the provisions of this chapter that are applicable to a bill of exchange payable on demand apply to a check. C. S., s. 3167; Rev., s. 2335; 1899, c. 733, s. 185. Bills and Notes § 15. A check is a bill of exchange, and may more particularly be defined as a written order on a bank or banker, purporting to be drawn against a deposit of funds, for the payment, at all events, of a sum of money to a certain person therein named, or to him or his order, or to bearer, and payable on demand.-Standard Trust Co. v. Commercial Nat. Bank, 166 N. C. 112, 83 S. E. 474. Bills and Notes § 338. Cashier's cheeks, whether certified or otherwise, are classed with bills of exchange, payable on demand; and if negotiated by indorsement for value without notice, and within a reasonable time, a holder can maintain the position of a holder in due course.--Singer Mfg. Co. v. Summers, 143 N. C. 102, 55 S. E. 522. Bills and Notes § 108. A stipulation stamped on the face of a check that it will positively not be paid to a certain company or its agents, is a valid restriction and binding on the holder.-Commercial Nat. Bank of Charlotte v. First Nat. Bank of Gastonia, 118 N. C. 783, 24 S. E. 524. 504. Within what time a check must be presented. A check must be presented for payment within a reasonable time after its issue or the drawer will be discharged from liability thereon. to the extent of the loss caused by the delay. C. S., s. 3168; Rev., s. 2336; 1899, c. 733, s. 186. Bills and Notes § 383. Where a party obtained check from a bank in this state and negotiated the same to a party residing in Virginia in five days thereafter, such negotiation was within a reasonable time.-Singer Mfg. Co. v. Summers, 143 N. C. 102, 55 S. E. 522. Bills and Notes § 383. The holder of a check upon a bank, drawn before, but presented after, the bank's assignment for the benefit of creditors, is not entitled to the amount thereof as against the assignee to the extent of the fund so held.-Hawes v. Blackwell, 107 N. C. 196, 12 S. E. 245. 505. Effect of certification of check. Where a check is certified by the bank on which it is drawn the certification is equivalent to an acceptance. C. S., s. 3169; Rev., s. 2337; 1899, c. 733, s. 187. 506. Effect, where holder of check procures it to be certified. Where the holder of a check procures it to be accepted or certified the drawer and all indorsers are discharged from liability thereon. C. S., s. 3170; Rev., s. 2338; 1899, c. 733, s. 188. 507. Check not assignment of funds. A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer with the bank, and the bank is not liable to the holder unless and until it accepts or certifies the check. C. S., s. 3171; Rev., s. 2339; 1899, c. 733, s. 189. Banks and Banking § 98. The reason why the holder of a check is not permitted to sue the bank has been stated by the authorities to be, that there is no penalty between the holder and the bank until by certification of the check or the acceptance thereof, express or implied, or by any other act or conduct it has made itself directly liable to the holder.-Standard Trust Co. v. Commercial Nat. Bank, 166 N. C. 112, 83 S. E. 474. Banks and Banking § 98. An action cannot be sustained against a bank by the payee of a negotiable check, though the drawer has funds on deposit sufficient for its payment against which the bank has no claim.Perry v. Bank of Smithfield, 131 N. C. 117, 42 S. E. 551. Banks and Banking § 98. The giving of a check upon a bank is not, unless it is accepted, an assignment of the claim of the depositor, and passes no title, legal or equitable, to his moneys on deposit in such bank.-Ibid. Bills and Notes § 383. The holder of a check upon a bank, drawn before, but presented after, the bank's assignment for the benefit of creditors, is not entitled to the amount thereof as against the assignee to the extent of the fund so held.-Hawes v. Blackwell, 107 N. C. 196, 12 S. E. 245. IMPORTANT DECISIONS RENDERED SINCE THE COMPILATION OF THIS BOOK. Banks and Banking § 131. Where plaintiff's agent deposited money to her credit, and the pass book was made in her name, he had no authority, without her knowledge or consent, to withdraw such deposit, although the pass book was in the agent's possession, and plaintiff never notified the bank not to pay deposit to him.-Goodloe v. Fidelity Bank, 111 S. E. 516. Bills and Notes § 378. While a bank should use a protectograph when issuing cashier's or certified checks, its failure to use such a device, which resulted in the alteration of the check, is not actionable. Bank v. First National Bank of Goldsboro. 112 S. E. 11. Broad Street CO-OPERATIVE ASSOCIATIONS. Subchapter One. Building and Loan Associations. Application of term Method of incorporation; powers Amendments to certificate Form of certificate When to begin business Chapter on corporations applicable ART. 2. SHARES AND SHAREHOLDERS. Number of shares and entrance fee prescribed Shareholders equally liable Married women and minors as shareholders. Section 508 509 510 511 512 513 514 515 516 517 518 519 520 Examinations made; expense paid 529 Failing to exhibit books or making false statements a misdemeanor 530 Subchapter Five. Co-operative Marketing of Farm Products. Stock; membership certificates; when issued; voting; liability; limita tion on transfer of ownership 612 Removal of officer or director 613 Referendum 614 Marketing contract 615 Purchasing business of other associations, persons, firms or corpora tions; payment; stock issued 616 Annual reports 617 Conflicting laws not to apply 618 Limitation of use of term 'co-operative" 619 Interest in other corporations or associations 620 621 Association heretofore organized may adopt the provisions of this act Misdemeanor; breach of marketing contract of co-operative associations; spreading false reports about the finances or management thereof Associations not in restraint of trade |