Question 144. - A cheque of the Department of Militia and Defence, Ottawa, for $100.00, payable to the order of John Smith but not endorsed, was presented to us by Mrs. John Smith, who wanted to take cash for $40.00 and deposit the balance to a joint account in the name of herself and her husband, payable to either or survivor. Would we be justified in depositing the amount of this cheque to the credit of a joint account, endorsing the item in that manner, and afterwards permitting Mrs. Smith to withdraw the $40.00 from the account? We have no agreement on file re the joint account.

Answer. - No. The endorsement of John Smith should be obtained before the cheque is either cashed or deposited in the joint account.