can claim is, to have the benefit of the proof in respect of Accommo the particular bills (1) which he is obliged to pay.

dation bills.

ance,

against the good con

acceptor, a

sideration for a bill,

given in

If, by giving an acceptance, a debt be constituted, which An acceptmay be proved under a commission against the acceptor, which may that is as much a consideration for a bill, as if the value of be proved the bill had actually been paid in money. Thus, where G. and Co., being largely indebted in a drawing account to F. and Co., paid to them a bill, which the latter indorsed to D. and Co.; and then G. and Co., F. and Co., and two other parties to the bill having become bankrupt and insolvent, exchange. D. and Co. by proving it under each commission, and receiving a composition from the estate of the insolvent, obtained altogether 20s. in the pound; it was held, that although G. and Co. were only indebted to F. and Co. in respect of F. and Co.'s acceptances, which were in fact not paid when F. and Co. became bankrupt, yet that the assignees of F. and Co. were entitled to stand in the place of D. and Co., in respect of the proof made by the latter under the commission against one of the other parties to the bill, to the extent of the dividends which had been paid to D. and Co., under F. and Co.'s commission. (2)

agreement

as to ex

change of

their respective

notes.

Where, by agreement between plaintiffs (bankers at Proof on Carlisle) and defendants (bankers at Newcastle), plaintiffs special were weekly to send defendants all the notes issued by the between defendants, as well as the notes of certain other banking two bankhouses, which might come to the plaintiff's hands -- and the ing houses, defendants were in exchange to return to the plaintiffs all their own notes, and the notes of certain other bankers which might come to the defendant's hands, and the deficiency was to be made up by a bill drawn by defendants in favor of plaintiffs at a certain date, it was held, that the notes so sent by the plaintiffs constituted a debt against defendants, which the latter might pay by a return of notes according to the agreement- but that if they made no such return, or a short return, and gave no bill for the balance, (2) Ex parte Greenwood, Buck.

(1) Ex parte Read, 1 G. & J.

224.

237.

notes.

Bills and such balance remained as a debt against them, which was proveable by the plaintiffs under a commission issued against the defendants, on an act of bankruptcy committed after the time, when the bill for the balance (if drawn) would have been due and payable. (1)

Bill discounted may be proved in full;

The holder of a bill or note, who has discounted it for the previous holder, may prove against any of the parties to the bill for the full amount. (2) And, as an assignee or indorsee of a bankrupt's notes, who has bought them in at 10s. in the pound, may take out a commission on such bought in notes (3), it should seem, that he might equally prove the full amount of them as a general creditor, and receive dividends upon that amount under the commission.

so banker's notes

for less

than their amount.

Charges of protest proveable;

and consequential damages

by the law

The costs and charges of protesting bills might formerly be proved under the commission, if they were incurred before the act of bankruptcy; but those incurred afterwards could not be proved. But now, it is apprehended, under the 47th section of the new statute, all such costs are proveable, if they were incurred before the issuing of the commission, and before notice of the bankrupt's insolvency. And such costs and charges may include the consequential damages which, by the law of a foreign state, the drawer occasioned or indorser of a returned bill is obliged to pay beyond the amount of the bill. As, where bills drawn by a trader in Pennsylvania upon the bankrupt in England were protested and returned to the drawer, some for non-acceptance, and others for non-payment and by a law of that state the drawer or indorser of a bill so returned must pay it with 20 per cent. advance for damages, which the drawer in this case accordingly paid - Lord Camden admitted the drawer to prove the 20 per cent. under the commission, saying, that that per centage was part of the original contract; for the nature of the engagement was to pay the bills when due, or the 20 per cent. in addition (according to the law of

of a foreign state.

(1) Forster v. Surtees, 12 East,

605.

(2) Ex parte Marlar, 1 Atk, 150.

(3) Ex parte Lee, 1 P. Wmɛ.

782.

Pennsylvania) the same as if it had been by express stipu- Bills and lation. (1)

notes.

when

Re-exchange, when it is only the value in sterling Re-exmoney of the bill payable abroad in foreign money, has change, been held proveable, notwithstanding the value of the proveable. foreign money was greater at the time of re-drawing, than at the time of negotiating the bill. (2) But the re-exchange must not include damages and costs, arising upon protest of bills after the issuing of the commission.

