CANCELLED CHEQUES AND BILLS. NN'hen a cheque is paid, it becomes the pro perty of the drawer, but the banker is en titled to keep it as a voucher till the account is settled, or the customer agrees that the entries in the pass-book are correct. A paid cheque is useful evidence for the drawer of the payment of the money. It is also evidence for the banker that he has repaid money belonging to the drawer, to the amount of the cheque.
It is the practice of many London bankers to return cancelled cheques to a customer each time he gets his pass-book.
In most country banks, however, the paid vouchers are not, as a rule, given up to customers, unless specially asked for. In cases where they are given up, an acknowledgment is obtained from the customer that the entries in the pass-book are correct, or a confirmation of the balance is taken.
The cancelled cheques of each customer are usually kept in separate bundles, sorted in order of date of payment, each bundle containing the vouchers for three, six, or twelve months, as may be most convenient.
The paying-in slips are retained by the banker and are not given up with paid cheques. They are sorted either along with the cheques, or in separate bundles.
If a cancelled cheque is required as evi dence in a court of law, the drawer, as being the owner of the paid cheque, although it is in the custody of the banker, must take steps to obtain it from the banker. This, in practice, would never be refused, if a receipt is given to protect the banker. A refusal to hand over a cheque would necessi tate the service of a subpoena upon the banker to produce it. (See CANCELLATION OF BILL OF EXCHANGE.)