This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 197.— A B has given C D a power of attorney to sign cheques on his account, and in a letter to the bank asks that the cheques may be honoured when signed by C D, by writing A B's name without adding anything thereto. Is it in order for the bank to honour cheques signed simply with the name A B, such signature being placed on the cheque by C D?
Answer.—This is quite in order. The only question involved is one of proof, and doubtless the bank would be quite as able to prove the authenticity of the signature in that shape as in any other.
If similar instructions had been given with respect to endorsements it would be contrary to the " Rules and Conventions respecting Endorsements," which provide that the person signing in such a case must indicate his authority by words added to the signature. This rule, however, was adopted as a matter of policy, not as expressing a legal requirement.