ACCEPTANCE:

There is an implied representation on
the part of the drawer of a bill of
exchange that he has funds in the
hands of the drawee sufficient to pay
the bill, and when the bill is ac-
cepted by the drawee he admits the
truth of this implied representation.
The Negotiable Instruments Law
provides that when a bill is dis-
honored by non-acceptance the
holder had an immediate right to re-
course against the drawer and in-
dorsers and under this law it has
been held that although the will is
payable at a fixed time, it may be
presented for acceptance at any
time, and if the acceptance is re-
fused or cannot be obtained, the
holder may treat the bill as dis-
honored. Page 85a, No. 1098.
A party purchased a draft drawn by
one bank on another bank, which
was to be placed to the credit of the
payee in the bank upon which the
draft was drawn, and a certificate of
deposit issued to the payee, the cer-
tificate of deposit was issued, when
it was discovered by the latter bank
that payee's indorsement was lack-
ing and the draft was returned to
the party presenting it, the bank
having stamped on the draft that

66

on its return properly indorsed
will be placed to the credit of
(naming payee)." The bank, which
was the drawer, failed and the
drawee bank was held liable on the
theory that it had accepted the
draft. Page 226a.

ACCEPTOR:

Where the drawer of a draft sold goods
to the drawee and drew a draft pay-
able to the order of himself and in-
dorsed by him to a bank and the
drawee accepted the draft and was
sued by the bank, the indorsee, he
could not set up the defense of fail-
ure of consideration as between him
and the drawer, for the reason that
a defense available to the acceptor
against the drawer is not available
to an innocent third party, who is a
holder in due course. Page 209a,
No. 1126.

ACCOMMODATION INDORSEMENT:
While the maker of a note is im-
pliedly bound to reimburse one in-
dorsing it for his accommodation for
any payment the indorser may be
compelled to make, he cannot sue
the maker until he has made the
payment. Page 287a, No. 1154.
ACCOMMODATION PAPER:

Where an indorsee of a note brought
action thereon against the maker on
a statement of claim which did not
aver that plaintiff was a bona fide
holder, and affidavit of defense aver-
ing that the note was taken after
notice of payee's defective title, and
that no consideration passed, was
sufficient, and put plaintiff on proof
of the bona fides of the transaction.
15a, No. 1086.

No consideration moving to an ac-
commodation maker of a note is
necessary to uphold it; the consid-
eration supporting the promise of
the maker being that parted with
by the person taking the accommo-
dation note and received by the
person accommodated. It is no de-
fense to the maker of an accommo-
dation note that the holder other
than the person accommodated,
whether indorsee or transferee for
value, knew before or when he took
the note that the accommodation
maker received no consideration
therefor. Negotiable Instruments
Law, providing that in the hands of
a holder other than the holder in
due course a negotiable instrument
is subject to the same defenses as if
it were non-negotiable, applies to an
accommodation note transferred
after maturity. Page 280a, No.
1143.
Accommodation paper has no legal in-
ception until negotiated for value.
The taking of accommodation note,
either as conditional payment on an
account or as collateral security for
an antecedent indebtedness, is for
value, where there is no fraudulent
diversion of the notes from a re-
stricted use imposed by the maker.
Page 292a, No. 1163.

One who acquires a negotiable instru-