ACCEPTANCE:

The drawee of a bank check cannot
be held liable on a contract of ac-
ceptance not a part of the bill unless
there is an absolute promise to pay
on the part of the drawee. So
held by Kansas Supreme Court.
Such a promise not contained in
telegraphic response "J. D.'s check
is good for sum named." 87a, No.
947, p. 67.

D., with other citizens of the town of
Gory, made a voluntary subscrip-
tion to procure the extension of a
railroad to that town. The sub-
scription had not been definitely ac-
cepted by the railroad company.
The company brought suit against
D. for the amount of his subscrip-
tion. Held, that it had not signified
its acceptance and hence could not

answer. 79a.

The Negotiable Instruments Laws of
the State of Colorado (Laws 1897,
c. 64, sec. 126) define a check as
being a bill of exchange and is sub-
ject to the law applicable to a bill
of exchange. Held, that a bank
named as the drawee in a check is
not liable to the holder until it ac-
cepts or promises to pay it in writ-
ing. 58a.

ACCOMMODATION INDORSER:
A bank was the holder of a note
indorsed by defendant. In making
renewals of the note the makers
would sign a blank note and de-
fendant indorse same and the bank
afterward fill in the proper terms
on the face of the paper. Held,

ACCOMMODATION INDORSER –
Continued.

that defendant had received valuable
consideration and was not a mere
accommodation indorser. 109a.
An accommodation indorser who is
compelled to pay a note may re-
cover from the maker and payees
for whose accommodation he in-
dorsed it, and the payee cannot
counterclaim an indebtedness of the
accommodation indorser to the
maker existing at the maturity of
the note. 202a.

ACCOMMODATION PAPER:

A corporation drew drafts on a firm,
one of the members of which was
The
its principal stockholder.
drafts were accepted by this firm
and discounted through note
brokers. The drafts were held to be
accommodation paper and unen-
forceable in the hands of purchasers
with notice. A company engaged
in the manufacture of tubing and
webbing has no implied power to
become an accommodation drawer
of a draft. The fact that a draft is
presented for discount by the ac-
ceptors is notice that it is accommo-
dation paper. No. 984, p. 234.

ACCOUNTINGS:

Neither partner could complain that
the other had not sooner called for
an accounting where a partnership
transaction had extended over a
long term of years and was not
terminated when suit was brought.

ACCOUNTINGS- Continued.

Limitations do not begin to run in
favor of a trustee who has de-
frauded until discovery of the fraud,
or in case of a trustee who be-
comes a trustee without formality
of a written instrument until he re-
pudiates the trust. 286a.

ACTION:

The holder of a negotiable promissory
note is presumed to be such bona
fide and for value; if either fact
is negative by proof, the defendants
are let in to all their defenses. 67a.
The payee of a protested note cannot
recover of the indorser who did not
receive notice of protest until three
months thereafter; the notice hav-
ing been addressed to him at a place
other than his last known residence.
83a.

ADMINISTRATORS:

In an action on a note payable to a
bank it was alleged that another
payee was intended and the bank
put in by inadvertence. It was held
that the burden of proof was on the
plaintiff, who was the indorsee, to
show he had good title to the note
and that another payee was intended
than the one whose name appeared.
Action was against the administra-
tor of the surety, whose name was
signed below that of the maker, who
was not served. 151a, No. 966, p.
140.

ADOPTION:

By the law of the State of Missouri,
held in case of Hockaday v. Lynn
et al., that the act of adoption
brings the adopted child into re-
lationship only with the adoption
parent, and such child cannot inherit
from the brother of her deceased
adoptive father the share which the
adoptive father would have taken
from his brother. 119a.

AGENCY OF PARTNER:

Where one partner signs the name of
a trading firm to a note as an ac-
commodation without the authority
of the other members of the co-
partnership, a holder without notice
before maturity may recover against
the firm. The fact that the firm
name is signed as second maker is
no notice that the firm is surety.
234a, No. 987, p. 267.

A parol assignment by a man in busi-
ness of the accounts and bills re-
ceivable which he should acquire in
the course of such business to secure
a person for becoming his indorser
to enable him to raise money for
use in the business creates a valid
lien as against the assignor's trustee
in bankruptcy where the assignment
was made in good faith, although no
notice was given to creditors, and
the notes and accounts remained in
the possession of the assignor until
his bankruptcy. 278a.

