Question 386. - Two cheques for $70 each are issued by the Militia and Defence Department to the order of "Pte J. Brady, No. 536237." They are retained later by the Department with the words "forged endorsement" on each. The cheques were presented by a "J. Brady," cashed by "J. Brady" and endorsed "Pte. J. Brady." Must the bank refund the money? John W. Brady, who was apparently Pte. J. Brady, made a declaration that he did not receive the money. The cheques were actually cashed by Jos. Brady.

Answer. - The bank must refund the money since payment was made to a party other than the designated payee.