95. M desiring to remember P after his death, gives P a note to P's order. P sells it to H who knows nothing of its origin. P dies and the note is presented for payment. If H is a holder in due course is the defense of no consideration good? If H is not a holder in due course?

96. P succeeds in selling real estate to M by false statements as to its productivity. Is the defense good against H, a holder in due course ?

97. Is duress a real or personal defense?

98. It is made illegal for a bank to issue a certificate of deposit unless there are funds represented thereby received by the bank. A bank issues a certificate to A who has deposited no money. A sells to II, a holder in due course. The bank claims the certificate is void in any one's hands. What would you say?

99. A treasurer had authority to bind a corporation by giving its notes for proper corporate purposes. He borrowed money for personal purposes from P, as P knew and gave the corporation's note. P sold to H, a holder in due course. The corporation defends that P had no authority to issue such a note. Is the corporation bound on this note?

100. What is the rule as to liability of partners to a holder in due course upon commercial paper issued in the firm's name by one partner for improper partnership purposes?

101. M, a minor, gives his note to P. P sells to H, who does not know M, but is told by H that M is of legal age. Can M defend against H, a holder in due course?

102. Is forgery a real defense?

103. In what way may a negotiable instrument be materially altered ?

104. Is material alteration a real or personal defense?

105. M wrote a note to order of P, leaving blank spaces before the amount P enlarged the amount by filling in the uncancelled spaces and sold the note to H, a holder in due course. Can H enforce the instrument as altered against M?

106. If an instrument is materially altered so that the maker can defend against an innocent purchaser on that account, is there any right to recover on the instrument in its original form?

107. Is it necessary to use a "check protector" to guard against material alteration of a check?

108. M signs a paper which he is told is a receipt. Not having his eye-glasses present he signs without reading it. It is in fact a negotiable note which is sold to H, a holder in due course. Can H recover ?

109. Does illegality ever make a negotiable instrument absolutely void in the bands of any person?

Chapter Thirteen

110. State the obligation of the maker of a note.

111. What is the undertaking of a drawer of a bill or check? Of a drawee?

112. Is an acceptor primarily or secondarily liable?

113. A drawee accepts a bill upon which the drawer's name is forged. The bill comes into the hands of a holder in due course. Can the drawer defend that the bill is forged? Is the same answer true of a certified forged check?

114. A drawee accepts a bill (or check) that has been raised. A holder in due course comes into possession thereof after alteration. Can he sue the drawee upon the acceptance?

115. D draws a bill upon A to P's order. F forges P's Indorsement and transfers to H, an innocent purchaser. A accepts the bill. Has A a defense against H?

116. What is the contract of an unqualified indorser? Is there any difference in this liability if the unqualified indorsement is in blank or special?

117. What is one's liability who transfers without indorsement, (where negotiation does not require indorsement) ?

118. State the contract of a qualified indorser.

119. In what order are indorsers liable?

Chapter Fourteen

120. Why does the law provide a certain procedure before a holder can sue an indorser or a drawer?

121. Does a holder have to bring suit against a drawee, an acceptor or a maker before he can hold a drawer or an indorser?

122. For what purpose is presentment for payment necessary? State (1) By whom presentment for payment must be made; (2) date and hour thereof; (3) place thereof; (4) to whom.

123. A bank having a note upon which there are indorsements telephones the maker who responds that he will not pay it. The indorsers are then notified. Can they be held?

124. A has a check made by M and indorsed by P. He fails to present it to the bank within a reasonable time. Under what circumstances is M discharged? P?

125. What is the rule as to time of presentment for payment of bills of exchange other than checks?

126. When is presentment for payment not required?

127. A corporation makes a note indorsed personally by its directors. The note is not presented for payment at maturity. The directors thereafter say that they will pay it. Can they afterwards raise the point that it was not properly presented to the maker for payment?

128. When is presentment for acceptance necessary to charge drawer and indorsers? May such presentment be made when not required? What are the rights against drawer and indorser in case acceptance is refused?

129. State the details required to make presentment for acceptance sufficient.

130. When is presentment for acceptance excused.

Chapter Fifteen

131. What is "notice of dishonor" and for what purpose is it necessary ?

132. H holding a note on which I is indorser calls up I and notifies him that he has presented the note to the maker for payment and that it was not paid and that he will hold I as indorser. On a suit against I he objects that he received no written notice. Is this a valid defense ?

133. Within what time must notice of dishonor be given?

134. When is notice to drawer excused? When to indorser?

135. When is notice of dishonor waived?

Chapter Sixteen

136. What is protest? When is it necessary? How is it made? Who is authorized to make it?

137. State time, place and manner of protest.

138. When is protest dispensed with? May it be waived?

Chapter Seventeen

139. What is meaning of discharge?

140. What is the most usual means of discharge?

141. Why is paper not discharged if a person secondarily liable thereon pays it?

142. In what case does a party occupying a position of secondary liability on the paper discharge the paper by paying it?

143. A having a note made by M, tears it up with the idea of releasing M. Later, he changes his mind and sues M. M replies that A tore up the note. A claims that this was without consideration. Is M's defense good?

144. Recite the various ways in which a party secondarily liable may be discharged.

Chapter Eighteen

145. Define a bank. What is a private bank?

146. Can a bank be formed under a general incorporation law? Under what law must it be formed?

147. What is the charter of a bank? Who has the power to enact by-laws?

148. How much of the stock of a national bank mast be paid in upon incorporation?

149. Does a bank have a lien on unpaid stock?

150. What is the statutory liability of a stock holder of a bank for benefit of creditors? Is this liability peculiar to banking corporations?

151. May a stockholder be liable to creditors after he has sold his stock? In what cases? Is a pledge liable upon the stock held by him in pledge?

152. How is this statutory liability enforced?

153. What are the provisions of the National Bank Act as to number and qualifications of directors?

154. What can you state as a general test for the degree of attention to be devoted by a bank director to his duties?

155. What are the powers of duties of bank president?

156. Same as to bank cashier? Bank teller?

157. Name the various sorts of business a bank may do.

158. To what extent may a bank deal in real estate?

159. Can a bank loan money on its real estate? Can its power to do so be questioned by a party to whom it has made such a loan?

160. What relationship does a general depositor sustain to the bank?

161. What is a special deposit? In what legal consequences does it differ from a general deposit?

162. What is the bank's contract with a depositor who has a checking account?

163. If a bank pays forged checks, who is loser between depositor and bank?

164. What duty does the depositor have in respect to paper forged with his name?

165. What is the bank's commercial paper? Describe a banknote.

166. What is a savings bank?

167. Can a National Bank carry on a business as trustee?

168. What is the function of a clearing house?

169. If a deposit is made in a failed bank after failure can it be recovered in toto?

Chapter Nineteen

170. Define guaranty; suretyship ; give an example of each.

171. Must one who extends credit on a guaranty, notify the guarantor?

172. If the guarantor receives no benefit, where is the consideration ?

173. Define a bond.

174. If the principal is not capable of contract, can the surety defend against liability on this ground?

175. Can a surety plead that the principal was defrauded?

176. Can a corporation become surety?

177. What is the surety's right of re-imbursement? exoneration?

178. Define subrogation.

179. What is the right of contribution?

180. Enumerate the various causes that will discharge a surety.