Question 73.— A bank holds a bill of exchange accepted by the drawee, to which is attached a bill of lading for wheat to the order of the bank. Before the bill matures the drawee finds that the wheat is not up to the sample and refuses payment. Is the acceptor's obligation on the bill affected by the defect in the security?

Answer.—Unless the acceptor could raise such a case against the bank, as would entitle him to repudiate his acceptance in toto on the ground of fraud or misrepresentation, we think that he is liable for the full amount of the bill. Any remedy he has would be against the person responsible to him for the defect in quality of the wheat.

Note.—With further reference to the above question the draft in question has stamped across it " documents attached to be surrendered only on payment of draft," and written on it by the manager of the bank which holds it, the words: " Bill of lading attached, 500 bushels wheat, car No. 1,524." These additions to the draft were on it when it was presented for acceptance and the bill of lading described was attached. The acceptor claims that the words written and stamped on the draft by the bank entitle him to look to the bank for delivery of the wheat described in the bill of lading, and that the bank is in no better position to enforce payment of the draft than the drawer. Is this so, and is the bank in any way responsible?

Answer.—We think not. Even if the phrases mentioned were to be taken as representations held out by the bank to induce the drawee to accept, they would be fulfilled by the surrender on payment of the bill, of the bill of lading actually attached at the time it was accepted.