Question 410.— (1) Is a document in the following form a negotiable instrument?

" Upon being endorsed by the secretary or president " of the M — Agricultural Society this order shall be " good to the bearer for three dollars, which is given as " a special prize to be awarded at their annual exhibition, Fall of 1901."

(Signed) A.B.

(2) If specially endorsed to C.D., is it then payable to bearer or to the order of C.D. ?

Answer.— (1) We think that the terms in which the promise to pay is expressed are consistent with the requirements of a promissory note; but the provision that it must be endorsed by an officer of the Society before being good to the bearer makes it conditional. It is therefore not a promissory note and not negotiable in the proper sense.

(2) The effect of an endorsement on an instrument of this kind is, of course, not governed by the Bills of Exchange Act, and any party handling it would have to take the chances of the endorsement proving a sufficient assignment.