748 HARVARD LAW REVIEW The instrument is transferable in form, being payable to the bank or its order, and is evidently intended to circulate. Many bankers would probably be surprised to learn that a form of note in such common use has repeatedly been declared by courts not to be negotiable. Consequently, the holder of the note must prove as part of his case that it was given for consideration, and will take it subject to any defenses which the debtor who made the note has against his creditor, the payee. Such a judicial view obviously renders the instrument unsuited to circulation on the note market, for a purchaser would not usually care to make the necessary inquiries or assimie the unavoidable risk of unknown defenses. or any other direct or indirect liability of to the said Trust Company, due or to become due or that may hereafter be contracted, the following described security: Should the market value of the security hereby pledged or which may hereafter be pledged for this loan depredate in the opinion of either the President or Treasurer of said Trust Company, agree to furnish satisfactory additional security at the demand of the said Trust Company, so that the market value of the security shall always be at least per centum more than the amoimt of this note. And upon failing to deposit such additional seciurity when requested, this note shall become due and payable forthwith, anything hereinbefore expressed to the con- trary notwithstanding, and the said Trust Company or its assigns may immediately reimburse themselves by the sale of the security as hereinafter authorized. And hereby give authority to the said Trust Company or its assigns to sell, assign, and de- liver the whole or any part of the said property, also any security substituted therefor or added thereto, with or without notice or advertisement, either at public or private sale, at the option of the said Trust Company or its assigns, on the non-performance of either of the above promises; any balance of the net proceeds of such sale remaining after pajang all sums, whether then or thereafter payable, due from to the said Trust Company, on account of this note or otherwise, after paying all legal costs and expenses for collection, sale, and dehvery, to be returned to And it is further agreed that the said Trust Company or its assigns may bid and become pur- chasers at such sale, and no other purchaser shall be responsible for the application of the purchase money. In case the imdersigned shall be adjudged a bankrupt, or shall file a voluntary peti- tion in bankruptcy, or shall make a general assigimient for the benefit of creditors, or in case a petition shall be filed praying that the imdersigned be adjudged a bankrupt, this note shall become forthwith due and payable. Due For another form, see Cases on Negotiable Instruments, Z. Chafee, Jr., page loi.
