Question 232.— Two banks, at a point where there is no clearing house, exchange deposits before eleven o'clock each day. (1) Is it permissible for either to make a second deposit before three o'clock, or should second deposit, if allowed at all, be made before twelve o'clock? (2) In case a second deposit is made can the depositing bank, provided the balance is in their favour, demand a settlement on the same day?

Answer.— In the absence of any local agreement on the subject, either bank may make a second deposit at any time up to three o'clock and demand a settlement cheque. We believe, however, that it is the practice of banks at most points to make their deposits before a certain hour each morning, and we think it desirable that this practice should not be infringed.