Payment of.

Question 124.— A cheque on bank " B " is deposited with bank "A" by Jones & Company, who endorse it. Does bank "A" release Jones & Company when it gets the cheque certified by bank " B " ? If so, does it not leave bank "A" without redress, for if, instead of certification it had asked for cash, bank " B " would no doubt have said, " Send it in with your deposit to-morrow."

S4                   GANADIAN BANKING PRACTICE.

This of course refers to such circumstances as those mentioned, where bank " B" suspends immediately after certification.

Answer.—Bank "A" can protect itself fully by demanding payment, and if this is not forthcoming, by treating the cheque as dishonoured. If, because of its unwillingness to take so extreme a step, it chooses to be put off by bank " B " in the way mentioned above, and the latter suspends, "A" must take the consequences of its complaisance.

If there be doubt as to the solvency of the bank, the only safe course is either to demand payment or presentation or not to present the cheque at all in the afternoon, but send it in the ordinary exchanges next morning. If then dishonoured, the holder can charge it back to the depositing customer, as the presentation in such case would be made in due course.