Question 318. - Bank A clears to bank B a cheque on August 28th, 1918. Bank B returns cheque for the reason "N.S.F." Bank A's endorsement stamp on this cheque is dated August 27th, 1918. Can this cheque be legally protested? Suppose bank B claims that the cheque should have been protested on the day that is on bank A's endorsement. What is the position of bank A to the endorser of the cheque?

Answer. - If bank A receives cheque on deposit on 27th August, and presents it on 28th, it certainly is using ordinary diligence, and as far as bank A is concerned protest on 28th would enable it to hold the prior endorser.