ferent States, as will be seen by reference to the Chapter on "Limitations."

The penal part of a bond is always for the payment of money, but the condition may be to perform any act; and if it be any other act than the payment of money, the obligee does not recover upon non-performance the whole penalty of the bond, but only the actual damages sustained by the breach.

SECTION 2.

Bonds of railroads and other corporations are coming into general use with interest coupons attached, and the bonds of the government of the United States are now familiarly known to all business men. These bonds are usually payable to bearer, and partake quite as much of the nature of negotiable paper as of ordinary common law bonds. Like negotiable paper, they are held to be the property of every one who receives them in good faith. If any one has such an instrument and loses it, or it is stolen, and the finder or thief passes it for consideration to a bona fide holder, this holder acquires the legal right to it. In determining who is a bona fide holder, regard is had, not only to the consideration paid, but to the care exercised by the purchaser in ascertaining what right the seller had; and the property would not pass, so as to deprive the real owner of his title, if the circumstances were such as to show negligence on the part of the purchaser, or a want of due enquiry. The modern doctrine, however, is, that the negligence must be such as to warrant a jury in inferring bad faith and fraud.

It may be well to say here, that the finder of bonds payable to bearer, or of negotiable paper, ought to make all reasonable efforts to find the owner, and is entitled to use or dispose of the thing found as his own, only when he has made such endeavors unsuccessfully. If he conceal the fact of finding, and appropriate the property to his own use, he is liable to the charge of theft, and the burden would be thrown upon him to establish his honesty in the transaction. I have stated that the penalty of a bond is, usually, about

twice as much as the sum to be paid or forfeited by not performing, as is set forth in the condition. That is, to provide against interest, expenses, and extraordinary damages. This is safe for the obligor, for a court of equity always, and a court of law generally, cuts down the amount to be recovered to a sum which shall be an actual indemnity and no more, without reference to the amount of the penalty.

Specimens of the "conditions" most frequently called for in business operations are subjoined:

No. 2. CONDITION TO PAY MONEY.

The condition of this obligation is such, that if the said obligor shall pay to said obligee the sum of

interest, on or before the

day of

dollars, with

A. D. 18 9

A. B. [L. S.]

then this obligation shall be void, otherwise in force.

Signed and delivered

In presence of

No. 3.

The condition of this obligation is, that if I, the said A. B.,

The condition of this obligation is, that if I, the said A. B., shall indemnify said E. F. against all loss, cost, damage and expense, to which he may be subjected by reason of his signing, at the request and as surety for said A. B., a certain bill of exchange, (here describe the bill,) then this obligation shall be void.

Signed and delivered

In presence of

A. B. [L. S.]

Whereas the above bounden A. B. did obtain judgment in the supreme court against E. F. for dollars damages and costs, whereupon execution has been issued, directed and delivered to C. D., commanding him, that of the goods and chattels of the said E. F., he should cause to be made the damages and costs aforesaid: and whereas certain goods and chattels that appear to belong to the said E. F. are claimed by G. H. of Now therefore, the condition of this obligation is such, that if the above bounden A. B. shall well and truly save, keep and bear harmless, and indemnify the said C. D., and all and every person and persons aiding and assisting him in the premises, of and from all damages, costs, suits, actions, judgments and executions, that shall at any time arise, come, or be brought against him, them or any of them, as well for the levying and making sale, under and by virtue of said execution, of all or any goods or chattels which he or they shall or may judge to belong to the said E. F., as in entering any shop, store, building or other premises, for the taking of any such goods and chattels, then this obligation to be void, otherwise to remain in full force and virtue.

Sealed and delivered
In presence of

A. B. [L. S.]

No. 6. CONDITION OF A BOND OF ARBITRATION.

The condition of this obligation is such, that if said A. B., shall perform and keep the award of E. F., G. H. and I. J., all of or any two of them, arbitrators mutually chosen to award and determine concerning, (here state the dispute,) and all demands whatsoever depending by and between the said parties, so as the said award be made in writing and ready to be delivered to the said parties on or before the next, then this obligation shall be void. A. B. [L. S.]

day of Sealed and delivered In presence of

No. 7. CONDITION OF A BOND OF INDEMNITY ON PAYING A

The condition of this

LOST NOTE.

obligation is, that whereas the said E. F., on the day of , by his note in writing by him signed, of that date for value received, promised the said A. B. to pay to him or his order the sum of dollars in months from date; which said note is alleged to be lost out of his possession and cannot be found: and whereas the said E. F. has this day paid the said sum according to the tenor thereof,

Now therefore, if the above bound A. B. shall save the said E. F. and his assigns forever harmless, for having so paid said sum of money, and from all liability under and by virtue of said note, and from all loss, cost, damage and expense, that shall or may arise therefrom, then this obligation shall be void.

Sealed and delivered

In presence of

A. B. [L. S.]

No. 8. CONDITION OF A BOND TO CONVEY LAND. The condition of this obligation is such, that if the said A. B., upon the payment of dollars and interest by said E. F., within one year from this date, shall convey to said E. F., and his heirs forever, a certain parcel of land with the buildings thereon, situate in bounded and described as follows: [here insert boundaries and description,] by a warranty deed in common form, duly executed and acknowledged, the premises then being in as good condition as they now are, necessary decay and deterioration excepted, then this obligation shall be void.

Sealed and delivered

In presence of

A. B.

[L. S.]

No. 9. BOND WITH SURETIES.

Know all men by these presents, that we, A. B., as principal, and C. D. and E. F., as sureties, all of

, in the

in the sum of

unto G. H. of dollars, to be paid to the said G. H.: to the payment whereof we jointly and severally bind ourselves and our respective heirs, firmly by these presents sealed with our seals.

No. 10. BOND OF A CASHIER OF A BANK.

Know, &c., that we, A. B. as principal, and C. D. and E.

state

F. as sureties, all of H of C , are held and ors and Company, of the ized and doing business at said H., in the sum of dollars, to be paid to the said President, Directors and Company, or their successors in office: to which payment we jointly and severally bind ourselves by these presents, sealed with our seals and dated at this day of , A. D. 18 The condition of this obligation is such, that whereas the said A. B. has been chosen by the above named Bank, Cashier of said Bank, by reason whereof, and as such Cashier, he will receive into his hands and possession divers sums of money, goods and chattels, and other things, the property of said Bank, and is bound to keep true and accurate accounts of said property, and of his receipts and disbursements for and on account of said Bank,

, in the County of H bound unto the President, DirectBank, a corporation duly organ

Now therefore, if the said A. B. shall perform all and singular the duties of Cashier of said Bank, for and during his official term, and until he shall deliver all the property which he may receive as such Cashier to his successor in said office, or to such other person as the said Bank or its authorized officers may direct, according to the provisions of the Constitution, By-Laws, Rules and Regulations of said Bank, now existing or which may be by said Bank adopted, then this obligation shall be void.

Sealed and delivered

In presence of

(Signatures and seals as in
preceding bond.)