This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 166.— May a bank refuse to negotiate a cheque drawn on some other point and payable to bearer, unless endorsed by the customer?
Answer.—A bank may refuse to cash a cheque under any conditions whatever.
If, however, the question intended is whether a bank acts reasonably in refusing to cash such a cheque for a customer without his endorsement, we should say that such a refusal is most reasonable.
The only cheques about the payment of which the bank is under any obligation are those drawn on itself. If a cheque on itself payable to bearer is presented, it cannot call on the bearer to endorse it as a condition of payment.