The rules of the clearing-house are binding only upon the members. They are not binding upon the depositors in the various banks;1 nor can customers claim the benefit of them or be injuriously affected by them.2 A rule does not apply in favor of a bank not a member of the clearing-house;3 nor can the rule be called a general custom when it is observed only by the banks in the clearing-house.4 It has been seen that the clearing-houses allow mutual credits to be recalled between the banks within a certain time; and on the theory that this rule is binding upon the members of the clearing-house, it has been held that mutual credits could be recalled only in accordance with this rule; in other words, that the payment by the bank of paper upon it, provisionally made, becomes absolute if not objected to within the time allowed by the rule.5 But the courts of Massachusetts deny this effect to the rule and say that the rule simply compels the clearing banks to allow the recall of the credit within that time, but otherwise the parties are left in the situation they are placed by the general rules of law. So it is held that as to a mistake by a messenger,6 or a mistake as to the depositor's account,7 or a mistake as to the signature of the depositor, or even where there was no mistake, the credit may be recalled, provided the other bank has not altered its position to its disadvantage.8 But as we have seen, a bank can always recover upon paper paid by it forged as to the amount or as to an indorsement,9 and the clearing-house rule could have no effect as to such paper; and as to paper where the drawer's name is forged, the bank paying may sometimes recover where the other party has not altered his position to his injury.10 But a payment made upon a mistake as to the drawer's account is final and cannot be rescinded11 except under and in accordance with this clearing-house rule. The doctrine of the Massachusetts court is singular in this respect, unless it can be said that the recovery is based upon the other bank's indorsement.12 A rule of the clearing-house may be waived by refunding.13

1 Louisiana Ice Co. v. State Nat. Bank, 1 McGloin, 181.

2 Merchants' Nat. Bank v. National Bank, 139 Mass. 513.

3 Oberman v. Hoboken City Bank, 30 N. J. Law, 61.

4 First Nat Bank v. Fourth Nat. Bank, 89 N. Y. 412.

5 Blaffer v. Louisiana Nat. Bank, 35 La. Ann. 251; Preston v. Canadian Bank, 23 Fed. R. 179.

6 Merchants' Nat Bank v. National Eagle Bank, 101 Mass. 281; National Bank of North America v. Bangs, 106 Mass. 441.

7 National Ex. Bank v. National Bank of North America, 132 Mass. 147; Manufacturers' Nat Bank v. Thompson, 129 Mass. 43a

8 Merchants' Nat Bank v. National Bank, 139 Mass. 513.