Question 218. - A has a cheque for $80, signed by B, on our savings department, but B has only $40 to his credit; is the bank justified to pay to A the balance remaining to B's account without any notice? What would you think of a debit slip on B's account to withdraw the balance remaining to his credit, and apply that amount as a partial payment on the back of the cheque?

Answer. - The bank should refuse payment - "Not sufficient funds."

Insufficient Funds for a Cheque - Holder Cannot Demand Partial Payment. Question 214. - Would you think it well to amend the law so as to give to the holder of a cheque for which there arc not sufficient funds, a right to receive whatever amount there may be at credit of account?

Answer. - As far as the interests of the banks are concerned we think that any legislation giving the holder of an unaccepted cheque rights against the bank would be highly undesirable. At present banks are responsible only to their own customers for what they do, or omit to do, in respect to any unaccepted cheque, and to alter this position would involve serious consequences.