date 
 
 the Slh day of June, in the year 19 ; and whereas 1 am now the sole owner of said patent and of 
 all rights under the same ; and whereas E. F., of R., county of S., State of N., is desirous of 
 acquiring the entire interest in the same : 
 
 Now, therefore, to all whom it may concern, be it known that, for and in consideration of the 
 suni of dollars to me in hand paid, the receipt of which is hereby acknowledged, I, the said 
 O. U. have sold assigned, and transferred, and by these presents do sell, assign, and transfer 
 unto the said E F the whole right, title, and interest in and to the said improvement in car-wheels 
 and in and to Ihe letters patent therefor aforesaid ; the same 10 be held and enjoyed by the said 
 E F , for his own use and behoof, and for the use and behoof of his legal representatives, to the 
 tun end 01 the term lor which said letters patent are or may be granted, as fully and entirely as 
 the same would have been held and enjoyed by me had this assignment and sale not been made, 
 together with all my right, title and interest in and to damages, profits, royalties and recoveries for 
 past infringements of said letters patent, together with the right to sue for and collect the same to 
 his own use. by proper legal proceedings in his own name or otherwise. 
 
 In testimoiiy whereot I have hereunto set my hand and affined my seal at L., in the county of 
 
 M. and State of N., this 25th day of July, A. D. 19 
 
 A. B. [Seal.] 
 
 In presence of — 
 N. P. 
 O. T. 
 
 It will he noticed that the above assignment includes the right to collect damages for previous 
 infringements. This right does not follow the mere assignment of the letters patent, and the clause 
 giving such right does not appear in the usual printed assignments. 
 
no. Assignment of an undivided interest in letters patent. 
 
 127. Bond of Indemnity ; To Bank in Paying Lost Check. 
 
 Whereas, I, A. B., of L., county of M., State of N.. did obtain letters patent of the United 
 States for an improvement in hay-rakes, which letters patent are numbered .and bear date 
 
 the 3d day of August, in the year ig ; and whereas C. D., of R., county of S., State of N., is 
 desirous of acquiring an interest in the same ; 
 
 Now, therefore, to all whom it may concern, be it known that, for and in consideration of the 
 sum of dollars to me in hand paid, the receipt of which is hereby acknowledged, I, the said 
 A. B., have sold, assigned, and transferred, and by thftse presents do sell, assign, and transfer 
 unto the said D. E. the undivided one-half part of the whole right, title, and interest in and to the 
 said invention and in and to the letters patent therefor aforesaid ; the said undivided one-halt part 
 to be held and enjoyed by the said C. D., for his own use and behoof, and for the use and behoof 
 of his legal representatives, to the full end of the terra for which said letters patent are or may be 
 granted, as fully and entirely as the same would have been held and enjoyed by me had this 
 assignment and sale not been made. 
 
 In testimony whereof I have hereunto set my hand and affixed my sea! at L., in the county of 
 M., aud State of N., this 7th day of June, A. D. 19 . 
 
 In presence of— A. B. [Seal.] 
 
 N. P. 
 O. T. 
 
 Know all men by these presents. That we. A. B. of , and C. D. of , are held and 
 firmly bound unto Bank [state the technical corporate title] in the sum of dollars, 
 lawful money of the United States of America, to be paid to the said Bank, or to iis certain 
 attorney, or assigns: to which payment well and truly to be made, we bind ourselves, our 
 
 heirs, executors and administrators, firmly by these presents. 
 
 Sealed with our seals. Dated the day of , in the year of our Lord, one thousand 
 nine hundred. 
 
 The condition of this obligation is such. That, Whereas, the said Bank, at the request 
 
 of A. B., did on or about , issue its check for dollars on the Bank of , 
 
 dated , and payable to the order of , wliich check is said to h;«ve been lost before being 
 
 presented for payment, and whereas the said bank has issued its duplicate check in lieu of said 
 lost check [or has paid to A. B. the sum of dollars in payment of such check] on the agree- 
 ment that this bond would be given. 
 
 If, therefore, the said A. B. and C. D.. iheir executors or administrators, or either of them, 
 shall and do deliver up the said check unpaid, when it shall be found, to the said bank or its 
 assigns, to be cancelled, and until the same shall be so delivered up and cancelled, save, defend, 
 keep harmless, and indemnify the said bank or its assigns, and their goods and chattels, lands 
 and tenements, of and from the said check, and of and from all actions, suits, payments, costs, 
 charges and damages, for or by reason thereof ; then this obligation to be void, or else to be and 
 remain in futi force aad virtue. 
 
 [Seal] 
 
 ' [Seal.] 
 
 For form of acknowledgment, see "Acknowledgment." 
 
Bills of Sale — chattel Mortgage. 
 
 A bill of sale is an instrument in writing which is 
 evidence of ihe transfer of personal property. They 
 are seldom used in ordinary transactions of bona 
 fide sales, as the delivery of the property is usually 
 sufficient evidence of title. 
 
 Given as Security. — Where bills of sale are given 
 as security — no mailer how absolutely they may be 
 worded as evidencing a sale — they should be exe- 
 cuted and recorded in every respect as a chattel 
 mortgage, as thai is what they then are. (See Chattel 
 Mortgage.) 52 Minn. 497; 63 Wis. 3.19; 55 Md. 
 419 ; 45 N. J. Eq. 208 ; 89 Mich. 357 ; 24 Ala. 355 ; 
 130 N. Y. 327, 
 
 116. Bills of Sale — To Be Recorded Both as Chattel and a Real Estate Security. 
 
 Know all men by these presents. That I, A. B. of , of the first part, for and in consideration of the sum of dollars, lawful money 
 of the United Stales, to me in hand paid, at or before the ensealing and delivery of these presents by C. D., of , of the second part, the 
 
 receipt whereof is hereby acknowledged, have bargained and sold, and by these presents do grant and convey unto the said parly of the second 
 part, his executors, administrators and assigns "one Johnson planer No. 4, one Williams Morticing Machine No. i, one Raymond Belt Saw No. 
 3, one Hammond Engine No. 2." " All of which are now used by me in my mill on Water street, and which it is agreed shall remain there and be 
 used by me until October first next." To have and to hold the same unto the said party of the second part, his executors, administrators and 
 assigns forever. And I do for myself, my heirs, executors and administrators, covenant and agree, to and with the said party of the second part, 
 to warrant and defend the sale of the said property hereby sold unto the said party of the second part, his executors, administrators and assigns, 
 against all and every person and persons whomsoever. 
 
 In witness whereof, I have hereunto set my hand and seal the day of , in the year one thousand hundred and 
 
 - [Seal.] 
 
 For form of Acknowledgment, see "Acknowledgment," 
 
 The foregoing bill of sale should be recorded, as immediate possession is not to be taken by the purchaser. 
 
 It should be recorded both as a real estate mortgage and as a chattel mortgage, for the reason that if the engine or machines are affixed to the 
 building in a certain way — and in juat what way the courts differ — then they are deemed to be a part of the realty. This course should be fol- 
 lowed if the instrument was drawn as and called a chattel mortgage. 
 
 Machinery, which, from its nature, requires to stand on a foundation, or be bolted to the floor, or attached to the building, before it can bo 
 properly operated, is usually deemed to be a part of the real estate; and when so placed it would probably be covered by any existing mortgages 
 on the mill or the real estate, and such existing mortgage would probably have precedence over a bill of sale or chattel mortgage. 
 
126. Bond to Indemnify for Paying a Lost Note. 
 
 Know all men by these presents. That we, A. B. of , and C. D. of , are held and 
 firmly bound unto £. F. of , in the penal sum of . dollars, lawful money of the United 
 
 Sl.iies of AmTica, to be paid to (he said E. F., his executors, administrators or assigns : for which 
 pavinent, well and truly to be made, we bind ourselves, our heirs, executors and administrators, 
 firmly by these presents. Sealed with our seals. Dated the day of , one thousand 
 nine hundred 
 
 Whereas A. B. is the owner of a certain promissory note for dollars, dated , and 
 payable after date, signed by C. D., and payable to the order of , and which said note 
 
 is losl or destroyed and cannot now be produced by him ; and whereas C, D. has this day paid to 
 A. B. the full amount due on said note upon the agreiiuienl thai [his bond of indemnity would be 
 given, and that A. B. will indemnify and save said C D. harmless in the matter, and will deliver 
 up said note to C. D. when found : Now the condition of this obligation is such, that if the above 
 bound-n A B. and C. D., their heirs, executors, administrators, or any of them, shall well and 
 truly indemnify and save harmless the said E. F., his executors and administrators, from and 
 against the said note and any and all damages, costs, charges and expenses and all actions or 
 suits, whether groundless or otherwise, by reason of said note, and also deliver or cause said note 
 to be delivered to said E. F. when found, then this obligation is to be void ; otherwise to remain 
 in full force and efiecL 
 
 [Seal.] 
 
 [Signature.] 
 
 [Seal.] 
 
 For form of acknowledgment, see "Acknowledgment." 
 
 [Signatnrt 
 
 219- Power of Attorney. 
 
 Know all men by these presents, that I. A. B., of , in the county of , and State of 
 , have made, constituted and appointed, and by these presents do make, constitute and 
 appoint C. D., of , in said county my true and lawful attorney for me and in my name, placu 
 and stead to transact any business in which I am, or may become interested, in such manner and 
 to such extent as he may deem advisable, and to manage, control, operate, sell, mortgage, pledge, 
 and use any and all property which I now have, or which I may hereafter in any way acquire; and 
 to purchase for me such property and things, real or personal, as he may deem advisable, or to 
 deal in and exchange the same, and, generally, to manage, control and conduct all my business, 
 property and affairs; and to that end. and as incident to the above mentioned authority, my said 
 attorney is authorized to sign, endorse, draw, accept, make, execute, and deliver all such notes, 
 checks, bills of exchange and othe. contracts or instruments in writing with o without seal, and 
 also to sign my name as attorney to any transfer of any stocks, bonds or othe . securities whatso- 
 ever, or agreements, or papers or paper writings, and to make such verbal contracts as he may 
 deem proper in my name regarding the matters hereby authorized, and as and when he deems 
 proper, giving and granting unto my said attorney full power and authority to do and perform all 
 and every act and thing whatsoever requisite and necessarv to be done in and about the premises 
 as fully to all intents and purposes as I might or could do if personally present, with full power 
 of substitution and revocation, hereby ratifying and confirming all that my said attorney or his 
 substitute sh;iU lawfully do or cause to be done by virtue hereof. 
 
