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presented to the maker in person to bind the indorser. It may be protested, as in the case of drafts, immediately on the close of bank hours. Payment must be immediately demanded of the indorser if he resides in the same place; if he is a non-resident he must be notified at once by letter.

Presentment Not Necessary to Render Maker Liable. -Presentment for payment is not required in order to charge the maker of a note.

Sundays and Holidays.- When the day of maturity falls upon Sunday or a legal holiday the note is payable on the next succeeding business day.

By Whom Demand May Be Made.—The holder of a note or any one acting for him may make the demand for payment and send notice of dishonor to the indorsers. Usually the holder or his agent notifies all the parties on the note. This is the most business-like, as well as the most prudent way, as it renders all parties responsible to him, and each responsible to each other in their order. Extending time of payment by the holder releases the indorsers of the note, unless consent to such extension has been given by the indorsers.

The finder of a note, as of all other property, must make reasonable efforts to find the owner, before he is entitled to appropriate it for his own purposes. If the finder conceal it, he is liable to the charge of larcency or theft.

Interest.-A note which does not state on its face that it bears interest, will bear interest only from maturity. If the words "with interest” are included in a note it draws the legal rate of interest from the date of making, but if the note is to draw a rate of interest higher than the legal, but not higher than the statute of the state allows, the rate of interest must be specified.

Death of a Holder.-After the death of a holder of a negotiable note, his executor or administrator may transfer it by his indorsement.

When Right of Action Expires. The statute of limitations begins to run from the day the right of action accrues. See Interest Laws and Statutes of Limitation. Checks.-A written order on a bank directing a certain amount of money to be paid to a person named, or to his order, or to him “or bearer," or simply to "bearer," is called a check. This is the simplest form of negotiable paper and requires no set form of wording; any intelligibly written demand, dated, made by a depositor, correctly signed, is a check and will draw the money.

Forged Checks.—A bank pays every check at its own risk, and in case of the payment of a forged check, must stand the loss.

Certified Check.--A check is said to be "certified" when it bears the signature of the cashier or other competent officer, together with the word "certified," thus signifying that the bank guarantees the check. The amount for which it is drawn is immediately deducted from the drawer's account.

"With Exchange."—Checks drawn with the words "with exchange" after the amount in writing are usually cashed without extra charge by the bank at which presented, the cost of collection being paid by the drawer. Banks usually discourage the use of these checks.

Kinds of Indorsement.--Following are the various kinds of indorsement: An indorsement in blank names no indorser, and is payable to bearer. A special in dorsement specifies the party whose indorsement is essential to the negotiability of the instrument. A restrictive indorsement is one designating one party and no other to whom the paper shall be paid, or one use to which it shall be put, as "Pay A only,” or “For deposit only in the Citizens' National Bank.” A qualified indorsement is one including the words “without recourse," or its equivalent, so limiting the usual liability of the indorser. A conditional indorsement is one directing payment contingent upon a certain occurrence.

Kinds of Drafts.-A sight draft is one drawn by one person on another and payable when presented or at sight. Time drafts are similar to sight drafts, but are drawn payable a certain number of days after presentation and require acceptance by the party against whom they are drawn. Such draft must be accepted by the drawee who signs his name across the face, accompanied by the word "accepted,” thus making it the same to all intents and purposes as a promissory note. It matures so many days after acceptance, not after the date on which it is drawn. A bank draft is the order of one bank to pay a certain person a given sum, and is the most convenient method of transferring money.

PARTNERSHIP Nature and Formation. A partnership is the contract relation subsisting between persons who have combined their property, labor or skill in a lawful enterprise or business for their common profit. The partners make up the firm which is commonly held to be an entity the same as a corporation, though the law generally regards the partners as joint owners of the firm property.

Kinds of Partnership. A general partnership is one in which the parties thereto agree to enter into a spe cified business, no limitations or conditions being fixed. A special or limited partnership is one in which there may be general partners with unlimited liability and special partners whose liability is limited upon the compliance with certain requirements.

Kinds of Partners.-An ostensible partner is one who is known to the world as such. A secret partner is one who is not openly or generally so declared. He is not liable for debts contracted after his retirement, although he has given no notice of the same. A dormant or silent partner is one who takes no part in the transaction or control of the business, but shares in the profits and losses according to certain agreements. A nominal partner is held out to the world as such without actually participating in the profits and losses of the business.

Formation of Partnerships.-All persons who are legally competent to do business for themselves may enter into partnership which may be formed by a mere verbal agreement and stand in law, but a written agreement is the one to be preferred. The parties may agree as they please as to sharing profits or losses, but in the absence of writing to prove the contrary the law

will assume that partners share profits and losses equally. The articles of agreement should be drawn up with special care in writing the details of conditions, liabilities and proportionate share of profits or loss fully stated.

How Soon a Partnership is in Force.-It is presumed that a partnership commenced at the time the articles of copartnership are drawn unless otherwise stated.

Use of Name in Partnership.-When a partner withdraws from a firm, but allows his name to be used as before, or if one lends his name to a firm, in either case he is held responsible to third persons as a partner.

Suing Partners.—It is generally supposed that one partner cannot sue another. This is not wholly true. A partner can sue for a balance due him after settlement of general accounts or for a balance due him on some specific account. It is, however, best to appeal to a court of equity, for that court can do for partnership what the law cannot do.

DISSOLUTION OF PARTNERSHIP. A partnership may be dissolved by mutual consent, by expiration of predetermined time, by death of one of the partners, by insanity, by the bankruptcy of either partner, or by the court for any good cause, such as dishonesty of one partner against the rest, or incapacity caused by habitual drunkenness or conviction of any crime. A partner may withdraw at any time if no time for the continuation of the partnership is mentioned in the articles of agreement, but he must give due notice of his intention to the other partners. If the time for the continuance of the partnership is mentioned, a partner can nevertheless withdraw at any time, but he is responsible to the firm for damages caused by the breach of his promise. If a partner dies the surviving partners alone have the right to settle up the business. To his heirs and legal representatives they need only to render an account of the business.

Notice to be Given.-Upon the dissolution of a partnership by mutual consent it should be indorsed on the articles of copartnership and a notice given in some prominent newspaper. Special notice should also be sent to each one of the creditors of the firm.

Authority of Partners.-As a general rule the whole firm and each member of it is bound by the acts and contracts of one partner, because in law the act or contract of one is regarded as the act of all. Each is regarded as the agent of all without any express authority being given. Thus, loans, purchases, sales, assignments, pledges, or mortgages effected by one partner on the partnership account, and with good faith in the third party, are binding on all the firm. So is also release by one a release; notice to one is notice to all; demand of one is demand of all. In matters, however, not connected with the partnership, but intended for his own personal interests, the firm is not bound.

Liability of the Several Partners. For the payment of partnership debts the property of the firm, both real and personal, as also that of each individual partner, is held responsible for amount of the unpaid partnership debt.

Individual Debts of Partners.--A partner having individual debts makes the firm liable for such debts for his interest in the firm after the firm debts are deducted, the firm liabilities always having precedence.

Liabilities of a New Partner.-A new partner entering a firm cannot be held for firm debts contracted preyious to his admission.

Sale of Partner's interest.-An assignment of interest by one partner must be assented to by the other partner or partners.


A bank is an institution organized for the purpose of receiving deposits of money, making loans, discounting paper, making collections, and effecting the transmission of money from one place to another.

Different Classes of Banks.-Banks are divided generally to five classes: Banks of deposit, of discount, of circulation, of exchange, and savings banks. Banks of deposit receive money to keep for the depositor until

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