Question 413. - A customer leaves a note with the bank payable to his order for collection, but does not endorse it. Does the promissor receive a proper receipt and discharge of the debt when he has paid the note, which has been stamped "paid" by the bank? Or -should the bank insist on an item, payable to order, being endorsed when it is delivered for collection?

Answer. - Without doubt the promissor has received a sufficient discharge of his debt. The bank is acting as the agent of its customer when it stamps "paid" on the note, and by no possible construction of law could the customer again recover the amount due under that obligation from the prim-issor. There are, however, good reasons for the universal practice of having such bills endorsed, and it should not be lightly departed from.

Cheque payble to bearer Passed through clearing House without endorsement - Right of Drawee Bank to Require a Receipt.

Question 414. - A cheque is drawn on Bank B reading as follows: "Pay to the order of John Jones or bearer." This is passed through the clearing house from bank A, not endorsed by John Jones. Can bank B insist on his endorsement?

Answer. - Bank B cannot insist on his endorsement, though the bank is entitled to require a receipt for the amount paid out upon the cheque.