 In witness whereof, 1 have hereunto set my hand and seal the day of , in the year 
 one thousand nine hundred. 
 
 Sealed and Delivered in the presence of — 
 
 - I.H. A. B. [Seal.] 
 
 For form of Acknowledgment, see "Acknowledgment." 
 
220. Power of Attorney to Draw Dividend. 
 
 Know all men by these presents, that I, A. B., of , in the county of , and State 
 
 of , do authorize, cunstilule and appoint C. D., of said , my true and lawful attorney, 
 
 in my name, place and stead to receive from the the dividend now due me or which may be 
 due me prior to , on all stock standing in my name on the books of the said and receipt 
 for the same hereby ratifying and confirming all that may lawfully be done in ihe premises by 
 virtue hereof. 
 
 Witness my hand and seal this day of . 190 . 
 Sealed and Delivered 
 in the presence of 
 
 E. F. A. B. [Seal.] 
 
 222. Power of Attorney— Financial, 
 
 Know all men by these presents, that I, A. B., of , in the county of ,and State 
 of , have made, constituted and appointed, and by these presents do make, constitute and 
 appoint C. D. of said . my true and lawful attorney for me and in my name, place and 
 Et:ad, to make, sign, draw and deliver any bank check or checks on any bank, banker or (rust 
 com jany with whom I keep an accnuni, whether against funds actually at the time standing 10 my 
 creon Of against or in anticipation of deposits to be made or funds to be pla ed to my credit there- 
 after : to cndor<ie I.t lieposii and c.illcction any and all bank checks, cenificates i.f deposit. 
 
 promissory notes, drafts, bills of exchange, or other orders or instruments for the payment of 
 money, now drawn or endorsed, or hereafter drawn or endorsed, payable to my order and to accept 
 any draft or drafts, bill or bills of exchange or other order or orders for the payment of money, 
 now drawn or hereafter to be drawn upon me, also for me and in my name, place and stead, from 
 time to time, to borrow such sum or sums of money as my said attorney may think proper, and as 
 security for the repayment of such loan or loans, to make, sign and deliver any promissorj- note or 
 notes, bill or bills of exchange draft or drafts, or other order for the payment of money, to pledge or 
 hypothecate any and all commercial paper, bonds, stocks, cerlificales of deposits or securities be- 
 longing to me, to endorse any and all such commercial paper, and £0 make, execute and deliver 
 any and all such instruments of assignment or transfer, as may be necessary, expedient or cus- 
 tomary in like cases to effectually transfer the securtties to the person, firm or corporation making 
 such loan or loans, giving and granting unto my said attorney full power and authority to do and 
 perform all and every act aud thing whatsoever requisite and necessary to be done in ?nd about 
 the premises as fully, to all intents and purposes, as I might or could do if personally present, 
 with full power of substitution and revocation, hereby ratifying and confirming all that my said 
 attorney or his substitute shall lawfully do or cause to be done by virtue hereof. 
 
 In witness whereof, I have hereunto set my hand and seal the first day of May, in the year one 
 thousand eight hundred and ninety-nine. 
 
 Sealed and Delivered 
 in presence of 
 
 E- F- A, E. [Seal,] 
 
 For form of Acknowledgment, see "Acknowledgment." 
 
223. Power of Attorney to Sign Checks. 
 
 (This form would not bind the principal to overdrafts,) 
 
 Know all men by these presents, that I. A. B., of , in ihe county of , and Siate 
 
 of , do make, consiitute and appoint C. D., of said , my true and lawful attorney, lor 
 
 me and in my name. 
 
 r. To draw checks against my account in the Bank. 
 
 2. To endorse notes, checks, drafts or bills of exchange, which may require my indorsement 
 for deposit as cash or for collection in the said bank. 
 
 3. To accept all drafts or bills of exchange which may be drawn upon me, and to do all 
 .awful acts requisite for effecting these premises ; hereby ratifying and confirming all that the said 
 attorney shall do therein bv virtue of these presents. 
 
 In witness whereof, I have hereunto set my hand and seal the first day of October, in the year 
 of our Lord one thousand nine hundred. 
 Signed, Sealed and Delivered 
 in presence of 
 
 A. B. [Seal.] 
 
 Power of Attorney — Partnership. 
 
 (This form would cover overdrafts and accommodation indorsements.) 
 
 Know all men by these presents, that we , have made, constituted, and appointed 
 
 by these presents our true and lawful attorney for us and in our name, place, and stead, in 
 
 transacting any business, directly or indirectly, with any bank or corporation, their officers or 
 
 agents, or with any other person or persons, to sign, indorse, draw, accept, make, execute, and 
 deliver all such notes, checks, bills of exchange, overdrafts, and other contracts or instruments in 
 writing with or without seal, and also to sign our firm name as attorney to any transfer of any 
 stocks, bonds, or other securities whatsoever, or agreements or papers or paper writings in any 
 way connected with our said business, and to make such verbal contracts as he mav deem proper, 
 and to do any act or acts or make any contract or contracts, either verbal or in writing, or sign any 
 paper or papers in any way connected with our said business, or in which it shall be necessary to 
 sign the nameof our said firm ; it being intended lo give and hereby gi l ing and granting unto our 
 said attorney full power and authority to do and perform all and ever" act and thing whatsoever 
 requisite and necessary to be done in and about the premises as fully to all intents and purposes 
 as we or any member of our said firm might or could do if personally present ; hereby ratifying 
 and confirming all that our said anornev shall lawfully do or cause to be done by virtue hereof ; 
 and any such notes, checks, bills of exchange, contracts, or instruments, stocks, bonds, or securi- 
 ties, or other paper of whatsoever nature, signed, indorsed, drawn, accepted, made, transferred, 
 executed, or delivered by our said attorney, shall bind, and are hereby ratified and confirmed by 
 the undersigned. Even if made in whole or in part for the accommodation or benefit of third 
 parties or for the accommodation and benefit of our said attorney. 
 
 In witness whereof, we have hereunto set our hands and seals the day of , in the year 
 one thousand eight hundred and 
 
 Sealed and delivered in the presence of 
 
 [SMl.] 
 
 [Seal] 
 
 [Seal.] 
 
 For form of acknowledgment, see " Acknowledgment." 
 
224- Power of Attorney — Sale and Transfer of Stock. 
 
 Know all men by these presents, thai I. A. B., , in the county of , and State 
 
 of . for value received, have bargained, sold, assigned and transferred, and by these 
 
 presents do bargain, sell, assign and transfer unto C. D., of said , foriy shares of the capital 
 stock of the company, standing in my name, on the books of the said company, and do 
 
 hereby consciluie and appoint said C. D. my true and lawful attorney irrevocable for and in 
 
 my name and siead to his use. to sell, assign, transfer and set over all or any part of the said slock, 
 and for that purpose to make and execute all necessary acts of assignment and transfer, and one 
 or more persons to substitute with like full power, hereby ratifying and confirming all that my 
 said attorney or substitute or substitutes shall lawfully do by virtue hereof. 
 
 In witness whereof. I have hereunto set my hand and seal the first day of October, one 
 thousand nine hundred. 
 Sealed and Delivered in the presence of 
 
 E. F. 
 
 For form of Acknowledgra 
 
 I, see " Acknowledgment." 
 
 Power to Transfer Stock. 
 
 nts, that I, A. B., of , in the State of 
 
 ) be my tr 
 
 A. B. 
 
 [Seal.] 
 , do hereby 
 
 225. 
 
 Know all men by these pres 
 constitute and appoint C. D , of said , to be my true and lawful attorney, tor me and in 
 
 my name and behalf, to sell, assign and transfer to E. F.. of said , the whole or any part 
 
 of my stock in the Y, M. O. Railrond Company, and for that purpose to make and execute ail 
 
 In witness whereof, I have hereunto set my hand and seal this ist day of October, 1900. 
 Sealed and Delivered in the presence of 
 G. H. 
 
 For form of Acknowledgment, see "Acknowledgment." A. B. [Seal.] 
 
 226. Power of Attorney Irrevocable. 
 
 Know all men by these presents, that I, A. B.. of , in the county of , and State 
 
 of , in consideration of one dollar, and oiner good and valuable consideration, to me paid 
 
 by C. D., of said ,thc luceipt whereof is hereby acknowledged, have irrevocably made, 
 
 constituted and appointed, and by these presents do irrevocably make, constitute and appoint 
 Slid C. D my true and lawful attorney, for me and in my name, place and stead to sell, barter, 
 exchinge or mortgage in whole or in part, a certain piece or parcel of land situated in , in 
 
 the county of , and Slate of . and bounded and described as follows, viz. : [descrip- 
 
 lion of property], and to sell, barter, exchange or mortgage any other real or personal property 
 received or taken in whole or partial payment or exchange therefor, wholly or in part, at any lime 
 within three years from Ihe date hereof giving and granting unto my said attorney full and irre- 
 vocable power and authority to do and perforrr .ill and every act and thing whatsoever requisite 
 and necessary to be done in and about the premjses, as fully to all intents and purposes, as I 
 might or could do if personally present, with full power of substitution and revocation, hereby 
 ratifying and confirming all that my said attorney or his substitute shall lawfully do or cause to be 
 done by virtue hereof. 
 
 Sealed and D< 
 in the presen 
 
 e of 
 E. F. 
 
 For form of Acknowledgment, t 
 
 * Acknowledgment." 
 
 A. B. [Seal.] 
 
' The right to give and to use proxies at meetings of corporations is generally regulated by 
 statute in (he different States and in some cases the form of proxy to be used is given in (he 
 statute. 
 
 229. General Form of Proxy. 
 
 Know all men by (hese present, (hat do hereby constitue and appoint .attorney 
 
 and agent for , and in name, place and stead, (o vote as proxy at any election of 
 
 or of [he stockholders of [insert name of the corporation], according to the number of 
 votes should be entided to vote, if then personally present, hereby revoking all previous 
 
 In witness where have hereunto set hand and seal, at 
 Signed, Sealed and Delivered 
 in the presence of 
 
 day of 
 
 [Signn 
 
 . [Seal.] 
 
 230. Form Given in New York Business Corporations Law. 
 
 '■ ■ °^ ■ ^""^y appoint , of to vole as my proxy at the annual meet, 
 
 ing of stockholders of [insert name of corporation],to be held on the day of , 150 . and 
 at any adjourned meeting thereof. 
 
