This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 462.— Would a bank be upheld in law in charging up acceptances and notes as they mature to a customer's account in the savings department without special authority. The following clause is printed on the customer's pass-book: " No draft or cheque drawn against the within deposit can be paid unless such draft or cheque be accompanied by this pass-book."
Answer.—If the bank were the holder of a note made by a party who had funds in a savings bank account, it would certainly be justified in charging the note against that account by way of set-off, but if the bank were not the holder of the note, and it is merely presented at the bank because made payable there, we think that the ordinary relation of banker and customer with respect to a current deposit account (which gives to the bank implied authority to pay for the customer notes and acceptances which he has domiciled with it), would not apply to a savings bank account upon which the customer cannot, as a right, draw cheques in the ordinary way and which is not presumed to be used for payment of his notes and acceptances. Special authority from him would be required.