This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 219.— A bank on presenting a draft for acceptance is tendered a post-dated cheque for the amount. This it holds, together with the unaccepted draft, until maturity, when the cheque is dishonoured. The hank having failed to notify the drawer and endorsers of the draft that it had not been accepted, does it lose its right of recourse against said drawer or endorsers ?
Answer.—We think the position is that the collecting bank has allowed all the parties on the bill to be discharged, and that it has no recourse except to make the best it can out of the dishonoured cheque.