Question 239. - A customer gives a cheque which is presented for acceptance by the payee, and is accepted. Before it is presented for payment, the drawer commences legal action against the payee and the bank is served with a garnishee order forbidding it to part with the funds represented by the accepted cheque. What is the legal position of the bank?

Answer. - The bank would be bound to pay the cheque on presentation by a holder in due course, and so far as the funds represented by it are concerned. the garnishment is of no effect.