terest only when so stated. If "with interest" is included, the legal rate is meant. Any rate not contrary to law may be agreed upon. If the paper is silent as to the place of payment, it is the duty of the debtor, the maker, to seek the creditor and tender payment. If tender is not made at maturity, interest will begin.

175. Accommodation Notes. A may desire to accommodate B by the loan of a certain sum of money but may not have the ready funds. His credit at the bank however, may be good, so he gives B his note for which no value is given. B now presents the note at the bank for discount and is accommodated with the use of the money. He is supposed to pay the note when it falls due; if he does not, the maker is liable for its payment. Had B held the note until due, he could not collect, for there was no consideration. A partner cannot bind the firm by an accommodation indorsement. An accommodation instrument in the hands of the accommodated party may be recalled by the maker at any time before the instrument is put in circulation.

176. Judgment Notes. A judgment note is an ordinary note to which is added a power of attorney enabling the holder

to have judgment entered without the initiatory steps of serving a summons and having a trial. To the power of attorney is generally added waiver of homestead exemption, and, commonly, a stipulated sum as attorney's fees is named. The advantages of such a note are all in favor of the holder. The judgment clause facilitates collection. Judgment notes are negotiable instruments.

177. Collateral Notes. This is also an ordinary note to which is added a certificate stating that the maker has deposited with the payee certain collateral securities, together with certain rights as incident thereto. It is a quick and safe way to realize ready money. For example, A desires to borrow from a bank five thousand dollars, and to that end deposits with the bank, say, five or six United States bonds of one thousand dollars each

Three months

Bankers Trust Co.

Onethousand

Dayton 0 May 16 1909
I

after date

at their office in 100 Erie St

ана порше

for value received, with interest at the rate of a...per cent per annum, after maturity until paid

promise to pay to the order of

Dollars,

I

have transferred and delivered to said Bankers Trust Co.

Bankers Trust Co_as Collateral security, for the

payment of this and of any other liabilities of the undersigned to said payee, due or to become que, or that may hereafter be contracted, the following property, value of which is.

Swerved fundred fifty and my,com Dollars viz.: Fris shares First mortgage Guarantee and Trust Co One bond ($500) Hamilton Club Chicage dee.

And the undersigned hereby give the said payee and assigns authority to sell the said property, or any part thereof, or any substitutes therefor, and all additions thereto, on the maturity of the above note, or any time thereafter, or before, in the event of the said security depreciating in value, at any public or private sale, without advertising the same, or demanding payment or giving notice, with the right. to said payee and assigns themselves to be the purchasers, when sale is made at any brokers' board or public sale. And after deducting all costs and expenses, to apply the residue to the payment of any, either or all liabilities as aforesaid, as said payee or assigns shall elect, returning the overplus to the undersigned; and in case the proceeds of the sale of said property shall not cover the principal, interest and expenses, the undersigned engages to pay the deficiency forthwith after such sale, with legal infeest.

as security, together with his own note for the amount borrowed. The bank is abundantly secured and A is not obliged to sell his bonds to realize the necessary money. The certificate usually gives the holder the right to sell the securities in case the principal obligation is not paid. It is a negotiable instrument.

178. Maturity. The maturity of a note is usually a cerain time from the date of the note. The maturity may be stated n lieu of time: as, "On Nov. 1, 1904, I promise to pay." If the >aper reads "On or before" a certain time, it is optional with the naker to make prior payment, but it becomes absolutely due at he designated time of maturity. If no time is stated, the note s due and payable on demand.

179. Interest. A note is a written contract and is affected nly by the terms clearly stated. If no mention is made of inerest, it is non-interest bearing. In order to draw interest, it must be so stated; as "with interest at 6%," "with interest," with use." All notes draw interest after maturity whether so tated or not. Interest would begin at that date even though the ote reads "without interest

180. Where Payable. The note given at the beginning of he chapter is non-interest bearing. It is the duty of Shaw to nd the holder and tender payment. If he fails to do so, interest t the legal rate commences. If a place of payment is named, the ender must be made at that place.

What is the difference
What are the general

What is a note? Name and define the parties. etween a "joint" and a "joint and several" note? ovisions relating to notes? Explain by illustration an accommodation

ɔte.

What features added to an ordinary note will make it a judgment >te? What is a collateral note, and explain how used? How is the aturity of a note determined? When does a note draw interest?

1. In S v. C, 254 Ill. 185, a note, executed without consideration, nder an agreement that the maker should never be required to pay, not enforceable by the payee.

2. In C v. O, 151 S. W. 403 (Ky.), a note given for money adinced to pay candidate's election expenses under an agreement that it

would be void if the payee was employed as attorney by a person appointed by such candidate, held void because based on an illegal consideration.

3. In A v. R, 126 P 1048 (Ill.), where it is shown that a note was procured by fraud, and was without consideration, the burden shifts to plaintiff to show that the note was purchased in due course for a valuable consideration, and without notice of fraud.

4. In D v. H, 60 So. 303 (Ala.), a written instrument, whereby the maker promised to pay a certain sum in money at his option before his death or to be collected from his estate thereafter, is not invalid as a testamentary instrument or a promise to make a future gift, but is a good promissory note.

5. In Y v. H, 99 N. E. 327 (Mass.), a note, as between the parties, takes effect only on its unconditional delivery.

6. In W v. E, 75 S. E. 989 (Ga.), on the sale of a negotiable note by a trustee in bankruptcy after its indorsement by the payee, it is not necessary, in order to pass title, for the trustee to indorse the note; mere delivery being sufficient.

In A v. S, 138 N. Y. S 237 (N. Y.), the rule that a bank undertaking to collect a note for a depositor must accept in payment only legal money, is subject to a contrary custom which is known to depositors or so common as to raise the presumption of knowledge. A bank, receiving a note for collection for a depositor, and accepting an acceptance of another bank at which the maker had sufficient funds, must, to escape liability, prove it to be the established custom, known to depositors, to accept in payment such acceptance.