Question 347.— If a bank notifies a customer that it has assumed possession of goods assigned to it under section 74 of the Bank Act—although allowing the goods to remain on the customer's premises—ought it to require a transfer of the insurance into its own name, or would the policies issued in favour of the customer—loss being payable to the bank— be sufficient to protect it, in case of fire?

Answer.—The fact that the bank has taken possession of goods assigned to it under section 74 should, as a matter of precaution, be notified to the insurance company, as it might be held to be a change material to the risk under the conditions of the policy, but notwithstanding the fact that the bank takes possession its interest is still that of a mortgagee, and the customer remains the "general owner."