This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 328.— A B transfers to C, for value, a note which is payable to his own order, endorsing it as follows: " I guarantee payment of the within note. A B." There is no other endorsement on the note.
Is this endorsement sufficient to transfer the note to C, and is A B in a position of an endorser requiring notification if the note is dishonoured, or is he a surety?
Answer.—In our opinion notice of dishonour is not requisite to retain his liability.
We do not think that the writing on the back of the note is technically an endorsement, or that it passes the title to the note. As C, however, has acquired it for value, he is entitled to a proper transfer, and can enforce the same by virtue of sec. 31, sub-sec. 4, of the Act.