Where a bill has been seized in execution, a sheriff can give a good discharge when payment is made to him.
If an indorser writes any words on the cheque or bill in the form of a receipt, such as " Received Payment," " Received Cash," such receipt requires a penny stamp if the amount is or over. A receipt by a banker upon a bill of exchange is exempt. (See RECEIPT.) Where an indorsement is by mark, it must be duly witnessed.
Where a bill drawn by a firm is payable to their order, one partner may draw the bill and, probably, another partner may indorse it. Thus, though the signatures of the firm on the bill differ, it may be in accordance with the practice of the firm to treat bills in that way.
Where payable to a fictitious or non existing person no indorsement is required, as the instrument may be treated as payable to " bearer " (Section 7, s.s. 3).
Where payable to " Wages or order," or some such impersonal word, it is treated by many bankers as a cheque requiring the drawer's indorsement, and as a rule is paid only to the drawer or his authorised repre sentative. Some bankers, however, treat it as coming under Section 7, s.s. 3—that is, as payable to " bearer "—but the word " wages " can hardly be described as a " fictitious or nonexisting person." Per procuration indorsements are usually accepted by bankers, but some companies put a note upon their cheques to the effect that a per procuration discharge will not be ac cepted, unless guaranteed by the payee's banker. A hanker is not obliged to accept a per pro. indorsement, if there are suspicious circumstances demanding inquiry as to the person's authority to indorse.
An indorsement which is not strictly in order is frequently confirmed by a banker as " Indorsement confirmed. Per pro. X & Y. Bank, Ltd., T. Brown, Manager." This is better than " Indorsement guaranteed," as it precludes any chance of liability to stamp duty as a guarantee. Where a cheque pay able to order has been omitted to be in dorsed by the payee, a banker occasionally indorses it " Placed to credit of the payee's account. Per pro. X. & Y. Bank, Ltd., T. Brown, Manager." Though there is no obligation on the banker on whom the cheque is drawn to pay a cheque which is not indorsed, he is usually satisfied with the collecting banker's assurance that it has gone to the payee's credit. Of course as it
is not indorsed, the banker cannot shelter himself under Section 60.
A banker is sometimes authorised by a company to indorse cheques on behalf of the company, and in such a case the indorsement may be, e.g. " Indorsed by authority of the X. & Y. Railway Company and placed to the credit of their account with us. Per pro. The British Bank, Ltd., John Brown, Manager." Section 77 of the Companies (Consolidation) Act, 1908, enacts that " a bill of exchange or promissory note shall be deemed to have been made, accepted, or indorsed on behalf of a company if made, accepted, or indorsed in the name of, or by or on behalf or on account of, the company by any person acting under its authority." Although this Section makes an indorsement of simply the name of a joint stock company legally correct, it is the practice of bankers always to require that it be signed by some person on behalf of the company, e.g. " Per pro. John Brown & Coy., Limited, J. Jones," or " John Brown & Coy., Ltd., J. Jones, Secretary." Where a cheque payable to John Brown is indorsed " Place to credit of my account, J. Brown," it is not necessary that the cheque should be indorsed by the bank in any way. So long as the cheque is indorsed J. Brown, the paying banker is not concerned with the instruction to the collecting banker.
A bearer cheque does not require indorse ment and any indorsements which may have been placed thereon need not be examined. A bearer cheque cannot be turned into one payable to order by indorsement. If a " bearer " cheque is specially indorsed to John Brown or order and is not signed by John Brown, the banker is not concerned with the matter.
In the case of a cheque payable to order which has been indorsed in blank, thus making it payable to bearer. and a subse quent holder makes it again payable to order, the fresh series of indorsements must be examined by the banker.