Question 296.— A cheque is payable to the order of the "Metropolitan Polo Club" (an incorporated company). Would it be in order, under the Rules respecting Endorsements, if it were endorsed simply "The Metropolitan Polo Club " with a stamp, or should the name of someone acting on behalf of the club be added? It has been said that the simple endorsement is sufficient under Article No. 1, but under the third clause of Article No. 2 it is provided that where an endorsement purports to be that of an incorporation the official position of the person or persons signing must be stated.

Answer.—An endorsement reading simply " The Metropolitan Polo Club " would, if put on with proper authority, be a valid endorsement apart from the rules, but the provision in Article No. 2 referred to was deliberately adopted as tending to protect banks from irregularities in the matter of endorsements, and such an endorsement would not be regular under the rules. The name of the officer may be written or stamped, but in order that the endorsement may be regular it is necessary that the name of the proper officer should be added.

The paying bank is entitled under the rules to a guarantee of an endorsement such as that quoted.