 In witness whereof, I have hereunto sel my hand and seal, this day of , 190 . 
 In presence of 
 
 .[Seal.] 
 
 The New York law provides that no proxy shall be valid for more than eleven months from its 
 dale, unless some other time shall be specifically limited in it. 
 
This form of execution and witnessing of 
 a will is good in any state. Some states do 
 not require a witness, — none require more 
 than three. 
 
 233. Will, 
 
 I, A. B., of , in the county of , and State of , being of sound and disposing mind and memory, do make, 
 
 publish and declare this to be my last will and testament, hereby revoking any and all former wills by me at any time hereto- 
 fore made. 
 
 I bequeath to 
 I bequeath to 
 I bequeath to 
 I bequeath to 
 
 All the rest, residue and remainder of my estate, real, personal and mixed, I give, devise and bequeath to 
 I make, constitute and aDpoint , to be executors of this my last will and testament. 
 
 In witness whereof, I have hereunto subscribed my name and affixed my seal the first day of October, m the year of our 
 Lord one tliousand nine hundred A. B. [Seal.] 
 
 The above written instrument, consisting of two pages, was subscribed by the said A. B. in our presence, and acknowledged 
 by him to each of us ; and he at the same time declared the above instrument so subscribed to be his last will and testament ; 
 and we at his request, in his presence, and in the presence of each other, have signed our names as witnesses hereto, and written 
 opposite our names our respective places of residence, on the day and year last above written. 
 ■O- P. residing at 
 
 Q- residing at 
 
 S- T. residing at 
 
TIMB OF BUPLOTMBITT.-'-A hiriog at so much a day. week, month or year, no time being specified, is an 
 indeC-ale binng, aod no presumption attaches that il was for a day even, but only at the rale fixed for whatever time 
 the party may serve ... A contract to pay one Kjoo a year for services is not a contract for one year, but a 
 contract to pay at the rate of $3,500 a year for services actuaUy rendered, and is determinable at will by either party " 
 148 N. Y. .17; , Cal. 450; 35 Ark. 156; j8 Wis. 131. 
 
 COWTRACTS FOR MOHB THAU OI?B TEAK._A contract for services for more than one year cornea within 
 the statue of frauds and must, to be valid, be in writing, and Blgned by the parties; other contracts for services 
 including contracts from year to year, may be verbal. ' 
 
 220. Employment Contract— Definite Time. 
 
 Memorandum of ageement, made this day of , i 90 , by and between A. B., of 
 , in the county of , and State of , party of the Erst part, and C. D of ' in 
 
 the county of , and state of , party of the second part: Wiinesseih. In consideration 
 
 of ihe mutal agreements, hereinafter set forth, and for other good and valuable considerations, the 
 said parties agree to and with each other as follows, viz.: 
 
 The party of ihe first part agrees to hire and employ, and hereby does hire and employ the 
 party of the second part as a clerk and accoutant.to perform such clerical and office duties as the 
 party of the first part may from lime to lime prescribe and direct, for the specified and definite 
 lime of one year from the date thereof, ai the yearly salary of eighteen hundred dollars payable in 
 equal monthly payments of one hundred and fifty dollars each, on the last day of each calendar 
 mpnih of said employment. 
 
 The party of the second part agrees to accept and undertake, and hereby does accept and 
 undertake, the said hiring and employment, at the yearly salary, and upon the time, terms and con- 
 ditions above specified, and agrees 10 give his best efforts and energy to the performance of such 
 
 clerical and office duties as the party of ihe first pan may from time to time nre';rrih<' anH ^i^^^, 
 
 6rsl Ibo^e wn"e".''"'°'' '"'^ "''^ '"'i 7'" 
 
 In presence of 
 
 ^' A. B. rSeal 1 
 
 C. D. fSeal.] 
 
 201. Employment Contract— Terminable at Any Time. 
 
 Mr. A. B.. New Haven Conn Danbury, Conn., October I, 1902. 
 
 Dear Sir,— I need a superinlendent for my mill in this place, and you have been recomin,nrf„l 
 to me or the posi.ion. I( you will take it. I will give yoj^ twelve hundred dollars a ,"7 payable 
 monthly, and you can commence on the fifth of this month. ^ pa)abJe 
 
 Yours truly. 
 
 C, D, 
 
 Mr. C, D. Danbury, Conn, - " '9°^- 
 
 Dear Sir,— I have just received your letter of yesterday, and write to say, I hereby accent vour 
 offer of employment as superintendent of your mill in Danbury. on the term you menS \nj 
 shall be ready to enter upon my duties on the fifth of this month, as suggested by you 
 
 Yours truly. 
 
 A, B, 
 
QUESTIONS. 
 
 Wlat lie the principal roims ot commeiclal paper In tally me? (See HL page 5.) 
 
 Is a bond and mortgage a negotiable instrument? A lease? A building contract? i. 
 
 What is tie material difierence between a negotiable and a non-negotiable instru- 
 ment? 2. Page 5. 
 
 When did negotiable instmments, as such, come into use? 3. Page 6. 
 
 If money was stolen from the true owner, could he recover it from one who came 
 by it innocently if he could positively identify it? How would this be as to a horse; 
 a watch; a quantity of grain; a negotiable instrument? 5. Page 7. 
 
 Who can take advantage of the special privileges surrounding commercial paper? 8 
 9, 10. Page 8. 
 
 Would a person be a holder in due course, or a bona-flde holder, if he took the instru- 
 ment after it was due? Or if it had some irregularity on its face? Or if he had notice 
 nf any defects or infirmities in it, or in the title of the seller? Or if he did not take it 
 ^r a valuable consideration? 8, 9, 10. Page 8. 
 
 Are bonds ever classed as negotiable instruments? If so, what bonds? 11. Page 9. 
 
 Are bonds called commercia' paper? 11. Page 9. 
 
 Must commercial paper be in "wriling"? 19a. Page >i. 
 Is commercial paper vaUd if written with a pencil? iga. Page 11. 
 Would type impressions be caUed writing in any part of a ncgoUable inatnunent? 
 19a. Page II. 
 
 Is there any part of a commercial paper that requires a particular kind of writine? 
 19a. Page II. ' 
 
 Is it necessary to the vaUdity of negotiable instruments that the place of issuance 
 be stated? 19b. Page 11. 
 
 Must a negotiable instrument have a date expressed on its face in order to make it 
 valid? 19b. Page 11, 
 
 Is an instrument dated on Sunday ever valid? 19b. Page 11. 
 
 Can the instrument be properly dated back or dated ahead? 19b. Page 11. 
 
 Is an instrument dated and delivered on July 4th or December asth, or any secular 
 holiday valid? igb. Page 11. 
 
 Is an instrument good in the hands of one who knew it was dated and signed on 
 Friday but delivered and first sold on Sur^ay? igb. Page 11. 
 
QUESTIONS- 
 
 If an instrument had no date written on it, from when would the law fix its date? 
 19b. Page II. 
 
 If the instrument was dated and signed on Sunday, but not deUvered or sold until 
 Tuesday, would it be valid? 19b. Page 11. 
 
 How is the time of payment of commercial paper usually expressed? 19c. Page 12. 
 
 If no time of payment is written in the instrument, when is it payable? 19c 
 Page 12. . . -i 
 
 If the blani. line for writing time of payment is not filled, when is the paper due? 
 igc Page 12. 
 
 Can a negotiable instrument be payable in fixed installments? 19c. Page 12. 
 If the paper is payable on demand, when can demand be made? 19c. Page 12. 
 When must the demand of payment be made on paper payable on demand? 19c. 
 Page 12. 
 
 Is there any different rule, than that last mentioned, in regard to checks? 19c If 
 80, state it. 19c. Page 12. 
 
 What is a " reasonable time " in which to make demand on an Instrument payable 
 on demand? 19c. Page 12. 
 
 How long would a prudent man hold such an instrument without a demand if he 
 expected to retain the liability of an indorser thereon? 19c. Page 12. 
 
 When is an instrument payable " at sight usuaUy payable? 19c. Page 12. Are 
 there exceptions? Page iz. 
 
 ('• Days of grace " are three days' additional time allawed the payor in which to make 
 payment. See page 40.) 
 
 When an instrument is payable a given time " after sight," when does " sight " date 
 from? 19c. Page 12. 
 
 Is an instrument payable at the death of the maker negotiable? 19c Page 12. Why? 
 19c. Page 12. 
 
 Would the instrument be negotiable if payable one year after the mamage of the 
 maker? 19c. Page 12. Why? 19c. Page 12. 
 
 It is said that the time of payment of commercial paper must not depend on a 
 contingency: In the event of the contingency happening, would the paper then be nego- 
 tiable? 19c. Page T2. 
 
 Name some contingencies as to time of payment that would make the paper non- 
 negotiable, and why. 19c. Page la. 
 
 It is said that the promise or order to pay must be unconditional, and not dependent 
 on the performance of any further act or duty. Name nnv such condition that would 
 violate this rule. igd. Page 14. 
 
QDESTIOHS. 
 
 The oriet or promise to pay must not be out of some apectal account or fund, 
 flame some dircctiona or promises to pay that would disregard this rule. igd. 
 rage 14. ' 
 
 The instrument most name a payee. If it is payable " to order," must the payee be 
 named with any more certainty than if payable to " bearer »? ige. Page 15. 
 
 Xf the payee is properly named, is it necessary that the words "to order" or "or 
 bearer," or their equivalent, be used? 19c. Page 15. 
 
 What is the effect if the maker draw the instrument to the order of a fictitious person ? 
 18 the instrument negoUable? Who is it payable to? loe. Page 15. 
 
 Does paper as above drawn have the sanction of law? Who cannot enforce it? loe 
 Page 12. ^ 
 
 What is the sUtus of paper payable to an impersonal payee,— as "Cash or order"? 
 ise. Page 15. 
 
 Is it proper to make commercial paper payable to the order of one who is doing 
 Page 15 ™^'' business name,-aa " The Empire Grocery Company"? ige. 
 
 Can the same person be maker, acceptor, drawee, and payee of a negotiable Instru- 
 ment? ige. Page 15. 
 
 Can 'here be more than one payee? ige. Page 15. 
 
 If the amount stated in figures and that in writing are at vanance, which will 
 govern? igf. Page 16. 
 
