Part C The Banker–Customer Relationship, 17 Duties of the Paying Bank

Subject(s):

Regulation of banks — Cheque

This chapter considers the duties and potential liabilities of the bank in its capacity as a paying bank, that is, in meeting cheques and making payments at the request and for the account of the customer. It discusses the obligation of the bank to make payment; the nature and consequences of an unauthorized payment; various statutory protections available to an institution in its capacity as a paying bank; payment by mistake; and the extent to which the paying bank may incur liabilities to third parties in the course of performing its functions.