This section is from the book "Canadian Banking Practice", by John T. P. Knight.
Question 428. - Bank A cleared to bank B a cheque which is returned by bank B at 1 o'clock: reason, account closed. In this town there are six banks but do clearing house. There is a local arrangement that all dishonoured items must be returned before 12 o'clock. Could bank A refuse to give bank B a debit error clearing slip for the above cheque?
Answer. - Unless bank has specifically waived its rights under the Bills of Exchange Act, no local arrangement can deprive it of these rights, and the cheque having been returned to bank A within the time prescribed by the Act, bank B is entitled to settlement. The attitude that should be adopted towards a bank which enters into an arrangement and then disregards it and falls back upon its legal rights is, of course, another matter.