 What medium must commercial paper be payable in? 19L 
 
 Mame some expressions as to medium of paymtnt that are good,-and some that are 
 bad. igf. Page 16. 
 
 Can the promise to pay be in goods and chattels? igf. Page 16. 
 
 Is a note which provides for the payment of attorney's fees non-negotiable in some 
 States? igf. Page 16. 
 
 In some States r-ust the instrument be payable at a bank? If so, what States? lun 
 Page 17. 
 
 Are the words " value received," or similar expressions, necessary ? loi 
 Page 17. 
 
 What is the eSect of a material alteration of the instrument? ig h-L Page 18. 
 What parts may not be altered? ig h-i. Page 18. 
 
 Would the alteration be fatal if the amount was increased? ig h-i. Page 18. 
 Would the alteration be fatal if the amount or UabiUty of the parties was decreased? 
 19 h-i. Page 18. 
 
 H the alteration was innocently made, would it have any effect on the instrument? 
 il so, what eSect? 19 h-l. Page 18. 
 
QUESTIONS. 
 
 If the Inatrnment was matil«tecl by a stranger, wliat effect would it have? xg b-i. 
 Page 18. 
 
 Must " notice " of infirmity or defect of title in the instrument be written notice? 
 ig h-i. Page 18. 
 
 Mention some infirmities as shown in Nos. 16, 17, 18, 30, 31, 32, 86, 87* 
 Who is the drawer or maker of commercial paper? 20, Page so. 
 Who is the drawee? ai. Page ao. 
 Who is the payee? 22. Page 20. 
 
 If the drawee accepts the hill, what is he then called? 23. Page aa 
 
 Who is an indorser? 34. Page 20. 
 
 Who are the original parties to a check? 25. Page 20. 
 
 Who are the original parties to a promissory note? 26. Page 20. 
 
 Who are the original parties to a bill of exchange or to a draft? 27. Page 20, 
 
 Does the drawer of a check, by the mere act of drawing it, make any special repre- 
 sentations? If so, what? 30. Page 21. 
 
 If such representations are false, what consequences may follow ? 31. 
 Page 21. 
 
 What engagement Hoes the maker or drawer of a promissory note undertake? 32. 
 Page 21. 
 
 it he rails in his engagement, does be, or has he, thereby committed a fraud? 3a. 
 Page 21. 
 
 What are the consequences if the maker of a note fails to pay ? 33. 
 Page ar. 
 
 What does the drawer or maker of a bill of exchange or of a draft represent to the 
 holder? 33, Page 21. 
 
 What legal wrong has be committed if such representations are not fulfilled? 34. 
 Page 21. 
 
 Who is the drawee of a check? 35. Page 22. 
 
 In merely opening an account with a depositor has the bank, without doing or say- 
 ing anything further, entered into any special contract with him? What, if any? 36. 
 Page 22. 
 
 Can a bank make partial payment of a check? 36. Page 22. 
 
 Must a bank partially pay a check and indorse the partial payment on it if the 
 depositor's account is not good for the whole amount? 36. Page 22. 
 
 If a depositor makes a promissory note or accepts a bill payable at the bank, must 
 the bank treat such note or bill, at its maturity, as it would the depositor's check? 37 
 Page 22. 
 
 If a bank holds money of a depositor, but has made no special agreement to pay bis 
 
QUESTIONS. 
 
 checks drawn in favoi tf other persons, has it obligated itself to him to pay them? 38. 
 Page 22. 
 
 If the drawee of a bill of exchange is indebted to the drawer, is he under legal 
 obligation to accept and pay the drawer's drafts payable to third parties? 39. 
 Page 22. 
 
 If " A " is indebted to " B," and the debt is due and no special place of payment has 
 been provided, must "B" present his claim to "A," or must "A" hunt up "B" and 
 tender payment? 40. Page 22. 
 
 Before a drawee has accepted a bill what implied obligation is he under to the holder? 
 41. Page 22. 
 
 When a bill has been accepted, who, if any party to it, has promised to the others 
 that he alone will pay it? 43, 44, 45. Page 23. 
 
 If a drawee accepts the bill, what is a usual and proper way of doing it? 46. 
 Page 23. 
 
 If no special place of payment is named in a bill of exchange, may the drawee accept 
 it payable at his bank in a near-by city or village, but different from the one to which 
 the bill was addressed to him? 47. Page 23. 
 
 Must the acceptance be on the face of the paper? 48. Page 23. 
 
 Must the word " accepted " be used? 48. Page 23. 
 
 Is there any part of an acceptance that the holder may insis- on beine aone in a 
 specific way? If so, what? How? 49. Page 23. 
 
 If the drawee is willing to accept on certain conditions or with wrtain quauncauons, 
 and will state them in the acceptance, should or must the holder allow him so to accept? 
 50. Page 24. 
 
 What change, if any, takes place in the liabilities of the parties to a bill if the holder 
 chooses to allow a conditional or qualified acceptance? 50. Page 24. 
 
 Can you name any qualification in accepting that might change the liability of the 
 parties? 5^. Page 24. 
 
 Must a bank certify or accept in writing a depositor's check if it is good? 52. 
 Page 24. 
 
 How m::y a bank properly accept or certify a check? 52. Page 94. 
 What new obligation, if any, has a bank assumed in certifying a check? 53. 
 Page 24. 
 
 Who is the payee of commercial paper? 54. Page 24. 
 
 What principal obligation, if any, does a payee assume in being named as payee? 54. 
 Page 24. 
 
 Give short definition of the term " indorser." 59. Page 25. 
 
 Give a short statement of the obligations assumed by an indoraer? 56. Page 24. 
 
QUESTIONS. 
 
 Does the term "Indorser'* apply to one who writes bia name on the back of a non- 
 negotiable instrument? 55. Page 24. 
 
 What, if any, difference is there in the liability of one who writes bia name on the 
 back of a non-negotiable inatrument and one who so writes his name on commercial 
 paper? 57- Page ^S- 
 
 What bas the indorser promised by his indorsement? 61. Page 35. 
 
 Is tbe indorser's promise conditional, and, if so, in what way? 61. Page 35. 
 
 Has the holder of tbe paper any duties to perform or have performed, at any time, 
 in order to keep alive the liability of the indorser? 61. Page 25, 
 
 How many indorsers can there be? 62. Page 25. 
 
 Does it make any difference to an indorser where bis name appears with others on 
 tbe back of tbe paper? If so, what difference? 64, 65. Page 26. 
 
 Does tbe owner of the paper have to proceed against the indorsers in any special 
 order? 66. Page 26. 
 
 What part of the debt can the bolder collect from each indorser? 66. Page 26. 
 
 Where must tbe indorsement be written? 67. Page 26. 
 
 Is an assignment on a separate paper equivalent to an indorsement? If not, why not? 
 68, Page aj. 
 
 What action or Inaction, If any, on tbe part of the holder may release the indorser? 
 70. Page 26. 
 
 If tbe name of tbe payee or indorsee is misspelled, who may correct it, and how? 71, 
 Page 27. 
 
 To whom do the terms "principal obligor" or "party primarily liable" apply? 72. 
 Page 27. 
 
 Who is the principal obligor to a promissory note? 73. Page 37. 
 Who is tbe principal obligor to an unaccepted bill of exchange? Or draft? Or check. 
 74. Page 27. 
 
 Who is tbe principal obligor to an accepted hill? Or draft? Or check? 75. 
 Page 27. 
 
 What is the order of liability among themselves to tbe parties to a promissory note? 
 76-80. Page 27. 
 
 Can the maker collect the note from any indorser? If so, which? 83. Page 28, 
 Can the first indorser, if he bas paid tbe note, collect it, or any proportion of it, from 
 
 any indorser? If so, which, and what proportion? Can he collect of the maker? 81-84. 
 
 Pages 27, 28. 
 
 Can the third indorser, if be bas paid the note, collect any part of it from the first 
 or second indorser? If so, what part, and from whom? 81-84. Pages 27. 28. 
 
QUESTIONS. 
 
 If several partiea have signed the note on Its face, as makers, wbat is theii liability 
 among themselves? 85. Page 28. 
 
 Must the holder of the note respect the foregoii^ liability of makers and indorsers 
 among themselves? 87. Page 28. 
 
 What is the order of liability among themselves of the parties to an unaccepted bill 
 of exchange? 8g. Page 28. 
 
 What is the order of liability among themselves to an accepted bill of exchange? 
 go. Page 28. 
 
 What order of liability exists on a check not yet accepted or paid? 91. Page 29. 
 
 If a bank, for ail idle or insufficient reason, refuses to pay a check, can the holder 
 and owner force payment from the bank? gi. Page 29. 
 
 When a bank certifiep a check for the holder, what is the order of liability of the 
 parties? 93. Page 29. 
 
 Is there a different rme from tba fMeg<Hng if the drawer has the check certified? 
 What difference? 94. Page 29. 
 
 (Read 95, 96, 97, 98, as to the general status and obligation of a strict " surety") 
 
 In what particular does the warranty of an indorser differ from that of a surety? 
 99. Page 30. 
 
 (Read 100 to 106, as to the general status of a guarantor.) 
 
 Does the word "guarantor" carry with it any fixed, precise meaning as to what 
 the guarantor has promised to do? 102. Page 31. 
 
 How is a guarantor's promise interpreted, — and where is it found ? 101-104. 
 Page 31. 
 
 (This rule as to interpreting the liability of a guarantor applies to all kinds of con- 
 tracts.) 
 
 If the holder of a promissory note wishes to retain the liability of all the partiea 
 thereto, what, if any, duty is imposed on him? 107, 108, 109. Page 31. 
 
 What duty is imposed on the holder of a check if he deserves to retain the liability 
 of an indorser? no. Page 32, 
 
 Under what circumstances is the maker of a check released from liability? 111, 112. 
 Page 33. 
 
 Is the bank released from liability by any delay in presentation of a check? 113. 
 Page 32. 
 
 Can the holder of a check compel the bank to pay him? 114. Page 32, 
 If the bank refuses payment, to whom must the holder look for redress? 115, 
 Page 33. 
 
 What duty, if any, does the holder of a bill of exchange owe to the parties In ordtft 
 to retain their liability? 116, 117. Page 33. 
 
QUESTIONS. 
 
 If a bill has been protested for non-acceptance, need it te protested for non-payment? 
 rig. Page 32. 
 
