important in determining. Generally, however, the rule is, that it must be within a reasonable time. A reasonable time will differ from twenty-four hours to a week or month, depending on circumstances.

Certification of Check.

Certification of a

check is equivalent to the acceptance of a bill or draft. By it the bank promises to pay the same upon presentation for payment within a reasonable time.

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Mode. No special manner of accepting or certifying is necessary. Usually, however, the bank will write the certification upon the face of the check: as "Accepted," or "Certified for payment," or Good," and signed by the initials or name of the officer certifying. It has been held that a verbal acceptance was good, but not when the drawer had no funds available. So, too, an acceptance by telegraph is good. Under such circumstances, the check must be properly described, so as to identify it. Acceptances have been implied from the acts of the bank, but oral or implied acceptances will not obtain to-day in the face of the Negotiable Instruments Law, which requires acceptances to be in writing.

Who May Certify. Any officer of the bank may be authorized to certify checks. It is usual for the cashier or teller to do so. If such agent transcends his authority, and certifies checks where the drawer has no funds, the bank is responsible, and has no relief as against an innocent holder for value.

By this

certification, the bank represents that the signature of the drawer is genuine, that the drawer has funds in the bank sufficient to pay the check, that it will retain the said funds and pay them to the holder. The bank has knowledge of all this, and can not avoid its responsibility because of its own or its agents' carelessness. Under such circumstances, if the signature of the drawer is forged, the bank is liable. But the bank does not admit the genuineness of any indoresement. If a check is raised before presentation, and unknown to the bank, and the raised amount paid by the bank, the bank is liable unless it can be shown that the drawer has been negligent in filling up the check, leaving blank space, etc.

Position of the Parties. When a check is certified by a bank, the drawer is released, and the bank becomes liable, because by this process the bank assumes the liability previously held by the drawer. This is true when the indorser or holder has the check certified, but is not true when the drawer himself has his own check certified. Under such circumstances, the drawer is not discharged. The only effect of certification in such a case is to give the check additional strength by carrying with it evidence as to good faith, and sufficient funds to meet it when presented for payment.

Indorsers. Where the holder gets the check certified, all indorsers are discharged; but this is not true when the drawer himself has it certified.

Payment. Checks are to be paid in the order of their presentment. Priority as to time of drawing amounts to nothing so far as the bank is concerned. Where a bank by mistake pays a sum in excess of the amount of the check presented, it may recover from the person receiving the overpayment. But a payee is not responsible to a bank if, without fraud on his part, he has received the amount of a check, and it turns out there were no fundsor the bank had paid under mistake.

Liability of a Bank to a Depositor. The relation between a bank and a depositor is one of debtor and creditor. The bank agrees with the depositor that in consideration of the deposit it will pay all demands made by the drawer, upon being duly presented, and there being sufficient funds to meet the same. If the bank fails to do this, then the depositor has a right of action against the bank; and his nieasure of damages will generally be the loss he has sustained by such refusal. If he can show no actual loss, the cases seem to indicate that moderate damages will be granted. It is submitted that the contrary doctrine is the more equitable one, and that no actual damages should be allowed unless actual loss is shown.

The Bank and the Holder. The weight of authority is in favor of the position that the bank and the holder have nothing in common -in other words, the bank's contract is with the depositor, and not the holder. Under such

circumstances, the holder of a check has no cause of action against the bank for refusing to honor a check, unless the bank has previously certified or accepted the check for payment. A check (unless certified) does not operate as an assignment of any part of the funds of the drawer, and the bank is not liable to the holder. (Sec. 325.)

Forged Checks. The contract between the bank and the depositor is such that, if a bank pays out money on a forged check, the bank must bear the loss, and not the depositor, unless the forgery can be traced to the neglect or fault of the drawer. The bank is bound to know the signature of the depositor; and if it pays out money on a forged instrument in the hands of an innocent purchaser for value, it can not recover the money so paid, nor can it be charged to the depositor. The bank must bear the loss. In case a check is "raised," the bank can hold the drawer only for the original amount, unless negligence can be shown in the drawer.

Revocation. The drawer has the right to recall, or countermand, the payment of a check before it is paid; but he has no right to recall the check after it has been paid to one who took it in good faith and for value, nor can the bank do this for him.

Pass Book. The general rule seems to be that it is the duty of every depositor, when his pass book has been balanced and returned to him, to examine with due diligence the pass

book and vouchers, and report without unreasonable delay any errors which may be discovered in them. If he fails to do so, he can not afterward dispute the correctness of the pass book. This is important if money has been paid out on a forged check. There is good reason to state that this is not the law in all States, especially in New York, where no such duty seems to be thrust upon the depositor.

BONDS

A bond is an obligation in writing and under seal binding the obligor to pay a sum of money to the obligee. Many forms of bonds obtain in this country, but we are interested only in those which are common to the commercial world; and which, by the usage and custom of commerce, have come to be regarded as negotiable securities. This bond has received many names, and is, perhaps, best designated by the words coupon bond. Such a bond is an obligation in the nature of a promissory note, in which the obligors promise to pay a sum of money at a fixed time in the future, to which is attached certain other obligations called coupons, which call for the payment of the installments of interest on the principal debt as they fall due. These coupons are severed from the bond at the time the installment of interest which they represent becomes due; and, when so severed, pass as independent instruments.

Form. No certain form is necessary to con