220 The Farmer's Business Handbook 



to pay," the note is a joint and several obliga- 

 tion, equally binding on both Richard Roe and 

 James Smith. 



With such a note no protest is necessary to 

 hold both signers, although after notice to the 

 holder of the note, from James Smith, to pro- 

 ceed to collect said note, if the owner fail to 

 use due diligence to collect and Richard Roe in 

 the meantime become insolvent, James Smith 

 will undoubtedly escape payment of the note. 



Sometimes the word "principal" is added to 

 the name of the person giving the note and the 

 word "surety" to the name of the "signer." The 

 addition of these words does not affect the rights 

 of the holder or owner in the least, but they do 

 define the relations existing between the princi- 

 pal and the surety, and render it unnecessary for 

 the surety to make special proof in case he pay 

 the note, and then proceed by suit or otherwise 

 to recover from the principal. 



It frequently happens in the transfer of notes 

 that the seller is required to guarantee the note. 

 There is no prescribed form for such a guaranty. 

 The usual form, however, is substantially as 

 follows : 



"For value received, I guarantee the payment when 

 due {or the collection) of the within note." 



A guaranty of payment, when due, is the 



