The following writings have been held not to be promis- S. 83. sory notes. A mere acknowledgment of debt, or I. O. U.,1 for example, the following note:-" Borrowed from A. £67, July 1878. Paid back £5, May 1885. Leaving a balance of £62 to pay still."2 A deposit-receipt, for example,—“ Bristol, 14th August 1843.-Memorandum, Mr. Sibree has this day deposited with me £500 on the sale of £10,300 three per cent. Spanish, to be returned on demand." Of this document Pollock, C.B., said, “We cannot suppose that the Legislature intended to prevent parties from making written contracts relating to the payment of money other than bills or notes; and this appears to me to be merely an instrument recording the agreement of the parties in respect of a certain deposit of money, the consideration of which is stated in the memorandum itself, and to be rather an agreement than a promissory note." 3 An obligation to account. A document which constitutes or imports an agreement or a trust. 5 'With regard to the legacy left by A. to your children, which is not payable till the youngest surviving of them reaches the age of twenty-one years, I hereby promise to pay said legacy of £500, without interest, to the children at the term of Martinmas 1863, on a proper discharge being granted me for the same." 6 2. Unconditional." 3. In Writing.s-The Act 55 Geo. III. c. 184, s. 18, prohibiting the issue of promissory notes with printed dates, has been repealed.9 433; Fielder v. Marshall, 1861, 30 L.J. C.P. 158; Lloyd v. Oliver, 1852, 18 Q.B. 471; Peto v. Reynolds, 1854, 9 Exch. 410, 23 L.J. Ex. 98; 1855, 11 Exch. 418; Dalrymple v. Bryson, 1810, Hume, 67. I Welsh's Trs. v. Forbes, 1885, 12 R. 851; Neilson's Trs. v. Neilson's Trs. 1883, 11 R. 119; Bell's Prin. 310. 2 Todd v. Wood, 1897, 24 R. 1104; see Watson v. Duncan, 1896, 4 S. L.T., No. 116. 23. 3 Sibree v. Tripp, 1846, 15 M. & W. 4 Pirie's Representatives v. Smith's Executrix, 1833, 11 S. 473; Horne v. 5 Thomson v. Bell, 1894, 22 R. 16; 7 See s. 3, n.b No. 2. 8 See s. 3, n.b No. 3. 9 23 and 24 Vict. c. 111, s. 19, repealed by this Act, s. 96-repeal not affected, 52 and 53 Vict. c. 63, s. 11 (1). S. 83. 4. Made by one person or body of persons1 to another.—If made payable to the maker's order, it does not take effect as a note till it has been indorsed.2 5. Signed by the maker.3 6. To pay a sum certain in money.*—The sum must not be less than one pound, or the note, if negotiable, is void. It is forbidden under a penalty for any one but a banker to issue notes for less than five pounds payable to bearer on demand.5 7. On demand, or at a fixed or determinable future time.” 8. To a specified person or bearer.8 Bank Notes. Bank notes, though customarily regarded as money, are promissory notes issued by a banker payable to bearer on demand. But they may be re-issued from time to time.10 Bank of England notes are legal tender in England, except at the bank and its branches, so long as the bank pays gold for its notes, but they are not legal tender in Scotland.11 Scotch bank notes are not legal tender. The issue of bank notes in Scotland is regulated by the following statutes:-5 Geo. III., c. 49; 55 Geo. III. c. 184, ss. 2, 24, 27, 28; 7 Geo. IV. c. 67, ss. 13, 14; 7 and 8 Vict. c. 32, ss. 10, 12, 22; 8 and 9 Vict., c. 38; 16 and 17 Vict., c. 63, s. 7; 17 and 18 Vict., c. 73, s. 3; c. 83, ss. 11 and 12; 24 and 25 Vict., c. 91, s. 35; 54 and 55 Vict., c. 39, ss. 29-31.12 No one other than a banker, who on 6th May 1844 was 1 S. 2. 2 Sub-sec. (2). 3 See s. 3, n.b No. 5. 4 See s. 3, n.b No. 6. 5 8 and 9 Vict. c. 38, ss. 16 and 18, p. 253, infra. S. 17 of the said Act, containing regulations as to bills and notes for sums between one pound and five pounds is repealed temporarily by 26 and 27 Vict. c. 105, s. 1, which has been continued till 31st December 1904, by 3 Edw. VII. c. 40. 6 S. 10. 7 S. 11; see s. 3, n.b No. 8. 9 See 17 and 18 Vict. c. 83, s. 11, p. 255, infra; 54 and 55 Vict. c. 39, s. 29, p. 265, infra; Thomson, 122; s. 58, n.c. 10 54 and 55 Vict. c. 39, s. 30; cf. ss. 59 and 61 hereof. 11 3 and 4 Will. IV. c. 98, s. 6 ; 8 and 9 Vict. c. 38, s. 15. 