Certificate of Stock. See "Stock Certificate." Certificate of Trustee. Explained under " Trustee." Certified. Any fact which has been vouched for in writing. The expression is often seen," the issue is (has been) certified to by," and then naming some trust company. The meaning of this is that the company which is named in the mortgage as trustee is not supposed to allow the bonds to be issued until all the provisions in the mortgage leading up to the issue of the bonds have been fulfilled. There is, as a rule, a printed form on each bond, to be properly signed by the trust company as the last necessary act before the actual delivery of the bond, and which makes it a binding obligation upon the corporation issuing the same. This is only in the case of a corporation issue and not necessary in relation to a municipal bond. (See also "Certified Check.") 66 Certified Accountant. See "Certified Public Accountant." Certified Check. A check across which some competent bank officer has written, or stamped,' over his signature, satisfactory evidence that the person having drawn the check has sufficient funds of deposit at the bank to pay it when presented. Such a check takes precedence over other checks, not certified," drawn by the same person, and at the time of certification" the amount of the check is deducted from the funds to the credit of the depositor. "Certified checks " are very much in use as safeguards, and in financial transactions it is desirable, if a payment of a considerable sum is to be made by check, to present a "certified " one. A "certified check" may be returned to the bank and cancelled if not used. The certifying of a check is not obligatory upon a bank, but an act of accommodation. After certification, a bank may be held for payment (except in case of a "raised check "), but no other parties thereto, unless the certification was obtained by the one who drew it. To obtain a check of this kind, draw, in favour of the party to whom you wish to make payment, a check against your bank in the ordinary form, and either present it in person or by messenger to the bank, with the request for certification. Many banks have pursued the policy of " over-certifying; " that is, certifying a check for a greater amount of money than the depositor has to his credit, as a matter of accommodation, the understanding being that it is to be for a very brief period, the depositor making good the deficit some time during the 1 There are various forms of wording used for the stamping on a check for this purpose, such as, "Good when properly indorsed," "Good through the Clearing-House," " Accepted," etc., to which, of course, must be added the date and the official signature. day. This is not strictly proper banking. In fact, it is prohibited for national banks to "over-certify" a check. Certified Public Accountant. One who has passed an examination (in certain States) and received a certificate authorizing him to use the title "Certified Public Accountant," or the initials" C. P. A.," which signifies that he is qualified, by the test of that State, to perform such duties as set forth under the subject "Auditor." In Great Britain "chartered accountant " has the same meaning." CH. The "ticker" abbreviation for "Stock Exchange Clearing-House." Change. Stock exchange is the meaning in this country. Charged Down (or Charged Off). Reducing the "book value" of a property in accordance with the market value at the time is called "charging down;" for example, a banking house owns $100,000 worth of bonds, which, since purchase, have declined in salable or market value five per cent. below the original cost. In order that the banking house may not be deceiving itself in its bookkeeping, it reduces the value of these bonds by $5,000, charging the amount of such reduction against any profits which it may have, and the $5,000 is the amount " charged off." This method of charging down" is pursued not only in the case of securities where a loss is incurred, or merchandise owned, which may have depreciated, but in the case of a manufacturing corporation a certain proportion each year of the value of the machinery, or, in fact, anything subject to wear and tear is " charged down." Charge Ticket. (See "Bank-Book.") Also a form or blank used among " clearing-houses." Charter. A governmental or State grant of certain powers and privileges to a company at the time of its incorporation. A railway company must obtain a charter before it can have legal existence. Also the engagement of a vessel to carry grain to a certain point at a fixed rate. Charter Bonds. United States Government bonds legally required to be deposited with the Treasurer of the United States before a certificate of authority will be issued for the bank to begin business. Chartered Accountant. The same as an "auditor," to which refer; only a "chartered accountant is one officially authorized to do such work, and is an English title for one who holds a charter from the "Institute of Chartered Accountants." Chartered Public Accountant. See "Chartered Accountant" and "Auditor." Charter Number. Each national bank, at the time of beginning business, is assigned a certain number by the government which is expected to appear on all its stationery, called its" charter number." This number always appears on a bank's circulating notes. Chasing Eighths and Quarters. Used in reference to one satisfied with small profits. Chattel Mortgage. A mortgage on personal property, movable goods, or live stock, and given to secure a debt or promise in much the same manner as is a mortgage upon real estate. A mortgage of this kind should be recorded the same as a mortgage on real estate. (See "Mortgage" in relation to fire insurance and recording.) 