Present Coupons Promptly.

Question 229.— A bond with coupons attached is held by a bank as collateral security. They neglect to collect the coupons as they mature, and ultimately when the bond matures it is found to be uncollectible. The customer claims credit for the overdue coupons. Is the bank responsible?

Answer.—The relations between the bank and the customer are scarcely indicated with sufficient clearness to enable us to answer this question definitely. On the bare facts stated we should say that as the customer was not entitled to receive the coupons, but was bound to leave them or their proceeds with the bank as security, the duty of collecting them fell on the latter. If then, as a matter of fact, the coupons would have been paid if duly presented at maturity, the bank would be responsible for the loss caused by their non-presentation.