This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 299.— "A" of Halifax draws on "B" of St. John in favour of Bank " R " for $100, payable 30 days after date. Bank " R " discounts the bill for "A" and after placing on it the following stamped endorsement, viz.: " Pay to the order of any bank or banker for the bank of ' R,' Smith, Manager," forwards the bill to Bank " Z " for collection. The collecting bank " Z " of St. John obtains acceptance of the bill and at maturity returns it to the bank " R " dishonoured for non-payment. Bank "R" erases the above endorsement and recollects the amount from "A." Can "A" sue " B " on the bill without further endorsement of Bank " R " ?
The bill was for value.
Answer.—The bill should be endorsed by the bank back to "A" without recourse.