This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 256.— With reference to section 84 of the Bank Act, as amended by section 20 (3) of the amending Act of 1900, where a deceased depositor has more than $500 at his credit, and an administrator produces properly issued letters of administration to the estate and deposits with the bank a copy thereof as provided in such sub-section, what further enquiries must the bank make to be safe in paying over the money ?
Answer.—We might point out that sub-section 3 is applicable where the will has been proven or letters of administration issued in a country other than that in which the deposit has been made. In the absence of this provision an administrator claiming, for instance, under English letters of administration, has no right whatever to demand payment of a deposit made in Canada. Where the amount exceeds $500 he must take out letters of administration in the Canadian province where the debt is due. The amendment empowers a bank to make payment where the total deposited does not exceed $500 on the letters granted outside of the province.