This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 486.— (1) Is there any legal reason whereby a savings bank pass-book is different from an ordinary current account pass-book?
(2) If not, why is there generally an impression that the pass-book must always be brought to the bank when money is withdrawn?
(3) Can the bank decline to pay if the pass-book is not produced ?
(4) Are the rules laid down by the bank in the passbook binding upon the customer?
Answer.— (1) The difference is purely a matter of convenience.
(2) It is no doubt regarded as more important because it must be produced when money is drawn, and because it serves as a receipt for special deposits often left untouched for a long period.
(3-4) The conditions in the pass-book are binding on the customer, and the bank is entitled to demand the production of the pass-book as a condition of payment. Of course if it were destroyed the same results would follow as in other similar cases; the bank could not withhold payment on proof of loss. On the other hand it incurs no risk if payment is made without production of the pass-book to the true owner of the money.