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Protest for Better Secu Rity


PROTEST FOR BETTER SECU RITY. When the acceptor of a bill of exchange becomes bankrupt or makes an assignment before its maturity, it may be protested for better security. (Brooks' Notary, p. 88, form p. 219.) When a bill of exchange is dishonored by non acceptance or non-payment, and a reference to a case of need has been made, the holder should (per haps) present the bill to the case of need for accept ance or payment supra protest, to preserve his rights against prior parties. But it is optional to do so, when the reference to a case of need is given by an indorser. (Benj.'s Chalmers, B. N. & C., Art.

So a bill must be presented to the drawee or acceptor and duly noted for protest before it can be presented to the acceptor supra protest; an omission by the holder to. so protest the bill accepted supra protest will discharge such acceptor. And when dishonored by the acceptor after protest, it is held to be again necessary to protest it in order to charge the prior parties. (Chitty, p. 242; Brooks' Notary, p. 108.)