Question 211.-"A" Bank presents a cheque drawn on "B" Bank which "B" Bank initials "O.K." by the ledger keeper. "A" Bank deposits the cheque in the usual way through the clearing house but "B" Bank refuses payment, stating that the drawer is dead and that the cheque was marked "O.K." by the ledger keeper without the knowledge of the manager. Has "B" Bank the right under these circumstances to refuse payment?

Answer. - If the marking on the cheque was in accord with the usual practice of the bank the fact that it was marked by the ledger-keeper without the knowledge of the manager is immaterial and the marking must be taken to amount to certification by the bank. The cheque was practically paid when it was thus certified, and if the bank had no knowledge of the death of their customer when it was presented for certification, the entry made to his account was in order.

Right of a Bank to Hold Balance at Credit of a Customer's Account as Security for an Unmatured Notb.

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Question 212. - A bank discounts a note with its customer's endorsement. Before the note matures the customer dies. Has the bank the right to hold back suffident money of any balance deceased may have had at credit, as security until the note matures, it having good reason to suppose that the maker of the note cannot pay same?

Answer. - Until the note has matured the bank has do claim against the customer's estate which it would have a right to enforce. It cannot hold hack any balance at his credit.