This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 123.— A customer of a bank draws a cheque on it in his own favour for the full amount of his balance and has it accepted. The following day proceedings equivalent to garnishment are taken by his creditors, and any balance due him by the bank would have passed from his control.
On the day following this, the customer presents the cheque for payment. Should the bank pay him the money, any sums due by it having been legally attached?
If the cheque were presented by a third party, what would be the position of the bank?
Answer.—We think that the attachment would prevent the bank paying the amount of the cheque to the customer under the circumstances mentioned.
Its right to pay a third party would depend on the nature of the so-called " acceptance." If it were such as would be held an " acceptance " under the Bills of Exchange Act, the rights of the third party would of course prevail.