BOEKOWING FROM BANKS 109 



130. A common form of a bank note is here shown : 



BEREA, KY., ^aw,. /, 197 3 



, 1A}~& promise to pay to the order of 

 Cbc Bcrca JVational Bank, Berea, Ky. 



Negotiable and payable at THE BEREA NATIONAL BANK, Berea, 

 Ky., value received, with interest at the rate of 6 per centum 

 per annum after maturity until paid. Indorsers waive demand, 

 protest, and all legal diligence to collect. 



The day this note was made, Mr. Hacker paid to the 

 bank $15, the interest for 6 mo.; that is, he received from 

 the bank $485. The interest is called bank discount; the 

 amount received by the maker of the note is called the 

 proceeds. 



The note is due in 6 calendar months. On July 1, 1913, 

 Mr. Hacker will pay the bank $500, or he will renew the 

 note, paying the interest in advance. 



EXERCISE 



1. Let each member of the class write a note for $200 for 

 6 calendar months, with interest at 6%, payable to the local 

 bank. Some members of the class or school may sign the 

 note with the maker for security. When is this note due ? 

 What is the bank discount ? What are the proceeds of the 

 note? 



