Question 162.— Is it obligatory upon a bank to pay a cheque upon presentation, when upon face of same a proviso making it mature fifteen years after date appears? Could such cheque be looked upon as a demand item, and if refused by the bank upon which it is drawn, could it be legally protested ? I am assuming that the cheque is presented for payment sometime between the date of same and date of maturity according to proviso.

Answer.—Such a cheque as described is in effect a bill of exchange, payable after a certain date, and it is not only not obligatory on the bank to pay it before maturity, but if it did so it would incur a serious risk. If, for instance, before its maturity the drawer were to stop payment, the bank would have no claim on the endorser, because the negotiation of a bill of exchange to the drawee kills remedies of that kind, and it would have no claim on the drawer, as he has a perfect right to countermand his order to pay before it has been acted upon. The bank might acquire any claim, which, as between the drawer and payee, the latter might have had on the countermanded cheque, but this, as we have said in our note on " Post-dated cheques," p. 3, vol. Q, would be a very doubtful and shadowy claim.

Cheque Payable only on Personal Endorsement of