Question 415. - A discounts at the date of making a six months' note signed by B, payable without interest. B pays the note at the expiration of one month. Who is entitled to the rebate of interest, A or B?

Answer. - Neither is "entitled" to rebate, and the bank need not allow any. If it accepts payment subject to rebate, it would pay the amount of rebate to either A or B at its discretion, but in practice rebate is allowed to the party retiring the obligation.