Question 249. - If a cheque on a Canadian bank is received from an American bank drawn "with exchange" is the drawee bank authorized to add the prevailing premium to the cheque when remitting? If that form were not sufficient to secure remittance of the exchange, would a cheque drawn with "ex-change and the prevailing premium " be effective for the purpose?

Answer. - The phrase "with exchange"' is too indefinite to warrant the drawee bank adding anything to the face amount of the cheque, but, provided that it is added by the drawer - and thus only could it be effective - the phrase "with exchange on (say) New York "would justify the drawee bank in adding to the face amount of the cheque a sum sufficient to meet the premium on exchange on the point named at the time of presentation.

Note Payable "with Interest at the Rate of........Per Cent."

Question 250. - A note has the following words printed on it: "With interest at the date of......per cent, per annum as well after as before maturity." If no rate is filled in what can be collected? If any, what rate could be added to the bill if discounted?

Answer. - Interest is due on the note at the legal rate of five per cent.