Question 323. - The maker of a note (discounted for a customer-payee) becomes insolvent. The note is not yet due, and has another endorser who has lent his name as surety for the maker. Should the note be protested as soon as the assignment is gazetted? Or should no action be taken till maturity?

Answer. - Nothing can be done until the note matures and is dishonoured.

Note. - In the province of Quebec the maker of a note who becomes insolvent cannot claim the benefit of the unexpired term and the note becomes immediately due so far as he is concerned. It must be protested, however, in order to hold the endorsers, whose liability would only commence from the date on which the note by its terms became flue and payable. See Trottier v. Rivard, Q. R. 23 S. C. 526 (1903).

In other provinces the collecting bank should at once notify the sending bank of the insolvency of the maker in order that a special claim may be made against his estate under section 50 of the new Bankruptcy Act.