66 Chattels. Movable goods of all kinds; live stock, household furniture, and property other than real. (See "Real Property.") Cheap Money. Low interest rates; i. e. money can be hired at a low rental. Check. A written order by a person having money, or the equivalent of money, in a banking institution for it to pay, on demand, during banking hours, a stated sum to the person named in the order, or to whomsoever that person may in turn, by proper indorsement (see "Indorse "), direct it to be paid. As strange as it may seem, there are a great many people who know comparatively little about drawing a check, and who do not take proper precaution in so doing. The two common forms of checks are as follows: 1 By statute a "check" is a "bill of exchange drawn on a bank and payable on demand." The first form of check is practically the only one now in use, for in the second case, the check is good in the hands of Frank Yeaton, or in the hands of any one else, without Yeaton's indorsement; therefore, care must be taken not to lose it. A check of the same character may be drawn by making it payable to "cash" or " currency," and using the first form. To deposit a check drawn in this way the bank should require the indorsement of the depositor, so, in case Richard Ordway, the "maker" of it, is not good for the amount, then the depositor who indorsed it can be held responsible. The first form of a check is only good in the hands of Charles King, unless he signs his name upon the back, in which event it is payable to any one holding the check, unless it is suspected of being in the hands of a thief. A check, however, made payable to "cash" or "bearer" is good in the hands of any one, always excepting the thief, without indorsement upon the back. In filling out the blanks, as in the case of, "Pay to the order of Frank Yeaton, or bearer," it is better to fill in all the remaining part of the blank with a wavy line, so that no additional writing can be inserted; the same, and more particularly so, in the blank in which the amount is filled out. For instance, it would be very easy, if a check were drawn for fifty dollars to insert" two hundred" before it, making it "Two hundred fifty dollars," if there had been sufficient room left without any wavy line being filled in. The better way is to begin the writing of the amount, and the name of the person to whom the check is payable, as far to the left as possible, in the spaces left for their insertion, filling up the remainder of the spaces with wavy ink lines. When a check, in the hands of a dishonest person, is increased in amount, by changing or adding figures, it is said to be" raised." In the corner of the check the amount should be in figures and agree with the sum preceding the word "dollars," which sum should always be in written words, not figures. If the amount in figures does not agree with the amount in writing, and the bank at which it is presented for payment is unable to communicate with the person who wrote the check to ascertain which amount is correct, it pays the latter amount. (For information regarding "indorsing checks for deposit, "" in blank" and all facts relating to " indorsing," see matter under "Indorse.") It is a very common practice among people not familiar with business affairs, to hold checks in their possession without presenting for payment for a long period, thinking, possibly there is no need of cashing them until the money is actually needed. This is wrong for several reasons: First, it is an annoyance to the person who drew the check, if it happens that he desires to balance his bank-book in the meantime; Second, in case of financial failure on the part of the person who drew the check, after drawing of the same, the holder of such a check would not have any claim for payment in case other checks should have been presented and paid in the meantime; that is, he would not have prior claim to such checks, although his was drawn before those, for the law would hold him negligent; Third, in case of the failure of the bank itself, the holder who has delayed the presentation of a check an unreasonable time will suffer the loss even if the drawer of the check has funds to meet it in the bank at the time of failure; Fourth, a most important reason, i. e. to hold the "indorser" or "indorsers." A holder of a check should present for payment or forward for collection without loss of time; in no event beyond the second day after its receipt, and all who are parties to the collection thereto should send it along on its course for collection the day received, Sundays and holidays excepted. The only exception thereto may be that of the case of the bank which receives it for final collection which may postpone presentation till the following business day, if received after banking hours. The law expects checks to go forward in their usual course for collection without unnecessary delay, and any delay is entirely at the holder's risk. Again, a bank may hesitate to pay a check long since dated, on the supposition that it may have been lost and the liability discharged by another check, or in some other way. Should there be checks outstanding and not presented for payment at the time of the death of the one who drew them, in most of our States such checks would cease to have value and should not be cashed by the bank upon which drawn. However, ignorance of the death of the depositor would protect the bank in case of cashing such checks. Do not date a check so far ahead that it may be presented for payment prior to its date, as such a check should not be |