The Western news., 1903-07-22
BANK CHECK RULES.
Simple Formulas That Should Be
Observed by Drawess.
Omission of a Slight Detail May Cause
Great Trouble and LOss-ImpOr-
tant Information for Those
In business.


vantages for the conduct Of bushes: |
and are used to proportionately |
great extent. They are in nature but
orCers for the payment of money
and are payable in the order in which !
they are presented. A. given in the
usual course Of business they do not
cons titute payment of the indebted
ness for which they are given until
paid. Nor will the concurrent re-
ceip,ing of the debts for which they
are given change this. If they are not
paid on proper presentation resort
may be had to the original claims
The rule is different in this respect as
to certified checks. So the having of the
checks cert, flied constitutes payment
as to the persons drawing them, says
the National Banker.
Checks should be dated. If nn>
dated al all and they do not contain
any statement as to when they are I"
be paid ii e.y are never payable. TL.5~
may be ante or post ated 'as we'll as
dated on the day OF delivery. BY be
ing antedated they may be made to
cover PRIOR transactions and in
measure t.t ,rmine the relative right
of tie parties to them, praviGed 1hai
no frame j. intended or done. Post
dating in | e main determines the date
of raNn ut
w! en- 9os tdated so as to fall due on
SUNDAY. ey are payable on the fol-
lowing n May. Checks postdated or
maturing II legal holi, ays should be
Il ipr
postGated checks are paiG before the
dates mentioned the money paid on
them can Ie recovered. If blanks are
left for tie date the holders Of checks
are thereby authorized to insert the
true dates of delivery, but no other
dates, an& if they insert any other
date it makes the checks void. Chang
ing the date of checks without con-
sent of the ,.uawers will do the same.
The presumption is that when
checks are drawn funds will be pro-
vided at the banks on which they are
drawn to meet them, but presenta-
ton for pa, ment must be made with
in a reasonable time. If not 50 pre-
sented the holders will be charged
with any equent loss. When per.
sons receiving checks and the banks
on which t ey are drawn are i'll the
same place. they should be presented
the sane Cay or at the latest the day
after they are received
After duly presenting checks it il
also the duty of tie holder, if they
are not paid, to notify the drawers be-
fore the close of the next secular day
following the presentation and dis
honor. No particular form of notice
is required. 1t may be written or
verbal.
The principal case in which losses
occur from failure to use due diligence
in the collection of checks is where
the banks on which they are drawn
fail in the meantime. If the banks
continue solvent the drawers will re-
man liable to pay their checks for
months at least after they are drawn
Presentation and notice of dishonor
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 dill
must be presented for payment, unles.
such presentation would be useless be
fore the original claims ca be sued on
for, by accepting checks, there is al
implied agreement to use that methoe
of procuring the money for which they
are drawn.
When checks are negotiable ani
naSs nv ind0raeme emf Or deliverv thl
same degree Of diligence will be ~
quired of each person to whom they
are Endorsed, in order to hold those in
dorking them. as is required Of origins
payees to hold original drawers Of
checks. But by putting check. in cir
culation the liability of the drawer,
cannot BE- prolonged. They must b
presented within the same time by In
dorsess a. by payees.