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Death of Customer

banker and executors

DEATH OF CUSTOMER. A banker may receive formal notice of a customer's death, but it is sufficient notice of the death if he sees an announcement in thepapers or hears of it from a reliable source. A mere rumour that his customer John Brown is supposed to be dead is not sufficient to warrant a banker returning a hill or cheque unpaid, though a banker in that case would usually take steps to confirm or disprove the rumour.

After notice of death, no further cheques should be paid except where a banker has prior to the death, made himself responsible, e.g. by marking a cheque for payment at the request of the drawer, or another bank. or by making a purchase of stock or shares according to the customer's order.

If the deceased customer leaves a will appointing executors, the executors can, after probate has been obtained and ex hibited to the banker, deal with the account and securities of the deceased, subject to any claims by the banker.

Where a customer dies without a will, letters of administration must be obtained, and, after exhibition thereof to the banker, the administrators can act in the same way as executors.

After exhibition of probate or letters of administration, any credit balance of the deceased is usually transferred to a new account, and it is advisable that the transfer be made by cheque or by a letter of authority signed by the representatives. The new account is commonly entitled " Executors of John Brown f John Jones.

Robert Smith." Any overdraft upon the deceased's account forms the subject of arrangement between the banker and the representatives, and until an arrangement is made the balance remains standing in the deceased's name.