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Free Books / Finance / Canadian Banking Practice / | ![]() |
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Pass-Books - Current Account And Savings Bank |
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This section is from the book "Canadian Banking Practice", by John T. P. Knight.
This section is from the "" book, by .
Question 494. - (1) Is there any legal reason whereby a savings bank pass-book is different from an ordinary current account pass-book?
(2) If not, why is there generally an impression that the pass-book must always be brought to the bank when money is withdrawn?
(3) Can the bank decline to pay if the pass-book is not produced?
(4) Are the rules laid down by the bank in the pass-book binding upon the customer?
Answer. - (1) The difference is purely a matter of convenience.
(2) It is no doubt regarded as more important because it must be produced when money is drawn, and because it serves as a receipt for special deposits often left untouched for a long period.
(3-4) The conditions in the pass-book are binding on the customer, and the bank is entitled to demand the production of the pass-book as a condition of payment. Of course if it were destroyed the same results would follow as in other similar cases; the bank could not withhold payment on proof of loss. On the other hand it incurs no risk if payment is made without production of the pass-book to the true owner of the money.
 
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