Question 388. - If a bank pays a cheque drawn on itself and some days afterwards discovers that the signature of the drawer is a forgery, and the forged signature is almost similar to the genuine signature, can the bank be compelled to refund the amount of the forgery to its customer, notwithstanding the fact that his signatures as drawer are usually affixed in a careless manner?

Answer. - The bank cannot charge to a customer's account a cheque the signature of which is a forgery. The fact that the forged signature bears similarity to the genuine signature makes no difference, and the customer would be entitled to demand a reversal of the entry in his account.