See " Subject to Sale."
Subject to Check. Any deposit in a banking institution which the depositor has the right to withdraw without notice to the bank, by the use of a written order called a " check," being made payable to himself, or to whomsoever else he may choose to designate on its face, is an account " subject to check." (See " Check.")
Subject to Prior Sale. Same as " Subject to Sale."
Subject to Redemption. See " Called Bonds."
Subject to Sale. In order to protect himself, the banker usually offers securities "subject to sale." For example: Morgan & Co. offer Maria Jones $10,000 worth of Baltimore & Ohio R. R. Co. bonds. In the meantime, before they hear from Maria Jones, they may have an order from another party, and, therefore, make the sale. The next day they receive a letter from Maria Jones ordering the bonds; they notify her that they have already been sold. If they had not made the offering to her upon the condition of " subject to sale " or " in case of previous sale," they might be obliged to deliver the bonds to Maria Jones; but, with the conditions of previous sale inserted, she has no valid claim against them. It will be seen that this method is necessary, because securities offered by bankers are liable to be sold at any moment, and, of course, they cannot lose opportunities to sell as they come along.
In telegraphing, cabling, etc., the word " subject " is often used, and has the same meaning as " subject to sale," or may mean, in the case of a bid, that the bid is made conditional upon the bidder not being able to buy elsewhere in the meantime.