Bill brokers usually give a letter of guarantee instead of indorsing the bills they have discounted with the bankers. And sometimes one party will guarantee to the bank the bills discounted for another, or the overdrafts or advances made to another.

(1)

To the Directors of the Banking Company.

Gentlemen,

In consideration of your discounting to us the bills as specified below, we hereby guarantee to you the due repayment of the same at maturity, as if they had been endorsed by us.

I am, etc.

(2.) Gentlemen,

Mr. A. B. may have occasion to offer you sundry bills for discount. In consideration of your discounting such of them as you approve of, which I request you to do,

I hereby guarantee to you the due repayment of such bills as they respectively mature.

I am, &.c.

(3.) Gentlemen,

In consideration of your honouring the cheques of Mr. , or otherwise advancing him sums of money, I hereby guarantee the repayment thereof upon demand to the extent of pounds sterling.

I am, etc.