In several States a note is given by the borrower as evidence of the debt; in some even the interest amounts are represented by a series of notes given when the loan is made and maturing on the interest dates. Most States, however, use a bond substantially similar in form to that of New York. In New York two forms of bond are found, but that used by the title companies is more desirable. Its form follows:

KNOW ALL MEN BY THESE PRESENTS, That hereinafter designated as the obligor , do hereby acknowledge to be indebted to hereinafter designated as the obligee, in the sum of dollars, lawful money of the United States, which sum said obligor do hereby covenant to pay to said obligee, or assigns, on the day of nineteen hundred and with interest thereon, to be computed from the day of , 19 , at the rate of per centum per annum, and to be paid on the day of next ensuing the date hereof, and semi-annually thereafter.

AND IT IS HEREBY EXPRESSLY AGREED THAT the whole of the said principal sum shall become due at the option of said obligee after default in the payment of interest for thirty days, or after default in the payment of any tax or assessment for thirty days after notice and demand. All of the covenants and agreements made by the said obligor in the mortgage covering premises therein described and collateral hereto, are hereby made part of this instrument.

Signed and sealed this day of , 19

In the presence of

An examination of the form reveals that the bond consists of three divisions: 1. An acknowledgment of indebtedness, 2. A promise to pay, and 3. Provisions for default. The opening words, "Know all men by these presents," have no meaning. They are surplussage and the bond would be just as valid without them. They are merely a survival of ancient usage.