BANK NOTE. A promissory note, pay able on demand to the bearer, made and is sued by a person or persons acting as bankers and authorized by law to issue such notes.
2. For many purposes they are not looked upon as common promissory notes, and as such mere evidences of debt, or security for money. In the ordinary transactions of business they are recognized by general consent as cash. The business of issuing them being regu lated by law, a certain credit attaches to them, that renders them a convenient substitute for money. 2 Hill, N. Y. 241 ; 1 id. 13.
The practice is, therefore, to use them as money ; and they are a good tender, unless objected to. 9 Pick. Mass. 542 ; 7 Johns. N. Y. 476; 8 Ohio, 169 ; 11 Me. 475; 5 Yerg. Tenn. 199 ; 6 Ala. N. s. 226. See 3 Hoist. N. J. 172 ; 4 N. H. 296 ; 4 Dev. & B. No. C. 435. They pass under the word "money" in a will, and, generally speaking, they are treated as cash. 19 Johns. N. Y. 115 ; 7 id. 476; 6 Hill, N. Y. 340. When payment is made in bank notes, they are treated as cash and receipts are given as for cash. 1 Ohio, 189, 524; 15 Pick. Mass. 177 ; 5 Gill & J. Md. 158; 3 Hawks. Tenn. 328 ; 5 J. J. Marsh. Ky. 643 ; 12 Johns. N. Y. 200; 9 id. 120 ; 19 id. 144 ; 1 Johns. Ch. N. Y. 231 ; 1 Schoales & L. Ch. Ir. 318, 319 ; 11 Ves. Ch. 662 ; 1 Roper, Leg. 3. It has been held that the payment of a debt in bank notes discharges the debt. 1 Watts & S. Penn. 92; 11 Ala. 280. See 13 Wend. N. Y. 101; 11 Vt. 516 ; 9 N. H. 365 ; 2 Hill, So. C. 509 ; Story, Notes ; Edwards, Bills. See PAYMENT. The weight of authority is against the doctrine of the extinguishment of a debt by the de livery of bank notes which are not paid, when duly presented, in reasonable time. But it is undoubtedly the duty of the person receiving them to ascertain as soon as possible their value, by presenting them for payment.•11 Wend. N. Y. 9 ; 13 Wend. N. Y. 101 ;
11 Vt. 516; 9 N. H. 365 ; 10 Wheat. 333 ; 6 Mass. 182 ; 18 Barb. N. Y. 545.
Bank notes are governed by the rules ap plicable to other negotiable paper. They are assignable by delivery. Rep. temp. Hardw. 53 ; 9 East, 48 ; 4 id. 510; Dougl. 236. The holder of a note is entitled to payment, and cannot be affected by the fraud of a former holder, unless he is proved privy to the fraud. 1 Burr. 452 ; 4 Rawle, Penh. 185 ; 13 East, 135 ; Dane, Abr. Index ; Powell, Mort. In dex ; U. S. Dig.; Bouvier, Inst. The bone fide holder who has received them for value is protected in their possession even against a real owner from whom they have been stolen. Payment in forged bank notes is a nullity. 2 Hawks, No. C. 326; 3 id. 568; 3 Penn. St. 330; 5 Conn. 71. But where the bank itself receives notes purporting to be its oivn, and they are forged, it is otherwise. 10 Wheat. 333. See 6 Barnew. & C. 373. If a note be cut in two for transmission by mail, and one half be lost, the boat fide holder of the other half can recover the whole amount of the note. 6 Wend. N. Y. 378 ; 6 Munf. Va. 166; 4 Rand. Va. 186.
3. At common law, a chosen in action, bank notes could not be taken on execution. Cunningham, Bills, 537; Hardw. Cases, 53; 1 Archbold, Pract. 258 ; 9 Croke, Eliz. 746. The statute laws of the several states have modified the common law in this respect, and in many of them they can be taken on execu tion. This is the case in New York ; but they are not to be sold. 10 Barb. N. Y. 157, 596. Consult Story, Bills ; Story, Notes; Parsons, Notes and Bills; Byles, Bills, Sharswood's edition.