This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 270.— "A" who resides in Montreal buys a sola draft from his bankers on their Toronto branch, payable to " B " or order, and the draft was lost. The bank gives "A" a duplicate, which was duly paid in Toronto. If the original is subsequently presented for payment by an innocent holder would the bank be compelled to pay it?
Answer.—If the original draft reaches the bank properly endorsed it has to be paid. The circumstances call for a satisfactory indemnity before the duplicate is issued.