BANKS AND OTHER AGENTS FOR COLLECTION paragraphs marked §. continued. only necessary for bank to notify immediate indorser, 331. if holder instead of presenting check puts it in bank for collection, he may forward check to bank at distance on which it is drawn by post, bank receiving check for collection not bound to pay holder until if bank receiving bill for collection puts it to drawer's credit, subse- as soon as bank collects paper it becomes depositor's debtor, 334. and although instructed to hold amount to holder's order, which de- if bank takes payment in specific bills by order, and then uses them, depreciation at time of payment falls on holder depositing paper in collecting agent has no authority to receive payment in other than nor to take certification of check instead of payment, 335. 4. Manner of placing paper in banks for collection, and rights of collecting better to indorse paper to bank specially "for collection," 336. necessity for this precaution, 336. whether subsequent collecting bank could retain proceeds against real doctrine of U. S. Supreme Court, 338. in New York, 339. in Connecticut, 339. of U. S. Supreme Court approved, 340. rights as between holder and agent under blank indorsement, 340b. agreements affecting title to proceeds of paper when indorsed for amount of recovery against insolvent collecting agent, 340e. 5. How far bank is liable for default of notary, sub-agent, or correspondent several classes of cases on the question, 341, 343. doctrine of the U. S. Supreme Court, 341. first class maintains absolute liability of collecting bank for negli- this view adopted in New York, 341. second class hold collecting bank liable only to prove due care and this view adopted by U. S. Supreme Court, 341, note. third class holds bank bound when it receives paper of drawer or but not bound for default of correspondent or other agent at distant first class of cases, and New York doctrine, approved, 342. general usage may vary rule, 342. stress sometimes laid on fact that notary is public officer, and may paragraphs marked §. BANK AND OTHER AGENTS FOR COLLECTION — continued. duty of bank in selecting proper notary, 343. if notary is bank officer, bank liable, 343. remedy of holder against collecting banks, 344. whether holder can sue several or all of a series of collecting banks for default of one, 344. classification of cases, 344. distinction between putting paper in bank for "collection" and "to be transmitted for collection," 345. when any person interested may sue collecting bank for negligence, 346. instructions to bank or other collecting agent must be complied with, 347. express companies may undertake collections, 348. holder has right to anticipate that paper will be paid, 349. he need not inform holder for collection where to send notices of dishonor, 349. it might be otherwise if collecting agent were servant of holder, 349. duty in making presentment for acceptance, 476. must be more diligent than principal, 476. 6. How far liable for money collected on forged paper, not liable if paper indorsed "for collection," 349a. BANK CHECKS. See CHECKS, and II., 1556 to 1663. BANKER'S DRAFTS. intended for circulation, 1595a. immediate presentment not necessary, 1595a. BANK BILLS OR BANK NOTES, II., 1664. 1. Definition of, II., 1664. may be described as promissory notes, II., 1664. are payable on demand, II., 1666. style of execution, II., 1667. without statutory prohibition, right of banking pertains to every one, II., 1668. form should correspond to statutory requirements, II., 1669. if completed and then stolen bind bank, II., 1669. otherwise if stolen incomplete, II., 1669. figures denoting number of bank note no part thereof, 1669. 2. Banker's cash notes, II., 1670. 3. Post notes of bank, II., 1670. 4. How far similar to money, II., 1672. pass as cash, II., 1672. whether sheriff may take in execution or discharge of execution, II., 1672, 1673a. are legal tender unless objected to, II., 1672a. differ from money and are not legal tender if objected to, II., 1672a. but are negotiable, like money, II., 1672, 1674. bill or note payable is not negotiable, 55. II., 1673. 5. Liability of transferrer of bank notes, II., 1675. transferrer warrants genuineness, II., 1675. does not warrant solvency, II., 1675, 1676, 1677. but party receiving forged bank note must act diligently, II., 1675. if forged are nullities, II., 1675. query, whether solvency of bank is warranted, II., 1676, 1676a, 1677. doctrine approved that it is not, II., 1677. BANK BILLS OR BANK NOTES-continued. paragraphs marked §. exception where transferrer knows that bank is insolvent, II., 1678. effect of warranty of solvency of bank, II., 1679. duty of transferee in such cases, II., 1679. upon whom loss of insolvent notes falls, II., 1677. 6. Rghts, duties, and remedies of holder of bank notes, II., 1680. possession prima facie evidence of ownership, II., 1680. distinction between bank notes and other negotiable instruments, II., 1680. holder regarded as original promisee, II., 1680a. holder of bank bill must have acquired it in the usual course of business, II., 1681. holder has no preference to assets, II., 1681. holder is entitled to recover full amount of bank note without reference to what he paid for it, II., 1682. also interest from time of demand, II., 1682. bank notes are never overdue, II., 1683. whether statute of limitations applies to, II., 1684. rule as to presentment and demand, II., 1685. may be presented in packages, II., 1685. but each note is separate debt, II., 1686. trover lies against finder of bank notes by owner, II., 1687. when assumpsit lies, II., 1687. if finder has passed the note to a bona fide transferee for value, the owner can not recover, II., 1687. if bank receive in payment or on deposit counterfeit notes purporting to be its own, innocent party who pays or deposits them is not bound, II., 1688. 