This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 576.— By section 90 of the Bank Act it is provided that the liability of a bank to repay moneys deposited and interest, shall continue notwithstanding any statute of limitations or any enactment or law relating to prescription. Since in an ordinary business account, not prescribed, it is requisite that proofs of the claim shall be produced in case of contestation, does it not follow in view of the above mentioned section that a bank should preserve indefinitely all vouchers for transactions in a customer's account, or the verifications of the account given by the depositor?
Answer.—The point to which our correspondent draws attention is very important. Even before the last revision of the Bank Act it was doubtful if the Statute of Limitations would run in favour of a bank from the date of the last transaction in an account—indeed it was probably the law then that prescription of a claim would only count from the time at which a demand had been made.
The present position of the law does in our opinion make it more essential still that the bank shall keep the vouchers connected with its deposit accounts, practically forever.