It results, from what has been stated, that a Lloyd's bond cannot be granted for money lent, but can be granted for any other antecedent debt. It cannot be granted for money lent, though the money has actually been used in paying off debts for which bonds might have been granted. The bond should state the origin of the debt on account of which it is granted, but this is not essential. The courts will in no case assurne that a Lloyd's bond has been issued iu breach of statutory provisions; but evi dence of an intention to defeat such provisions will invalidate a bond. If there have been no actual debt (as may happen when a company's accounts with a contractor are unsettled), the instrument will not create one; and in that case, the oblig,ee or holder will not be able to recover, even though the obligee bond fide believed that a debt existed. Directors are not personally responsible upon a Lloyd's bond improperly issued. The leading case upon this subject is that of Chambers v. the Manchester and Milford-Haven railway company (5 Best and Smith's Rep., 588), decided by the court of queen's bench in June, 1864. A review of the whole series of cases on this subject up to the date of
the decision will be found in the case of In re Bagnalstown and Wexford railway com pany, 1870 (Irish Reports, 4 Eq. 505). The form of this instrument (which must be duly stamped) is as follows: " The A. and B. railway company do hereby acknowledge that they stand indebted to C. D. in the sum of .43000 for money due and owing from the said company to the said C. D., in respect of work and labor done for the said company by the said C. D. And the said company for themselves, their successors and assigns, hereby covenant with the said C. D., his executors and administrators, to pay to him, his executors, administrators, and assigns, the said sum of X1000 upon the 1st day of May, 1869, and also interest thereon at the rate of 5 per cent per annum from the date hereof until payment; such interest to be payable half-yearly, on the 1st day of January, and the 1st day of July in each year.—Given under the common seal of the said company, the 1st day of May, 1866.—X. Y., Secretary."