It has been stated that one of the ways in which checks differ from bills is that they are not presented for acceptance. This is substantially true, but the holder of a check may occasionally present it to the bank on which it is drawn, requesting the bank to certify upon its face that the drawer's account is "good" for the amount of the check. This the bank may do by writing the words "accepted," "certified," "good when properly indorsed," "good," or other equivalent words on the face, together with the date and the name of the teller or other officer authorized to certify. This may be done in writing or with a stamp. The check then becomes the absolute obligation of the bank - practically its promissory note - and in case the payee requested the certification, the drawer is discharged and the holder can look only to the bank for payment, as the bank has guaranteed that the check will be paid on presentation. A record is kept of all certified or accepted checks, and no stop-payment can legally be made on a certified check, although in case of loss or destruction of the check the bank may issue a duplicate, usually receiving a bond of guaranty for twice the amount of the check. The amount is at once debited to the depositor's account and the amount that he can otherwise draw is reduced by the amount of the certified check. The check continues to be negotiable, and the indorsers after the certification are liable. The reason for thus releasing the maker is that the holder had his choice of taking money or certification at the bank, and must abide thereby. A bank does not have to certify a check. In some cities it is not done at all except in rare instances, while in other cities it is never done except at the direct request of the maker. Depositors may ask the bank to certify their checks before giving them to any one else, for they are then more easily negotiated. But if the drawer asks the bank to certify the check before he delivers it to the payee, he remains liable. In brief, then, if the holder obtains the certification the maker is released and the holder is the loser if the bank becomes insolvent; whereas, if the drawer has obtained the certification, he is responsible in case the bank fails within a reasonable time after he delivers the check to another.

Bond Of Indemnity Lost Bank Check, Draft Or Certificate Of

Deposit

Know All Men By These Presents, That we

................................ of ..........................

and ............................ of ..........................

are held and firmly bound unto the......................Bank of.............................in the sum of ................

....................... Dollars, lawful money of the United

States, to be paid unto the said.......................Bank, its successors and assigns, for which payment well and truly to be made, we do hereby jointly and severally bind ourselves, our and each of our heirs, executors and administrators firmly by these presents.

Sealed with our seals this........day of ................

The condition of this obligation is such that

Whereas ..................... of .................. a depositor in the said ..............Bank did on the......

day of .............. for value received, execute and deliver to ................ a certain check drawn on the .............

Bank for the sum of ............ dollars, payable to the order of ............................ (and if necessary add "who on the ............ day of ............... did indorse and deliver the same to ..........................") and the.............

Bank did on the...........day of.................... certify the same and charge the amount thereof against the account of said .............................., and

Whereas it is claimed by said.........................

that said check has been mislaid, lost or stolen and cannot be surrendered for payment and it is now demanded that payment thereof be made and which payment is accordingly made.

Now Therefore, if the said.....................and

....................... their heirs, executors or administrators shall, at all times hereafter, indemnify and save harmless the said ..................... Bank against all loss or damage to it arising by reason of the payment of said certified check and all costs, charges and expenses and all actions or suits, whether groundless or otherwise, and shall also deliver or cause the same to be delivered up when and so soon as it shall be found, to be cancelled, then this obligation shall be void; otherwise to remain in full force and effect.

In Testimony Whereof, we have hereunto set our hands and seals, this..........day of..................

............................(Seal.)

............................(Seal.)

............................(Seal.)

Signed, sealed and delivered in presence of

.......................................................

(Acknowledgment.)