This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 577.— A note is discounted by a bank for a customer who endorses it, waiving protest, notice and demand of payment. There is a prior endorser on the note. The bank did not protest the note at maturity, and the first endorser was released. Is its claim against its customer good ? He alleges that notwithstanding his waiver the bank should have protested the bill in order that he might not lose his recourse against the prior endorser, and that he is discharged by their neglect to do this.
Answer.—The customer by his waiver made himself liable to pay the note in the event of its dishonour without any conditions whatever, and this liability is not impaired in any way by the fact that the prior endorser has been discharged.