ACCEPTANCE

The Negotiable Instruments Law pro-
vides that where a drawee, to whom
a bill is delivered for acceptance, de-
stroys it 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 the
holder, he will be deemed to have
accepted it. This does not contem.
plate a tortious refusal to return or
is it necessary for a demand to be
made. The mere non-return for any
reason within twenty-four hours
after delivery makes the drawee
liable to the holder. 271a, No.
1073.

The bank is a bona fide holder of a
note given for indebtedness to the
bank where it applies the proceeds
of the note as a credit to the debtor,
and surrenders bills of lading
pledged as collateral, and where the
bank refuses to accept a renewal
note, acceptance is not shown by the
fact that the bank attached to the
original note the renewal note at
the time of making demand, so that
both could be restored to the maker
on payment. 22a, No. 1005, p. 32.
The drawees of a draft had previously
written the bank cashing the draft,
that they would honor a certain
drawer's draft for $1,000 on hogs or
cattle and should he want more have
him phone" and they would try
to handle his stock. Held, there was
no obligation to honor any draft of
the drawer except one for price of
stock shipped by drawer. 26a, No.
1008, p. 37.

ACCOMMODATION INDORSER:

A bank was the holder for value of a
promissory note which had as an ac-
commodation indorser the signature
of a corporation. The corporation
pleaded that no consideration passed
to it and that its name was indorsed
without authority by its manager as
an accommodation. Held that this
plea stated a good defense. 245a.
Prior to the taking effect of the Nego-
tiable Instruments Law, passed in
Ohio on April 17th, 1902, a person,
placing his name in blank on the
back of a promissory note, before the
delivery of the note to the payee,
was liable as a surety unless there
was a different understanding be-
tween the parties; but by force of
said act, the person so placing his
name on the back of the paper is an
indorser, and as such he is entitled
to notice of demand upon those who
are primarily liable, and notice of
non-payment to him in case the note
is not paid at its maturity. 261a,
No. 1070.

The Negotiable Instruments Law pro-
vides that an accommodation in-
dorser of a check is liable to the
holder for value, notwithstanding
the fact that the holder knew that
the indorser was an accommodation
party. A bank which deducted from
the accommodation indorser's ac-
count the amount of a raised check,
has properly deducted the difference
between the original amount and the
amount to which the check was
raised, but should not deduct the
original amount of the check. 31a,
No. 1010, p. 42.

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