Question 190.— A cheque was presented, for which there were funds, but was refused because the drawer had died on the clay before presentation. In a similar case a few years ago within my knowledge the drawee bank paid rather than stand suit. What is the law in the matter, and what is the effect as regards the drawee bank, if a cheque is paid after it has notice of the drawer's death?

Answer.—By section 74, Bills of Exchange Act, it is declared that "the authority of a bank to pay a cheque" is " terminated by notice of the customer's death." It is therefore clear that in the cases mentioned, the bank would have no right to pay the cheque. If it should nevertheless do so its ability to get back the money would depend on the good will of the parties. If the cheque were given in payment of a just debt, and if the estate is solvent, no doubt the payment would be ratified by the executors, or the creditor would assign to the bank his claim against the estate. If the executors refused to recognize the payment, and if the creditor refused to assign his claim, the bank would have to lose the amount. The same result would probably follow if the cheque so paid proved to have been given otherwise than in payment of a debt, e.g., as a gift.