This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 151.— The manager of a bank marks a customer's cheque " good," but omits to charge it to his account. The cheque is given to a third party as security in connection with a contract, who holds it for over ten years. In the meantime the customer fails, the manager dies, and when the cheque is presented there is no record of it in the bank's hooks, and no money to the credit of the customer's account. Under these circumstances is the hank obliged to pay the cheque ?
Answer.—Unless it could be successfully set up that the bank had assented to the deposit of the cheque as collateral security, we think no claim could be established. If the marking is to be considered as an acceptance, the claim would, under ordinary circumstances, be barred by the Statute of Limitations. If it is a mere representation, not intended as an acceptance, the same result would follow.