Lower coast gazette., 1913-06-21

AS we HOtlceu III Tie Case VI John McOee anu
Warren Gordonfi if the check is not presented
within this time, and the bank fails, the loss
must fall upon the person who failed to pre-
sent it. But if the depositor suffer no loss be-
cause of the delay in presenting the check he
cannot escape liability if it is dishonored. Thus
if Warren Gordon had carelessly kept, McGee's
check for several days before presenting it for
payment and in the meantime MCGEE had with
drawn his account from the bank, there being
no failure, MCGEE would have been bound to see
that Gordon received the amount Of the check.
If a check is received drawn upon a bank in
another city, it cannot of course, be presented
for payment on that or the next business day,
so it is sufficient if the check is put in course of
collection on the business day following it's re-
ceipt. One should be as prompt in giving notice
to the drawer of the refusal of the bank to pay
a check as to put it in course of collection.
A check that is drawn payable to Bearer"
may be transferred simply by delivery, hand,
ing it from one to another. If the check is
drawn payable to John jones'" John Jones
may transfer it by endorsement-that is, by
writing his name on the back. If he endorses
in blank he simply writes his name John
Jones' across the end of the back of the check,
when it is payable to anyone who may hold it.
If John Jones should write, "Pay to the order
of Sam Smith, John JONES'" Sam Smith alone
would then have the right to present it for pay
ment, or transfer it by further Endorsement.
TLo h1op1, o~Ioroor,or+ of 4ho nrc p~ooor+
ing the check at the bank is, Of course, sufficient
to transfer the legal rights in the check to the
bank.
One who takes a check from another usually
required that he indorse it even though it be
already indorsed in blank or payable to bearer.
This is because the person who indorses a check
to another is understood in law to make GER
tain promises to the person to whom he in
dorses the check even though he does nothing
further than white his nam on the check. The
indorser engages that when the check is prop
erly presented at the bank it will be paid,
and if it is not paid and notice is given to him
he will pay the amount to the person to whom
he transferred the check or any other who may
subsequently, LCCClVC IL NY pAOpSA lAOOAoOAAAOAlGs
Thus when you indorse a check you make that
promise to all future holders of the check. If
you are compelled to make it good-you may have
recourse in turning against those who trans
|. ferred the check to you, and whose names ap-
pear on the back as indorsers, or on the face
as signers.
While a man owes a duty to depositor to pay
his proper check drawn against an adequate de-
post, the banker is not bound to pay any check
as against a holder of it. The rights of the
holder are against the signer Of the check, and
those who transferred it to him. But if a
bank certifes a check, it becomes bound to
pay it to a proper holder. Certification Of a
check is secured by presenting it to the cashier
Of the bank against which it is drawn. Upon
determining that the signer has funds sufficient
to cover the check on deposit, and seeing to it
that they are set aside for that purpose, the
cashier marks Certified" across the face of
the check and adds his official signature,
Funds to cover this check are then withdrawn
from the control Of the depositor who signed
the check and he may not stop payment of it,
or withdraw the funds to cover it. The bank
becomes absolutely bound to pay it, and the
check is as good as the bank. Usually the per-
son who signs a check has it certified in order
that one to whom he would give it in payment
Of an obligation will be more ready to receive
it. His liabilities on the check remain the same
if he has it certified. But if one who holds
the. check, other than the person who drew it,
has it certified, he then in effect says that ne
chooses to look to the bank for: payment Of the
check, and the depositor who signed it and all
who endorsed it before him are relieved from
their liabilities, the bank alone becoming liable
to the holder.
If an ordinary check comes to you the safe
procedure is to either present it to the bank on
which it is drawn and secure the cash, or to de-
post it in your own bank for collection and do
this within twenty-four hours after it is re.
ceived, or at least on the next business day. 1t
may seem Immediately convenient to turn an
others check over to a third party, but II you
49,