This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 95.— A draft for " $100 and exchange," with a " no protest" slip attached to it, is sent to a bank in Halifax for collection and is accepted. At maturity the acceptor refuses to pay more than $100, which the bank takes as payment on account, endorses the same on the draft, and returns it to the owner. Has the collecting bank the right to accept a payment on account, or should it return the bill unpaid ?
Answer.—The course adopted was the proper one. The collecting bank may refuse to accept anything other than the full amount of the item, in this case $100, plus the current rate of exchange, but it may accept partial payment, and in such a case as this, consideration for the interests of the owner of the draft would seem to require the acceptance of the partial payment.