Acceptor any Recourse against the Bank if the Bill of Lading should Prove to be Forged, or if the Goods are not as Ordered ?

Question 274.— A bank has cashed a draft with bill of lading attached, the goods being shipped to order of the bank. Has the drawee any recourse against the bank if the goods are not as ordered, or in the event of shipping bill being a forgery? Does the bank in any way guarantee its genuineness ?

Answer.—We think the bank assumes no responsibility to the drawee in such a case. He has been instructed by the drawer to pay so much money, which he has done. Even if it be said that the instructions were conditional on the documents attached being surrendered, this would involve nothing further than that the bank should surrender the documents received from the drawer, whatever they may be. We think, however, that if the bank should negotiate the draft to another bank, it might be held responsible to the latter for the genuineness of the documents.