Question 205. - Bank A received a sight draft from bank B drawn on C who are customers of bank A. Bank A presents the draft and after seventeen days outstanding C claims draft is lost. Can bank B recover from bank A for amount of draft?

Answer. - No, if the draft being unaccepted forty-eight hours after presentation, bank A immediately gave notice to bank B of this and of its inability to obtain the return of the draft, as soon as that inability became known to it. Otherwise, bank A is liable.