Commentary

24 Protection of bankers collecting payment; liability for conversion

BILLS OF EXCHANGE vol 4(1)
| Commentary

24 Protection of bankers collecting payment; liability for conversion

| Commentary

24 Protection of bankers collecting payment; liability for conversion

There is also statutory protection for a banker who, in good faith, receives payment of a cheque for a customer or, having credited a customer's account with the amount of such an instrument, receives payment thereof for himself. If the customer has no title, or a defective title, to the instrument, the banker does not incur any liability to the true owner of the instrument by reason only of having received payment thereof1. The bank must, however, act without negligence in order to benefit from this protection2.

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