Question 213.— Has not the paying bank until three o'clock the legal right to refuse to pay cheque presented through the clearing house, even though there be a local rule limiting the time to twelve o'clock?

Answer.—The legal right of a bank to refuse payment of an item presented through the clearing house is not affected by the rules of the clearing house, but such an item cannot be returned through the clearing house unless notice of the objection is given before twelve o'clock.