note, payable on demand, is not considered overdue, nor can any interest be recovered on it unless there is some evidence upon it of its having been presented and refused payment. As we have before stated, it may be indorsed from hand to hand as a continuing security. It is held that if a bill be paid before it is due, it may be indorsed over, and remain a valid security in the hands of a bona fide indorsee, but a bill paid at maturity cannot be reissued. The payment of a bill before it is due does not extinguish it, any more than if it were discounted. In case of partial payment at maturity, the holder cannot recover more than the balance of the acceptor. A bill or note cannot be indorsed for part of the sum remaining due to the indorser upon it, as it would cause a plurality of actions against prior parties, and would be contrary to the custom of bankers and merchants; but if a bill or note be indorsed, or delivered for a part of the sum due upon it, and the limit is not specified on the instrument, the transferee is entitled to sue the maker or acceptor for the whole amount, and becomes the trustee of the transferer for the surplus. If a bill has been paid in part for the acceptor, or drawer by an agent,

it may be indorsed for the remainder due. A release at maturity is the same as payment at maturity, and extinguishes the bill; but a premature release of a party liable on the bill, does not discharge the releasee as against an indorsee for value without notice. Where a holder has died, having only signed his name, without delivery, his executor cannot complete the indorsement by delivery. A married woman acquiring a right to a bill or note, either before or during marriage, the husband should indorse. The indorser of a note places himself in the position of a surety to the maker, and thereby renders himself liable in case the maker cannot pay. An indorser of a bill not negotiable, renders himself liable to be sued by his indorsee, the indorser being the new drawer, and by his act having deprived his indorsee of the right to sue the acceptor or maker. An indorser An indorser may, however, enter into an agreement with his indorsee not to hold him liable, in which case the indorsee cannot sue; but a subsequent indorsee, unless having had due notice of the agreement, may sue. The holder of a bill cancelling an indorsement intentionally, discharges the indorser. A person having twice indorsed the same bill, can

not, as a rule, sue the intermediate indorsers. If a man commit a breach of trust by indorsing to a third person a bill indorsed to him for a particular purpose, the indorsee, cognizant of the breach of trust, cannot sue the real owner of the bill; but, on the contrary, the owner may bring an action to have the bill restored. A person taking an overdue bill renders himself liable to anything that may happen in connection with the bill; being overdue it is said to come disgraced ' to the indorsee. A drawer or indorser taking up a bill at maturity, may, by indorsing it to another person, transfer the right to sue on the bill. The person having possession of a note, part of which has been already paid, can only indorse for the balance,

Indorsement by executors or administrators answers the same purpose as an indorsement by the deceased.

13. Bankruptcy of Acceptor.

When an acceptor becomes bankrupt, the holder can claim a dividend under the commission; for, on being made bankrupt, the acceptor is discharged by the law. Upon the same principle, the acceptor, being discharged at the suit of the indorsee,

under the Insolvent Act, the indorsee has his remedy against the drawer. Where the holder agrees to a composition, the indorsers are discharged.

14. Statute of Limitation as affecting Bills of

Exchange.

The Statute of Limitation does not destroy the debt, but only bars the remedy. The period beyond which no action can be brought is six years. As regards bills of exchange, the limitation dates from the time the bill falls due. When a bill is on demand, it is supposed to be payable immediately; therefore, the statute runs from the date of the instrument. If the person against whom an action was brought were beyond the reach of the law-as, for instance, an infant, a person imprisoned, or out of the country, &c.-the Statute of Limitation would date from the time such person became amenable to the law. A foreign statute of limitations is no defence in an English court in an action on a foreign contract, as the statute affects the remedy and not the construction of the contract. When the holder of a bill has allowed the Statute of Limitation to run out, and transfers it, the transferee is debarred from bringing an action; for he, being the trans

feree of an overdue bill, stands in no better position than the transferer. When a bill is made payable by instalments, in case of default of any one instalment, the statute dates from the first default against the whole amount. An action brought by an administrator on a bill would commence from the date the letters of administration were granted, and not from the time when the bill fell due. A note (say thirty days after sight) is not open to an action until the expiration of that period after the exhibition to the maker; but on a 'demand' note the statute would run from the date of the instrument, in the same way as with a bill.

It must be remembered that an acknowledgment will bar the Statute of Limitations; that is to say, the six years begin to run from the date of such acknowledgment.

15. Payment.

Payment must be made to the rightful holder, as payment to any other person does not discharge the acceptor. In the case of a banker crediting his customer with an immature bill, which on its arrival at maturity is dishonoured and not returned to the customer, the banker renders himself liable for the sum, as he not only credited his client

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