Question 379. - A makes a cheque payable to the order of B, who, in turn, endorses it in blank and turns it over to C. The cheque is lost, and found by an irresponsible party who cashes it at a; local store. In the meantime, A had been advised of the loss of the cheque and had stopped payment. We hold that the cheque became a bearer one when B endorsed it, and that therefore A should remove the stop payment and C should bear the loss. Will you kindly submit your opinion?

Answer. - If the local storekeeper is an innocent holder for value he can recover from A. The bank's duty is to its customer only and, having refused payment under his instructions, it has no further responsibility and should let the parties settle it among themselves. A can safely remove the interdiction if assured that the funds will come into the hands of an innocent holder for value and he could probably be compelled to do so by process of law.