Question 529. - Can banks legally take security under sec tion 80 of the Bank Act, to secure current liabilities (business or accommodation paper under discount, but not yet matured).

Answer. - There is no doubt of a bank's right to take security for an unmatured debt, under section 80 by way of mortgage on real estate or chattels Mortgage Security Taken by a Bank in Pursuance of a promisE Made when the Money was Advanced.

Question 530. - A customer presents his note to a chartered bank for discount and offerrs to give at once a mortgage as security. He is told that it is not necessary now, but is asked to promise to give it in a few days later if judged necessary. On his answering "yes" the note is discounted. He draws the proceeds or leaves them to his credit. Two or three days after he is asked to give the mortgage, he gives it. Could the mortgage be successfully contested?

Answer. - We think that to discount a note on a promise that mortgage security will be given is equivalent to lending money on the security of the mortgage, and that the security would be void under the Bank Act.