Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-05

From the A. s. and T. Co. Financial Review
Bank checks possess many advantages
for the conduct Of business, and are used
to a proportionately great extent They
are in nature but orders for the payment
of money, and are payable in the order in
which they are presen ted. not according to
that in which they are drawn. AS given in
the usual course of business, they do not
constitute payment Of the Indebtedness for
which they are given until paid Nor will
the concurrent receipting of the debts for
which they are given change this. II they
are not paid on proper presen tation, re-
The rule is hoWevep df n Dgh ia Claims.
spect as to certified checks. So the having
OF checks certified constitutes payment as
to the persons drawing them.
Checks should be dated. II not dated at
all, and they do not contain any statement
as to when they are to be paid they are
dated. as well as dated on the day of de-
livery. BY being ante-dated they may be
made to cover prior transactions and in a
measure determine the relative rights of
the parties to them, provided that no fraud
is intended or done. Post-dating in the
main determines date Of payment. When
they are payable on the following Monday.
Checks post-dated or maturing on legal
holidays should be presented the day fol
lowing. When post-dated checks are paid
before the dates mentioned the money
paid on them can be recovered II blanks
are left for the dates. the holders Of checks
dates OF delivery, but no other dates and
II they insert any other dates 1t makes the
checks void. Changing the date Of checks
without consent Of the drawers win do the
same.
The presumption is that when checks are
drawn funds will be provided at the banks
on which they are drawn to meet them: but
presentation for payment must be made
within reasonable time II not so pro-
scented the holders will be charged with any
consequent loss. Where persons receiving
checks and the banks on which they are
drawn are in the same place they should be
presented the same day. or. 1T the latest.
they are in different places the checks must
be mailed to some bank or person at the
place where payable before the close Of the
must present them before the close OF bank
Ing ing, hours on the day following the receipt
banks for collection.
After duly presenting checks Il IL also the
duty Of the holders. II they are not paid. to
next secular day following the presentation
and dishonor. No particular form of no.
tice Il required. 1t may be written or verb
al. The principal cases in which losses oc-
cur from failure to use due diligence in the
collection of checks are where the banks on
which they are drawn fail in che mean
time. II the banks continue solvent the
drawers will remain liable to pay their
checks for months at least after they ere
drawn Presentation and notice Of iishonor
will also be dispensed with where there are
no funds to pay checks. and where the
banks on which they are Drawn suspend
payment before they can be presented,
using proper diligence. After receiving
checks they must be presented for pay
ment. unless such presentation would be
useless before the original claims can he
sued on. for. by accepting checks. there is
an implied agreement to use that method
Of procuring the money for which they are
drawn
Where checks are negotiable and pass
by Endorsement or delivery, the same de-
gree of diligence will be required Of each
person to whom they are Endorsed, in order
to hold those indorsing them, as is requir-
ed of original payees to hold original
drawers of checks. But by putting checks
cannot be prolonged. They must be pre-
sented within the same time by indorsees
as by payees. Still where checks are pass
latter indorsers might be held where earlier
indorsers and the drawers would be releas-
ed, as by failure of the banks drawn upon
Signatures to checks may be written
be printed or stamped. Banks are only
required to see that the names Of the
drawers of checks correspond precisely
with those OF the persons to WHOSE credit
sign the checks of corporation will be de-
terrnned by the state laws, by the charters
bylaws: or by the usage of the particular
corporations. Every partner has the
right to sign his firms name to checks,
unless prohibited by its articles of co-part.
nership. So also can agents sign them
when given express or implied authority.
AS usually drawn. payable to certain per-
sons named or order. checks are negoti-
able A valuable consideration for them
will be presumed. They may be transferred
by. mere delivery. Defenses to them ex-
listing between first parties cannot be rails
ed against subsequent holders.