Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1913-08-08
Popular Talks on Law


latest. AS we noticed in the case of
John MCGEE and Warren Gordon, if
the check is not presented within
this time, and the bank fails, the
loss must fall upon the person who
failed to present it. But if the depOs-
itor suffers no loss because of the
delay in presenting the check he can
ored Thus if Warren Gordon had
carelessly kept McGee's check sew
eral days before presenting it for
payment and in the meantime MCGEE
had withdrawn his account from the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
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 receipt. One should
be as prompt in giving notice to the
drawer of the refusal of the bank to
pay check as to put it in course of
collection.
A check that is drawn payable to
Bearer" may be transferred simply
| by delivery, handing it from one to
another. If the check is drawn pay
able to John JONES'" John Jones
may transfer it by indorsement-tha
| is, by writing his name on the back.
| If he indOrses 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
Smith, John jones'" Sam Smith
| alone would then have the right to
present it for payment or transfer
it by further Endorsement The blank
Endorsement of the person present
ing the check at the bank is, Of
course, sufficient to transfer the le-
gal rights in the check to the bank.
One who takes a check from an
other usually requires that he indorse
in blank or payable to bearer This
is because the person who indOrSes
a check to another is understood in
law to make certain promises to the
person to whom he indoors, the check
even though he does nothing further
than write his name on the check.
The indOrser engages that when the
check is properly presented at the
bank it will be paid, and if it is not
will pay the amount to the person
to whom he transferred the check
or any other who may subsequently
receive it by proper Endorsement.
Thus when you indorse a check you
make that promise to all future hold
erS OF the check. Ii you are COM
PEELED to make it good you may have
recourse in turning against those who
transferred the check to you and
whose names appear on the back as
endorsers, or on the face as signers.
While the bank owes a duty to de-
positor to pay his proper check drawn
against an adequate deposit, 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
certifies a check it becomes bound
to pay it to a proper holder. Cert
fication of a cheek is secured by pre-
senting it to the cashier of the bank
against which it is drawn Upon de-
termining that the signer has funds
sufficient to cover the check on de-
post, and seeing to 1t that they are
set aside for that purpose, the cash
IGF MARKS C6rLIIl0u ACROSS luo lace
| of the check and adds his official
signature. The funds to cover the
check are then withdrawn from the
control of the depositor who signed
the check and he may not stop pay
ment of it, or withdraw the funds to
cover it. The bank becomes abso-
lutely bound to nay it, and the check
| is as good as the bank. Usually the
person who signs a check has it GER
titled in order that one to whom he
would give 1t in payment of an obli-
cation 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
he chooses to look to the bank for
payment of the check, and the depos-
itor who signed 1t and all who
indorsed it before him are relieved
from their liabilities, the bank alone