Question 372. - A cheque for which there were not sufficient funds was cashed by our teller in error. When mistake was discovered later on in the day, cheque was protested for non-payment. Have we recourse against payee? (Cheque was not charged to drawer's account).

Answer. - A banker is presumed to know the state of his customer's account and, having paid a cheque, he has no recourse against the payee.