With respect to interest on bills and notes-the practice was formerly not to allow it to be proved, unless it was expressed in the body of them (3); or unless there was a special agreement or custom of the trade to that effect (4) ; — the rule in Bankruptcy differing from the rule in Equity in this respect, which allows interest on bills and notes (payable on demand, or on a day certain) to be calculated from the demand, or the day. (5) But now, by the 57th section of the new statute, the holder of any bill or note, which is overdue at the issuing of the commission-though interest is not reserved by it—may, nevertheless, prove for interest upon it up to the date of the commission, at such rate as is allowed by the Court of King's Bench in actions upon bills or notes. And where a creditor, with whom a bill of exchange had been deposited as a security, first proved his debt against the estate of the drawer (his principal debtor) and thereby, and by other means, reduced his debt to 14%.,--he was held entitled to prove under a commission against the acceptor, not only the 147. but also all the interest due upon his whole debt up to the time of making that proof, for the perfect liquidation of the account, in respect of which he held the bill as a security. (6) Where

Interest on

bills now

proveable.

Bills and notes.

a bill is drawn payable at a given time after date for a specified sum, "with lawful interest for the same," interest is to be computed from the date of the bill. (1)

Insured

SECTION XVI.

Policies of Insurance.

Formerly all debts which might become due and payable on policies of insurance, or bottomry and respondentia bonds, being (as such debts are) contingent in their nature, were not proveable under a commission of bankrupt, unless the contingency had happened before the act of bankruptcy. Relief was first afforded to creditors holding these securities by the 19 Geo. 2. c. 32. s. 2. which enabled them first to make a claim, and afterwards prove when the contingency took effect. The 53d section of the new statute adopts that provision, declaring that the obligee in any bottomry or respondentia bond, and the assured in any policy of insurance, made upon good and valuable consideration, shall be so admitted to claim, and after the loss to prove his debt or demand, and receive dividends, as if the loss or contingency had happened before the issuing Agent may of the commission against the obligor or insurer. And the person, also, who effects the policy, may prove for any loss, though not beneficially interested in the ship or goods, in case the person really interested is out of the realm. (2)

may prove, though loss hap

pens after the commission.

prove,

where in

sured abroad.

Life insur

ances.

Insurance

Insurances upon lives are within this enactment; for, though they are not expressly mentioned, the enacting words are sufficient to comprehend them. (3)

A debt upon a policy of insurance on foreign property, on foreign though the policy is effected during peace, yet where the not prove- loss happens by capture by any British or co-belligerent

property

(1) Doman v. Dibden, 1 Ry. & M. 381.

(2) This last provision is taken from the 49 G. 3. c. 121. s. 16.

(5) Coz v. Liotard, Doug. 166.

insurance.

vessel, after the commencement of hostilities, is not prove- Policies of able-not even after the return of peace (1); for every insurance on alien property by a British subject must be able, if loss understood, with this implied exception, that it shall not by British extend to cover any loss during the existence of hostilities between the respective countries of the assured and

assurers.

capture.

SECTION XVII.

Rent.

can only distrain

for one

year's rent, after act

of bank

A landlord having a general right to distrain goods for rent, as long as they remain on the premises for which the rent is due - neither the issuing a commission of bankrupt against the tenant, nor the messenger's possession of his goods, will prevent him from exercising that right. But Landlord by section 74. of the new statute, the landlord cannot now, after the act of bankruptcy, distrain for more than one year's rent, and that must have become due before the date of the commission. If more than a year's rent, therefore, is due to him, he can only prove for the residue; the law, ruptcy. in this respect, putting him now upon the same footing, in Bankruptcy, as when his tenant's goods are seized by the sheriff under an execution, in which case he is only entitled to a year's rent out of the goods so seized. (2) As long, however, as the goods continue on the premises, whether before or after assignment to the assignees, or even after the assignees have sold them, the landlord will be entitled to distrain for the whole year's rent. (3)

But in a case, where the landlord proved the amount of After provthe rent due to him under the commission, and permitted ing for the the assignees to sell the goods to a third person, who lying by

(1) Ex parte Lee, 4 Mont. B. L. App. 13. 13 Ves. 64. Brandon v. Curling, 4 East, 410. (2) 8 Ann. c. 14.

(3) Ex parte Plummer, 1 Atk. 103. Ex parte Jacques, 1 Atk. 104. Ex parte Dillon, ibid.

rent, and