Finally it may be added that it is not illegal to indorse a cheque in pencil, though a banker would probably decline to honour it on the plea that it becomes fainter as time progresses. Again, too, an indorsement may be made on the face as well as upon the back of a cheque, but the customer, unless he be of a peculiarly combative temperament, merely wishes to know what is usual, and we are all aware of the accepted rule in this instance. Agents and “Per Pro” Indorsements. A signature by procuration indicates that the agent’s power to bind his principal may be, and probably is, limited. For instance, the agent may only have authority to indorse cheques and bills, and if he sign as either drawer or acceptor, he cannot bind his principal. Moreover, as a procuration signature operates as notice of his limitations, a holder has no claim upon his principal, as he should have protected himself by demanding to see the agent’s letter of authority. A customer, when he wishes another person to draw cheques on his behalf, gives a letter of authority to his banker, and states therein exactly what his nominee or agent may do. The authority may only allow a certain person to sign cheques on his behalf up to, say, £100, and the banker would, of course, refuse any cheque drawn in excess of that sum. Most bankers keep printed forms of this description, and the customer, if he obtain one, can, by crossing out what the agent may _not_ do, limit his power to any extent he thinks necessary. These letters need not be stamped, and, unless previously revoked, they continue in force until the bankruptcy, insanity, or death of the principal. We can now see that dealing with an agent is not unattended by certain risks. The banker always protects himself by ascertaining that an agent really has authority when he signs the name of a client in the capacity of either drawer or indorser, but as he (the _paying_ banker) is not liable upon either a forged or an unauthorized indorsement, _per pro_ indorsements are universally accepted by the banks in the ordinary course of business. They are not, however, legally obliged to pass them, and a banker may demand to see an agent’s authority or insist upon having a confirmation of the indorsement. An agent usually signs:-- “_per pro_ (or _p.p._) John Brown, Robert Smith.” It has been held that “_p.p._ Mr. John Brown, Robert Smith,” is a good discharge, but the foregoing method is the more general. There have also been decisions in favour of the prefixes “pro” and “for,” though most bankers refuse to pay cheques so indorsed. Procuration indorsements are not accepted on dividend-warrants. A cheque payable to Brown’s Drapery Stores may be indorsed:-- “_p.p._ Brown’s Drapery Stores, Thomas Brown, Proprietor.”