This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 122.— A cheque on a bank in Hamilton in favour of A was cashed for him by a bank in Toronto. It was forwarded by mail in due course for presentment, but the letter has not reached its destination, and the drawer has since failed. What are the bank's rights against the drawer of the cheque and against A?
Answer.—Under clause 46 of the Bills of Exchange Act, " delay in making presentment for payment is excused when "the delay is caused by circumstances beyond the control "of the holder." Delay through loss in the mails is, we think, such as comes within this definition. The bank's rights against the drawer and endorser of the above cheque are therefore just such as they would be against similar parties to a bill which is not due, and they continue liable thereon until the cause of delay ceases to operate.
The bank's remedy in the case is provided by sections 68 and 69 of the Act. It has a right to demand a duplicate cheque from the drawer on giving suitable indemnity, and if this is then duly presented, and, if dishonoured, notice given, suit can be brought against the drawer and endorser.