This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 236.— Is a deposit receipt payable to A B or in case of death to C D legal? Would C D in case of A B's death have a clear title to the amount irrespective of any will which A B might make?
Answer.—We think that as between the bank and C D, C D would be entitled to the amount on the death of A B. Of course, in point of fact as between A B and C D the money might belong to one or other of them, or as between them and some stranger it might belong to such stranger. It would be open to the party really entitled in such case to advise the bank of his rights and claim the money, and in such event the safe course would seem to be for the bank, if possible, to pay the money into court or, failing that, to take interpleader proceedings.