Question 361. - We sent a cheque through the clearing house on another bank in town. The cheque is returned marked "No account. Savings account pass book must be presented. Savings account not subject to cheque." Was the bank justified in refusing payment assuming that the drawer of the cheque had the necessary funds at his credit?

Answer. - Yes - unless by its course of action in previously waiving the requirements of presentation of the pass book or by honouring cheques the bank has established a practice which would bind it to continue so to do. These are questions of fact and depend entirely upon circumstances.

Savings Bank Cheque - Returned Through Clearing House Marked "Good," But With Note That "Bank Book Required" Before Payment

Question 362. - Bank A clears a cheque through the clearing house to bank B. Bank B marks the cheque "Good," but refuses to pay it, returning it with the following note: "Bank book required." Assuming the account is a savings bank one and there is a regulation under which the deposit is made by which the bank can compel production of the book before paying a cheque on withdrawal, has not bank B waived the regulation by marking the cheque?

Answer. - The circumstances seem to amount to no more than an intimation on the part of the drawee bank that the cheque would be paid when accompanied by the book and, on the assumption indicated, it could not be claimed to have waived its regulation.