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Death of Drawer

cheque, account, notice and joint

DEATH OF DRAWER. The authority of a banker to pay a cheque drawn on him by his customer is determined by notice of the customer's death (Section 75. Bills of Ex change Act, 1882, . All cheques received after notice of his death must be returned with answer " Drawer dead," except in the case of a cheque which has been " marked " for payment by a banker at the request of the drawer, or for the banker's own convenience in connection with the local clearing. Such a cheque may be paid when presented, even though the drawer has died since the cheque was marked, as the " marking " was, to all intents and purposes, a payment of the cheque. (See MARRED ('IIEOUE.) The notice of death does not affect any cheques which may have been debited to the deceased's account after his death, but prior to the time when the banker first heard of it. If a cheque is received in the morning's letters and, before it is actually debited to the drawer's account, notice of his death is received, the cheque should be returned.

A record of the death should be made in the current account ledger.

Before any transfer of the credit balance of the deceased's account can take place, probate or letters of administration must be exhibited.

Any cheques signed by the deceased in an official capacity, as treasurer, secretary, agent, director, etc. are not affected by his death.

If he has signed a cheque along with others on a joint credit account, the cheque would be paid, but if he signed alone upon the joint account it should not be paid. If the joint account is overdrawn, or the payment of the cheque would overdraw it, the banker should not pay it (if signed by the deceased with another of the joint holders), unless arrangements were made with the other drawer. On a joint account, only the sur vivors are responsible for any overdraft. (See DEATH OF JOINT CUSTOMER.) Where the drawer of a bill is dead, and a party requiring to give notice of dishonour knows of it, the notice must be given to a personal representative if such there be, and with the exercise of reasonable diligence he can be found.

The death of A. B., who has given C. D. a mandate to sign on his account, cancels the mandate, and the banker will, after receipt of notice of A. B.'s death, return all cheques signed by C. D. under the mandate, with answer " A. B. deceased " or " customer deceased."