 Who may bind himself as a party to commercial paper? lao. Page 32. 
 
 Can business corporations issue commercial paper? And if so, how? 121. Page 32, 
 
 Can business corporations, through proper officers, make and indorse paper as an 
 accommodation to others? 121. Page 32. 
 
 If a minor has had the full benefit of commercial paper whict he has indorsed or 
 issued, can it be enforced against him? 122, Page 33, 
 
 Can women, generaUy, bind themselves as makers or indorsers of commercial paper? 
 123. Page 33. 
 
 Can one partner bind the other partners by making or indorsing commercial paper 
 in the firm name? 124. Page 33. 
 
 Does the rule as to commercial paper signed or indorsed in a partnership name hold 
 the same in all partnerships? If not, explain. 127. Page 33. 
 
 From what time does commercial paper bind the maker or drawer? 128. Page 33. 
 
 Are there some conditions under which commercial paper cannot he enforced against 
 the drawer or maker? If so, name any such condition. 128, 129. Page 33. 
 
 When is commercial paper " delivered "? 128, 129. Page 33. 
 
 If aU of the original parties to an instrument have signed and rr""'-'" executed It, 
 
 is it then, and with nothing more, an enforceable contract? 128, 129, 130. Pages 33, 34. 
 
 If after the paper is properly put in circulation it is stolen from the owner and sold 
 to a bona-fide purchaser, can the latter collect the amount from the maker and retain the 
 money? 130. Page 34. 
 
 How is commercial paper negotiated? 131, 132. Page 34. 
 
 Is it necessary for the owner to indorse the instrument in negotiating it? 132, r33. 
 Page 34. 
 
 Must there be a consideration for the making, indorsing, or accepting of commercial 
 paper? 134-136. Page 34. 
 
 Must the consideration have been paid to, or be for the benefit of, the one placing his 
 name on it? 134-136. Page 34. 
 
 Of what may the consideration consist? r34-i36. Page 34. 
 
 If part of the consideration for commercial paper was lawful and part illegal, what 
 part of the instrument can be enforced? 138. Page 35. 
 
 iState some considerations that are illegal. 139, Page 35. 
 
 If a father makes a gift of his own note to his son, can the son enforce the note? 144. 
 Page 35. 
 
 If one makes a gift to his brother of oommercial paper made by a third party, can 
 the recipient of the gift enforce the note for his own benefit? 145. Page 36. 
 
QUESTIONS. 
 
 When, if ever, is the check drawn by the donor effective as a gift? 146. Page 36, 
 
 What formalities ate absolutely essential to perfect a gift in case of the death of 
 the donor? 147. Page 36. 
 
 If it can be proved that a father gave his daughter a government bond, the father in 
 the gift retaining the property in his possession and control until his death, will such 
 gift be effectual after the death of the father? 148. Page 36. 
 
 When does an instrument have "inception"? 149. Page 36. 
 
 For how long a time may the holder make extension of time of payment to the 
 maker without releasing the indorsers? 150-156. Pages 36, 37. 
 
 If one indorser is released, does it release any other parties to the instrument? Who, 
 if any? 150-156. Pages 36, 37. 
 
 If the maker of a note has given the holder collateral security for the debt, and they 
 agree together to release the collateral, does such action release any of the parties? Who, 
 il any? 150-156. Pages 36, 37. 
 
 If the holder of the instrument neglects to proceed in law against the maker for a long 
 time, does such inaction release the indorsers? If so, or if not, is the rule universal? 
 155-156. Page 37. 
 
 If the bolder of a past-due indorsed instrument accept interest that is due, has be 
 prejudiced his security in any way? 157. Page 37. 
 
 If an indorser of commercial paper feels that it is for his interest to have the maker 
 or other indorsers proceeded against, what remedy has he? 159-156. Page 37. 
 
 If an indorser, as last mentioned, takes up the paper, are any of the parties thereby 
 released? iSo. Page 37. 
 
 Who usually " protests " commercial paper? 162, Page 37. 
 
 Why is paper protested? 16a. Page 37. 
 
 When is paper protested? 163-165. Page 38. 
 
 What are some of the requisites of a protest of commercial paper? 163. Page 38. 
 
 M there, is no place of payment mentioned in the instrument, where is It to be pre- 
 sented for payment or protest? 164-163. Page 38. 
 
 If several persons sign a note as makers, how much of the amount of the note can 
 the holder make one of them pay? 166. Page 38. 
 
 If one of several signers, as before mentioned, pays, what contribution can be have 
 from the others? 166. Page 38. 
 
 If an instrument is silent as to time of payment, when is it payable? 167. 
 Page 38. 
 
 At what time is an instrument due and payable on demand due and payable? 168. 
 Page 38. 
 
 If an instrument is payable at sight, when is it dne and payable? 169. Page 39. 
 
QCESTIOHS. 
 
 Are there any exceptions to thia rale? 169. Page 39. 
 
 If an instrament is payable a certain number of months after date, what months 
 are meant? r7o. Page 39. 
 
 If a note is Sated Pebraary 20th, and is payable in three months, when is it due? jji. 
 Page 39. 
 
 If a note is dated January 31st, payable in one month, when is it due? 173 
 I'age 39. 
 
 When the time of payment is espresaed in days, are Sundays and holidays induded? 
 r72. Page 39. 
 
 In computing the maturity of an instrmnent, is the day of the date included? 15a. 
 Page 39. 
 
 When is a note dated Hay 30th, payable in ninety days, due? rys. Page 39. 
 
 Does the law allow fractions of days in computing time? ij;. Page 39. 
 
 If two dates are given, one the day of the week and one the day of the month, and 
 they are inconsistent, which one governs? r77. Page 40. 
 
 If an instrament matures on a Sunday or hoUday, when does it become payable? 
 r78. Page 40. 
 
 Can a check or note that Is due and payable on Saturday in States where Saturday 
 18 a half holiday he presented on that day? rjg. Page 40. 
 
 Is the foregoing rale tree as to other contracts? r8o. Page 40. 
 What are days of grace? ra2. Page 40. 
 
 If an instrument stated on its face that it was due July 20th,— thus, "July 10, 1902, 
 pay to the order of," etc,— and it was made in a State where days of grace are allowed, 
 when would it be due and payable? 185. Page 40. 
 
 What is accommodation paper? 186. Page 40. 
 
 Is accommodation paper valid? 187. Page 40. 
 
 Can corporations make accommodation paper or become indoraera on such paper? 188 
 Page 4r. 
 
 Can a partner hind his firm as a maker or indorser on accommodation paper? rSo 
 Page 41. ^' 
 
 How does a check differ from a hill of exchange or a draft? rgo. Page 42. 
 
 What term appUes to an instrament that is drawn by one bank on another? rg. 
 Page 42. ' ' 
 
 Page's" ""^ °' °' * "^'^ °° P"!™™" '94- 
 
 If a bank, for reasons of its own, chooses to refuse payment of a check, has the holder 
 of the check a right of action against the bank? 195. Page 42. 
 
 S7e 
 
QUESTIONS. 
 
 Is the law on thie subject common to all the States? ig6, 197. Page 43. 
 
 Uuat banks pay checks in the oider of their presentation? ig8. Page 43. 
 
 When must the holder of a check present it for payment? soo. Page 43. 
 
 Is there a different rule where the bank is in a place other than that at which the 
 holder receives the check? 201. Page 43. 
 
 If a check is sent to another bank for collection, when should It present It for pay- 
 ment? 203. Page 43. 
 
 If a depositor has insufficient funds to pay the full amount of the check He has 
 drawn, must the bank apply whatever balance he has to the payment of the check? 305. 
 Page 43. 
 
 If the drawer of a check has stopped payment on it, what Is the duty of the bank? 
 ao6. Page 43. 
 
 If a bank accepts or certifies a check, what effect does that have on the liability of the 
 drawer or indorser? 207. Page 43. 
 
 Is the rule changed if the drawer procures the bank to accept the check? ao8. 
 Page 44. 
 
 Will a verbal acceptance or certification of a check ever bind a bank? aog. Page 44. 
 Where a bank pays a check to an innocent holder of it, and it subsequently develops 
 that the drawer's signature was forged, on whom does the loss fall? flia. Page 44. 
 
 If a bank certifies a check, say for (500, and it subsequently develops that the check 
 has been fraudulently raised from I5 to $500, what amount will the bank be obliged to 
 pay? 315. Page 44. 
 
 If a bank paid a check to a bona-fide holder, and it subsequently discovered that the 
 drawer's account is not good for the amount, can the bank recover the amount from the 
 person to whom the check was paid? 212. Page 44. 
 
 If a bank gave a depositor credit for a check, and during that day it discovered that 
 the check was not good, can it rescind the credit? 2:3. Page 44. 
 
 Is a bank in paying ot certifying a check supposed to know that the indorsers* signa- 
 tures are genuine? 215. Page 44. 
 
 If, after a bank had paid a check to a bona-fide holder, it should develop that the 
 Indorser's signature was forged, on whom would the loss fall ? 315, 216. Pages 
 44> 45' 
 
 Can a bank certify a check dated ahead? 217. Page 45. 
 
 Can an o£5cer of a bank certify his own check? ai8. Page 45. 
 
 What officers of a bank may certify a check? 3ig, Page 45. 
 
 What Is a bin of exchange? 320. Page 46. 
 
 What la an Inland bill of exchange? 221. Page 46. 
 
 What la • foreign bill of exchange? 322. Page 46. 
 
i3 a bill cf exchange usually drawn against any particular account or on account of 
 any particular property? 223. Page 46. 
 
 Is a bill of exchange valid in the hands of one who knew that it was drawn and 
 accepted simply as an accommodation to the drawer? 224. Page 46. 
 
 What is the order of liability of the parties to a bill of exchange that is not yet 
 accepted? 225. Page 46. 
 
 Does this order of liability change after acceptance? 226. Page 46. 
 
 Does the holder of the bill have to recognize this order of liability in proceeding 
 against any of the parties or all of them? 29.7. Page 46. 
 
 Docs the drawer of a bill of exchange make any specific warranty in the mere act 
 of drawing the bill? 228. Page 47. 
 
 What does the indorser of a bill of exchange warrant? 229. Page 47. 
 
 If after the acceptance of a bill of exchange by the drawee, he should ascertain that 
 the drawer's signature was forged, would the drawee be obliged to pay the bill, and if he 
 did pay it, on whom would the loss eventually fall? 230. Page 47. 
 
