Indorsement by executors or administrators answers the same purpose as an indorsement by the deceased.

13. Bankruptcy of Acceptor.

When an acceptor becomes bankrupt, the holder can claim a dividend under the commission; for, on being made bankrupt, the acceptor is discharged by the law. Upon the same principle, the acceptor, being discharged at the suit of the indorsee, under the Insolvent Act, the indorsee has his remedy against the drawer. Where the holder agrees to a composition, the indorsers are discharged.

14. Statute of Limitation as affecting Bills of Exchange.

The Statute of Limitation does not destroy the debt, but only bars the remedy. The period beyond which no action can be brought is six years. As regards bills of exchange, the limitation dates from the time the bill falls due. When a bill is on demand, it is supposed to be payable immediately; therefore, the statute runs from the date of the instrument. If the person against whom an action was brought were beyond the reach of the law-as, for instance, an infant, a person imprisoned, or out of the country, etc. - the Statute of Limitation would date from the time such person became amenable to the law. A foreign statute of limitations is no defence in an English court in an action on a foreign contract, as the statute affects the remedy and not the construction of the contract. When the holder of a bill has allowed the Statute of Limitation to run out, and transfers it, the transferee is debarred from bringing an action; for he, being the transferee of an overdue bill, stands in no better position than the transferor. When a bill is made payable by instalments, in case of default of any one instalment, the statute dates from the first default against the whole amount. An action brought by an administrator on a bill would commence from the date the letters of administration were granted, and not from the time when the bill fell due. A note (say thirty days after sight) is not open to an action until the expiration of that period after the exhibition to the maker; but on a 'demand' note the statute would run from the date of the instrument, in the same way as with a bill.

It must be remembered that an acknowledgment will bar the Statute of Limitations; that is to say, the six years begin to run from the date of such acknowledgment.

15. Payment.

Payment must be made to the rightful holder, as payment to any other person does not discharge the acceptor. In the case of a banker crediting his customer with an immature bill, which on its arrival at maturity is dishonoured and not returned to the customer, the banker renders himself liable for the sum, as he not only credited his client with the amount, but gave him to understand that it was paid. There are, however, instances in which payment to a wrongful holder is protected; where, for example, a bill or note is made payable to bearer, or becomes so by an indorsement in blank, a bond fide holder may demand payment, and the payment is protected, provided there are no indications of carelessness on the part of the banker, and no circumstances to arouse suspicion; for the law, as a general rule, decrees that, when one of two innocent persons suffers at the hands of a third, the one causing the loss must sustain it. As regards bills of exchange and notes, the law in respect of forged indorsements steps in in favour of the public, and with cheques in favour of the banker. A bill or note, not payable to bearer, but transferable by indorsement-a transfer taking place by forged indorsement, the payer is liable. A bill is not finally discharged until paid by, or on behalf of the acceptor; and a note by, or on behalf of the maker. It was held formerly that part payment by the drawer was a partial discharge to the acceptor, but it is now decided that payment by the drawer is no plea, but simply converts the holder into a trustee for the drawer, when the holder afterwards recovers of the acceptor. Payment by the drawer of an accommodation bill is a complete discharge. A bill made payable by the acceptor at his bankers, and taken up by a stranger, the stranger thereby obtaining possession, is not a payment by the acceptor. A bill paid before it is due, and afterwards negotiated by a bona fide indorsement is a valid security. It is held that payment of a bill before it is due does not extinguish, as regards the antecedent parties, any more than if it were discounted, as the difficulty of ascertaining whether an anticipated payment had been made would considerably interfere with the circulation of bills and notes. The payer of a bill can demand its delivery to him; if not paid the holder should keep possession. An agent, however, is justified, according to accepted practice, in delivering up the bill on receipt of a cheque, even though the cheque be dishonoured. The drawers or indorsers in such a case would be discharged, they having the right to insist on the delivery of the bill into their hands on payment being made by them. The customary practice among bankers is, on receipt of a cheque in payment, to attach it to the bill, so that, in case the cheque is dishonoured, the banker retains possession of the bill. Credit given to the holder of a bill by the person ultimately liable is considered equivalent to payment. When a banker makes advances on a promissory note received from a customer and is surety to cover a running balance, the note is not discharged by sums subsequently repaid and not appropriated to the discharge of the note, but it still continues as a security for the existing balance. A receipt on the back of a bill is prima facie evidence of payment by the acceptor; and, on paying a bill; a receipt can be demanded, and should always be taken. If a drawee discover on the same day that payment was made, that the bill or note was a forgery, he can, as a rule, recover the money. If a bill be paid with the understanding that the payer is to have possession of the instrument, and it is afterwards withheld, an action may be brought to retract the payment; also, an indorser may sue if he has been induced by fraud to pay a bill on behalf of the person liable. Care should be taken in paying bills to see that all is right previous to cancellation, as this is considered to extinguish the instrument. The payment of a bill to a person declared a bankrupt is unsafe, inasmuch as the bankrupt's property vests in the assignees, from whom alone a valid discharge can be obtained. If partial payment has been received from the acceptor at maturity, the holder can recover only the balance. Payment of a lost bill may be obtained by giving a satisfactory indemnity to the court. A renewal bill being dishonoured, an action may be brought on the original.