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The Effect of Notes and Bills Executed in Blank

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THE EFFECT OF NOTES AND BILLS EXECUTED IN BLANK. It is not unusual for a person wishing to secure a loan on his note or bill to obtain the signature of persons as accommodation makers to sign the bill or note in blank, or to affix their signature to a blank paper with authority to fill up the blank as a bill or note in a certain amount. Such instruments are held to be binding upon the parties who have signed them, and to constitute a general letter of credit to any person who takes it without knowl edge of limitations or conditions imposed, and pays value for it. In the absence of knowledge of the limitation of his authority the party to whom such a paper is entrusted is presumed to have implied authority to fill up the blanks and perfect the instru ment, and the parties who have so signed are bound though the paper is executed for a greater amount than was intended.

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