 If the holder of a bill of exchange or of a check should present it for payment to 
 the party on whom it is drawn, and the holder should receive money thereon (but without 
 indorsing the instrument), and it should subsequently develop that the indorser*s signa- 
 ture was forged, on whom would the loss fall? 331 (same rule as 212). Page 47. 
 
 State the first duty of the holder of a bill of exchange? 232. Page 47, 
 
 If a note is presented to the bank at which it is payable and it is not paid, but is 
 
 protested for non-payment, would the drawer be released if he was not duly notified? 
 
 233. Page 47. 
 
 Does the same rule hold aa to the drawers or makers of a bill of exchange or a draft? 
 
 233, Page 47. 
 
 What is the duty of a holder of a bill of exchange in preaenting it for acceptance? 
 
 234. Page 47. 
 
 Must the acceptance be written on the face of the bill? 236. Page 47. 
 Must the holder accept the acceptance if it is signed by an agent of the drawee? 337. 
 Page 48. 
 
 Is it any evidence of irregularity of a bill of exchange if it is accepted before it 
 leaves the drawer's hands? 238. Page 48. 
 
 How long has a drawee to decide whether he will accept the bill or not? 239. Pagu 48. 
 
 If a drawee has detained the bill to decide whether he will accept it or not, when 
 must he date his acceptance? 340. Page 48. 
 
 Does the term "draft" have any specific definition as applied to commercial paper? 
 241-242. Page 49. 
 
 What is the definition of a promissory note? 346. Page 50. 
 
QUESTIONS. 
 
 Page ] 
 
 The letter, refer to illuitrations A to;,U,ipases 57 to 9S 
 
 What are the usual written words that go to the making up of a checlt? A. 
 
 As so written who is the payne; drawee; drawer? A. 
 
 What does the drawer specifically warrant in drawing the check? A. 
 
 What has the drawee contracted to do? A. (Has the drawee of a bill of exchanoe 
 made the same contract? C.) *' 
 
 Has the payee in indorsing the check and receiving the money on it made any contract 
 with the bank? What? A. 
 
 If a check is payable to W. E. Bonham, state an " indorsement in blank " by such 
 person. A. 
 
 What ate the usual written words that go to the making up of a promissory note? 
 
 Page 
 
 Who is the payeee? The maker or drawer? B. 
 
 Was it absolutely necessary to the vaUdity of this note that it have a date? Page 
 b. 
 
 Would the signature of the drawer be yalid if written with a pencil? Page ii, a. 
 If no time of payment was specifically stated, when would it have been payable? 
 
 specific ptace ot payment had been stated, where would it have been payable? 
 
 What are the usual written words that go to the making up of a bill of exchange' C 
 What IS the first duty of the holder of a bill payable a given time after sight? Page 
 
 The bill, Form C, is drawn on a person at Belfast, Ohio. If the bill was owned by 
 or was sent for acceptance to the First National Bank of Cleveland, could the bank prop- 
 erly allow the drawee to accept it payable at such bank? Page 24, 
 
 If the drawee of the above bill had simply written " James McBride " across its face 
 with no further words before or after his name, would he have assumed any Uability? 
 Page 13. Where would a bill so accepted, or where in Belfast is the blU C payable' (See 
 D.) Pages 10, II. 
 
 If " Ihos. Snell " was required to take up this bill by reason of its non-payment, 
 what proportion would he be entitled to collect of "Jno. E. Hale"? Or of Wm. H. Car- 
 penter? 
 
 (Other queries are suggested by the matter on back of C.) 
 What instruments does the term " draft " usually apply to? D. 
 
QUESTIONS. 
 
 If an instnraieiit, payable on demand, in the form of a draft or of a bill of exchange 
 is drawn on a bank, what is it properly called? D. 
 
 If an Instrument was payable to the order of J. W. Robinson and he wished to nego- 
 tiate it to Horace Bemis by an " indorsement in full," what would be the writing? E. 
 
 Who would be the indorsee in such an indorsement? E. 
 
 If such an indorsee presented the check for payment, what would be a proper form of 
 indorsement? E. 
 
 What warranty would such last indorsement carry with it? E. 
 
 State the rule as to when the holder of a check must present it for payment if ha 
 wishes to retain the liability of all the parties thereto. F. 
 
 What liability does a bank assume in certifying a check? G. Pages 44, 45. 
 
 Are any of the parties to a check released if the holder has it certified?' G. 
 
 Is the rule different if the maker procures it to be certified before parting with it? G. 
 
 If the certified check has been raised before or after certification, on whom does the 
 loss fall? G. 
 
 If the maker's signature has been forged, on whom does the loss fall? G. 
 
 If the indorser's signature is forged, on whom does the loss fall? G. 
 
 Draw an accepted biU of eichange, usual form, with two or more indorsers. H. 
 
 State the order of their liability among themselves of the several parties. H. 
 Of what does a " blank indorsement " bear evidence? J. 
 
 When an instrument payable " to the order of " Wallace Ford has been indorsed by 
 his writing his name in blank (WaUace Ford) on the back thereof, and it has thereafter 
 come into the hands of Seward Goss, how can Goss again make it an instmment payable 
 " to order "? J. 
 
 In what partnerships has each member of the firm implied authority to bind the 
 firm by signing or indorsing commercial paper? J. 
 
 Where tne partnership is such that no member has such implied authority, is any 
 one bound by such firm signature? J. Nos. r, 34, 76, 25. 
 
 State the lirbiUty among themselves of the several indorsers to a negotiable instm- 
 ment. K. 
 
 State the liability of the second of three indorsers to the holder of the instmment 
 
 E. 
 
 State the liability of such second indorser to the first indorser. K. 
 
 If an instrument is payable to Nathaniel Tolliver " or bearer," and TolUver should 
 indorse it " Pay to the order of Simon Jarvis, Nathaniel Tolliver," is the instmment then 
 payable " to bearer "? L. 
 
QUESTIONS. 
 
 Write 01 state a restrictive indoEsement. L. 
 
 What is the effect of a " restrictive indorsement " on the negotiability of an instru- 
 ment? M. L. 
 
 If Wm-. R. Carpenter was to lend Hale Davis $700, on a note signed by Davis and 
 indorsed by Nat. C. Chadwick, how should the face of the note be drawn? N. 
 
 If there are three payees named in a note and they indorse the note in the order in 
 which they are named, what is the liability of the second indorser to the first indotser? 
 N. 
 
 If Willis Watkins were treasurer of the Kennedyville Plank Road Company, what 
 form of signature should he use in a&sing the corporate signature to commercial paper? 
 P. 
 
 What officer of a corporation has implied authority to sign its commercial paper? P. 
 
 If Edward Dorsey were agent for James Nelson, what would be the proper form of 
 signature for Dorsey to use to bind Nelson as maker of commercial paper? Q. 
 
 Is the fact that one is "agent " for another evidence that the agent can make or in- 
 dorse paper in the name of the principal? Q. 
 
 Has an agent with authority to collect accounts implied authority to indorse checks 
 drawn to the order of his principal and given in payment of one of such accounts so col- 
 lected by the agent? Q. 
 
 What is the usual intent of one who indorses " without recourse "? R. * 
 Does such indorsement relieve the indorser from all financial liabiUty by reason of 
 the instrument? R. 
 
 Can you write a form of " indorsement without recourse " that would relieve the in- 
 dorser from all liability? R. 
 
 Write a form of " waiver of protest." S. 
 
 If a note were drawn payable to Wm. R. Carpenter without the use of the words " or 
 order," or bearer, or similar terms, would it be negotiable? T. 
 
 State the form of promise and of signature that would constitute a " joint note "; a 
 " several note "; a " joint and several note." M. 
 
 What is the liability to the holder of each of the signers of a note? What amount 
 may he collect of each? M. 
 
 What is their liability among themselves? M. 
 
 Write an "indorsement in full"; "indorsement in blank"; a "qualified indorse- 
 ment "; a " conditional indorsement a " restrictive indorsement." M. 
 
 Which of these indorsements, if any, would destroy the further negotiation of the 
 instrument as commercial paper? M. , ^ 
 
QUESTIONS 
 
 Tbe numbers refer to SliutratioiiSf No. i to No. 134^ from pages 103 to 508, 
 
 Do the words " in New York Exchange " express " certainty as requirefl by the 
 statute? If not, why? No. 3. 
 
 Is " subject to terms of contract," when used in a promissory note, a condition? 
 How about "given for machinery as per contract"? No. 4. 
 
 Does a qualified acceptance change the character of a bill of exchange? If 80| in 
 what way? No, 5. 
 
 State some forms of acceptance that are qualified. Nos. 5, 6, 7, 8. 
 
 What is the effect of a material alteration? Of commercial paper? No. 5. Sec. 
 125 et seq. 
 
 Is a draft drawn on a special account a negotiable instrument? Nos. 8, 7, 6. 
 
 iState instances of " special funds " which, if specifically drawn against, would take 
 the instrument out of the rule of commercial paper. No. 8. 
 
 What event determines future time? Does death? How about the words " I 
 promise to pay to her estate"? No. 9. 
 
 State a contingency that will render a note non-negotiable? No. 10. 
 
 From when does a note without date, take its date? No. 11. 
 
 Why is an indoraeT of past due paper, with notice of a counterclaim, not liable? 
 No. 12. 
 
 If a note has this form " and interest at per cent>" has holder authority to fill 
 
 it in? Suppose there was no such blank? No. 13. 
 
 Under what circumatances may a conditional delivery be shown? No. 14. 
 Who will be held when a draft is drawn to an assumed payee? No. 15. 
 Oral giiaranty of a note. No. zG. 
 
 Where en act is required to be done by a board of directors, la the act valid If 
 each director gives his written assent outside of a board meeting? No. 17. 
 
 Has the treasurer of a corporation who signs implied authority to indorse and 
 sell notes taken in the course of its business. No. 18. 
 
 Where an ofBcer has authority to indorse notes in the name of a company, will 
 that authority extend to paper indorsed for tbe accommodation of others if the 
 indorsing corporation re^ceives a bonus for the indorsement? No. ig. 
 
 Give instances of authority required to sign corporate papers. Nos, 17, 18, 19. 
 
 How must a corporation execute its paper? No. ao. 
 
QUESTIONS. 
 
