BANK NOTE
Legal Term: BANK NOTE
Definition: contracts. A bank note resembles a common promissory note, (q. v.) issued by a bank or corporation authorized to act as a bank. It is in fact a promissory note, but such notes are not, for many purposes, to be considered as mere securities for money, but are treated as money, in the ordinary course and transactions of business, by the general consent of mankind and, on payment of them, when a receipt is required, the receipts are always given as for money, not as for securities or notes. 1 Burr. R. 457, 12 John. R. 200, 1 John. Ch. R. 231, 9 John. R. 120, 19 John. 144, 1 Sch. & Lef. 318, 319, 11 Ves. 662, 1 Roper, Leg. 3, 1 Ham. R. 189, 524, 15 Pick. 177, 5 G. & John. 58, 3 Hawks, 328, 5 J. J. Marsh. 643.
2. Bank notes are assignable by delivery. Rep. Temp. Hard. 53 9 East, R. 48, 4 East, R. 510 Dougl. 236. The holder of a bank note is prima facie entitled to prompt payment of it, and cannot be affected by the fraud of any former holder in obtaining it, unless evidence be given to bring it home to his privity. 1 Burr. 452, 4 Rawle, 185 13 East, R. 135 Danes Ab. Index, h. t., Pow. on Mortg. lndex, h. t. U. S. Dig. h. t. Vide Bouv. Inst. Index, h. t. Note, Promissory note, Reissuable note.
3. They cannot be taken in execution. Cunning. on Bills, 537, Hardw. Cases, 53, 1 Arch. Pr. 268 1 Wils. Rep. 9 Cro. Eliz. 746, pl. 25
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