BILL OF EXCHANGE (ante). In this country an inland bill of exchange is one of which the drawer and drawee live in the same state; if the drawee lives in another state or country, it is c died foreign. A bill of exchange is negotiable, and may pass through any number of hands before payment. The transfer may be by indorsement either "in blank" or "in full;" the first method requires only the name of the payee upon the back, in which case the bill passes from hand to hand as payable to bearer; in the second method a person is named to whom payment is to be made, whose indorse ment then becomes necessary to a further transfer. When so indorsed as to be made payable to bearer, it becomes. like money, the property of whomsoever receives it in good faith and for a consideration, even from a thief. If the drawee, upon presentation, refuses to pay, the indorser becomes liable to the holder. If the last indorser is com pelled to pay in full, he may iu turn recover iu full from either of the preceding indorsers. The holder, however, is not required to pursue any prescribed order as between the indorsers, but may bring suit against whichever of them he prefers; and the one thus selected has the same right of action against any preceding indorser. Where
a bill is made payable by successive indorsements to several payees, they are liable jointly, and only for their respective shares.
In law, every indorsement is held to be a contract, so that, though the original bill should be void, the indorser will yet be responsible. If the payee assents to a condi tional acceptance of an unconditional bill, he is bound thereby; but he is not obliged to take such an acceptance. If the drawee refuses to pay, "protest" is usually made, as in case of the non-payment of a promissory note due to a bank. Notice to the drawer and indorsers must be promptly given in this or some other form. Bills of exeliTge are made payable either "at sight," or in a certain number of days " after sight." The drawee is entitled to "three days' grace" before payment. If the holder, for a consid eration, agrees with the drawee to extend the time of payment, the drawer and indorsers are discharged unless they give their assent to such agreement.