 What is the effect of erroneous forma of signatures to corporation paper? Give 
 correct form. Nos. 21, 22, 23, 24, 25. 
 
 Of Executors, Administrators, Trustees, and Guardians. Nos. 26, 27, 28 and 29. 
 
 K a note was given for a debt of the estate, or the funeral expenses of the deceased, 
 and was correctly signed in the name of the estate by the executor, would it bind 
 the estate of the executor? No. 27. 
 
 If a note was signed "A. L. Smith, Executor of Estate of T. J. Reynolds," who 
 would be bound by it? No. 26. 
 
 Does a guardian or trustee who in good faith deposits the money of his ward in 
 a bank account in the trustee's name individually incur any responsibility if the bank 
 fails? No. 29. 
 
 Is middle initial part of a man's name? No. 30. 
 
 Where there are two persons of the same name and one of them presents a check 
 to a bank drawn to the order of the common name, and the bank in good faith pays 
 the money to the one presenting it, is it protected if the check belonged to the other 
 person with the same name? No, 30. 
 
 Can one partner in a manufacturing business bind his other partners by signing 
 or indorsing commercial paper? No. 32. 
 
 Instance where indorsing and receiving mx)ney on a check did not follow the rule 
 that such indorser warranted all previous indorsements. No. 31. 
 
 Does the general open authority to carry on a store authorize the making of notes 
 in the name of the principal? No. 33. 
 
 If the treasurer of a corporation draws its check to his individual creditor in pay- 
 ment of his debt, and the creditor takes the check and draws the money, is the creditor 
 under any risk thereby? No. 34. 
 
 If one offers to sign as agent, or through power of attorney, for another, what 
 protection can the holder reasonably require? Wo. 36. 
 
 Can the directors of a corporation authorize an accommodation indorsement? What 
 is the effect if all the stockholders authorized? No. 42. 
 
 Does a power to indorse notes carry with it power for the agent to indorse his 
 own individual notes? No. 43. 
 
 Where a note is transferred without what is, in law, equivalent to a commercial 
 indorsement, what effect does it have? No. 46. 
 
 Is a guaranty, in itself, when written on the back of a negotiable instrument, 
 always equivalent to an indorsement? No. 46. 
 
 Is an assignment or an indorsement on a detached paper equivalent to an indorse- 
 ment? No. 46. 
 
What is meant by an indoisement in blank? No. 48. 
 
 What is meant by the language of clause 3, sec. 35? Give an illu tration. No. 49. 
 
 Does the usual indorsement " without recourse " relieve the indorsers from any 
 liability in connection with the paper? No. 50. 
 
 Must a note made to the order of "the directors" of a corporation be indorsed 
 by all the; directors? What is a sufficient indorsement of such a note? No. 53. 
 
 What is the effect of an indorsement to the cashier of a bank when his ofBcial 
 position is not designated? No. 53. 
 
 State instances where the signatures of the individual members of the firm are not 
 equivalent to the writing of the firm name. No. 55. 
 
 Give a definition of what is meant by " good faith " in a transaction wherein a 
 note is purchased. No. 56. 
 
 If a bank could safely give an agent money for his draft on his principal, could 
 it as safely give him credit for it, — and then pay the money on his individual check? 
 No. 58. 
 
 If a bank buys a negotiable instrument and gives the seller credit for it, is it, 
 thereby, a bona-fide holder to the same extent as if it paid money for it. No, 59. 
 What constitutes notice of defective title? No. So. 
 
 Would payment to a creditor, of a partner in payment of his individual debt, in 
 cash taken from firm's cashbox, constitute "defect"? Nos. 61, 62, 70. 
 
 Can the president and secretary of a corporation give valid pledge of property 
 of the corporation to secure the president's debt? Wo. 63. 
 
 If a note is payable to one as trustee, and he properly indorses it, is a bona-fide 
 purchaser protected in taking it? How would this be as to stocks? State the general 
 reasons for your answer. No. 64, 65. 
 
 In all States does a guaranty written on a note inure to the benefit of subsequent 
 purchasers? No. 72. 
 
 Where there is an agreement to accept drafts generally, what is acceptor's liability? 
 No. 73. 
 
 No. 76 is a ruling, seemingly not in accord with the statute. 
 
 What is the liability of indorsers, under the statute, of a note usurious at its 
 inception? Of the maker? No. 79. 
 
 Where no place of payment is named on a note, and note was not actually pre- 
 sented to the maker, at his residence or elsewhere, is indorser discharged? No. 81. 
 See, also, No. 82. 
 
 What is the duty of the owner of a check as to its presentation? No. 85. 
 
What procedure may be adopted where there has been a payment of a draft by 
 worthless check. No. 86. 
 
 Give an instance of insufficient notice of dishonor. No. 88. 
 
 Under what circumstance does an indorser waive demand and notice? Give 
 another instance. No. 8g, 
 
 As to demand and notice, what conditions affect the liability of an indorser? 
 No. go. 
 
 Protest cases. No. gi, 92, and izg. 
 
 Circumstances under which notice to indorsers was unnecessary. No. gs- 
 
 Does a check drawn " in full of account," and cashed by the payee, operate as 
 
 payment of the whole account if there is more, in fact, due on the account? Are 
 
 there exceptions? What are they? No. gs. 
 
 What is the effect of the purchase by a firm of a note of one of the partners? 
 
 No. g6. 
 
 What effect does an extension of time of payment of commercial paper have on the 
 indorsers and sureties? Nos. 97, g8, gg and 100. 
 
 What is the effect of a material alteration? No. loi. Immaterial? No. 102. 
 Of commercial paper? No. 103. 
 
 Inserting name of additional payee? No. 104. Of the date? No. 105. Of erasure? 
 No. 106. 
 
 Is a telegraphed answer that maker of a check is " good for the amount " an 
 acceptance under the statute? No. 108. 
 A qualified acceptance. No. 109. 
 
 State some forms of acceptance that are qualified. Nos. no, in, and 112. 
 When is a note dishonored by non-acceptance? No. 113. 
 
 Liability of banks in handling bills of lading attached to drafts. Nos. 114, 
 IIS, ri6- 
 
 Note executed on Sunday. No. 117. 
 
 If the maker of a note subsequently gives security to one of his several sureties, 
 who has the benefit of the security? No, 118. 
 
 Is one protected who in good faith, and with no notice or knowledge of his 
 insanity, takes the check of an insane person? No. 119. 
 
 Is an assignment or an indorsement on a detached paper equivalent to an indorse- 
 ment? No. 120. 
 
 If a note is not properly indorsed when sold, but is subsequently properly indorsed, 
 of what dates does the instrument take effect? No. 120. 
 
If a note is made payable in, — say, Ohio, and is indorsed in Indiana, by the laws 
 01 which State are the parties governed? No. 124. 
 
 If a note provides for the payment of attorney's fee, is it negotiable on all States? 
 Wo. 125. See No. 54. 
 
 Is a note formally issued under a seal a negotiable instrument? No. 129. 
 
 Is an instrument for " one hundred dollars, in current funds," a negotiable 
 instrument? No. 132. 
 
 Does the liability of an indorser attach usually to one who writes his name on 
 the back of the last-mentioned instrument? No. 132. 
 
 What is the difference between a general guaranty and a special guaranty? Wh& 
 may take advantage of them? No. 133. 
 
 If a draft perfect in form is stolen from the drawer by the payee and is transferred 
 to a bona-fide holder, can such holder enforce it? No. 134. 
 
 Wlien a note is executed in one State and indorsed in another, indorser's liability 
 IS governed by the laws of what State? No. 54. See No. 134. 
 
INDEX 
 
 When reference is to a page, the word " page," in parentheses, accompanies 
 Negotiable InBtruments Law, given in thia book. 
 
 SECTION 
 
 ACCEPTANCE 
 
 By Separate Instrument 134 
 
 Definition 191 
 
 General, What Constitutea 140 
 
 Holder Entitled to, on Face of Bill 133 
 
 How Made 132 
 
 Kinds 139 
 
 Liability of Drawee Retaining or Destroying Bill 137 
 
 Of Incomplete Bill 138 
 
 Promise, When Equivalent to 135 
 
 Qualified. Rights of Parties HI 
 
 Time Allowed Drawer 136 
 
 Trade Acceptance (Page) 449 
 
 Verbal, When Binding (Page) 44 
 
 the figure. In all other cases the reference numbers are to the sectioii numbers of the 
 
 8E0TION 
 
 ACCEPTANCE FOR HONOR 
 
 Agreement of Acceptor 185 
 
 Dishonor of Bill by Acceptor for Honor 170 
 
 How Made 162 
 
 Liability 164 
 
 Maturity of Bill Payable at Sight 166 
 
 Presentment to Acceptor, How Made 168 
 
 Protest. Or Containing a Reference in Cose of Need 187 
 
 When Bill May Be 161 
 
 When Deemed for Drawer 163 
 
 When Delay in Presenting is E:5cused 169 
 
 ACCEPTED CERTIFIED CHECK 
 
 IndoreerB Released (Page) 29 
 
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ACCEPTOR SECTION 
 
 The Principnl Obligor (Page) 23 
 
 ACCEPTOR OF CHECK 
 
 Acceptance anJ Certification {Page} 24 
 
 ACCOMMODATION PAPER 
 
 Delinecl (Page) 40 
 
 ACaiilMODATION PARTY 
 
 Liability of 29 
 
 ACTION 
 
 Includes Counter -Claim and Set-Off 191 
 
 AGENT 
 
 Liahility of 69 
 
 Signature, Authority, How Shown 19 
 
 ALTERATIOiN 
 
 JIaterial (Page) 18 
 
 ASSIGNiCBNT 
 
 Effect of When Written on Separate Paper (Page) 26 
 
 AT SIGHT 
 
 Defined (Page) 13 
 
 BANK 
 
 Definition 191 
 
 BEARER SECTION 
 
 Defined 191 
 
 Payable to, When » 
 
