Question 207. - A demand note is endorsed and given as collateral security. Is there a prescription of time on that note, the note not bearing interest on its face?

Answer. - Section 181 of the Bills of Exchange Act, which is as follows, governs: "If a promissory note payable on demand, which has been endorsed, is not presented for payment within a reasonable time, the endorser is discharged: Provided that if it has, with the assent of the endorser, been delivered as a collateral or continuing security, it need not be presented for payment so long as it is held as such security."