If the debtor makes payment to his creditor in genuine banknotes which are, however, worthless, usually because of the insolvency of the bank issuing them, where neither debtor nor creditor know of the insolvency of the bank, a conflict of authority as to the validity of such payment exists. The weight of authority holds that such payment is a nullity, if made after the bank has stopped payment,1 provided the creditor gives reasonable notice to the debtor of the fact that such notes are worthless.2 A strong minority of the courts, however, hold that such a payment is valid; and that the loss must fall upon the creditor.3 If the debtor knows that the bank is insolvent and the creditor is ignorant of such fact, the loss must fall on the debtor, and the payment is in legal effect a nullity.4