Question 580. - Are the requirements of section 90 of the. Bank Act fulfilled by the taking of securities under section 86 of the Act, in the following manner and without any promise on the part of the client to give security. The advances to a grain commission merchant are made in the morning in the way of an overdraft, which is covered the same day at three o'clock by the discounting of drafts to which are attached bills of lading and warehouse receipts to the order of the bank. Would anyone be justified in arguing that in practice the advances and the taking of securities as stated above are made contemporaneously?

Answer. - It could, no doubt, be argued that the making of advances in the morning and the taking of security in the afternoon is a substantial compliance with the terms of the Bank Act, but, since the point is not free from doubt, why take any chances, when by complying with the terms of the Bank Act, no risk whatever would be taken, that is, require from the borrower either before or at the time the advance is made a written agreement or undertaking to furnish the security in question.