This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 116.— Would a Canadian teller be justified in paying a cheque with two lines across the face? I take it that if a cheque were crossed to, say the Bank of Montreal, it would have to go to the credit of the payee's account in that bank—that is, it would have to be deposited to the man's credit, and the teller could not legally pay out the cash for it.
Answer.—A teller would not be justified in paying cash over the counter for a crossed cheque, whether the crossing be special or general—that is, with two lines only, or with the name of a bank in addition to the lines. A crossed cheque should only be received for credit of the account of a customer—not necessarily the payee—at the bank to which it is crossed, or, if crossed generally, at a bank. Of course a bank may cash any crossed cheque, under any circumstances, but at its own risk. If the right party receives the money, that ends the matter; if not, the bank might not have the protection afforded by clause 79 or 81 for payments made in the regular course.