507. Debts secured by bills of larger amount.

Where bills have been given by the bankrupt to a creditor for a debt, and the creditor still holds them at the date of the bankruptcy order, he may prove only for the actual amount of the debt remaining due, even though the amount of the bills is greater1; and the same is true where the bills have been received by the creditor in pursuance of a guarantee given to him by the bankrupt as surety for a debtor2.

Where, however, there is no immediate contract between the creditor and the surety, as where the debtor hands the creditor bills