This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 455.— B and C are joint and several promissors on a note held by A, it being known that 0 is in fact a surety, B being the real debtor. The note matures, and A accepts a year's interest in advance, and holds the note overdue. This is repeated until it has been held for four years in all. By this time B is insolvent, and the debt cannot be recovered from him.
(1) Should the note have been protested to hold C ?
(2) Is C discharged by reason of the note being held four years?
Answer.— (1) C is liable on the note without protest.
(2) Prom the circumstances mentioned we should think that C is not discharged as surety. C would be released if A, at the time of any interest payment, made a binding agreement with B to extend the time of payment for a year; and the acceptance of the year's interest in advance would certainly strengthen a claim made by B, that the holder had so bound himself that he could not sue till the year was out.