THE BANKER AND CUSTOMER.
At the Supreme Court, Hokitika, a case wherein the National Bank of N.Z. had appropriated a remittance sent from Nelson through their Reefton branch on account of an old dishonored promissory note, was decided againt the bank. Mr Justice Gillies said the case presented no difficulty. The question was —Had the bank a right to appropriate the amount of the remittance towards a pre-existing debt? The bank had no right, as it received the money upon an obligation to pay as directed by the customers. In this case the customer directed the bank, by his cheque, to pay the amount, and gave no authority to the bank to debit his account with the amount of the dishonoured bill. The ordinary principle of set-off does not apply in cases of banker and customer The duty off a banker, on receipt of his customer’s money is to pay out such as the customer directs. The bill had been made payable at the bank in question, and, therefore, there was no direction to the banker to pay such bill.
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Bibliographic details
Patea Mail, 19 April 1881, Page 3
Word Count
180THE BANKER AND CUSTOMER. Patea Mail, 19 April 1881, Page 3
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