Question 598. - A borrower when obtaining a loan from a bank offers to leave with the bank the title deeds to his property, and a written undertaking that if he fails to pay the loan at maturity he will mortgage the property and retire the loan from that source. Would the acceptance of this proposal be a contravention of section 76, sub-section 2, clause (c) of the Bank Act?

Answer. - The acceptance of such a proposal would be a contravention of section 76, sub-section 2 (c) of the Bank Act. The bank, by virtue of the deposit of title deeds, could not lay claim to any security therein.

Section 95 (3) of the Bank Act. Provincial Law Regulating Capacity to Operate Bank Account.

Question 599. - Keferring to section 95 (3), Bank Act, is there a law in any of the Provinces which prohibits deposits of the kind mentioned? Which Provinces are concerned? Presumably the law would relate to minors.

Answer. - We do not know of any provincial law which expressly prohibits or restricts persons depositing money in and withdrawing same from a bank, except the Province of Quebec, where the following persons are deemed incapable of contracting (which probably includes depositing money in and withdrawing it from a bank), viz: minors, interdicted persons, married women (unless legally separate as to property with the right of administration), persons insane or suffering temporary derangement of intellect, and persons affected by civil degradation. In the other Provinces, see Freeman v. Bank of Montreal, 26 O.L.R. 451.