This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 2.— Is a bank compelled to pay its customer's acceptances domiciled with it if there are funds, or is it merely authorized?
Answer.—Unless it has assumed some duty or obligation in the matter, a bank is not bound to pay its customer's acceptances even where it has funds, but it has authority to do so and charge them to his account. It has been alleged that in the Province of Quebec special authority is necessary, but we are not clear as to whether this is the case or not. It certainly is not throughout the rest of Canada.