The Law Relating to Banker and Customer in Australia (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1907 edition. Excerpt: ... branch, let us say, arranges to deposit further security Chap. for an overdraft which he has there, as well to add XXIV, security to what he has already given for past advances as to secure a further sum; the transaction is approved by head office, and Wilcannia is instructed that it may be carried out. Soon.after, notice of an act of bankruptcy, committed by B in Sydney, reaches A, a responsible officer in head office; he reflects that his own bank is secured, and thinks no more of it. There would really have been time to countermand the instructions given to Wilcannia, but, no such message reaching him, the Wilcannia manager in good faith concludes the business. What happens? The security is useless against the official assignee: valid against everyone else, no doubt, but there would not be much profit in that. To show the importance of this illustration, a case which actually happened to the Bank of England with respect to notice given to the London office and a transaction in good faith by the Gloucester branch may be referred to; there, the trans-Willis v. action was a payment of 1,000 in gold for two of the k ig3gng' bank's post bills, but as regards liability for acts of an 4 A. & E. agent after notice to the principal, the case is exactly on"" all fours with the one I put about securities. It is said?fe a80 r Morris v. that the doctrine of constructive notice is one which has National been carried far enough, and it ought not to be carried 13 w one single step further. L.R., 93. With regard to sufficiency of notice, it is not neces-Sufficiency of. sary that there should be notice of some specific act of bankruptcy; general notice that the debtor has committed an act of bankruptcy will be sufficient. Notice of an intention...