Question 64. - If a cheque is presented to a bank by a third party, signed by the depositor in blank, and accompanied by the pass-book, the party presenting it stating that he was authorized to fill out the cheque for the amount of the balance, would the bank be justified in paying over the balance, on the cheque filled up by him, or by the bank at his request?

Answer. - This is, of course, not an alteration, but cornea under sections 31 and 32 of the Act, Which authorizes any person in possession of a bill which is wanting in any material particular to fill up the omission, provided this is done within a reasonable time, and strictly in accordance with the autho-rity given.

In the case referred to the bank in paying the cheque would be protected if the authority given by the drawer to the person presenting the cheque empowered him to fill in the amount. If this should prove not to be within that authority, the cheque could not be charged to the customer's account.

Whether the bank should take the responsibility in any particular instance is a question of expediency. No doubt in the vast majority of cases the transaction would be perfectly regular, and the surrounding circumstances generally make the bank's course clear, but if it pays such a cheque it pays-on the faith of the representations made by the party presenting it, and takes the risk of any fraud that may be involved.