Report No. 11
152. Protection to collecting banker.-
Subject to the provisions of this Act relating to cheques crossed "account payee", where a banker in good faith and without negligence receives payment for a customer of a cheque crossed generally or specially to himself, and the customer has no title or a defective title thereto,1 the banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment.
1. See section 82, BEA.
Explanation.-A banker receives payment of a crossed cheque for a customer within the meaning of this section notwithstanding that he credits his customer's account with the amount of the cheque before receiving payment thereof.