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A note written in the above form can be paid any time before its maturity if so desired by the signers or makers. The signers of a joint and several note are held collectively and individually for its payment in full.

Write a joint interest-bearing, time, negotiable note, signing two or more names as the makers; also a joint interest-bearing demand note; also a joint non-interest-bearing time note, which is not negotiable, and a jointseveral note. Explain the difference between the different kinds.

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per cent per annum, payable semi-annually, and interest on all over-due interest at the same rate.

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Miear V. Dagon

A. W. V. Dagon

How long will a witnessed note hold good, or collectible, in your state, if no payments are made on it? or from the last payment? What effect does the signature of a witness have on a note?

(1) What is a promissory note? (2) What is the signer called? (3) Who is the payee?

REVIEW QUESTIONS.

(4) What is the difference between a negotiable and non-negotiable note ?

(5) Show the difference by writing specimens of each kind.

(6) What is a time note?

(7) How is a demand note written?
(8) When are each payable?

(9) How is an interest-bearing note written?

(10) A non-interest-bearing note?

(11) Explain the difference between the two, and show samples of each.

(12) Can interest be collected on a non-interest written time note? If so, when?

(13) What is meant by three days' grace? (14) What is meant by protesting a note? (15) When and for what purpose is a note protested?

(16) If one note is written on sixty days and another on two months, are they collectible the same day?

(17) Why not?

(18) Explain how the time is reckoned for each.

(19) Can a note be collected if it does not contain the words, "value received"?

(20) What may be necessary to make such a

collection if payment was refused on account of not containing "value received"?

(21) How long, in the New England states, will a note hold good, or collectible, without having any payment endorsed on it?

(22) To keep it good more than six years. after maturity, what must be done?

(23) How about the length of time a note or account in the other states is held good without any payment, or can be kept good?

(24) What words must be written in a time note to make it interest-bearing from date?

(25) If no rate of interest is mentioned in the note, what rate is collectible?

(26) For one to transfer a note to another what is necessary?

(27) By simply signing his name on the back of the note, what must he do if not paid by the maker?

(28) How can he endorse it without becoming responsible for its payment?

(29) When partial payments are made on a note, what should be done to show said payments?

(30) If Smith & Mankin wished to put the note in the bank for collection, what would they endorse on its back?

(31) What effect does the signature of a witness have on a note?

(32) How can a note be written so it can be paid at the will of the maker?

BANK CHECKS.

A check is an order on a bank, drawn for a sum of money, by a person who has or is supposed to have sufficient funds in the bank to pay the amount it specifies.

Checks are very convenient for business men, and hence are extensively used. A merchant in Boston orders of a firm in New York $500 worth of goods. Instead of spending the time to count out that worth of bills, silver, or gold, and send by express, he deposits the amount in a bank, and draws a check which he can send for its payment in a letter.

A large proportion of business men keep a deposit of money in banks, and give checks in payment for bills or debts as they need to draw for use. They find banks not only a safe place in which to keep their money, but a great convenience, as these checks are cashed by banks and persons in other places.

I. V. Jones & Co. of Portland, Me., owe M. Z. Simmons of Boston fifty dollars, for which amount they draw a check payable to Simmons, who, on its receipt, by writing his name on the back of it just the same as appears on its face, can take it to some bank or friend and get fifty dollars in money, or he can use it to pay debts with if he prefers.

Should he pass it to Harry Nelson, and Nelson to Thomas Higgs, each receiver should sign his name on its back before passing it to the next.

In case there are several endorsements on it, the last endorser is liable to the holder, the last endorser but one is liable to the endorser and holder, and so on back to each of the endorsers, each being responsible to the succeeding one.

If the maker of the check has not sufficient funds in the bank to cash it, and the bank refuses to do so, the drawer is held responsible for its payment.

If a check is drawn payable at a future date, it is not to be presented for payment until the expiration of the time specified.

Checks are supposed to be presented for payment as soon as received or soon after. If not presented in due time, and the bank or party sending it should fail, the holder sustains its loss.

They are usually written payable "to order," though are sometimes written payable "to bearer," if to be presented for immediate payment.

If one fears to carry much money on account of the risk of losing it, he can draw a check and have the cashier of the bank write on its face "good,” and affix his official signature, when the bank becomes responsible for its amount. It is then called a "certified" check. If stolen or lost, he looks to the bank for its payment.

Notes made and executed on Sunday are invalid, but a check so dated is not invalid. In some states, no defence can be made to such a note until the consideration is restored. Checks as well as bank bills are frequently required on Sunday for church work.

If a bank cashes a forged check, it loses the amount, and not the person whose name is forged.

No days of grace are allowed on checks, as they are usually an order for immediate payment.

A check may be signed with pen, pencil, or the mark.

In writing checks, drafts, orders, or notes, care should be taken to write the amount in figures close to the sign of dollars, and to draw heavy lines before and after the written amount, so as to prevent further insertions, as such papers without the lines are sometimes raised to larger sums. Thus, a check written for fifty dollars, might easily be changed to $150, if the space before the fifty was left vacant and there was room for the figure 1 between the sign and 50.

A check made payable to "self" requires the name on the back, the same as if payable to any one else.

In such papers, when the amount expressed in figures and writing disagree, the writing holds good. Be careful to make them agree.

A check if lost can be duplicated.

of the lost check may be stopped.

In such a case, notify the bank, so that payment

An authorized stamped endorsement is binding.

The one who makes and signs the check is called the drawer.

The bank on which it is drawn is called the drawee.

The person or the party to whom it is made payable is called the payee.

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By signing his name on the back of this check, Micah Hammond can step to the bank on which it is drawn, and receive the amount in money, if Ella P. Desmond has enough on deposit there; or he can write on its back "Pay to the order of" any one, and sign his name, in which case he becomes surety to the next holder if not paid by Desmond; or he can sign his name simply and transfer it, which is the more common way of endorsement. maker is responsible, he could draw it at any bank where he is known, or transfer it to any party by endorsing it. Write three checks payable to three of your mates or neighbors, and have them transferred to three different holders.

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By writing this check to Simmons or bearer, any one holding it can draw the amount, if known to the bank officials, or can be identified for them.Teachers should explain that "school currency or "school" is not used in bank business, and the reason why they are inserted in this practice; also why the lines are drawn before and after "thirty" and "thirty-five" in the first and second forms; also the difference between the written form of No. 1 and No. 2; that by endorsing "pay to the order of" makes it payable to the party only to whom Hammond ordered it paid; that had Henry James & Co. writ ten instead of "to Miera Z. Simmons or bearer" simply the word "bearer," it would be a negotiable check without endorsement; that had Ella P. Desmond wished to draw from her deposit in The School National Bank for personal use, she could have written in the check the word "myself" instead of "Micah Hammond," when it would read "pay to the order of myself.”- Write two such checks, and one payable to the bearer.

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