Question 584. - If a bank notifies a customer that it has assumed possession of goods assigned to it under section 88 of the Bank Act - although allowing the goods to remain on the customer's premises - ought it to require a transfer of the insurance into its own name, or would the policies issued in favour of the customer - loss being payable to the bank - be sufficient to protect it, in case of fire?

Answer. - The fact that the bank has taken possession of goods assigned to it under section 88 should, as a matter of precaution, be notified to the insurance company, as it might be held to be a change material to the risk under the conditions of the policy, but notwithstanding the fact that the bank takes possession its interest is still that of a mortgagee, and the customer remains the "general owner."