BRANCHES. For some purposes the branches of a bank are treated as though they were separate banks, e.g. one branch is not obliged to pay a cheque drawn upon another branch, and one branch may, in giving notice of dishonour, treat the other branch. in the matter of time, as a separate institution. On the other hand. branches are regarded as parts of one body in certain cases, e.g. a credit balance at one branch may be used to reduce an overdrawn account of the same customer at another and where a customer has two accounts, one in credit at one branch and one overdrawn at another branch. and he presents a cheque at the branch with the credit balance, the banker is entitled, in considering whether he should pay the cheque, to regard the INN o accounts as one account. but if there has been an agreement. or the practice in the past has been to treat the two accounts as quite distinct, the banker could not, without due notice. suddenly change his method of dealing.
For most purposes the head office and branches are regarded as one body. 1 t has been held that notice to the head office of an act of bankruptcy is equivalent to notice to the branches, allowing for reasonable time to communicate the notice to the branches.
A draft drawn by one branch upon another, or upon the head office, is not a cheque so far as the hank is concerned, and therefore pro tection against a forged indorsement is not ob tained by Section 60 of the Bills of Exchange Act. It has been held, however (Capital and
Counties' Bank v. Gordon, 1903, A.C. 240), that the bank is protected by Section 19 of the Stamp Act, 1853. (See DRAFT.) Where a crossed cheque drawn on one branch is paid to credit of a customer's account at another branch of the same bank, the branches in such a case may be regarded either as one bank (in which case protection against a forged indorsement is obtained by Section 60 of the Bills of Ex change Act) or as practically two different banks, payment being made by one to the other (in which case the payment fulfils the requirements of Section 79).
A copy of the statement as prescribed by Section 105 of the Companies (Consolidation) Act, 190S, must be exhibited in a conspicuous place in every branch. (See under BANKING COMPANY.) A customer may pay in at any branch to his credit at the branch where he keeps his account. He may also, as a rule, arrange to have his cheques cashed at other branches. In such a case the branch where his account is kept advises the branch where they are to be cashed to pay them up to a certain limited amount in any one day, or as may be desired, and furnishes at the same time a specimen of the drawer's signature. (See STANDING CREDITS.)