take up a Trade Bill Held by it under Discount.

Question 542.— A draft at ten days' date on "A," who is a customer of the hank, drawn by " B," is sent by " C," another customer, for discount and remittance of proceeds. When the bill falls due can the bank loan " A " the necessary funds on security under section 74 of the Bank Act, or must they obtain a written promise to give such security at the time of discounting the original draft?

Answer.—We think the loan granted to take up the draft must be regarded as a new transaction, and that security under section 74 can be validly taken at the time it is made, or upon a written promise given at that time.