LOST BANK NOTE. Where a bank note has been lost, the person to whom it belongs must, before he can obtain payment of it from the issuing banker, supply full parti culars of the note, including its number, and provide a satisfactory indemnity, that is, a guarantee that the banker shall be refunded in case of the lost note being found by some one and the banker being compelled to pay it a second tine.
Although a banker cannot refuse payment of his own notes to an innocent holder, he should, where notice to stop payment has been received, make very careful inquiries when a " stopped " note is presented for payment.
The finder of a note has a right to it against every person except the individual who lost it. If he transfers it for value, the transferee, without notice that the note was lost, is absolutely entitled to it. The person who lost it cannot claim it from such a transferee.
if a note is lost in its passage through the post, the loss falls upon the person to whom it was sent, provided that he requested it to be sent to him by post, or that it was the custom between the parties to use the post for that purpose.
There is a difference between notes found on private property and in a public building.
When found in a private building the note should remain in the possession of the owner of the place, and not be retained by a stranger who may have found it. Where notes were found on a shop floor (a public building) by a person entering the shop and the owner could not be found, it was held (Bridges v. Hawkesworth, 1851, 21 L.J.Q.B. 75) that the person finding them, and not the owner of the shop, was entitled to them, and that he had a right to them against everyone but the true owner. A bank note found on the customers' side of a bank counter would, in the event of no one claiming it, belong to the finder.
The true legal position, according to the best authorities seems to be that, if the finder believes at the time of finding a bank note that the owner cannot be found, he is not guilty of larceny, although he takes the note intending to deprive the owner of it, and although he afterwards has means of finding the owner, and, nevertheless, retains the property for his own use.