The bank may incur a liability to the person from whom it collects. For example, a bank collected the amount of a note from the maker and delivered to him the wrong note, returning the right note to the holder, who collected it again from the maker. The maker at once returned the wrong note which had been given to him by the bank, and demanded the amount paid. The bank was compelled to pay, although during the interval the indorsers upon the latter note had become discharged and the maker was insolvent.1 But the collecting bank is not the agent of the person from whom it collects, except when the paper is payable at that bank; and hence he cannot sue the bank for misappropriating the proceeds of the collection.2