This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 432.— A bank has discounted for a firm a note made by the individual partners and endorsed by the firm. The firm and the individual partners subsequently make assignments under the Ontario Statute in that behalf.
1. Will the bank's claim rank on the separate estate of the partners in preference to the other creditors of the firm holding the firm's name only?
2. Would the position be the same if the bank held the firm's note guaranteed by the individual partners?
Answer.—1. Yes. 2. The same results would follow in this ease.