This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 134.— Is a bank justified in refusing payment of a cheque which is not endorsed by the payee, but has been endorsed by the payee's bank as follows—
"Deposited to credit of (payee), A. B., Manager,' such an endorsement being guaranteed by the depositing bank ?
Answer.—This is not A. B.'s endorsement, and the practice is open to objections, but an item would usually be paid on such an endorsement and guarantee. The drawee bank would, however, be quite justified in refusing it.