In an action on a note payable to a
bank it was alleged that another
payee was intended and the bank
put in by inadvertence. It was held
that the burden of proof was on the
plaintiff, who was the indorsee, to
show he had good title to the note
and that another payee was intended
than the one whose name appeared.
Action was against the administra-
tor of the surety whose name was
signed below that of the maker, who
was not served 151a, No. 966, p.
140.

Where A. purchased real estate en-
cumbered by a mortgage securing
payment of a non-negotiable note,
and the records showed no assign-
ment of the securities, and he paid
the same to the agent of the payee
named in the note, the payment was
a good defense to an action to fore-
close the mortgage. 9a, No. 938, p.

17.

The Law Merchant: A law or cus-
tom of merchants in relation to
commercial paper which was en-
grafted into the statute law of Eng-

ASSIGNMENT - Continued.

land by the "Statute of Anne"
passed by Parliament in 1705. This
law is often referred to in the de-
cisions of our courts. 84a.

ASSUMPTION OF DEBT OF AN-
OTHER:

In a case where a note was indorsed
by a bank to its president for col-
lection and the president reindorsed
it to bank and the same was after-
ward transferred to the city by the
bank without erasing its indorse-
ment, it was held that the bank was
liable under its indorsement and
parties who had assumed liabilities
of bank under contract were liable
to the city also. 157a, No. 969, p.
154.

ATTACHMENT:

An attachment in an action by a non-
resident of the debt of a foreign
corporation to a nonresident under
a contract made out of the State
for services to be performed out of
the State is bad, under the rule
laid down by the Code Civ. Proc.
(N. Y.). Where the levy of at-
tachment of a debt is clearly bad
and cannot be cured it will be so
declared and the levy vacated on
motion. 26a.

It was held that a bank by discounting
a draft attached to an order on a
carrier for delivery as authorized
by a bill of lading became the owner
of fruit for which the draft was
drawn as against the creditors of
the purchaser who rejected the
fruit, the fruit being subsequently
resold. 149a, No. 965, p. 137.
It was held, where an an attorney de-
posits funds of his clients,
atty.," the bank having no further
knowledge in regard to the account
may pay the money on check of the
attorney and where an attachment
is levied against the fund, it is pro-
tected. The money does not, how-
ever, belong to the attorney and
cannot be attached for his debts.
221a, No. 980, p. 216.

ATTORNEY'S FEES:

as

Although the indorser of note may
have been indebted to the indorsee
and had a settlement, at which time
the indorsee kept the note in suit,
it was held the indorsee might sue
the indorser on the note. At-
torney's fees are not recoverable
unless alleged in the plaintiff's pe-
tition. 138a, No. 961, p. 127.

AUTHORITY OF CORPORATION'S
OFFICERS:

In an action against a bank for ac-
cepting check of a corporation which
on its face showed the officers of
the corporation had no authority to
issue it, evidence examined and held
to show the corporation had ac-
cepted in payment a note of a third
party and other securities, whereby
a novation is affected and the cor-
poration can look only to the sub-
stituted debtor and securities. 211a,
No. 975, p. 195.

AUTHORITY OF OFFICERS OF

CORPORATION:

A note signed by the vice-president
and treasurer of a corporation will
not bind the corporation unless the
said official has authority to exe-
cute notes by charter, by-laws, or
resolution of the corporation. The
party suing must prove the au-
thority. 215a, No. 977, p. 202.

AUTHORITY TO EXECUTE:

A note signed "The Kansas City and
Olathe Electric Ry. Co., William
Lackman, President, D. B. Johnson
Secretary," held to be the note of
the corporation, not of the individ-
uals. Burden of proof on the
plaintiff to show that the defendant
intended it as their individual note.
148a, No. 964, p. 135.

BAD FAITH:

It is not sufficient to show that a note
was taken by an indorsee under
circumstances which might excite
suspicion, but it must be shown that
the indorsee took the paper under
circumstances tending to show bad
faith or dishonesty. 163a.

BANKS AND BANKING:

The executive officers of a national
bank may legitimately borrow
money for the bank's use, in the
usual course of business, without
special authority from their board
of directors. 61a.

Where the cashier of a bank assisted
a number of persons who had con-
spired together to defraud one H.,
a stranger, by inducing him to bet
on a foot race, the result of which
had been fixed in advance by the
parties, by allowing the use of the
bank for the transfer of money and
to give an appearance of respect-
ability to the race. Held, that the
bank as well as the cashier is liable.