Question 188. - At points where no Clearing House exists and the rules fixed by the Bankers' Association do not therefore govern, does the ordinary bank endorsement stamp (without guarantee clause) hold the depositing bank liable for a reasonable time in case any of the endorsements on cheques or other items deposited by them prove unauthorized or irregular?

Answer. - The regulations regarding endorsements made by the Bankers' Association apply to items exchanged between banks directly, as well as through the Clearing House, and the depositing bank would be liable in the circumstances indicated.