4. As a release to some parties 10. As to what is evidence of only.

payment of interest. 11. In case of bankruptcy.

1. We will now consider what other acts or circumstances besides payment may operate as a release or discharge. In considering this subject, it must be borne in mind, that in all cases of bills, the acceptor, as between himself and the other parties, is considered as the principal debtor, and the drawer and indorsers respectively only as sureties liable to pay, if he do not; but as between the other parties, "inter se" as the drawer and indorsers, and one indorser and another, each is the principal as concerns the subsequent party, so that a discharge to the acceptor,

releases all parties, but a discharge to the drawer, does not release the acceptor, but only the indorsers; a discharge to the last indorser, does not release the drawer and the prior indorsers, nor does a discharge to an intermediate indorser, release the drawer, or his prior indorsers; but a discharge to an intermediate indorser releases all subsequent indorsers.

In the case of a note, the maker is the principal, and stands in a similar position to the acceptor of a bill; the payee of a note to that of the drawer of the bill; the indorsers stand in the same position as on a bill.

We refer the reader to the last chapter, as to the effect of payment as a release, as between the different parties.

2. It may be here observed, that although the taking of a bill or note, does not in itself operate as a release of an existing debt, still, in the case of a simple contract debt, it amounts to an agreement to suspend the creditor's rights and remedies, and to give the debtor credit for the time it has to run; and upon the creditor's receiving the money on the instrument, it then operates as a complete satisfaction of the original debt; so if the creditor be guilty of laches, or neglect in dealing with the instrument; but if the debt be a specialty, and not a simple contract debt, the taking of a bill or note, will not operate as a release till payment.

3. As to what amounts to a Release.-In some cases, the release will operate in favour only of the party to whom it is given and in others to the discharge of all parties.

If the holder takes a composition from the acceptor, under a creditor's deed and gives him a general release, not only is he discharged, but all other parties; so if he gives the acceptor an agreement or covenant not to sue, if it be an absolute and binding one; so taking a new bill or higher security from the acceptor discharges the indorsers; but not if given only as a collateral security; also, as observed at page 33, the appointment by the holder, of the acceptor as his executor, in law discharges him, and thus, by extinguishing the bill, releases the indorsers.

4. The Bankruptcy on the other hand, of the acceptor, being an act of law, does not release the other parties, and the holder may prove under the Bankruptcy, without prejudicing his right to sue them.

The Insolvency of the acceptor, will not operate as a release to the indorsers, nor the obtaining of a judgment which remains unsatisfied, nor the mere forbearance to sue the acceptor, unless there is a binding agreement for the purpose, nor the taking of higher security, or a renewal of the bill, if only. by way of collateral security; and it is now held, that giving a consent to a Judge's order to stay proceedings, against the acceptor on payment of

debt and costs, at a period when judgment might have been obtained, will not release other parties.

5. A creditor upon any contract, although he releases the party liable as the principal, may, it appears, at the same time and by the same instrument, provide that such release shall be no discharge to the surety, and this is so, notwithstanding by such means the liability of the surety, which was originally only conditional to pay, if the principal did not, is made absolute; therefore if the holder release the acceptor, still if he provide that such release shall not operate as a discharge to the drawer, he can afterwards, it would seem, recover against the drawer; but of course, the release being merely as between the holder and acceptor, the drawer may after payment recover against the acceptor; the above doctrine of limited release is, however, open to some doubt, and it is conceived such a course of proceeding ought not to be acted upon, particularly as the holder, may by forbearing to sue the acceptor, whilst proceeding against the drawer, accomplish what is almost equivalent.

Besides release and discharge by the above means, there may be a variety of other circumstances, or conduct, on the part of the holder, which may operate so as to release the acceptor or different parties, in particular cases.

6. A Bill or Note, may also be released by efflux

of time, under the statute of limitations: as considerable difficulties frequently arise upon this statute, we will give a portion of its provisions.

The third section of the statute (21 Jas. I., c. 16.) enacts "that all actions on the case (other than such accounts as concern the trade of Merchandize between merchant and merchant, their factors and servants), and all actions of debt, grounded on any lending or contract, without specialty, must be brought within six years of the cause of such action, and not afterwards," unless there be an acknowledgment of the debt, or a payment on account within six years, as for instance, payment on account of principal or interest; but it gives an additional six years, in case of disability of the party entitled to receive.

With respect to the exception in the statute, given in italics, the accounts must be "such accounts as concern the trade of merchandize between merchant and merchant, their factors and agents." When, therefore, but only as between merchants and traders, there is a mutual, current, or running account, any item within six years, will take the matter out of the statute. An account once stated, and not open and running, is, however, within the statute, and as such, liable to be barred thereby.

7. By the subsequent Act (9 Geo. IV.), it is enacted that no acknowledgment or promise by words only, shall take a case out of the statute, but