If a person finds a bank-note, or discounts or cashes a bank-note for a person who (as he knows) found it, he may be compelled by the owner to restore it. But if the finder transfers a lost bill or note which may pass by mere delivery, the transferee who takes it without fraud may retain it against the owner, and sue the parties liable thereon. (Add. Torts, 203; Byles, 327.) And if the finder of a bank-note pays it away, bonâ fide, in the ordinary course of business, before the owner demands it, he has no remedy. (Add. Torts, 203; Broom Com. 437.)

PART III.

TIT. II.

CAP. VI.

forged or altered

cheque.

If a banker pays a forged cheque, he must Payment of a bear the loss himself; and if he pays a cheque which has been fraudulently altered in amount, he will have to suffer, unless the drawer has, by his gross fault, facilitated the commission of the fraud. (Broom Com. 455; Chit. B. 348.).

dorsement

A forged indorsement confers no title to a Forged inbill. (Add. Torts. 203; Byles, 311.)

If a banker pays a bill bearing a forged indorsement, he, and not his customer, will suffer. (Broom Com. 453.)

But any draft or order drawn upon a banker, for a sum payable to order on demand, which,

PART III. when presented for payment, purports to be

TIT. II.

CAP. VI. indorsed by the person to whom the same is

Loss of notes, bills, &c.

Crossed cheques.

drawn payable, is a sufficient authority to the banker to pay the amount to the bearer. (16 & 17 Vic. c. 59, s. 19; Grant, 27.)

If a note or bill, payable to bearer, is lost, immediate notice should be given to the parties who are liable on it, and notice should also be given at once to the public by advertisement. After notice, the owner may recover its value from a person who received it without a reasonable degree of caution. And even if it is not duly advertised, still the loser may recover its value from any holder who has taken it under suspicious circumstances. (Add. Torts, 191; Byles, 349.)

In the case of an action founded upon a bill of exchange or other negotiable instrument, the Court or Judge may order that the loss of the instrument shall not be set up, provided an indemnity is given against the claim of any other person upon such negotiable instrument. (Sm. Merc. Law, 286; Chit. B. 185; Broom Com. 486; 17 & 18 Vic. c. 125, s. 87.)

If a cheque or draft on any banker, payable to bearer or to order on demand, is issued, crossed with the name of a banker,

or with two transverse lines, with the words
and Company,' or any abbreviation thereof,
the banker on whom it is drawn may not pay
it except to the banker with whose name it
is crossed, or if it is crossed without a
banker's name, then to any other than a
banker. And any holder may, if it is thus
crossed without the name of a banker, or is
not crossed at all, cross a cheque with the
name of a banker, or with the words and
Company,' &c., and then it is only to be paid
to the banker whose name it bears, or, if
none be named, to some banker. The ob-
literation, adding to, or altering of, a crossing
of a cheque, is a felony.
felony. But in order to
protect the banker, if, when it is presented
for payment, the cheque does not plainly
appear to have been crossed or obliterated,
&c., he incurs no responsibility by paying it,
unless he act malâ fide, or be guilty of neg-
ligence. (Sm. Merc. Law, 264; 21, 22 Vic.
c. 79.)

PART III.

TIT. II.

CAP. VI.

notes under

Promissory notes for less than 5l., pay- Bills and able on demand to bearer, are prohibited 5. under a penalty; and so are all negotiable bills, notes, and undertakings for less than 20s.; and negotiable bills or notes for more than 208. and less than 5l. (except cheques

TIT. II. CAP. VI.

PART III. on bankers) are also void, unless they specify the name and abode of the payee, are attested by a subscribing witness, bear date at or before the time of issue, and are made payable within twenty-one days after date, but not to bearer on demand; and such instruments cannot be negotiated after the time limited for their payment. (Sm. Merc. Law, 213; 2 Ste. Com. 124; Byles, 75, 76; Chit. B. 101.)

CHAPTER VII.

DEBTORS AND CREDITORS GENERALLY.

A DEBT is a sum due.

PART III.
TIT. II.

It is not essential to the existence of a CAP. VII. debt, generally, that any valuable consideration should have moved from the creditor. tion. (Trower, 2.)

Debt defined.
Considera-

debts.

Debts, when classified according to the Division of mode in which they are evidenced, are of three kinds: judgment debts, specialty debts, and simple contract debts. (Trower, 2.)

debt.

A judgment debt is a sum payable under Judgment a judgment, decree, order, or rule, either

made by a superior court of common law or of equity, or having the same effect as if so made. (See Trower, 5-6).

Statutes and recognisances are now dis- Statutes and used.

recogni

sances.

It is enacted by the Statute of Westmin- Elegit. ster 2, 13 Edw. I. c. 18, that when a debt is recovered or acknowledged, or damages ad