12 See Thomson, 120. issuing his own bank notes and has since continued to do so, S. 83. may now issue bank notes in the United Kingdom.1 In Scotland a banker so qualified may issue bank notes on taking out a licence yearly for each place at which he does so.2 The average amount of his notes in circulation during any period of four weeks must not exceed that of his average circulation during the year preceding the 1st of May 1845, as certified in accordance with 8 and 9 Vict., c. 38, section 1,3 together with the amount of gold and silver held by him as ascertained from time to time. Bank notes must be for one pound sterling or some multiple thereof,5 but not for more than one hundred pounds. In England bank notes may not be for less than five pounds, and it is illegal to transfer Scotch bank notes for less than that sum.8 English bankers, other than the Bank of England, may issue notes to the extent of their average note circulation during a specified period. The issue of notes by the Bank of England is regulated by 7 and 8 Vict. c. 32. Bank notes should be signed according to provisions contained in the constitution of the body issuing them.10 It has been held that the number of a Bank of England note is a material part of it.11 Bank notes are warrants for summary diligence,12 but are not subject to the sexennial prescription.13 They must be stamped unless the banker issuing them, having paid a composition for the duty, is entitled to issue unstamped notes.14 The question whether it is competent to poind bank notes has not been decided,15 but the opinion has been expressed that it is competent.16 They may by statute be 1 7 and 8 Vict. C. 32, ss. 10 and 12. 2 55 Geo. III. c. 184, s. 24; 7 Geo. IV. c. 67, s. 13; 7 and 8 Vict. c. 32, s. 22; 24 and 25 Vict. c. 91, s. 35, 54 and 55 Vict., c. 39, s. 31 (1). 3 Repealed 54 and 55 Vict. c. 67, Statute Law Revision Act. 4 8 and 9 Vict. c. 38, ss. 6, 8. 5 8 and 9 Vict. c. 38, s. 5. 6 54 and 55 Vict. c. 39, ss. 29, 30, p. 265, infra. 77 Geo. IV. c. 6, s. 3. 8 9 Geo. IV. c. 65, s. 1. 9 7 and 8 Vict. c. 32, ss. 11, 13. 10 17 and 18 Vict. c. 73, s. 3. 125 Geo. III. c. 49, ss. 4-6, p 248, 13 12 Geo. III. c. 72, s. 39; see s. 100, n.. 14 54 and 55 Vict. c. 39, s. 29 and Sched. p. 265, infra; 16 and 17 Vict. c. 63, s. 7, p. 255, infra. 15 Alexander v. M'Lay, 1826, 4 S. 439 (n.e. 445); Bell's Prin. 2289. 16 Hamilton v. Bailie of Holyrood, 1741, Elchies, Abbey, No. 2, 5 Br. Sup. 708. S. 83. poinded for Crown debts,1 and taken possession of for the benefit of the creditors in sequestrations and cessios.2 S. 84. Delivery necessary. S. 85. As to the cases in which different firms may be held to be one person in law, see section 5, n.a ◄ An instrument which expressly or by implication contains an agreement that the holder shall have the benefit of a security which has not been delivered to him, must be stamped as a marketable security or otherwise, according to the nature of the agreement.3 e See s. 4. 84. A promissory note is inchoate and incomplete until delivery & thereof to the payee or bearer.b a See s. 2. a 4 b This section does not refer to the form of the instrument, but to "its ceasing to be inchoate and revocable, and becoming an operative instrument." The section therefore means that the contract of the maker is incomplete and revocable until delivery of the instrument to the payee or bearer. The contract of an indorser of a note is incomplete and revocable until delivery of the instrument, in order to give effect to it.5 85. (1.) A promissory note may be made by two or more makers, and they may be liable thereon several notes. jointly, or jointly and severally, according to its Joint and tenor, a (2.) Where a note runs, "I promise to pay," and is signed by two or more persons, it is deemed to be their joint and several note." 1 19 and 20 Vict. c. 56, s. 32. 2 43 and 44 Vict. c. 34, ss. 9 (5), and 12; 19 and 20 Vict., c. 79, s. 101. 3 Brown, Shipley, and Co. v. Commissioners of Inland Revenue [1895], 2 Q.B. 598. See Blyth v. Forbes, 1879, 6 R. 1102; Wise v. Charlton, 1836, 6 L.J., K.B. 80, 4 a In Scotland a note signed by two or more makers im- S. 85. ports a joint and several obligation, though it contains no words to that effect, and is expressed in the plural number.1 The word "conjunctly" has been held equivalent to "jointly and severally." 2 But if the word "jointly" is used, the obligation is under this section merely pro rata.3 A note, though it bears to be that of a single person, may become the obligation of as many as sign it, but no one can accept a bill except the persons to whom it is addressed.4 Thus, if a note is made by A. payable to B., and bears the signatures of C. and D. upon the back, though C. and D. cannot be liable to B. as indorsers, they may be liable as makers if they be proved to have signed the note as such.5 86. (1.) Where a note payable on demand a has S. 86. been indorsed, it must be presented for payment Note payable within a reasonable time of the indorsement. be not so presented, the indorser is discharged. If it on demand. (2.) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular e (3.) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.f a See ss. 10 and 89. b See ss. 45, 46, and 89. c The maker is not discharged. 1 S. 97 (2); sce s. 6, n.b. 2 M'Kellar v. Campbell, June 7, 1811, F.C., but see Bell's Lect. i. 261. 3 Cf. Bell's Prin. 61. S. 3, n.b No. 4. 5 Smith's Executors v. Johnson, 1901, 9 S.L.T., No. 200, a proof 6 S. 87 (1). |