Question 116. - (1) Bank A holds a cheque on Bank B payable to "The Bonshaw Creamery Co. (Buttermilk) or order."This company is non-existent and cheque is endorsed "The Bonshaw Creamery Co., being the Bonshaw Dairying Co., J. A. Robertson, Sec'y, John McManus, Treas.," and also by Bank A with their regular endorsing stamp. Bank B certifies the cheque but refuses to cash on the grounds that endorsement is irregular. A contends that the endorsement is regular and that B incurs no liability in cashing. Is A correct?

Answer. - We think that the endorsement mentioned is regular (see clause (b) of the Rules and Conventions respecting Endorsements).