This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 449.— A bank discounted for the promissor a note with three endorsers (accommodation). When this note becomes due the bank receive through the mails a note stated to bo a renewal note, but from which the signature of one endorser is absent. If the bank put this through (considering the signature of the missing endorser of little financial value), could the remaining endorsers claim release on the grounds that the bank had released without notice to them some of the security to the said note?
Answer.—Unless the bank had knowledge of an agreement between the endorsers that all were to join in the renewal, we think that the bank would be a holder in due course of the renewal note and entitled to recover.