went with the original instrument, which is above attached. to the office of State St, Chicago, Ilhas Miller, Smith & Co., 10 N. and presented it to the person in charge, and demanded payment thereon, which was refused: The firm has failed and is in the hands of a receiver Whereupon I, the said Notary, at the request of the aforesaid, did Protest and by these presents do Solemnly Protest as well against the makers of said instrument, the endorsers thereof, as all others whom it doth or may concern, for exchange, re-exchange, and all costs, charges, damages and interest already incurred by reason of the non-payment of said instrument, And I, the said Notary, do hereby certify, that due notice thereof was put in the Post Office at.........Chicago... Illinois as follows: The above named places being the reputed places of residence respectively of the persons to whom such Notice was , directed. In Testimony Whereof, I have hereunto set my hand and affixed my official seal the day and year above written. AL. Danielle Notary Public FEES.-Noting for Protest, 25 cents; Protest, 75 cents; Notices, 25: Seal and Certificate, 25 cents; Postage,/2-cents; Noting Protest, 25 cents Vol. 258. Page 142 checks, drafts, etc., that are dishonored must be protested if it is intended to hold those who are secondarily liable. It is not necessary to protest inland paper unless so required by statute. The notary personally presents the paper, and notes thereon the dishonor, and later makes out the official statement, called a protest, a specimen of which is shown on the opposite page. 192. Notice. All parties conditionally liable must be notified in case of dishonor of paper. The holder may notify in case of inland paper, but in case of foreign paper the notice is sent by the notary making the protest. The following is a proper notice: Signed by.. Chicago, Ill. May 16 1913. ......for $. 250.00 draft May 6, 1913 May 16, 1913 Miller, Smith & Co. Endorsed by R. W. Gammon, and Lee McCalla Being this day due and unpaid, has been by me PROTESTED Done at the request of............... the holder. A. A. Brewer HL. Daniells To G. C. Mosier & Bros. Ada, Ohio Notary Publia 193. QUESTIONS What is a draft? Illustrate its use with three parties. With four parties. What is the theory of a draft? What is an acceptance? When necessary and when not? Name the parties to a draft and state the liability of each. What is an acceptance for honor? Compare the liability of such an acceptance with that of a regular acceptor. Illustrate several somewhat irregular acceptances. May an acceptance be on a separate sheet of paper? May it be given before the draft is drawn? Explain a set of exchange. Why not so frequently used now? What care must be exercised in their use? Explain holder's duties as to how, when, and where to present for acceptance. What is non-acceptance or non-payment? And what must be done by the holder? What is a protest? And when necessary? What is notice? And how given? 1. In H v. B, 75 S. E. 696 (S. C.), a bank held liable for negligence of its correspondent in the collection of a draft. A stipulation on a deposit slip held not to exempt a bank from liability for its negligence in the collection of a draft or waive the rights of the depositor under the law merchant. 2. A bank sued for negligence in the collection of a draft held to have the burden of showing the taking of steps necessary to fix the indorser's liability. 3. In P v. T, 76 S. E. 153 (Ga.), written agreement to accept a bill of exchange to be drawn in the future is valid, if the bill is drawn in accordance with the agreement, and within a reasonable time, in favor of the person who received it for a valuable consideration. 195. Introduction. The business man deposits his money with a bank for several reasons. It is a safe place to keep it, he may receive interest on the deposit or on a part of it, it is ready for him at any time, and by means of an order on the bank the money or any part of it may be transferred to another person. The right to draw is based on the fact that credit is presumably obtained at the bank by becoming a depositor. To become a depositor, an introduction to the bank is usually obtained and the funds one desires to deposit are listed on a deposit slip and passed in to the teller, who enters the amount in a pass-book which the depositor keeps as a receipt for his deposit. A credit is now established, also the right to issue checks against the amount deposited. As checks are presented and paid by the banker they are at once charged against the depositor's account. These checks are also stamped "paid," and at stated intervals the account is written up and cancelled checks are returned to the depositor bearing the payee's indorsement, thus becoming receipts. Two general methods of depositing are recognized; one, a commercial account against which checks may be drawn, and one, a savings account against which checks are not to be drawn. In the first, money is withdrawn by means of a check, and in the second, by presenting the pass-book and having the amount withdrawn entered. 196. Definition. A check is a written order by a depositor on his banker to pay a certain sum of money to another. There are three necessary parties to a check, the maker called "drawer" (who is the depositor), the drawee, or banker, and the payee (the one to whom the check is made payable). The drawer may also be the payee. BANK CHECK May of 1913_ No675— Commercial National Bank (3) A check is subject to the usual requirements of negotiable paper; it is an order, it must be drawn on a bank or banker, it purports to be drawn against a deposit, it must designate a payee, it must be for the payment of a certain sum of money, it is not entitled to days of grace, and it should be dated. In the above check W. A. Evans is drawer, E. F. Patch the payee, and the Commercial National Bank is the drawee. |