Question 34. - A bill of exchange is drawn "........on arrival of goods, etc." This is not a bill of exchange under the terms of the Bills of Exchange Act. Is a bank running any risk in accepting this instrument (a) for collection, (b) for discount? Can it be protested? Is protest necessary to hold the endorser?

Answer. - The bank runs no risk in receiving this instrument for collection. The bank does run a substantial risk if it discounts the instrument, because if the goods were destroyed in transit the bank could not hold the acceptor and claim payment from him. Such an instrument not being a bill of exchange, cannot be transferred so as to give the trans-feree a better title than his transferor, and is not protectable within the meaning of the Bills of Exchange Act.