This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 109.— Should not the word " or " on sixth line of Clearing House Rule No. 14 be " on " ?
Will you kindly give an illustration of the working of Rule 14. The first sentence contains 150 words, and its meaning is not as clear as it might be.
Answer.—(1) The word should be "on." (2) The rule referred to deals with exceedingly complicated conditions, but its meaning is clear, and we doubt if it could be simplified very much. It is intended to cover a case where for any reason the banks which have balances against a defaulting bank prefer not to have their items returned, but to get the benefit of the balances due the defaulting bank by other banks, a right which under some circumstances might be very important. The phraseology is affected by the fact that the defaulting bank does not owe, or stand as a creditor of, the several banks in the Clearing House, but owes its debtor balance to the chairman of the Clearing House (Rule 11, clause 3). This is necessary in order that some person or body should have a legal claim.