 BILL 
 
 Meaning of 191 
 
 BILLS IN SETS 
 
 Acceptance of Bills Drawn in Sets 181 
 
 Constitute One Bill 178 
 
 Effect of Discharging One of a Set 183 
 
 Liability of a Holder Who Indorses Two or More Parts of a Set to Different 
 
 Persona 180 
 
 Payment By Acceptor of Bills Drawn in Sets 182 
 
 Rights of Holder Where Different Parts are Negotiated 179 
 
 BILL OF EXCHANGE 
 
 Addressed to More Than One Drawer 128 
 
 Inlnnd and Foreign 129 
 
 Definition 12& 
 
 Not an Assignment of Funda 127 
 
 Referee in Case of Need 131 
 
 When Treated as a Promissory Note 130 
 
BLAKKS SECTION 
 
 When They' May be Filled 14 
 
 CERTAINTY AS TO SUM 
 
 What Constitutes 2 
 
 CHECKS 
 
 Certified Liability of Parties {Page) 43 
 
 Not An Assignment (Page) 42 
 
 Poat-Dated (Page) 42 
 
 OOMMBRCTAL PAPER 
 
 As Used Herein (Page) 9 
 
 Definition (Page) 3 
 
 CONSIDERATION 
 
 Effect of Want of 2S 
 
 Presumption of 24 
 
 CONSTRUCTION 
 
 AVhere Instrument is Ambiguous 17 
 
 CONTRIBUTION 
 
 Eiiforcible When and How (Page) 3-8 
 
 DATE 
 
 Ante and Post-Dated 12 
 
 Presumption of 11 
 
 wmsm 
 
 SECTION 
 
 When ilay be Inserted 13 
 
 DEFINITIONS 191 
 
 DELIVERY 
 
 Defined jgj 
 
 Stolen Piiper (Page) 34 
 
 When Effectual, When Presumed 
 
 Warranty 65 
 
 DEiMAND 
 
 When Payable on 7 
 
 DISCHARGE 
 
 Alteration, Effect of 124 
 
 Cancellation, Unintentional: Burden of Proof 123 
 
 How 119 
 
 Renunciation By Holder 122 
 
 Right of Party 121 
 
 What Constitutes a Material Alteration 125 
 
 DISCHARGED 
 
 When Persons Secondarily Are 120 
 
 DRAFT 
 
 Explained (Page) 48 
 
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DRAWER OF BILL OR OF A DRAFT section 
 
 Status of (Page) 21 
 
 DRAWEE OF A BILL OR DRAPT 
 
 Before and After Acceptance (Page) 22 
 
 FOEiM 
 
 Of Commercial Paper (Page) 10 
 
 GUARANTOR 
 
 Ib an Intruder (Page) 30 
 
 HOLDER 
 
 Defined 191 
 
 His Ubligations (Page) 31 
 
 HOLDER m DUE COURSE 
 
 'Notice of Defect gg 
 
 Notice Before Full Amount Paid 54 
 
 Right to Sue, Payment 51 
 
 Rights of gy 
 
 Wliat Constitutes 52 
 
 When Not Deemed 53 
 
 When Subject to Original Defenses gg 
 
 Who iB Deemed a Holder 59 
 
 HOLDER FOR VALUE SEOTiow 
 
 What Constitutes 25 
 
 When Lienor 27 
 
 HOLIDAY 
 
 When Last Day Falls On 194 
 
 INiOOMPLETE INSTRUMENT 
 
 Not Delivered ig 
 
 INDORSEMENT 
 
 By Infant or Corporation 22 
 
 Blank, How Changed to Special 35 
 
 Conditional 39 
 
 Defined 191 
 
 Effect of Transfer Without 49 
 
 How Made _ 31 
 
 In Representative Capacity 44 
 
 Kinds of 33 
 
 iMisspeiled Name or Wrong Designation 43 
 
 Must Be of the Entire Instrument 31 
 
 Payable to Bearer, How Negotiated 40 
 
 Place, Presumption 43 
 
 Qualified 38 
 
SECTION 
 
 Restrictive, Rights of Indorsee 37 
 
 Special. In Blanlc 
 
 Striking Out <8 
 
 Time, Presumption 
 
 To Person as Casliier, Effect of '12 
 
 When Restrictive 36 
 
 Wliere Payable to Two or More 41 
 
 INDORSER 
 
 Effect of Paper Not Properly Protested (Page) 2(i 
 
 Liability of General Indorscr 
 
 Liability of an Irregular 84 
 
 Liability mere Paper Negotiable By Delivery 67 
 
 When Person is So Deemed ^'^ 
 
 mDORSER'S CONTRACT 
 
 Stipulations (Pa.ge) 24 
 
 INSTRUMENT 
 
 (Drawn to Person as Cashier 
 
 Meaning of 
 
 ISSUE 
 
 Defined 
 
 LLiBILITlES OF PARTIES seotiok 
 
 Of Acceptor 62 
 
 Of Drawer 61 
 
 Of Maker 60 
 
 LlAiBILITY 
 
 Order of (Page) 26 
 
 LAW 
 
 Common and Statute (Page) 52 
 
 LAW MERCHANT 
 
 When Governs lOS 
 
 MISSPELLED NAME 
 
 How Rectified, Te«t (Page) 27 
 
 KEGOTUBILITY 
 
 Continimtion of Negotiable Character 48 
 
 Provisions Not Affecting 5 
 
 NEGOTIABLE INSTRUMBNTS 
 
 Form of I 
 
 NEGOTIATION 
 
 Defined (Page) 34 
 
 What Constitutes 30 
 
NOTICE OF DISHONOR beotion 
 
 By Whom Given 90 
 
 Delaj, How Excused 113 
 
 Deposit in Post Ofliee 106 
 
 Form 98 
 
 Given By Agent 91 
 
 Given on Behalf of Holder, Effect of 92 
 
 Nou-Payment WHiere Acceptance Refused 116 
 
 Of Non -Acceptances, Omission To Give 117 
 
 Sufficiency 95 
 
 Time Within Which iMust Be Given 102 
 
 To Antefedent Party, Time of 107 
 
 To Bankrupt 101 
 
 To Partners 99 
 
 To Persons Jointly Liable 100 
 
 To Whom Given 89 
 
 To Whom May Be Given 97 
 
 Waiver of 109 
 
 Waiver of Protest Ill 
 
 When Agent May Give 94 
 
 When Dispensed With 112 
 
 SBOTION 
 
 WTien Need Not Be Given to Drawer 114 
 
 When Need Not Be Given to Indorser 115 
 
 When Protest Must Be Made, When Need Not 118 
 
 When Sender Deemed to Have Given Due Notice 105 
 
 Where Given By Party Entitled Thereto, Effect of 93 
 
 Where Must Be Sent 108 
 
 ^Vhere Parties Reside in Different Places 104 
 
 Where Parties Reside in S'ame Place 103 
 
 Where Party is Dead 98 
 
 Whom Affected By Waiver lio 
 
 OMISSIONS 6 
 
 ORDER 
 
 Payable to, ^en 8 
 
 PAYMENT FOR HONOR 
 
 Declaration Before 173 
 
 Effect on Subsequent Parties Where Bill is Paid 175 
 
 How Made 172 
 
 Preference of Parties Offering to Pay 174 
 
 Rights of Payer 177 
 
 Where Holder Refuses to Receive Payment Supra Protest 176 
 
SECTION 
 
 Who May Make 171 
 
 Parties to Commercial Paper (Page) 20 
 
 PERSON 
 
 Includes 191 
 
 PRESENTMENT FOR PAMEINT 
 
 Dishonored, Liability Person Secondarily Liable 84 
 
 Duty of Holder Where Bill is Not Accepted 100 
 
 Effect of Want of Demand Upon Principal Debtor 70 
 
 How Made 145 
 
 Instrument Must Be Exhibited 74 
 
 On What Day May Be Made 146 
 
 Place of 73 
 
 . Eights of, Holder Where Bill is Not Accepted 151 
 
 Sufficiency 72 
 
 Time, How Computed 86 
 
 Time of Maturity 85 
 
 To Joint Debtors 78 
 
 To Persons Liable as Partners 77 
 
 - What Constitutes in Due Course 88 
 
 Where Delay is Excused 81 
 
 SECTION 
 
 When Dishonored By Non-Acceptance 149 
 
 When Dishonored by Non-Payment 83 
 
 When Excused 148 
 
 When Failure Releases Drawer and Indorser 144 
 
 When May Be Dispensed With 82 
 
 When Must Be Made 143 
 
 When Not Required to Charge Drawer 79 
 
 When Not Required to Charge Indorser SO 
 
 When Principal Debtor is Dead 76 
 
 When Time is Insufficient... 147 
 
 Where Instrument is Not Payable Upon Demand 71 
 
 Where Instrument Payable at Bank 75 
 
 Rule . , . .: , 87 
 
 PRINCIPAL OBLIGOR 
 
 Defined (Page) 3 
 
 PROMISSORY NOTES AND CHECKS 
 
 Definitions 184 
 
 Check Defined 185 
 
 Effect of Certification of Cheek,., 187 
 
 Effect Where Holder of a Cheek Procures it to Be Certified 188 
 
 inmniB! 
 
SECTION 
 
 When Check Operates as an Assignment 189 
 
 Within What Time a Check Must Be Presented 186 
 
 PEOTEST 
 
 By Whom Made 154 
 
 Explained (Page) 50 
 
 How Made 153 
 
 In What Cases Necessary 152 
 
 When Dispensed With 159 
 
 When Made 156 
 
 Before Maturity Wliere Acceptor Insolvent 158 
 
 When May Be Again Protested 157 
 
 When to Be Made 155 
 
 Where Bill is Lost 160 
 
 REASONABLE TIME 
 
 What Constitutes 193 
 
 RELEASE OF PARTIES 
 
 What Discharges (Page) 36 
 
 SIGNING 
 
 Effect of Forged Signature 23 
 
 Effect of Signature by Procuration 21 
 
 Trade or Assumed Name. Liability , 18 
 
 SECTION 
 
 SUNDAY 
 
 Time. Kow Computed 194 
 
 SURETY 
 
 Obligations of (Page) 30 
 
 TIME 
 
 Determinable Future, What Constitutes 4 
 
 How Computed. When Last Day Falls on Holiday 194 
 
 Inconsistent Dates (Page) 42 
 
 On Demand. At Sight (Page) 38 
 
 Reasonable. What Constitutes 193 
 
 TERMS 
 
 Sufficiency of 10 
 
 TRADE ACCEPTANCE (Page) 449 
 
 TRANSFER 
 
 Prior Party May Reissue and Negotiate 60 
 
 UNCONDITIONAL PROMISE 3 
 
 VALUE 
 
 Defined 191 
 
 WRITTEN 
 
 Comprises 191 
 
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