What is "circular note"

Circular \Cir"cu*lar\, a. [L. circularis, fr. circulus circle: cf. F. circulaire. See Circle.]

1. In the form of, or bounded by, a circle; round.

2. repeating itself; ending in itself; reverting to the point of beginning; hence, illogical; inconclusive; as, circular reasoning.

3. Adhering to a fixed circle of legends; cyclic; hence, mean; inferior. See Cyclic poets, under Cyclic.

   Had Virgil been a circular poet, and closely adhered to history, how could the Romans have had Dido?
   --Dennis.

4. Addressed to a circle, or to a number of persons having a common interest; circulated, or intended for circulation; as, a circular letter.

   A proclamation of Henry III., . . . doubtless circular throughout England.
   --Hallam.

5. Perfect; complete. [Obs.] A man so absolute and circular In all those wished-for rarities that may take A virgin captive. --Massinger. Circular are, any portion of the circumference of a circle. Circular cubics (Math.), curves of the third order which are imagined to pass through the two circular points at infinity. Circular functions. (Math.) See under Function. Circular instruments, mathematical instruments employed for measuring angles, in which the graduation extends round the whole circumference of a circle, or 360[deg]. Circular lines, straight lines pertaining to the circle, as sines, tangents, secants, etc. Circular note or Circular letter.

   1. (Com.) See under Credit.

   2. (Diplomacy) A letter addressed in identical terms to a number of persons.

      Circular numbers (Arith.), those whose powers terminate in the same digits as the roots themselves; as 5 and 6, whose squares are 25 and 3

6. 
   --Bailey.
   --Barlow.

   Circular points at infinity (Geom.), two imaginary points at infinite distance through which every circle in the plane is, in the theory of curves, imagined to pass.

   Circular polarization. (Min.) See under Polarization.

   Circular sailing or Globular sailing (Naut.), the method of sailing by the arc of a great circle.

   Circular saw. See under Saw.

In banking, a circular note is a document request by a bank to its foreign correspondents to pay a specified sum of money to a named person. The person in whose favour a circular note is issued is furnished with a letter (containing the signature of an official of the bank and the person named) called a letter of indication, which is usually referred to in the circular note, and must be produced on presentation of the note. Circular notes are generally issued against a payment of cash to the amount of the notes, but the notes need not necessarily be cashed, but may be returned to the banker in exchange for the amount for which they were originally issued.

It is the duty of the payer to see that payment is made to the proper person and that the signature is valid; he cannot recover the amount of a forged note from the banker who issued the note.