Question 156. - An instrument in the following form is discounted by a bank: "$350......P. E. I.......1917.

Four months after date I promise to pay to the order of the Bank of .........., the sum of $350 at...... for value received. Signed A. B." Endorsed A. J. C. In the event of dishonour what claim has the bank on A. J. C.„ the endorser?

Answer. - The endorser is liable for the amount of the instrument. See section 131 of the Bills of Exchange Act, which provides that "when a person signs a bill, otherwise than as an acceptor or drawer, he thereby incurs the liability of an endorser to a holder in due course, and is subject to all the provisions of this Act respecting endorsers."