Where a bill indorsed to the holder by the bank at which the acceptor had made it payable, was paid by the bank at maturity and dishonoured on the following day it was held (in Pollard v. Ogden, 1853, 2 E. & B. 459), that the bank had paid the bill in their capacity as indorsers, and that they reserved to themselves the right to examine into the state of the acceptor's accounts and determine whether they would honour the bill or not. 31r. Justice Erle said : " 1 think it is clear law that the holder of a bill indorsed to him by a bank at which the acceptor has made it payable may, if the bank choose to dishonour the bill, receive payment forth with from the hankers in their capacity as indorsers. . . . The bank might have said to the holder ' we require a reasonable time to examine into the state of the accounts between us and the acceptor before we either honour or dishonour this bill ; but in case we determine to dishonour it we shall be liable to von as indorsers ; therefore, to save trouble, take your money ; if we honour the bill you are paid ; if not, we are taking it up as indorsers of a dishonoured bill.' " A banker may, as is the custom with London hankers, debit a bill to an acceptor's account, when payable at that banker's, without requiring any advice from the acceptor, the acceptance being a sufficient authority, but in practice, many country bankers usually require an advice. Country bankers often receive from an acceptor periodically a list of his bills falling due and an order to pay them.
A banker is not obliged to pay a bill after his usual hours of business.
If an acceptor in good faith pays a bill indorsed in blank and without notice of any defect there may be in the title, the bill is discharged ; but if the acceptor pays a bill which has been specially indorsed and the indorsement should prove to have been forged, the bill is not discharged by such payment and the acceptor, is liable to pay it again to the true owner.
In Bank of England v. l'agliano Brothers (1891, A.C. 1071, Lord Macnaghten said : " In paying their customers' acceptances in the usual way bankers incur a risk perfectly understood, and in practice disregarded. Bankers have no recourse against their customers if they pay on a genuine bill to a person appearing to be the holder, but claiming through or under a forged indorse ment. The bill is not discharged ; the acceptor remains liable ; the banker has simply thrown his money away." If the acceptor fails to pay a trade bill at maturity and an indorser or the drawer pays it, the bill is not discharged by such payment, and the drawer can sue the acceptor for the amount plus expenses and interest, and the indorser can sue the acceptor or any prior parties.
But if a bill is an accommodation bill and is not met by the acceptor when due, it is, if paid by the drawer or indorser, discharged, when the party paving it is the person for whose accommodation the bill was drawn or accepted.
If an acceptor or any other person pays to a banker an amount for the special pur pose of providing for a bill falling due, that amount is earmarked for that purpose and cannot be used by the banker for any other purpose, such as to reduce an overdraft which the acceptor may have.
Where a person accepts a bill payable at a banker's where he has no account, the banker is under no obligation to receive money from the acceptor with which to pay the bill.
Where a bill is intentionally cancelled by the holder or his agent, and the can cellation is apparent thereon, the bill is discharged.
It is not necessary, on payment of a bill by the acceptor, to give a receipt tor the money, as the delivering up of the bill to the acceptor is sufficient to cancel his liability upon it, but if, as is sometimes done, a receipt is indorsed upon the hill by the holder the receipt (except in the case of a banker) requires to be stamped Id. in the same way as any ordinary receipt.
Where the holder of a bill is bankrupt, payment of the bill requires to be made to the trustee and not to the bankrupt.
Where the holder is dead payment must be made to the executor or administrator.
If, instead of payment, a holder accepts a fresh bill from the acceptor, the drawer and indorsers of the old bill will be dis charged, unless they are parties to the new bill.
When a banker is employed to collect a bill, he should not, unless under instructions from his correspondent, accept payment subject to any conditions, otherwise he may render himself liable for the amount of the bill.
With respect to a bill paid under rebate, SCC DOCUMENTARY BILL.
If a banker wrongfully dishonours an acceptance of his customer he will he liable in damages. (See DISHONOUR OF BILL OF EXCHANGE.) Be should, therefore, be care ful to sec that everything has been credited to the account and that the balance is correctly stated, before returning a bill.
f f a banker pays a bill across the counter, and, as soon as he has done so, rinds that he should not have paid it, he cannot compel the person to whom he paid the money to return it, though if a mistake is made by handing too much money to the customer the mistake may be rectified. (See BILL OF EXCHANGE, CANCELLATION OF BILL OF EXCHANGE, PAYNIENT OF CHEQUE, TIME OF PAYMENT OF BILL.)