Since a bank, as one of its ordinary powers, has the right to receive paper for collection, it can be held liable for its neglects in performing that function.1 There would seem to be no good reason why a bank has not the power to guaranty the paper it takes for collection, both as to the person depositing the paper for collection and as to the person from whom it collects.

9 Case last cited.

10 Seligman v. Charlottesville Nat. Bank, Fed. Cas. No. 12,642. But the court was in error in calling the transaction a guaranty. A representation by the bank as to the surplus and paid-up capital of an insurance company is ultra vires, but not a representation that the insurance company has so much money on deposit with the bank. Hindman v. First Nat Bank, 86 Fed. R. 1013.

1 Exchange Nat. Bank v. Third Nat Bank, 112 U. S. 276; Mound City Paint Co. v. Commercial Nat. Bank, 4 Utah, 353; White v. Third Nat Bank, 4 Weekly Law Bui. 791. The power is incidental to banking. Keyes v. Bank of Hardin, 52 Mo. App. 323; Yerkes v. National Bank, 69 N. Y. 382; Tyson v. State Bank, 6 Blackf. 225.