take the note as payment, and to run the risk of its being paid; or unless the creditor parts with the note, or is guilty of laches in not presenting it for payment in due time. He is not obliged to sue upon it. He may return it when dishonored and resort to his original demand. It only postpones the time of the payment of the old debt until a default be made in the payment of the note.'

When a promissory note is payable three months after date, with interest at the rate of per cent. a month, the interest

runs from the date of the note.'

In a judgment on a note bearing an agreed amount of interest, the interest is computed as part of the judgment, and the judg ment should bear the agreed interest.'

A certificate of deposit is a negotiable security, and, as far as negotiability is concerned, must be placed on the same footing as promissory notes.*

Where it is alleged that a negotiable security, as, for example, a banker's certificate of deposit has been lost or destroyed, the maker of it has a right to require indemnity against all future clains under it before its payment can be enforced. The best rule is, to require indemnity in all cases, whether the bill or note has been lost or destroyed, notwithstanding its occasional hardship.'

Sight checks are sight bills, and by our statute are not entitled to grace. But an order in the nature of a check, payable at a future day, is an inland bill of exchange, and the drawer is entitled to three days' grace and notice of non-payment. In such a case, presentation before the last day of grace, and the immediate commencement of suit on the day of demand and non-payment, are premature.*

A negotiable note taken by the holder after maturity, is taken subject to all subsisting equities between the maker and the payee relating to the transaction out of which the note was given, but not such as subsisted between the maker and any intermediate holder."

A negotiable promissory note, the consideration of which is against public policy, when transferred to an innocent holder before its maturity, is purged of the objection and must be enforced.'

One who puts his name upon a promissory note, out of the usual course of regular negotiability, is not an endorser; he is a guarantor. And this whether his inscription is in blank, or preceded by the words "I guarantee," &c. Such guarantee is not within the statute of frauds, for the want of a consideration expressed in writing. The contract-the promissory note-imports a consideration, each one who writes his name upon it is a party to it, and each party an original undertaker. The liability of an endorser is a guarantee that he will pay, if the maker does not upon presentment, if he receives due notice."

The liability of the guarantor can only be fixed by notice the same as in case of an endorser. The contract of both is conditional, but the conditions are unlike. The contract of endorsement is primarily that of transfer, the contract of guarantee is that of security."

A promissory note was endorsed by a third person before delivery to the payee. Held, that such endorsement was prima facie an accommodation to the payee; but proof that his design was to become a surety or guarantor for the maker, would make him liable to the payee; and default by the endorser with proper averments dispenses with this proof."

When a place of payment is designated in a promissory note, or in the body or acceptance of a bill of exchange, the undertaking of the parties and the legal effect of the contract is, that, if ready at the time and place with the funds, the obligor has so far satisfied the contract, that he cannot be responsible for any future damages, either as costs of suit or interest for delay; not that he is thereby discharged of the debt. The insertion of the place of payment is usually made for the convenience of one of the parties; and is given and received with that understanding and none other.'

A note commencing "For value received I promise to pay,

1 4 Cal. 321.

2 id. 485; 5 id. 188; Brady v. Reynolds, Jan. Term, 1859.

32 Cal. 605.

Montgomery . Tutt, Jan. Term, 1859

&c.," and signed by two parties, is joint and several; so also where one signs a note as surety for another.

A note payable in specific articles, is payable at the place where the payee resided at the time of making the note; provided that if the articles are too ponderous or his residence is unknown, then at the residence of the maker.'

A party may become an endorser of a bill or note by any mark, whether his initials or other figure or sign, if it be substituted for his name, and he intend to be bound by it.'

Bills or drafts payable at sight, given due, or on the face of which there is no time of payment expressed, are immediately due without grace."

One who makes or endorses an accommodation note, is a surety for the party accommodated, and the latter is liable to refund the costs of a suit for collection brought against such maker or endorser.*

A person becoming surety on a note must be treated and charged as an endorser."

An endorser may waive demand and notice before maturity of the bill or note endorsed, without any consideration for such waiver."

The dating of a promissory note at a particular place does not make that the place of payment and authorize a demand to be made there to charge the endorser, though it is presumptive evidence that the place mentioned is the residence of the maker."

