Appropriation when Account is Guaranteed definition

In the first instance, any special terms and conditions of the guarantee determine the position and rights of a banker with regards to any matters outside of the ordinary way of business. Thus, if the guarantee is a continuing one, a guarantor has no right, in the absence of special agreement, to control the appropriation of payments into the principal debtor's account, provided that the banker handles the accounts in the ordinary way of business. In order to reinforce the normal business practices, where there is a unbroken current account, part of which is covered by a guarantee and another part uncovered, in the absence of appropriation, there is no presumption that money paid in is to be allocated to the unsecured rather than the secured portion or otherwise than in the usual sequence of payments in and out in order of date. For a list of