This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 600.— A bank has made advances for which it holds security, under section 74, on logs on the banks of a certain river within a defined timber limit. The logs have to be removed in the spring. Should the bank at the time of making the loan take a written promise to give security on the logs when they have been moved down the river, or will it be sufficient to have an endorsement on the original security to the effect that the logs therein described are now in a certain boom and held to the order of the bank?
Answer.—The bank's rights to hold the logs as security is not affected by their removal, and no other or further security is necessary. A statement to the effect that the logs are now stored in a certain boom might be useful as evidence, but other credible evidence would serve as well. We do not think that any statement of the kind should be endorsed on the security itself; the less that is interfered with the better. It should be borne in mind that the original description must be of such a nature as to enable the bank to identify the logs, even although their location should be changed, and if any change takes place in the location of the logs the bank should be put in possession of evidence of the change.