If a note be endorsed after it is due, the endorser is entitled to demand and notice before he is liable to his endorser. The demand should be made in a reasonable time, and notice of default seasonably given."

In conclusion, the reader is referred for further consideration of the present subject, to the chapter entitled NOTARY.

1 Wood's Dig. art. 203.

* 6 Hill, 443; 1 Denio, 471.

Wheatley v. Strobe, January Term, 1859;

Wood's Dig. 196.

8 Barb. Sup. Ct. Rep. 684.

67 Hill, 416.

1 Comstock, 186.

7 3 Denio, 145.

Becbe v. Brooks, January Term, 1829.

$10,000.

FORMS.

Bill of Exchange.

SAN FRANCISCO, May 1, 1856. Ten days after sight, pay to the order of Thomas Kensett & Co., ten thousand dollars, and charge the same to account of

D. L. Ross & Co.

To Messrs. WM. T. COLEMAN & Co., New York.

A Set of Bills of Exchange.

WELLS, FARGO & Co., Express and Banking Office. No. 104,901. Ex. for $10. SAN FRANCISCO, Cal., Aug. 4, 1858. At sight of this first of exchange (second and third unpaid), pay to the order of Morris & Willis, ten dollars.

Value received, and charge the same to account of

WELLS, FARGO & Co. To Messrs. WELLS, FARGO & Co., 82 Broadway, New York.

WELLS, FARGO & Co., Express and Banking Office. No. 104,901. Ex. for $10. SAN FRANCISCO, Cal., Aug. 4, 1858. At sight of this second of exchange (first and third unpaid), pay to the order of Morris & Willis, ten dollars. Value received, and charge the same to account of

WELLS, FARGO & Co. To Messrs. WELLS, FARGO & Co., 82 Broadway, New York.

WELLS, FARGO & Co., Express and Banking Office. No. 104,901. Ex. for $10. SAN FRANCISCO, Cal., Aug. 4, 1858. At sight of this third of exchange (first and second unpaid), pay to the order of Morris & Willis, ten dollars.

Value received, and charge the same to to account of

WELLS, FARGO & Co. To Messrs. WELLS, FARGO & Co., 82 Broadway, New York.

Bank Check.

No. 387.

SAN FRANCISCO, Nov. 12, 1853. B. Davidson & Co., pay to S. R. Throckmorton, or order, fifty thousand dollars ($50,000).

SAML. BRANNAN.

Promissory Note Negotiable.

$1,000,000.

SAN FRANCISCo, March 5th, 1857.

Thirty days from date for value received, I promise to pay to

the order of J. C. Horan & Co., one thousand dollars, with interest at two per cent. per month. D. QUATTLE.

$279.00.

Another Form.

One month after date for value received, I promise to pay to A. S. Church, or bearer, two hundred and seventy-nine 10 dollars, with interest after maturity at three per cent. per

50

month.

San Francisco, August 4th, 1855.

JAMES BULL.

Another Form.

SQUAW HOLLOW, May 1, 1858.

ANDREW J. SMART.

$500. Ninety days from date, I promise to pay to Chas. Plover, or order, five hundred dollars.

$290.

Note not Negotiable.

DUTCH FLAT, June 9th, 1856.

Ten days from date I promise to pay to Elkins Todd, two hundred and ninety dollars-value received.

Note Payable on Demand.

GEO. PARKS.

$1,500. On demand, for value received, I promise to pay to C. W. Kendall, or bearer, one thousand five hundred dollars, with interest from date until paid, at five per cent. per month, compounded. ABIEL BROWN.

Murderer's Bar, Oct. 10, 1850.

Note Payable at a Banker's.

SAN FRANCISCO, Aug. 5, 1858.

$5,000. Ninety days from date, value received, I promise to pay to the order of Jennings and Brewster, at the Banking House of B. Davidson, five thousand dollars.

JOHN YOUNG.

Note for Loan, to be accompanied by Mortgage.

SAN FRANCISCO, April 1, 1856. $3,000. Six months from date, without grace, for value received, I promise to pay to Pyncheon Close, or order, at the Banking House of Sather and Church, three thousand dollars, with interest thereon, at the rate of two and one half per cent. per month, payable monthly in advance, agreeing that upon failure to pay said monthly interest at any time for more than