Question 340.— Must a bank on which a cheque is drawn get the payee, if a stranger, identified?

(2)   What is the custom of banks in Toronto on this point ?

(3)   Does not the English law hold good in Canada, namely, that a bank is protected if the cheque purports to be endorsed by the person to whom it is payable?

Answer.— (1) The bank must satisfy itself as to the identity of each payee of a cheque to " order " paid over the counter, or pay the cheque at its own risk.

(2)   It is, we believe, the practice of the banks in Toronto to require identification as a rule; no doubt exceptions are sometimes made when the amount is small, but such exceptions are at the risk of the bank.

(3)   Banks in England are protected under section CO of the English Bills of Exchange Act, which is not in the Canadian Act.

The position of the banks in Canada in this matter is fully discussed in the reply to Question 338.