7. Payment in bank notes, and set-off, II., 1689. at common law nothing but money is legal tender, II., 1689. by statute in many States banks are compelled to receive their own notes in payment, II., 1689. as to bank notes required after bank goes into liquidation, II., 1689, 1690. weight of authority is that notes acquired after and with notice of assignment are not valid tender to assignee, II., 1689. contrary view stated and approved, II., 1689. while bank is solvent, debtor can plead as offsets its own notes, II.. 1691. when bank is insolvent, its assets must be marshaled, II., 1691. when note is payable in bank bills, holder is entitled to recover its face value, II., 1692. 8. Rule respecting lost or destroyed bank notes, II., 1693. contract of bank is to pay amount on surrender of note, II., 1693. claim of owner, who can not comply with this condition, is equitable, II., 1693. one who loses whole of a bank note, must bear the loss, II., 1693. but if note be destroyed, he can recover amount of the bank on clear proof of such destruction, II., 1694. rule when part of a bank note is lost, II., 1695. view that action at law in such case is not maintainable, II., 1695. and that bond of indemnity is requisite, II., 1695. view that action at law is maintainable, II., 1695. view approved that action at law is maintainable on half note, II., 1695. that payment on such action is good, II., 1695. and that holder of other half takes it subject to defence in first action, II., 1695. mutilated notes enforceable, II., 1695. bank can not escape responsibility by publishing notice that it will not be responsible for severed notes, II., 1695, note 1, 1696. paragraphs marked §. BANK BILLS OR BANK NOTES- continued. equity will entertain suit on half note, II., 1696. half notes sued on must be identified, II., 1697. facts necessary to support case must be proved, II., 1697. BANKER'S LIEN. See CERTIFICATES OF STOCK. bank receiving customers' bills for collection are holders for advances on faith thereof, 183a. balances upon account are consideration for bills and notes deposited as security with banker, 183a. illustrations, 183a. bank advancing money to customer has a lien on his securities in its hands, 334a, 337. but particular trust or agreement may affect it, 334a. under what circumstances such stock lien exists, II., 1708c, 1708d. has no common-law lien on its own stock, held by debtor, for his debt, II., 1708d. BANKRUPT. as to indorsement by, 182, 260. property of, goes to assignee, 260. can not sue on his choses in action, or transfer them, 260. maker of note to, can not deny his right to transfer, 260. if he has transferred bill or note before bankruptcy, he or his assignee may be compelled to indorse afterward, 260. incapacities of bankrupt, 260. as to promise to pay, after discharge, 182. binds the promisor, and is on sufficient consideration, 182. as to note given after discharge, 260. notice to, II., 1002. BANKRUPTCY. See EXCUSES. no excuse for non-presentment and notice, II., 1171, 1172. BEARER. See PAYEE. bill or note may be payable to, 99. check may be payable to, 99. bonds and coupons may be payable to, 99. certificates of stock often inure to benefit of, II., 1708. instrument payable to bearer A., same as payable to A. simply, 99. A., or bearer or holder, same as bearer, 99. indorsement in blank makes instrument payable to, 693. with legal title may sue, II., 1191. burden of proof when suit brought by, 812, 814a. negotiable instruments payable to, transferable by delivery, 729 et seq. BILL BROKER. See BROKER. BILLS OF CREDIT. provision of Constitution of United States that no State shall emit bills of credit, II., 1715. applies to States only, II., 1715, 1724. emit is appropriate term, II., 1715. bill of credit is negotiable paper designed to pass as currency and circulate as money, II., 1716. Chief-Justice Marshall's definition of. II., 1717. Justice Johnson's dissenting views, II., 1718. bearing interest makes instrument none the less a bill of credit, II., 1718. not necessary for bill of credit to be a legal tender, II., 1719. comment on views of Mr. Madison, and of Hon. R. M. T. Hunter, Treasurer of Virginia, II., 1720. the name is immaterial, II., 1721. BILLS OF CREDIT — continued. paragraphs marked §. being bottomed on a fund does not make instrument any less a bill of States of Union only prohibited from emitting bills of credit, II., State may charter corporation to issue, and take all the stock, II., and the issues of the corporation are not deemed bills of credit, II., bonds and coupons of States not bills of credit, II., 1726. although receivable for dues, 449. II., 1726. BILLS OF EXCHANGE. 1. Origin, history, and use of, 1, 2, 3, 4. rules of common law that choses in action were not assignable, first probably first negotiable instruments, 2. origin and history of, 3, 4. term derived from French, 4. used to perfect contract of exchange, or bargain, 4. how employed to assign funds, 4. 2. Foreign and inland bills, 6. are foreign or inland, 6. are foreign when drawn in one State or country, and made payable in inland when drawn and payable in same State or country, 6. derive negotiability from custom of merchants, 6. foreign bills must be protested to charge drawer, 7. inland need not be, 7. come within rule that contracts are governed by law of place where England and Ireland are foreign as to bills, 8. what bills deemed foreign in England, 8. several States of the Union are likewise foreign, 9, 10. rules of decision of Federal courts, 10. date of bill may show whether it is foreign or inland, 11. but to do so must show State or country where drawn, 11. courts do not take notice of location of places, such as Dublin, Phila- which must be shown to be in foreign States, 11. whether bill dated in foreign State, where not drawn, is foreign innocent third parties may regard it as its face purports, 12. bill inland on face does not become foreign by being drawn and bill purporting to be, is presumed to have been drawn abroad, 13. 3. Effect of bill of exchange, 15. whether negotiable bill for whole of fund in drawee's hands is assign- is assignment as between drawer and payee, 17. whether without acceptance bill for whole fund is an assignment as doctrine that without acceptance bill is not an assignment, 18, 19, 20. after acceptance, no subsequent bill, transfer of, or process against query, 19. holder can not sue drawee without acceptance in his own name, 19. |