This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 264.— Would you construe sec. 57 of the Bank Act to mean that a bank may pay sums up to $100 in ones, twos or fours only to a party who desires such a payment? Can it compel one who demands payment in legal tender of a claim for over $100 to take payment in ones, twos and fours, or must the bank pay in large legal tender notes or gold?
Answer.—The creditor must accept in payment of any obligation of the bank, no matter what the amount may be, anything that is a legal tender, but the creditor has the right to say that to the extent of $100 in any payment, the bank must pay him in one, two or four dollar Dominion notes. Except in so far as the bank is controlled by the latter provision, it is in the same position as any other debtor, and may at its option pay its obligations in small or large legal tender notes, or in such coin as is a legal tender under the Currency Act.